Weapons Manufacturing

Global Weapons Manufacturing Market to Reach US$172.5 Billion by 2030

The global market for Weapons Manufacturing estimated at US$146.2 Billion in the year 2024, is expected to reach US$172.5 Billion by 2030, growing at a CAGR of 2.8% over the analysis period 2024-2030. Small Arms, one of the segments analyzed in the report, is expected to record a 4.1% CAGR and reach US$36.6 Billion by the end of the analysis period. Growth in the Explosives, Rockets & Mortars segment is estimated at 2.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$39.9 Billion While China is Forecast to Grow at 2.3% CAGR

The Weapons Manufacturing market in the U.S. is estimated at US$39.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$26.6 Billion by the year 2030 trailing a CAGR of 2.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.7% and 2.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.0% CAGR.

Global Weapons Manufacturing Market – Key Trends & Drivers Summarized

How Is the Weapons Manufacturing Industry Adapting to Modern Warfare?

The weapons manufacturing industry has undergone significant transformation in response to evolving military requirements and technological advancements. Modern warfare increasingly relies on sophisticated, high-tech weaponry that offers precision, automation, and advanced communication capabilities. This shift has pushed manufacturers to focus on developing weapons systems that integrate artificial intelligence (AI), robotics, and cyber capabilities. Drones, autonomous vehicles, and advanced missile systems are now at the forefront of defense strategies. Nations are also investing heavily in upgrading their military arsenals with advanced cybersecurity measures to defend against modern threats. As a result, weapons manufacturing has become a high-tech industry, emphasizing innovation and integration of cutting-edge technology.

What Role Does Technology Play in Advancing Weapons Manufacturing?

Technology is driving significant advancements in weapons manufacturing, with innovations in AI, robotics, and materials science leading the way. AI-powered weapons systems offer enhanced targeting and decision-making capabilities, while autonomous vehicles and drones allow for more effective, remote operations on the battlefield. In addition, advances in materials science are resulting in lighter, stronger, and more durable weapons that improve mobility and performance. The use of 3D printing in manufacturing is also gaining traction, enabling faster production of weapon components and reducing costs. The integration of networked communication systems has further enhanced the interoperability and effectiveness of modern military equipment, making technological advancement a key driver in the industry.

How Are Geopolitical Factors Impacting the Weapons Manufacturing Market?

Geopolitical tensions and defense spending by major nations are key drivers of the weapons manufacturing market. As countries invest in modernizing their defense systems to counter emerging threats, the demand for advanced weaponry is on the rise. Regional conflicts, as well as concerns over global security issues like terrorism and cyberwarfare, have led governments to prioritize military spending. In response, defense contractors are developing more sophisticated weapons systems to meet these demands. Additionally, international arms agreements and export regulations shape the market, as manufacturers navigate complex legal frameworks while seeking to expand their global reach.

What Is Driving Growth in the Weapons Manufacturing Market?

The growth in the weapons manufacturing market is driven by several factors, including increased defense budgets, rising geopolitical tensions, and advancements in military technology. Governments worldwide are investing in advanced weapons systems to ensure national security and enhance military capabilities. The development of AI-driven weapons, autonomous systems, and cybersecurity solutions has further propelled market growth. Additionally, the global demand for unmanned aerial vehicles (UAVs), precision-guided munitions, and missile defense systems is expanding as countries prepare for modern threats. These factors, coupled with ongoing military modernization programs, are driving the sustained growth of the weapons manufacturing industry.

SCOPE OF STUDY:

The report analyzes the Weapons Manufacturing market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Segment (Small Arms, Explosives, Rockets & Mortars, Artillery, Non-Gun Powder Weapons)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 41 Featured) -

• BAE Systems PLC
• General Dynamics Corporation
• L3 Technologies, Inc.
• Leonardo S.p.A
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Raytheon Company
• Thales Group
• The Boeing Company

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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