Aerial Smart Weapons Market is estimated to be valued at USD 15,376.3 Million in 2021 and is poised to grow at a significant CAGR of 4.5% over 2022-2028. A smart weapon uses a guidance system to hit targets with greater accuracy. These are air-to-ground missiles, sensor-fused weapons, steerable bombs, and guided weapons with satellite or laser guidance systems. Furthermore, satellite-guided bombs are equipped with guidance computers that use navigation satellites to confirm the target. Using smart technology, cruise missiles can use navigation satellite information to stay on course. India’s Defense Research and Development Organization (DRDO) successfully tested a newly developed Smart Anti-Airfield Weapon (SAAW) equipped on the Hawk-I jet set by Hindustan Aeronautics Limited on January 22, 2021. (HAL). Based on the product type, the global aerial smart weapons market is segmented into Missiles, Ammunition, and Other Products. The Missiles segment is anticipated to grow at a significant CAGR over the forecast years owing to increasing demand for advanced guided missiles from the defense forces. In September 2019, BAE Systems signed a USD 2,680 million contract with the United States and nine other countries to provide a semi-guided missile weapons system until 2025. The ammunition segment is expected to grow fastest during the forecast period. The rise in demand for next-generation precision-guided munitions is attributed to increased terrorist activity, political unrest, and cross-border conflicts worldwide. The key factors driving the aerial smart weapons market are significant increases in defense budgets by both developed and developing nations, an increased use rate of advanced weapons, and changing aerial warfare worldwide. Aerial smart weapons systems and guided systems have also advanced technologically.
In February 2021, Lockheed Martin Corporation signed a deal worth USD 414 million with the U.S. Navy and Air Force to provide LRASM. It is an anti-ship, precision-guided standoff missile based on the effective joint air-to-ground standoff missile.