Precision Guided Munitions (PGM) Guidance Kits Market Forecasts to 2030 – Global Analysis By Type (Laser Guidance Kits, GPS/INS Guidance Kits, Infrared (IR) Guidance Kits, Radar Homing Guidance Kits, Semi-Active & Active Homing Kits and Other Types), Plat

According to Stratistics MRC, the Global Precision Guided Munitions (PGM) Guidance Kits Market is accounted for $44.2 billion in 2024 and is expected to reach $75.7 billion by 2030 growing at a CAGR of 9.4% during the forecast period. Precision Guided Munitions (PGM) guidance kits are advanced systems designed to enhance the accuracy and effectiveness of munitions, such as bombs, missiles, and artillery shells. These kits integrate sophisticated guidance technologies, including GPS, laser guidance, and inertial navigation systems, to steer the munition precisely towards its target. By enabling mid-flight course corrections, PGM guidance kits significantly reduce the margin of error, ensuring high-accuracy strikes and minimizing collateral damage. Their ability to adapt to changing conditions and provide real-time targeting information makes them a critical component in modern warfare, enhancing the overall effectiveness of armed forces

According to data provided by the CRS in July 2024, the U.S. military spent around USD 6000 million on selected PGMs in FY2021, around USD 7000 million in FY2022, and around USD 9000 million in FY2023.

Market Dynamics:

Driver:

Increasing demand for high-precision weaponry

Modern warfare evolves, the need for accurate and reliable munitions has become paramount to minimize collateral damage and enhance mission success. PGMs, equipped with advanced guidance systems, offer unparalleled accuracy, making them essential for targeting high-value assets and fortified positions. The integration of technologies such as GPS, laser guidance, and infrared sensors further enhances the precision of these munitions which boosts the market growth.

Restraint:

High development and procurement costs

Developing next-generation targeting systems, such as AI-driven autonomous guidance and hypersonic missile tracking, requires extensive research and development investments. Additionally, the procurement and maintenance of these sophisticated systems contribute to higher defense expenditures. For smaller military forces with limited budgets, the cost of acquiring and upgrading PGMs can be a major constraint hampering the growth of the market.

Opportunity:

Growing threats from asymmetric warfare and terrorism

Armed forces and counterterrorism units rely on PGMs to neutralize high-value targets with minimal collateral damage in urban and remote environments. The demand for smart munitions in special operations and border security missions is rising, particularly in conflict-prone regions. Additionally, drone-based PGMs have become crucial in counterinsurgency operations, allowing for real-time targeting of threats drive the demand for advanced guidance kits.

Threat:

Ethical and legal concerns over autonomous weapons

Integration of autonomous capabilities in PGMs raises questions about accountability, decision-making, and the potential for unintended consequences. The use of autonomous weapons in conflict zones can lead to ethical dilemmas and legal challenges, impacting their deployment and acceptance. Addressing these concerns requires the establishment of clear guidelines and regulations to ensure the responsible use of autonomous technologies impeding the market growth.

Covid-19 Impact

The COVID-19 pandemic has had a mixed impact on the PGM Guidance Kits market. On one hand, the increased focus on national security and defense readiness during the pandemic has driven the demand for advanced munitions. The need for remote and contactless operations has also highlighted the value of PGMs in maintaining operational capabilities. On the other hand, disruptions in supply chains and manufacturing processes have led to delays and increased costs.

The laser guidance kits segment is expected to be the largest during the forecast period

The laser guidance kits segment is expected to account for the largest market share during the forecast period owing to their ability to deliver pinpoint accuracy in high-intensity combat scenarios has led to widespread adoption by major defense forces. Additionally, the integration of advanced laser targeting technologies with UAVs and autonomous platforms is further boosting demand. As military forces continue to invest in precision airstrikes and tactical ground operations, laser guidance kits are expected to maintain their market dominance.

The anti-radiation guidance segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the anti-radiation guidance segment is predicted to witness the highest growth rate driven by the increasing need for electronic warfare and counter-radar operations. These munitions are designed to detect and neutralize enemy radar systems, making them essential for suppression of enemy air defenses (SEAD) missions. As adversaries continue to develop advanced radar-based detection and targeting systems, demand for anti-radiation PGMs is rising. The development of next-generation homing and tracking technologies further enhances their operational effectiveness.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share driven by significant defense budgets and ongoing military modernization programs. The United States, in particular, is at the forefront of precision-strike capabilities, with heavy investments in hypersonic weapons, AI-powered targeting systems, and smart munitions. Additionally, extensive military collaborations, strategic defense initiatives, and NATO partnerships contribute to market growth in this region.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR driven by rising geopolitical tensions, increased military expenditures, and defense modernization efforts. Countries such as China, India, South Korea, and Japan are heavily investing in precision-strike technologies to enhance their strategic deterrence capabilities. The growing focus on border security, counterterrorism operations, and naval defense modernization is fuelling demand for PGMs in the region.

Key players in the market

Some of the key players in Precision Guided Munitions (PGM) Guidance Kits market include Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies, General Dynamics Corporation, Boeing Company, BAE Systems, Elbit Systems, Israel Aerospace Industries, Kongsberg Gruppen, Leonardo S.p.A., MBDA, Rheinmetall AG, Saab AB, Thales Group, General Atomics and Thales.

Key Developments:

In February 2025, Northrop Grumman Corporation and Hanwha have signed a Memorandum of Understanding (MOU) in connection with the Republic of Korea’s Mine Countermeasures Helicopter (KMCH) program. The agreement supports Northrop Grumman’s longstanding industrial cooperation.

In February 2025, Raytheon, an RTX business has successfully completed flight testing on the first-ever AI/ML-powered Radar Warning Receiver (RWR) system for a fourth-generation aircraft.

Types Covered:
• Laser Guidance Kits
• GPS/INS Guidance Kits
• Infrared (IR) Guidance Kits
• Radar Homing Guidance Kits
• Semi-Active & Active Homing Kits
• Other Types

Platforms Covered:
• Air-Based Guidance Kits
• Land-Based Guidance Kits
• Naval-Based Guidance Kits

Technologies Covered:
• Inertial Navigation System (INS) Guidance
• Electro-Optical/Infrared (EO/IR) Guidance
• Anti-Radiation Guidance
• Dual-Mode Guidance
• Other Technologies

Applications Covered:
• Air-to-Ground Strikes
• Anti-Tank & Ground Combat Operations
• Naval Warfare
• Air-to-Air Combat
• Suppression of Enemy Air Defenses
• Long-Range Strategic Strikes
• Border Security & Counterinsurgency Operations
• Other Applications

End Users Covered:
• Military
• Defense Contractors
• Government Agencies
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements