Missile Guidance System Market Analysis APAC,North America,Europe,Middle East and Africa,South America - US,China,India,Germany,UK - Size and Forecast 2023-2027

Missile Guidance System Market Size 2023-2027

The Global Missile Guidance System Market size is estimated to grow by USD 587.45 million at a CAGR of 4.47% between 2022 and 2027. The market for ballistic missiles and warhead development is experiencing remarkable growth, primarily fueled by accelerated development and procurement initiatives. There's a notable emphasis on modifying new warheads and meeting the demand for enhanced ballistic missiles, contributing to the market's rapid expansion. These advanced systems are pivotal in ensuring precision and effectiveness in missile targeting, thus becoming indispensable components of modern defense strategies. Their role extends beyond conventional warfare, encompassing strategic deterrence and defense against emerging threats. This Missile Guidance System Market Size analysis and report also includes key drivers, trends, and challenges during the forecast period. 

Missile Guidance System Market Forecast and Size

To learn more about this Missile Guidance System Market Size Analysis report,  Request Missile Guidance System Market Free Sample

The Missile Guidance System Market report is witnessing significant advancements in optical tracking technology, facilitating precise targeting capabilities across various missile systems. With a focus on enhancing defense capabilities, the market sees robust demand for anti-aircraft, anti-ship, anti-submarine, and anti-radiation missiles, driving the development of sophisticated guidance systems. Incorporating advanced electrical and mechanical components, these systems ensure accuracy and effectiveness in missile guidance, addressing evolving security challenges worldwide.

Market Segmentation 

Missile guidance systems form the backbone of modern weaponry, ensuring accuracy and reliability in targeting. These systems integrate various components, such as flight path control systems and attitude control systems, to maintain trajectory precision throughout the missile's journey. Semi-active lasers and radar homing mechanisms enhance targeting capabilities, allowing missiles to track and engage moving targets with high accuracy. Additionally, Inertial Navigation Systems (INS) and Global Positioning Systems (GPS) provide vital navigation data, ensuring precise guidance even in challenging environments. As governments increase spending on defense, there's a growing focus on developing hypersonic missiles and precision-guided munitions. These next-generation systems leverage advanced guidance technologies to achieve unparalleled speed and accuracy, bolstering national security capabilities. Overall, missile guidance systems encompass a range of cutting-edge technologies designed to enhance the effectiveness and reliability of defense systems in modern warfare scenarios.

Missile Guidance System Market Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Million for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments. 

• Product Type Outlook
  • Command
  • Homing
  • Beam rider 
  • Inertial and GPS 

• Application Outlook 
  • Cruise missiles
  • Ballistic Missile

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Missile Guidance System Market Segmentation By Product 

The market share growth by the command guidance system segment will be significant during the forecast period. The guidance signal is transmitted from the launch site to the missile in command guidance missile systems. The onboard logic on the missile receives a control signal to turn a deviating missile toward the line of sight and the deviation of the missile from the target to the launch line of sight is computed on the ground computer at short intervals (30-50 m/s), and then the updated commands are transmitted to the missile. 

Get a Customised Missile Guidance System Market Report as per your requirements for FREE!

The command segment was valued at USD 718.78 million in 2017. Command guidance missile systems require very little space on the missile, as all guidance instructions or commands come from outside the missile, which means that there is more room for a larger warhead. The most widely used method is the wire link between the launcher and the missile, which is used in surface-to-surface anti-tank missiles ranging up to 2.5 miles. Therefore, due to its advantage of command guidance, the missile system is anticipated to grow by driving the market during the forecast period.

Missile Guidance System Market Regional Analysis

For more insights on the market share of various regions View Missile Guidance System Market PDF Sample now!

APAC is estimated to contribute 46% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  China, India, Japan, and Australia are among the key countries that will contribute to the market in the region. Territorial conflicts between neighboring countries in the Asia-Pacific (APAC) region are on the rise.

