Market Size of Smart Weapons Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 19.28 Billion |
| Market Size (2029) | USD 25.51 Billion |
| CAGR (2024 - 2029) | 5.76 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Smart Weapons Market Analysis
The Smart Weapons Market size is estimated at USD 19.28 billion in 2024, and is expected to reach USD 25.51 billion by 2029, growing at a CAGR of 5.76% during the forecast period (2024-2029).
- The smart weapons market witnessed unprecedented challenges due to the COVID-19 pandemic. The rapid spread of the pandemic had a significant impact on the market. Implementation of lockdowns by various countries worldwide led to affecting the supply chain and disruption in the movement of essential raw materials and logistics challenges. Moreover, the challenges related to the movement of essential raw materials, mass layoffs by various defense companies, as well as a reduction in terms of orders for smart weapons by various defense personnel worldwide led to a decline in the production of smart weapon systems.
- On the other hand, the defense systems manufacturers and service providers had to reduce expansion and R&D investments to withstand the decline in revenue and operating performance of the defense industry. The marker showcased a strong recovery post-COVID due to an increase in demand by various defense personnel worldwide in terms of acquiring smart weapons. Moreover, the growing investments in research and development of smart weapons having advanced capabilities by various defense manufacturers are expected to propel the growth of the market during the forecast period.
- In addition, a change in warfare and demand for high-precision arms and ammunition are the two major factors that are driving the smart weapons market. Current conflicts which are taking place all over the world have spotlighted the critical need for precision attacks and operational strikes. A crucial need for avoiding collateral damage has also been stressed in the need for the procurement of advanced smart weapons for countries across the world.
- Moreover, the increasing military spending of emerging countries is helping in terms of the development of new and advanced smart weapons and is expected to lead to the growth of the smart weapons market during the forecast period.
