Smart Weapons Market Size to Reach USD 31.89 Billion by 2031 - Mordor Intelligence

Introduction 

According to analysis by Mordor Intelligence, the smart weapons market size is estimated at USD 22.26 billion in 2026, and projected to reach USD 31.89 billion by 2031, expanding at a CAGR of 7.45% during the forecast period. The smart weapons market forecast reflects sustained procurement across major defence economies and increasing integration of precision-guided systems across land, air, and naval platforms. 

The smart weapons industry is witnessing steady demand as defence strategies prioritize accuracy, reduced collateral damage, and improved operational efficiency. Modern battle environments, particularly urban and hybrid warfare settings, are reinforcing the need for guided munitions capable of single-target precision. This shift is influencing procurement programs across NATO members, Asia-Pacific nations, and emerging defence markets. 

Smart Weapons Market Trends 

Rising Defence Spending Supporting Smart Weapons Market Growth: A key driver of smart weapons market growth is the increase in defence expenditure among leading economies. NATO members have aligned spending with alliance benchmarks, resulting in higher allocations for guided missile inventories and precision strike systems. European initiatives focused on joint procurement are enabling larger production runs, supporting stability in the smart weapons industry. 

Emphasis on Precision Strike and Reduced Collateral Damage: The operational requirement to minimize unintended damage has strengthened the role of precision-guided munitions. Modern conflicts highlight the importance of high-probability, single-round impact systems. As a result, military planners are prioritizing smart missiles, guided rockets, and loitering munitions capable of mid-course correction and target discrimination. 

Modernization to Counter Advanced Air-Defence Systems: The presence of advanced anti-access and area-denial systems has encouraged the integration of multi-mode guidance technologies. Single-mode GPS-reliant weapons face vulnerabilities in contested environments, prompting development of systems combining satellite navigation, inertial guidance, radar, and imaging sensors. 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/smart-weapons-market?utm_source=industrytoday  

Smart Weapons Market Segmentation 

By Product 

• Smart Missiles 
• Smart Bombs 
• Guided Rockets and Projectiles 
• Loitering Munitions 
• Directed Energy Weapons 

By Technology 

• Satellite/GNSS Guidance 
• Laser Guidance 
• Radar Guidance 
• Infra-Red/Imaging Guidance 
• Multi-Mode and AI-Enabled Guidance 

By Platform 

• Land 
• Airborne 
• Naval 

By End-User 

• Military 
• Homeland Security 

By Geography 

• North America 
• Europe 
• Asia-Pacific 
• South America 
• Middle East and Africa 

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Smart Weapons Industry Competitive Landscape 

The smart weapons industry is moderately consolidated, with leading defense contractors holding a significant portion of global revenue. Established companies benefit from vertically integrated supply chains, long-term government contracts, and advanced seeker technologies. 

Key Players in the Smart Weapons Market 

• Lockheed Martin Corporation 
• RTX Corporation 
• The Boeing Company 
• Northrop Grumman Corporation 
• BAE Systems plc 

Explore more insights on smart weapons competitive landscape: https://www.mordorintelligence.com/industry-reports/smart-weapons-market/companies?utm_source=industrytoday  

Conclusion  

The smart weapons market forecast indicates sustained expansion driven by rising defense budgets, emphasis on precision strike capabilities, and integration of multi-mode guidance systems. Governments are increasingly prioritizing guided munitions as part of broader modernization programs, reinforcing the long-term smart weapons market growth trajectory. 

As electronic warfare threats and advanced air-defense systems become more widespread, the smart weapons industry will continue to focus on resilient navigation, AI-enabled targeting, and adaptable launch platforms. Regional diversification of procurement programs is strengthening global smart weapons market share distribution, with North America, Europe, and Asia-Pacific playing central roles. 

Get detailed insights on the smart weapons market: https://www.mordorintelligence.com/industry-reports/smart-weapons-market?utm_source=industrytoday  

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