| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 6.83 Billion |
| Market Size (2030) | USD 8.94 Billion |
| CAGR (2025 - 2030) | 5.54 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Aerial Smart Weapons Market Analysis
The Aerial Smart Weapons Market size is estimated at USD 6.83 billion in 2025, and is expected to reach USD 8.94 billion by 2030, at a CAGR of 5.54% during the forecast period (2025-2030).
Driven by increasing demand from various end users and regions, the aerial smart weapons market is poised for substantial growth in the near future. The evolving dynamics of aerial warfare and heightened defense spending on advanced weapon systems for military aircraft are set to propel the market during the forecast period.
The market anticipates a wave of innovations and developments as industry players vie to deliver cutting-edge and cost-efficient smart weapon systems. Key technological advancements, including the miniaturization of electronics, breakthroughs in material technologies, and enhancements in propulsion and guidance systems, are expected to bolster the growth of the aerial smart weapons market.
Despite its growth trajectory, the market may encounter hurdles such as government regulations, export controls, and ethical dilemmas. Yet, with opportunities outpacing challenges, the aerial smart weapons market is forecasted to experience positive growth.
Aerial Smart Weapons Market Trends
Missile Segment Expected to Witness Highest Growth During the Forecast Period
Due to the rising demand for advanced guided missiles from defense forces, the missile segment is set to dominate the market share over the forecast period. Key drivers for this growth include substantial increases in defense budgets across developed and developing nations, heightened usage of advanced weaponry, and evolving aerial warfare dynamics. For example, global military spending reached USD 2,443 billion in 2023, up 6.8% from USD 2,240 billion in 2022.
Trends such as developing network-enabled weapons, hypersonic missiles, and AI-driven armaments are poised to revolutionize military operations. Countries collaborate with aerial weapon manufacturers to craft advanced smart missiles for future threats. For instance, in October 2023, Indonesia's Ministry of Defense inked an offset agreement with Safran Electronic & Defense to procure AASM HAMMER smart weapons. Likewise, in November 2023, MBDA revealed its collaboration with the United Arab Emirates to co-develop smart weapons, targeting an initial production date 2030. This partnership focuses on the Smart Glider and Cruiser air-to-ground missiles, emphasizing AI-embedded capabilities for future combat.
Countries are also acquiring advanced military drones, outfitted with smart weapon systems, to address evolving threats and adapt to the modern warfare landscape. For instance, in May 2023, the Netherlands declared plans to arm its reconnaissance MQ-9 Reaper drones with laser-guided GBU bombs and air-to-surface Hellfire missiles. This modification and weapons procurement, valued between USD 107-268 million, anticipates initial armed drone deployment by 2025, with full deployment three years later. Such advancements and procurement of sophisticated weapon systems are projected to bolster the segment's growth during the forecast period.
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North America Projected to Occupy the Largest Market Share During the Forecast Period
North America, led by significant advancements in the US, is poised to dominate the aerial smart weapons market. In 2023, the US military's defense budget hit USD 916 billion, a 2.3% rise from the previous year. This surge in investment towards cutting-edge weaponry is largely a response to heightened threats from China's and Russia's evolving battlefield capabilities. The US is channeling substantial funds into developing and integrating a spectrum of advanced smart weapon systems, from smart bullets to nuclear-capable hypersonic-guided weapons. With several aerial smart weapon procurement programs underway, the US is set to drive the market.
For instance, in January 2024, the US Air Force awarded Raytheon a USD 345-million contract to produce and deliver over 1,500 StormBreaker smart munitions. These munitions are designated for the US Air Force, US Navy, and foreign military sales to Norway, Germany, Italy, and Finland. Weighing 204 pounds (92.5 kilograms), the munition boasts a tri-mode seeker millimeter wave, imaging infrared, and semi-active laser, allowing it to target stationary and moving objects, day or night, in any weather. The StormBreaker is currently deployed on the F-15E Strike Eagle, with tests ongoing for the F-35B and F/A-18.
In another instance, January 2023 saw the US Navy awarding RTX Corporation a USD 317 million contract for 408 AIM-9X precision short-range infrared-guided air-to-air missiles, tailored for the navy’s jet fighters and other combat aircraft. Such initiatives underscore the region's promising market outlook during the forecast period.