Moreover, one major conflict in the region is the ongoing dispute between India and Pakistan over Kashmir, which has been going on for decades. The conflict remains prevalent in the region, and there are continuous firing incidents along the line of control (LoC). The Chinese Navy is developing a killing weapon to target and destroy aircraft carriers belonging to opposing countries near the tension zone. This is in response to the rising tensions in the South China Sea.

In addition, the missile is huge and has a sophisticated system that enables it to evade tracking systems and reach its target. It has a low radar signature and is highly maneuverable, which makes its flight path unpredictable. The missile carries a warhead big enough to cause significant damage to large naval vessels. As a result, the growing disputes among countries in the region and the development of such missiles are expected to drive the growth of the regional market during the forecast period

Missile Guidance System Market Dynamics

The market is pivotal for defense systems worldwide, ensuring precision in targeting and flight path control. Utilizing advanced technologies like semi-active lasers, radar homing, and Inertial Navigation Systems (INS), these systems enable accurate guidance for hypersonic missiles and precision-guided munitions. Incorporating elements such as attitude control systems and optical tracking, they facilitate effective anti-aircraft, anti-ship, and anti-submarine capabilities. With essential electrical and mechanical components, including missile guidance radars, these systems exemplify cutting-edge defense capabilities. Government spending in this sector underscores its critical role in safeguarding national security interests on a global scale. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.     

Key Missile Guidance System Market Driver

Demand for enhanced guidance systems for ballistic missiles is a major factor driving the market growth. Many militaries around the world face budgetary constraints that prevent them from purchasing advanced weaponry, such as new-age aircraft, naval vessels, combat vehicles, or weapons. However, this does not stop them from equipping themselves with the most advanced firepower needed to protect their respective countries. Retrofitting or modifying older systems with newer electronics, or warheads in that case, is a feasible solution for militaries to stay up-to-date with modern weapons.

Moreover, the cost of can vary from several million to several hundred million, changing its electronic systems, such as the guidance systems, only costs around 7%-12% of the overall cost. This leads to improved missile stealth capability, making retrofitting an attractive option for militaries. As a result, the  market is expected to grow during the forecast period

Significant Missile Guidance System Market Trends

Reduction in size, weight, and power (SWaP) of guidance systems is a major trend influencing the market growth. The need for microscopic electronics has led to the development of size, weight, and power (SWaP) based components, which is a highly sought-after trend in military and military-based products. The focus is on reducing the size and weight of components, as well as the overall power consumption of the system, by leveraging sharing technology. Raytheon's Pike is an excellent example of this trend, as it is a hand-launched, precision-guided munition that is only 16 inches long and weighs less than 2 pounds. The uses a semi-active laser guidance system and is designed to withstand the jarring acceleration of the missile.

In addition, another miniaturized missile is the Griffin missile, which weighs 33 pounds and is 43 inches long. It uses a laser and GPS and is fired from platforms such as rotary- and fixed-wing aircraft, C-130 aircraft, ground launchers, and naval ships. Therefore, the reduction in the SWaP of guidance systems is expected to have a positive impact on the market growth and trends during the forecast period

Major Missile Guidance System Market Challenge

Growing development of small diameter bombs (SDB) and electromagnetic railgun is a major factor hindering the market growth. The Small Diameter Bomb (SDB) boasts a range of over 60 nautical miles, providing warfighters with a compact yet precise tool to execute their targets. This design ensures low maintenance, high performance, and low life-cycle cost of operation. The SDB carriage allows a single aircraft weapon station to carry up to four weapons. For precision engagements, the SDB-Focused Lethality Munition (FLM) variant integrates an advanced multiphase blast explosive and a carbon fiber composite warhead case with ultralow collateral damage outside the blast zone.

Additionally, SDB can be integrated externally on F-15E smart stations, while internally, it can be integrated on the bays of Unmanned Combat Air Vehicles, B-1 and B-2 bombers, F-35, and F-22A. However, the increasing development of SDB and electromagnetic railguns can pose a challenge to the growth of the market during the forecast period.

