| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 1.55 Billion |
| Market Size (2030) | USD 1.95 Billion |
| CAGR (2025 - 2030) | 4.44 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Naval Missiles and Missile Launch Systems Market Analysis
The Naval Missiles And Missile Launch Systems Market size is estimated at USD 1.55 billion in 2025, and is expected to reach USD 1.95 billion by 2030, at a CAGR of 4.44% during the forecast period (2025-2030).
Maritime disputes in regions such as the South China Sea and the Mediterranean are driving increased investments in the acquisition and deployment of advanced naval vessels. Naval forces are actively modernizing their fleets by upgrading existing assets or replacing aging vessels with next-generation alternatives. This rising demand for naval vessels is projected to significantly boost the requirement for missiles and missile launch systems in the near term.
Globally, nations are prioritizing investments in advanced missile systems equipped with position-based guidance technologies to neutralize seaborne and ground-based threats accurately. Additionally, naval forces are upgrading missile firing systems on surface ships and submarines, which is expected to support market growth during the forecast period further.
However, the missile market faces constraints due to the high costs associated with development. The integration of advanced guidance systems and rockets necessitates complex technologies, contributing to elevated expenses. Furthermore, missiles' inability to alter their trajectory post-launch increases their vulnerability to interception by anti-missile systems, which could negatively impact market dynamics.
Despite these challenges, the adoption of advanced technologies by military and naval forces presents significant growth opportunities. For instance, the integration of artificial intelligence (AI) into naval missiles and missile launch systems is anticipated to drive market expansion. AI capabilities, such as analyzing historical data and evaluating various scenarios, enhance naval commanders' decision-making processes, thereby supporting the anticipated growth of the market during the forecast period.
Naval Missiles and Missile Launch Systems Market Trends
Missiles Segment To Dominate Market Share During the Forecast Period
The missiles segment of the market currently dominates it and is expected to continue its dominance primarily due to their relatively higher deliveries compared to missile launching systems. This segment's growth is expected to increase due to rising military expenditures and various modernization efforts by major global powers. For instance, in 2023, global military expenditures reached USD 2,443 billion, a 9.1% increase from 2022.
With this huge investment in defense expenditure, various countries are rapidly expanding their arsenal of advanced cruise and ballistic missiles to equip their growing naval vessel fleet with enhanced attack capabilities. For instance, in November 2024, at Euronaval 2024, Naval Group, in collaboration with Thales and KNDS, unveiled plans for an advanced Multi-purpose and Modular Launching System (MPLS). This innovative weapon platform is engineered to address contemporary, multi-faceted threats. The collaboration cemented through a Memorandum of Understanding (MoU), aims to amalgamate defense technologies from the trio into the MPLS.
Similarly, in October 2024, RTX Corporation secured a USD 736 million contract from the US Navy to produce the Block II variant of the AIM-9X Sidewinder missiles. This contract not only ensures the ongoing production of what is touted as the world's most advanced short-range missile for air-to-air and surface-to-air engagements but also focuses on addressing hardware obsolescence and upgrades for enhanced performance and reliability. The AIM-9X Block II missile, boasting advanced infrared-tracking capabilities, serves as a short-range solution for both air-to-air and surface-to-air combat. Designed for seamless integration with a diverse range of modern aircraft, it bolsters layered defense systems, including the National Advanced Surface-to-Air Missile System (NASAMS).
Furthermore, several nations are making progress in developing cutting-edge technologies like artificial intelligence (AI) to enhance their naval capabilities and effectively respond to different types of maritime threats. For instance, in December 2023, Iran announced that it had equipped its naval warships with Abu Mahdi cruise missiles. These missiles feature technologies such as artificial intelligence and command guidance for changing their course mid-air with a range of over 1,000 kilometers. Such developments of new naval missiles for the naval forces are anticipated to drive the growth of the segment during the forecast period.
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North America to Dominate Market Share During the Forecast Period
The North American region dominates market share primarily due to the large military spending of the US, which in turn supports the development and procurement programs for naval forces. For instance, in 2023, military spending across North America amounted to USD 943 billion, reflecting a 2.4% growth compared to 2022. Canada allocated USD 27.2 billion to defense in 2023, representing a 6.6% increase from 2022. The US accounted for nearly 40% of global military expenditures during the same period.
With this huge defense spending, the US is investing in the modernization of the naval fleet of the Navy and Marine Corps primarily to establish and maintain maritime dominance with a balanced naval force and employ increased lethality across all domains. These procurement programs are carried out to address increasingly complex threats in the global maritime environment.
For instance, as part of the FY2024 proposed budget request, the US Navy plans to invest USD 32.8 billion in the procurement of nine battleforce ships. The request includes funds for the second Columbia class submarine and two Block V Virginia class fast-attack submarines, as well as advance procurement funds for four future SSNs, two Arleigh Burke-class destroyers, and two Constellation class guided missile frigates.
In December 2024, RTX Corporation was awarded a contract by the US Department of Defense for the production and delivery of RGM-109 Tomahawk Block V cruise missiles. A substantial portion of these missiles will be exported under the Foreign Military Sales (FMS) program. The contract, valued at USD 401.2 million, is scheduled for completion by March 2028. An initial funding allocation of USD 31.6 million, including USD 21.5 million from export customers, was confirmed at the time of signing.
The contract includes the delivery of 131 RGM-109 Tomahawk Block V missiles. The distribution plan allocates 26 units to the US Navy, 16 to the US Marine Corps, 11 to Australia, and 78 to Japan. Both Australia and Japan represent new markets for the Tomahawk missile system.
With this robust naval fleet and induction programs, it is anticipated to generate demand for new advanced missile systems. For instance, in the FY2024 budget document, the US Navy announced that it plans to procure 13 Naval Strike Missile (NSM) missiles, 125 Standard Missile-6 (SM-6), 120 RAM Block II missiles, 147 Evolved Sea Sparrow Missile (ESSM) and the Marine Corps will procure 90 NSM missiles and 34 Block V Tactical Tomahawk (TACTOM) missiles.
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Naval Missiles and Missile Launch Systems Industry Overview
The naval missiles and missile launch systems market is consolidated, with very few players accounting for the majority share. Some of the prominent players in the market are RTX Corporation, Lockheed Martin Corporation, BAE Systems plc, Elbit Systems Ltd., and Kongsberg Gruppen ASA.
RTX Corporation is a major provider of missile systems to naval forces around the world. In addition to the international, there are many local players in the market, such as the Defence Research and Development Organisation (DRDO) and ROKETSAN A.S., among others. Currently, the increasing emphasis on developing local defense equipment in various countries is expected to strengthen local players' presence in the market. Further, to increase their share in the market, the companies are developing new missile systems onboard naval vessels for the armed forces around the world.
Naval Missiles and Missile Launch Systems Market Leaders
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Lockheed Martin Corporation
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Elbit Systems Ltd.
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Kongsberg Gruppen ASA
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BAE Systems plc
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RTX Corporation
- *Disclaimer: Major Players sorted in no particular order
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Naval Missiles and Missile Launch Systems Market News
- January 2025: RTX Corporation, a prominent defense technology company, Secured a USD 333 million contract from the US Navy to manufacture Standard Missile-6 (SM-6) Block IA missiles.
- September 2024: The US Navy awarded RTX Corporation a USD 525 million contract for the production of ESSM Block 2 missiles and associated spares for use by the US and allied nations. The ESSM Block 2 missile, a ship-launched guided weapon, offers enhanced maneuverability and improved operational performance compared to its predecessor, the Block 1 variant.
Naval Missiles and Missile Launch Systems Industry Segmentation
The naval missiles and missile launch systems market includes the procurement and upgrade of missiles, naval force modernization plans, and the integration of advanced missile launch systems onboard naval vessels.
The naval missiles and missile launch systems market is segmented by systems, by application, and by geography. By systems, the market is segmented into missiles and launch systems. By application, the market is segmented into surface vessels and submarines. The report also covers the market sizes and forecasts for the naval missiles and missile launch systems in major countries across different regions. For each segment, the market sizing and forecasts have been done on the basis of value (USD).
| Systems | Missiles | ||
| Launch Systems | |||
| Application | Surface Vessels | ||
| Submarines | |||
| 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 | |||
| Egypt | |||
| Rest of Middle East and Africa | |||
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Naval Missiles And Missile Launch Systems Market Research Faqs
How big is the Naval Missiles And Missile Launch Systems Market?
The Naval Missiles And Missile Launch Systems Market size is expected to reach USD 1.55 billion in 2025 and grow at a CAGR of 4.44% to reach USD 1.95 billion by 2030.
What is the current Naval Missiles And Missile Launch Systems Market size?
In 2025, the Naval Missiles And Missile Launch Systems Market size is expected to reach USD 1.55 billion.
Who are the key players in Naval Missiles And Missile Launch Systems Market?
Lockheed Martin Corporation, Elbit Systems Ltd., Kongsberg Gruppen ASA, BAE Systems plc and RTX Corporation are the major companies operating in the Naval Missiles And Missile Launch Systems Market.
Which is the fastest growing region in Naval Missiles And Missile Launch Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Naval Missiles And Missile Launch Systems Market?
In 2025, the North America accounts for the largest market share in Naval Missiles And Missile Launch Systems Market.
What years does this Naval Missiles And Missile Launch Systems Market cover, and what was the market size in 2024?
In 2024, the Naval Missiles And Missile Launch Systems Market size was estimated at USD 1.48 billion. The report covers the Naval Missiles And Missile Launch Systems Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Naval Missiles And Missile Launch Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Naval Missiles And Missile Launch Systems Industry Report
Statistics for the 2025 Naval Missiles And Missile Launch Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Naval Missiles And Missile Launch Systems 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.
