Europe Cruise Missile Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.18 Billion |
| Market Size (2029) | USD 1.89 Billion |
| CAGR (2024 - 2029) | 9.65 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Cruise Missile Market Analysis
The Europe Cruise Missile Market size is estimated at USD 1.18 billion in 2024, and is expected to reach USD 1.89 billion by 2029, growing at a CAGR of 9.65% during the forecast period (2024-2029).
The increased defense spending on missile and missile defense systems by European countries is driving the growth of the market. Countries like Poland, Finland, etc have increased the budget for the procurement of missile defense systems from foreign countries. Additionally, the focus on the indigenous development of missiles has increased, due to the increasing cybersecurity breaches aimed at gaining the technological know-how of military technologies. As the militaries emphasize keeping the technologies used in the missile systems intact, in order to maintain technological superiority, they also emphasize indigenous missile development. In addition, countries started developing their own missiles to reduce their dependence on foreign technologies. Furthermore, indigenous development helps countries both strategically and economically, by opening new prospects for exports. Countries like France, the United Kingdom, Germany, etc. are spending a lot of money on the research and development of supersonic and hypersonic cruise missiles which is expected to propel the missile market growth in Europe during the forecast period.
A modern missile is a result of years of R&D activities conducted on a component-level basis. To deliver the best results, such development activities are carried out for an extensive period, and they include years of rigorous testing and documentation before releasing a new variant for military use. Till then, the R&D costs of new technologies, especially new concepts, are expected to be high and economically straining to the budgets. The missile development programs take years and, sometimes, decades for their induction into the military from the date of their announcement. In the meantime, several factors may influence the governments and the militaries to either cancel or delay the development programs.
Europe Cruise Missile Market Trends
The Sea Segment to Dominate Market Share During the Forecast Period
The rise in naval spending by countries such as France, the UK, Germany, etc. is propelling the market growth for cruise missiles launched from surface combatants and submarines. Countries in Europe have been investing a significant amount in indigenous development of naval platforms or procurements from foreign players. The increasing fleet of the naval forces in the region is also demanding robust air defense capabilities with guided and interceptor missiles, which is driving the growth of the segment in the region. Several navies are developing and procuring sea-launched missiles for their naval fleets. For instance, in November 2023, the Norwegian government announced the development program for the next-generation strike missile, in cooperation with Germany and Kongsberg Defence & Aerospace as the lead industrial partner. Kongsberg has previously developed the Naval Strike Missile (NSM) and will play the lead role in developing the new naval strike missile. The new missile will be known as SuperSonic Strike Missile (3SM) Tyrfing and is scheduled to be ready in 2035.
Russia to Dominate the Market During the Forecast Period
The conflict between Russia and Ukraine has served as a severe demonstration of the critical role played by cruise missiles. The conflict has witnessed the use of air-launched aero-ballistic missiles, large-scale deployment of direct attack munitions, and the testing of various cruise missile types. Russia's experience is likely to fuel demand for long-range conventionally armed land-attack cruise missiles, not only within Russia but also among other state and non-state actors globally. The conflict has emphasized the importance of quantity as a distinct quality, prompting potential users to consider the development of more capable and numerous land-attack cruise missiles. Russian strategies may involve increased numbers, improved stealth, greater speed, and the incorporation of lower-cost, high-volume decoys or direct attack munitions to overcome ground-based air defense. Russia may intensify efforts to develop high-supersonic or hypersonic cruise missiles. Furthermore, the conflict has accelerated the evolution of long-range precision land-attack weapons, moving from single-role to multi-role capabilities.
Despite sanctions and export controls, the continuation of Russia's extensive use of these missiles indicates the nation's sustained capacity to produce or acquire the necessary strike assets. For instance, in March 2023, Russia disclosed its plans to equip several navy vessels using Kalibr missiles. As per the plans, Lada-class submarine Kronstadt, which is under construction, will be equipped with Kalibr cruise missiles. Similarly, Steregushchiy corvette will also be equipped with a new Kalibr-NK missile system during modernization work at the Kronstadt Marine Plant. Such developments are anticipated to provide tremendous boost to the demand for cruise missiles in Russia during the forecast period.
Europe Cruise Missile Industry Overview
The Europe cruise missile market is semi-consolidated at the moment but more consolidation is expected during the forecast period as the leading players, including RTX Corporation, MBDA, Rafael Advanced Defense Systems Ltd., JSC Tactical Missiles Corporation, and Kongsberg Gruppen ASA, release new products to gain market share and restrict the entry of small players. The market is witnessing a significant investment in research and development of advanced missiles, like hypersonic cruise missiles. Several missile manufacturers are collaborating, forming joint ventures for the sharing of technology and expertise which will help them develop sophisticated cruise missile systems in the future, which, in turn, will help them attract new customers and increase their market presence and share. For instance, in January 2021, the UK MoD awarded a USD 750 million contract to MBDA for equipping its F-35 fleet with SPEAR3 cruise missiles. As per the development plan, the SPEAR3 missile will achieve initial operation capability on the aircraft in 2025, which will make it the primary air-to-ground weapon for the F-35 jets in service with the Royal Navy and Royal Air Force.
Europe Cruise Missile Market Leaders
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Kongsberg Gruppen ASA
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RTX Corporation
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Lockheed Martin Corporation
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Rafael Advanced Defense Systems Ltd.
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MBDA
*Disclaimer: Major Players sorted in no particular order
Europe Cruise Missile Market News
In November 2023, MBDA signed a sub-contract with PGZ (Poland) for enhanced ground-based air defence system capable of launching missiles to engage air threats. As per the deal, MBDA will develop more than 1,000 Common Anti-Air Modular Missiles Extended Range (CAMM-ER) and over 100 launchers. In April, MBDA and PGZ struck a similar USD 2.4 billion deal for short-range air defense.
In July 2022, the European Commission announced the Hypersonic Defence Interceptor Study (HYDEF) project with a funding of USD 106 million. The consortium consists of total 13 companies from seven European nations. Spanish Missile Systems (SMS) is responsible for project management. Meanwhile, Diehl Defence manages the technical implementation, from the development of the overall system to the interceptor itself. Hensoldt and Airbus are involved as national partners in the HYDEF project.
Europe Cruise Missile Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Launch Platform
5.1.1 Air
5.1.2 Sea
5.1.3 Land
5.2 Range
5.2.1 Short-range Missiles
5.2.2 Medium-range Missiles
5.2.3 Long-range Missiles
5.3 Country
5.3.1 United Kingdom
5.3.2 France
5.3.3 Germany
5.3.4 Italy
5.3.5 Russia
5.3.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 JSC Tactical Missiles Corporation
6.1.2 Rafael Advanced Defense Systems Ltd.
6.1.3 IAI (Israel Aerospace Industries)
6.1.4 RTX Corporation
6.1.5 Lockheed Martin Corporation
6.1.6 MBDA
6.1.7 The Boeing Company
6.1.8 Kongsberg Gruppen ASA
6.1.9 L3Harris Technologies, Inc.
6.1.10 THALES
6.1.11 Saab AB
6.1.12 BAE Systems plc
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Cruise Missile Industry Segmentation
A cruise missile is a guided missile used against hostile targets to deliver a conventional or nuclear warhead through low-altitude flight to evade radar detection. Short-range missiles have a range of less than 300 km, while medium-range missiles have a range between 300 km and 1,000 km. On the other hand, the long-range missiles have a range exceeding 1,000 km.
The Europe cruise missile market is segmented by launch platform, range, and geography. By launch platform, the market has been segmented into air, sea, and land. By range, the market has been segmented into short-range missiles, medium-range missiles, and long-range missiles. The report also covers the market sizes and forecasts in 5 countries across the region. For each segment, the market sizing and forecasts have been done based on value (USD).
| Launch Platform | |
| Air | |
| Sea | |
| Land |
| Range | |
| Short-range Missiles | |
| Medium-range Missiles | |
| Long-range Missiles |
| Country | |
| United Kingdom | |
| France | |
| Germany | |
| Italy | |
| Russia | |
| Rest of Europe |
Europe Cruise Missile Market Research FAQs
How big is the Europe Cruise Missile Market?
The Europe Cruise Missile Market size is expected to reach USD 1.18 billion in 2024 and grow at a CAGR of 9.65% to reach USD 1.89 billion by 2029.
What is the current Europe Cruise Missile Market size?
In 2024, the Europe Cruise Missile Market size is expected to reach USD 1.18 billion.
Who are the key players in Europe Cruise Missile Market?
Kongsberg Gruppen ASA, RTX Corporation, Lockheed Martin Corporation, Rafael Advanced Defense Systems Ltd. and MBDA are the major companies operating in the Europe Cruise Missile Market.
What years does this Europe Cruise Missile Market cover, and what was the market size in 2023?
In 2023, the Europe Cruise Missile Market size was estimated at USD 1.07 billion. The report covers the Europe Cruise Missile Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Cruise Missile Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Cruise Missile Industry Report
Statistics for the 2024 Europe Cruise Missile market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Cruise Missile analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
