Market Trends of Naval Smart Weapons Industry
Laser Guidance Segment Holds the Highest Share in the Market
Based on the technology, the laser guidance segment currently accounts for the highest market share, and it is expected to dominate the market during the forecast period. The laser guidance systems are integrated into missiles, rockets, and other weapons, to strike both stationary or moving targets. The rising demand to decrease the number of friendly fatalities and damages to assets, even from a distance of 8-12 km, is propelling the use of laser guidance technology in various missile programs. For instance, in February 2022, the US Navy tested an all-electric, high-energy laser weapon by using it on a target representing a subsonic cruise missile in flight. And in August 2022, Lockheed Martin Corporation delivered the first High Energy Laser with Integrated Optical-Dazzler and Surveillance (HELIOS) system to the US Navy, as part of the 2018 contract worth USD 150 million.
With the advancement in technology, these laser-guided weapons can find their way in even bad weather conditions. Other than missiles, laser guidance is currently being integrated into ammunitions to precisely kill the intended targets with high accuracy. For instance, in November 2022, the UK test-fired its first high-powered, long-range, laser weapon, named DragonFire. The targets during the test-fire included drone and metals such as the ones that are used in ship hulls. Such developments are expected to further propel the demand for laser guidance weaponsduring the upcoming period.
North America to Dominate Market Share
In terms of geography, North America currently holds a major market share. The US accounts for the largest share in North America, owing to factors, such as high spending by the government on the modernization of military equipment, R&D by major players to enhance the military power, and the increasing procurements of naval vessels, like frigates, destroyers, and aircraft carriers, among others. For instance, in November 2022 the US Navy awarded a contract worth USD 397.7 million to Raytheon Technologies Corporation for building next-generation shipboard missiles capable of targeting a variety of aircraft and missile threats with active radar guidance. The US Navy announced collaborating with the US Army for developing hypersonic missiles by 2023, post which they would initiate the phase of designing and testing the integration between the missile and USS Zumwalt's hull and combat system by 2025. Moreover, the presence of several smart weapons manufacturers and increasing government investments are accelerating the development of new and enhanced weapons.
