Precision Guided Munitions Market size is expected to be worth around USD 64.7B

yuvrajmodak

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The Global Precision Guided Munitions Market size is expected to be worth around USD 64.7 Billion By 2034, from USD 37.9 billion in 2024, growing at a CAGR of 5.5% during the forecast period from 2025 to 2034. In 2024, North America held a dominant market position, capturing more than a 38% share, holding USD 14.4 Billion revenue.

The Precision Guided Munitions (PGM) are advanced weapon systems designed to accurately strike specific targets while minimizing collateral damage. These munitions include missiles, bombs, and artillery shells equipped with guidance systems like GPS, laser, or infrared targeting. They offer high accuracy and lethality, which are essential in modern warfare scenarios. PGMs are especially important in minimizing risks to civilians and infrastructure while ensuring mission success. Their growing importance in military operations worldwide is driven by evolving security threats, the need for precision in combat, and increased demand for smarter, more effective weapons.

The Precision Guided Munitions Market refers to the global industry involved in the research, development, production, and sale of these advanced weapons. It includes a wide range of defense contractors, technology firms, and governmental defense departments. The market is experiencing steady growth due to rising geopolitical tensions, increasing military budgets, and rapid advancements in guidance technologies. Nations are investing heavily in smart munitions to maintain strategic superiority and to modernize their defense systems. This market not only includes traditional warfare products but is now expanding into AI-enabled systems and next-generation weapons, showing a shift toward automation and networked warfare capabilities.

A key driver for this market is the increasing demand for advanced military capabilities, especially in regions with unstable political landscapes or high levels of conflict. Countries are seeking ways to reduce manpower dependency and enhance combat precision. Rising border disputes, counter-terrorism operations, and strategic deterrence needs are directly pushing the demand for PGMs. Defense modernization programs, especially in the US, China, India, and NATO countries, are further fueling the demand for sophisticated munitions with pinpoint accuracy.