Smart Weapons Market Size & Share, by Product Type (Missiles, Guided Rockets, Guided Firearms, Guided Projectiles, Munitions), By Technology (Laser, Radar, Infrared, GPS) and By Platform (Air, Land and Naval) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

Growth Drivers

Rising Need for the Replacement of Old Military Equipment

Nations around the globe have purchased and stored arms and ammunitions for safety and security over the years. As these weapons have grown old over the time, the fear of malfunction or failure of the weapons at the time of using these weapons during a warfare or during training sessions have raised the demand for frequent maintenance of these weapons. Increasing cost of maintenance of these weapons and the concern for huge portion of the budget for arms and ammunitions of the governments being used for maintenance is raising the need for replacement of the weapons. Additionally, concern for safety and security risks on the back of lack of advance technologies in old weapons that are available with the governments of nations around the globe is also contributing to the rising need for replacement of old weapons with new advanced smart weapons. Such a factor is anticipated to drive the growth of the global smart weapons market.

Increasing Budget of Governments for Military Spending

According to The World Bank, military expenditure around the world increased from USD 1.631 trillion in the year 2016 to USD 1.782 trillion in the year 2018.

The budget for expenditure on military by the government of nations around the world is growing at a rapid pace on the back of increasing concern for terror threats and the rising need to provide safety and security to the citizens of a nation. As such, there is a rising need for the deployment of weapons which are technologically advanced and can help nations gain an extra edge of security. With the rising budget for military spending, governments can purchase more smart weapons, which is anticipated to promote towards the growth of the global smart weapons market during the forecast period.

Challenges

Impact on Sales Due to Dynamic Arms Trade Regulations

The international treaty for arms trade is designed for the regulation of trade in arms and ammunitions. Dynamic updates into the regulation often hampers the sales of weapons between countries around the world. Moreover, high price of smart weapons is also anticipated to act as a barrier to the growth of the global smart weapons market throughout the forecast period.