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Aerial Smart Weapons Industry Overview
The aerial smart weapons market features a semi-consolidated landscape, with local and international players supplying various missiles, munitions, guided rockets, and projectiles to aerial forces globally. Beyond the global players, numerous state-owned enterprises are developing and manufacturing smart weapons for domestic use and are also eyeing export prospects.
Key market players include BAE Systems plc, RTX Corporation, Lockheed Martin Corporation, General Dynamics Corporation, and Northrop Grumman Corporation. In response to the evolving dynamics of aerial warfare, many nations are gearing up to develop and integrate next-generation aerial smart weapons into their military arsenals. With a heightened emphasis on indigenous smart weapon development, local manufacturers stand poised to bolster their market share through increased R&D investments, driving their growth. Furthermore, by forging joint ventures and partnerships, these players can harness technology transfers, paving the way for innovations and the creation of advanced aerial smart weapons during the forecast period.
Aerial Smart Weapons Market Leaders
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BAE Systems plc
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Lockheed Martin Corporation
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General Dynamics Corporation
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Northrop Grumman Corporation
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RTX Corporation
- *Disclaimer: Major Players sorted in no particular order
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Aerial Smart Weapons Market News
- July 2024: NATO took a strategic step to bolster the precision of its aerial operations by entering into a multinational framework agreement with RTX. This agreement focuses on procuring Paveway laser guidance kits. These kits, known for their versatility, can be affixed to a range of warheads, enhancing tactical targeting capabilities through cutting-edge technology.
- January 2024: Russia unveiled its intention to mass-produce the cluster 'Glide' munition. The inaugural batch of Drel bombs is set for production in 2024, coinciding with the reported induction of approximately 10,000 S-8KL guided cluster aviation munitions.
Aerial Smart Weapons Industry Segmentation
Aerial smart weapons can be guided to a specific target using various technologies such as infrared, laser, GPS, or radar. They are designed to enhance military operations' accuracy, efficiency, and effectiveness in the air domain. Aerial smart weapons include missiles, munitions, guided rockets, and guided projectiles.
The aerial smart weapons market is segmented by product, technology, and geography. By product, it is divided into missiles, ammunition, and other products. By technology, it is divided into satellite guidance, radar guidance, infrared guidance, laser guidance, and other technologies. The report also covers the market sizes and forecasts for the aerial smart weapons market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| Product | Missiles | ||
| Ammunition and Other Products | |||
| Technology | Satellite Guidance | ||
| Radar Guidance | |||
| Infrared Guidance | |||
| Laser Guidance | |||
| Geography | North America | United States | |
| Canada | |||
| Europe | United Kingdom | ||
| France | |||
| Germany | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Latin America | Brazil | ||
| Rest of Latin America | |||
| Middle East and Africa | United Arab Emirates | ||
| Saudi Arabia | |||
| Israel | |||
| Rest of Middle East and Africa | |||
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Aerial Smart Weapons Market Research Faqs
How big is the Aerial Smart Weapons Market?
The Aerial Smart Weapons Market size is expected to reach USD 6.83 billion in 2025 and grow at a CAGR of 5.54% to reach USD 8.94 billion by 2030.
What is the current Aerial Smart Weapons Market size?
In 2025, the Aerial Smart Weapons Market size is expected to reach USD 6.83 billion.
Who are the key players in Aerial Smart Weapons Market?
BAE Systems plc, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation and RTX Corporation are the major companies operating in the Aerial Smart Weapons Market.
Which is the fastest growing region in Aerial Smart Weapons Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Aerial Smart Weapons Market?
In 2025, the North America accounts for the largest market share in Aerial Smart Weapons Market.
What years does this Aerial Smart Weapons Market cover, and what was the market size in 2024?
In 2024, the Aerial Smart Weapons Market size was estimated at USD 6.45 billion. The report covers the Aerial Smart Weapons Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Aerial Smart Weapons Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Aerial Smart Weapons Industry Report
Statistics for the 2025 Aerial Smart Weapons market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Aerial Smart Weapons analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
