According to Fortune Business Insights™, the global smart weapons market was valued at USD 18.99 billion in 2023 and is projected to expand from USD 20.20 billion in 2024 to USD 45.24 billion by 2032, at a CAGR of 10.61% during the forecast period. This robust growth is fueled by rising global defense budgets, large-scale military modernization programs, and increasing demand for precision strike capabilities in evolving combat environments.
The global defense industry is undergoing rapid transformation amid escalating geopolitical tensions, cross-border disputes, and asymmetric warfare challenges. To strengthen combat effectiveness while minimizing collateral damage, militaries worldwide are integrating advanced smart weapons systems into their arsenals.
Smart weapons—including sensor-fused munitions, guided bombs, cruise missiles, and satellite/laser-guided systems—offer superior precision, extended range, and greater operational flexibility compared to conventional weapons. Their deployment enhances mission success rates and supports modern doctrines emphasizing targeted, low-risk engagements.
In 2023, North America accounted for 33.86% of the global market, driven by high U.S. defense expenditure and the presence of leading defense contractors such as Lockheed Martin, Northrop Grumman, and Raytheon Technologies.