Who are the Major Missile Guidance System Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

BAE-Systems Plc - The company offers Thaad seeker, which has advanced sensors to seek and lock onto incoming targets and enemy ballistic missiles moving up to 17000 miles per hour.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Airbus SE, BAE-Systems Plc, Dassault Aviation SA, DRDO, Elbit-Systems Ltd., General Dynamics Corp., Honeywell International Inc., Israel Aerospace Industries Ltd., Kongsberg Gruppen ASA, Leonardo Spa, Lockheed Martin Corp., Mitsubishi Heavy Industries Ltd., Northrop Grumman Corp., Rafael Advanced Defense-Systems Ltd., Raytheon Technologies Corp., Saab AB, Safran SA, Tactical Missiles Corp., Thales Group, and The Boeing Co. 

Technavio market growth analysis report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Missile Guidance System Market Analyst Overview

The market is driven by the increasing demand for advanced defense technologies and government spending on defense systems. Missile guidance systems play a critical role in ensuring accurate targeting and effective defense against various threats. These systems include flight path control systems and attitude control systems, which enable precise navigation and targeting. They incorporate sophisticated technologies such as infrared homing and optical tracking to detect and engage targets effectively. Additionally, the market offers a wide range of missiles, including anti-aircraft missiles, anti-ship missiles, anti-submarine missiles, hypersonic missiles, and anti-radiation missiles, each equipped with advanced electrical and mechanical components and supported by robust missile guidance radars for accurate guidance and interception.

The market is witnessing significant growth propelled by advancements in defense technologies and increased defense budget allocations. These systems utilize various guidance methods, including semi-active lasers, radar homing, and the Inertial Navigation System (INS), complemented by the Global Positioning System (GPS) for precise targeting. Sophisticated technologies like automatic target recognition (ATR) missile systems enhance accuracy and effectiveness. Notable projects such as the NATO Seasparrow and Evolved Seasparrow Missile (ESSM) Block 2 demonstrate collaborative efforts in missile development. Additionally, the market sees innovations in electrical components, air defense systems, and altitude control systems, ensuring robust defense capabilities. Entities like NASA and defense organizations contribute to advancements, including the retrofitting of missiles like the Pike missile to meet evolving threats.

The market is witnessing remarkable growth driven by the increasing demand for advanced defense technologies worldwide. GPS-guided missiles have emerged as pivotal components, providing precise navigation capabilities for military applications. The utilization of electromagnetic waves and infrared radiations enhances target detection and tracking accuracy in diverse operational environments. Sophisticated air defense systems missiles, including those developed under initiatives like the NATO Seasparrow project and the deployment of Brahmos missiles, signify substantial investments in defense infrastructure. Cutting-edge technologies such as air-search radars, receivers, stability modules, and servo motors contribute to the efficiency and reliability of missile guidance systems. Collaboration with space organizations further strengthens defense capabilities, ensuring robust defense systems against evolving threats.

Missile Guidance System Market Scope
Market Report Coverage	Details
Page number	183
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.47%
Market growth 2023-2027	USD 587.45 million
Market structure	Fragmented
YoY growth 2022-2023(%)	4.27
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 46%
Key countries	US, China, India, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Airbus SE, BAE-Systems Plc, Dassault Aviation SA, DRDO, Elbit-Systems Ltd., General Dynamics Corp., Honeywell International Inc., Israel Aerospace Industries Ltd., Kongsberg Gruppen ASA, Leonardo Spa, Lockheed Martin Corp., Mitsubishi Heavy Industries Ltd., Northrop Grumman Corp., Rafael Advanced Defense-Systems Ltd., Raytheon Technologies Corp., Saab AB, Safran SA, Tactical Missiles Corp., Thales Group, and The Boeing Co.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our Missile Guidance System Market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Our report includes market trends and analysis report with precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this Missile Guidance System Market research report to meet your requirements. Get in touch