Market Highlights

The global cruise missiles market was valued at US$ 1.9 billion in 2021 and is projected to increase at a compound annual growth rate (CAGR) of 14.2% from 2022 to 2028, reaching US$ 4.6 billion. It is believed that COVID-19 will have less of an effect on market revenue overall. Even yet, the industry was only briefly impacted by manufacturing delays in 2020 and 2021.

Cruise Missiles Market CAGR

By Speed

CAGR OF

14.2%

Cruise Missiles Market

Cruise missiles are autonomous, self-propelled, guided weapons designed to deliver warheads with extreme precision. As the influence and application of missiles in contemporary warfare tactics have grown, defense and military forces across the world are being encouraged to stockpile a sizable number of cruise missiles. The use of self-guided cruise missiles, which fly on extremely low-altitude, non-ballistic trajectories and reach supersonic and hypersonic speeds, has also been made possible by technological advancements. Furthermore, these missiles are widely used by tactical teams in attacks, where different ranges of missiles are employed for different objectives.

The military and defense sectors use and require cruise missiles more because of their strategic advantages. The need for cruise missiles is further increased by the growing defense budget and the government's increased focus on bolstering the armed forces. Furthermore, businesses were able to create cutting-edge missiles with greater range and speed thanks to technological progress, which is anticipated to encourage the employment of cruise missiles. However, high production and maintenance costs, together with ensuing financial restraints, are predicted to limit the cruise missiles market expansion.

Cruise Missiles Market

By Range

Air

Land

Surface Combatants

Submarine

The Market will Grow

At the CAGR of:

14.2%

The Forecast Market

Size for 2028 in USD:

$4.6B

Every nation devotes a sizeable portion of its budget to cruise missiles because they are essential to their military plans. Countries all across the world also raise their military and defense budgets by increasing their military spending. The military budget is anticipated to rise as a result of rising territorial and political disputes among states, which will expand the cruise missiles market. It is anticipated that a rise in the defense budget will strengthen nations' capacity to fight, enabling the appropriate execution of well-funded plans. Moreover, government agencies have a tendency to modernize military bases in order to boost security measures. As a result, during the predicted period, the market flourishes with appropriate demand. Furthermore, the growing risk of terrorist and anti-security actions encourages the cruise missiles market expansion.

Planned and ongoing projects are expected to be put on hold for six months due to the COVID-19 lockdown situation worldwide, while communities and governments struggle with the fallout from the production and manufacturing stoppage. The full impact of the same will be seen in the project's completion, raw materials, and logistics. But in 2020, demand decreased a little, and it began to increase in 2021.

For instance, the U.S. Navy and Northrop Grumman Corp. finalized a deal by the end of September 2021 to produce the AGM-88G Advanced Anti-Radiation Guided Extended-Range Missile.

Recent years have seen a number of advancements in the defense sector aimed at cruise missiles, which would expand the cruise missiles market as a whole. Among them are:
1) Lockheed Martin and the US Navy and Air Force inked a $414 million contract in February 2021 for the supply of LRASM, an anti-ship, precision-guided standoff missile based on the combined air-to-ground standoff missile that proved to be successful.
2) In September 2019, Israel-based Rafael Advanced Defence Systems successfully acquired Aeronautics, a well-known Israeli manufacturer of unmanned aerial systems, broadening its range of products by incorporating communications, directed energy weapons, missile systems, and cutting-edge active protection armor.

Market Segment Analysis

Cruise Missiles Market

By Launch Platform

XX%

Hypersonic

Subsonic

Supersonic

1.9

Total Market Size

USD (Billion), 2022

14.2%

CAGR

2022 - 2028

Hypersonic, subsonic, and supersonic categories are used to categorize the global cruise missiles market. Because the armed forces are requiring more missiles, the supersonic sector held the greatest proportion of the market in 2021. A supersonic missile's ability to breach the enemy forces' defensive network mostly relies on its built-in electronic countermeasures and speed. Among the countries with the ability to produce a supersonic cruise missile are the United States, the United Kingdom, Russia, China, India, and France. It is anticipated that the hypersonic category would expand at the quickest rate due to the rising need for precision-guided next-generation ammunition.

The global cruise missiles market is divided into three categories based on range: long-range, medium-range, and short-range. Since long-range missiles can hit targets quickly and accurately across great distances in hostile territory, there is expected to be a sustained demand for this type of weapon in the near future.

The cruise missiles market is divided into assault and defense segments according to application. Because of the quickening global military force expansion and the increased purchase of cruise missiles by armed forces to protect themselves from impending ambushes in the event of conflict, the defensive segment is anticipated to develop at the fastest compound annual growth rate (CAGR) throughout the forecast period.

In terms of geography, the cruise missiles market in North America was the largest in 2021 and is expected to remain in the lead position during the projection. This is because of the region's concentration of important firms, the high defense budget, technology breakthroughs, and benevolent laws. However, because of the region's uncertain sociopolitical conditions, rise in terrorist activities, and surge in expenditures in the defense industry, Asia-Pacific is predicted to have the fastest demand growth by 2028. In addition, developing nations like China and India are making significant investments in cruise missiles in addition to updating their current military hardware.

Cruise Missiles Market

By Application

The Market will Grow

At the CAGR of:

14.2%

The Forecast Market

Size for 2028 in USD:

$4.6B

Key Players

In the worldwide cruise missiles market, there is fierce competition. The state of the sector and government assistance have a direct impact on the companies' growth. The quality and penetration of these companies' smart weapon solutions in target and emerging markets serve as differentiators. The industry has also seen a number of large mergers and acquisitions recently, which has had a big impact on the competitive dynamics. As an illustration:
1) The Russian Navy successfully tested a possible hypersonic missile in November 2021. The launch took place during the most recent round of Zircon testing. It is projected that Zircon will enter service by 2022. Russian cruisers, frigates, and submarines are anticipated to be armed with zircon. It is one of Russia's many hypersonic missiles currently in development.
2) North Korea successfully deployed newly built long-range cruise missiles in September 2021. This is North Korea's first missile test in the previous six months. 
3) To verify the Indian Air Force's (IAF) ability to precisely counter targets positioned up to 300 kilometers away, the IAF tested two supersonic cruise missiles, dubbed BrahMos surface-to-surface cruise missiles, in October 2019.

In the global cruise missiles market, the following companies are significant players:
The companies include China Aerospace Science and Industry Group Corporation Limited, Aerojet Rocketdyne Inc., and Avibras Industria Aeroespacial SA.
The Boeing Company, Lockheed Martin Corporation, MBD Inc., Raytheon Technologies Corporation, Roketsan Roket Sanayii ve Ticaret AS, Tactical Missile Corporation, Defense Research and Development Organization (DRDO), Kongsberg Gruppen ASA.

Cruise Missiles Market Scope: