Smart Weapons Market to reach $85 Billion by 2030; The Increased defense expenditure, demand for precision strikes, advancements in autonomous systems, network-centric warfare, and international defense collaboration promoting smart weapon technologi

The Smart Weapons Market size is estimated to reach $85 Billion by 2030, growing at a CAGR of 11.0% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Smart Weapons Market – By Type (Missiles, Smart Bombs, Precision-Guided Munitions, Smart Bullets, Loitering Munitions (Drones), Smart Guns, Others), By Platform (Air-Based Platforms, Land-Based Platforms, Naval-Based Platforms),  By Functionality (Autonomous Weapons, Semi-Autonomous Weapons, Man-in-the-loop Systems), By Technology (GPS Guidance, Laser Guidance, Infrared Guidance, Radar Guidance, Inertial Navigation System (INS), Satellite Guidance, Electro-Optical/Infrared (EO/IR) Sensors, Others), By Application (Military, Defence Contractors, Law Enforcement Agencies, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

The growing need for smart weapons is being fueled by the rise in defense spending. The evolution of precision strike requirements is leading to the wider use of sophisticated smart weapon technologies. The improvement of autonomous technology also raises the efficiency of smarter weapons. The heightened interest in network-centric warfare has amplified demand for weapon systems that are both connected and intelligent, and international defense alliances have stepped up their efforts in advancing development and deployment are fueling the growth of the Smart Weapons industry during the forecast period.

North America accounted for the largest share of 39% of the Smart Weapons Market in 2023. North America leads the global smart weapons market due to strong investments in advanced defense technology and extensive testing of smart weaponry by major defense companies. For instance, Raytheon, an RTX business, conducted 28 successful tests of its StormBreaker® smart weapon in 2023, including flawless jettisons from platforms like the F-35C, F/A-18E/F, and F-15E across U.S. Navy, Marines, and Air Force. StormBreaker’s capabilities, including precision-strike technology and the ability to engage targets in adverse conditions using its tri-mode seeker and mid-flight datalink updates, demonstrate the region's focus on equipping service members with adaptable, network-enabled, and survivable weapons. Furthermore, the rise in security needs due to increasing instances of mass shootings highlights the demand for advanced weapon systems to maintain robust defense measures, reinforcing North America’s dominance in this market.

The Smart Weapons Market significantly benefits from the increase in defense expenditures, especially because governments aim to enhance domestic technological innovation. In India, the amount dedicated to the Innovations for Defence Excellence (IDE) initiative has increased significantly from approximately US$1.36 million dollars to US$6.16 million dollars throughout the fiscal period for 2024-25 in the 2024 budget by the Government. The overall value of defense production hit a record US$15.11 billion dollars in FY2023-24, representing a 16.7% rise from the prior year, indicating major investment in advanced defense technologies. 

Technological advancements are reshaping the smart weapons market, with AI-enabled systems like the British Army’s new SMASH anti-drone technology driving growth. For instance, the British Army recently equipped paratroopers from the 16 Air Assault Brigade with SmartShooter SMASH weapon sights, which enhance accuracy in neutralizing drones through AI-driven target recognition and movement tracking. Ordered for $5.8 million in June 2023, SMASH technology has transformed how soldiers engage small, mobile targets. According to British defense procurement officials, this system boasts a “one shot, one hit” capability by allowing soldiers to fire only when the weapon is accurately aligned. Partnerships like EDGE’s with Roketsan similarly underscore how smart weapons markets are strengthened by advanced tech collaborations. As major defense groups increasingly integrate AI-driven solutions, they set new benchmarks for precision and efficiency in warfare, highlighting the demand for innovative defense solutions worldwide.

Key companies profiled in the Smart Weapons Market are Lockheed Martin Corporation, RTX, Northrop Grumman Corporation, BAE Systems plc, Thales Group, Saab, MBDA Systems, Elbit Systems Ltd., Rafael Advanced Defense Systems, Leonardo S.p.A and others.

Military Communications Market - The Military Communications market size is forecast to reach $44.02 billion by 2030, growing at a CAGR of 4.3% from 2024 to 2030. The growth of this market is driven by increasing defense budgets, advancements in communication technologies, and the rising demand for secure and efficient communication systems in military operations.

Unmanned Underwater Vehicle Market - The Unmanned Underwater Vehicle Market is estimated to reach $6.5 billion by 2026, growing at a CAGR of 10.6% from 2021 to 2026. The market growth is driven by increasing applications of UUVs in defense, scientific research, and commercial activities, as well as advancements in underwater navigation and communication technologies.

Aerospace and Defense Materials Market - The Aerospace and Defense Materials market size is forecast to reach USD 51.70 billion by 2030, after growing at a CAGR of 7.39% during 2024-2030. The market growth is driven by increasing demand for lightweight, high-strength materials, advancements in composite technologies, and the expansion of aerospace and defense manufacturing to support modern aircraft and military equipment.