Cruise Missiles Market Analysis | 2022-2028

Market Insights

The cruise missiles market was estimated at USD 1.7 billion in 2021 and is likely to grow at a CAGR of 13.8% during 2022-2028 to reach USD 4.2 billion in 2028.

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Market Dynamics

Introduction

Cruise missiles are self-propelled, guided, and unmanned missiles focused on delivering warheads with high accuracy. In recent years, the impact and utilization of missiles in modern warfare strategies have expanded, encouraging the defense and military of countries to have a significant of cruise missiles in the armory. Additionally, technological upgradation has enabled the adoption of self-guided cruise missiles, which fly in extremely low-altitude and non-ballistic trajectories and travel at supersonic and hypersonic speeds. In addition, these missiles are broadly utilized in attacks by tactical teams where missiles of various ranges are put to different purposes.

Market Drivers

The strategic benefits of obtaining cruise missiles increase the application and demand of cruise missiles in the defense & military. Additionally, the increasing defense budget and intensified governmental emphasis on strengthening military assets intensified the demand for cruise missiles. Additionally, with the innovation in technologies, companies were capable of developing innovative missiles with high speeds and longer ranges, which in turn, are expected to promote the use of cruise missiles. Though, maintenance costs and high manufacturing, subsequently budget constraints are estimated to restrict the market growth.

Cruise missiles are vital for any country in defense strategies; thus, every country allocates a significant amount of budget for the same. Additionally, nations globally increase their defense & military segment by enhancing their military budget. Furthermore, growing territorial & political issues amongst nations are expected to increase the military budget, thus boosting the cruise missiles market. An increase in the defense budget is projected to improve the combat abilities of countries, permitting proper implementation of planned strategies backed by ample funding. Furthermore, government organizations are inclined to enhance security systems & strengthen them by upgrading the military base. Consequently, the market thrives with optimal demand during the forecast period. Additionally, the increasing threat of anti-security and terrorism activities promotes market growth.

Covid-19 Impact

The impact of COVID-19 on the overall market revenue is deemed to be less. Although manufacturing delays hit the industry for a short duration in 2020 and 2021.

The COVID-19 lockdown situation globally is anticipated to suspend planned & existing projects by half a year, as government and communities reeling from the consequences of the production and manufacturing shutdown. The influence of the same will be evident completely in logistics, raw material, and project completion. However, the demand in 2020 declined slightly and improved starting from 2021.

For example, by the end of September 2021, the U.S. Navy finalized a contract with Northrop Grumman Corp. for producing the AGM-88G Advanced Anti-Radiation Guided Extended-Range Missile.

Recent JVs and Acquisitions:

There have been numerous developments in the defense industry directed at cruise missiles in recent years, which would boost the overall market. Some of them are:

• In February 2021, Lockheed Martin signed a contract worth US$ 414mn with the US Navy and Airforce to supply LRASM, an anti-ship, precision-guided standoff missile based on the successful joint air-to-ground standoff missile.
• In September 2019, Israel-based Rafael Advanced Defence Systems completed its acquisition of Aeronautics, a leading Israeli unmanned aerial systems developer expanding its product portfolio by integrating missile systems, directed energy weapons, communications, and advanced active protection armor.

Segments Analysis

By Speed Type

The cruise missiles market is divided into Hypersonic, Subsonic, and Supersonic. The supersonic segment held the largest share of the market in 2021 owing to the increasing demand for missiles from the defense forces. A supersonic missile depends mainly on inbuilt electronic countermeasures and sheer speed to infiltrate the defense network of the enemy forces. The United States, the United Kingdom, Russia, China, India, and France are some nations that can build a supersonic cruise missile. The hypersonic segment is expected to grow at the fastest rate owing to the growing demand for next-generation precision-guided munitions.

By Range Type

The global cruise missiles market is segmented into long-range missiles, medium-range missiles, and short-range missiles. The long-range missiles segment is projected to show continued demand soon due to its high accuracy, reliability, and quick-hit capability at a very long distance in enemy territories.

By Application Type

The market is segmented into attack and defensive. The defensive segment is expected to grow at the fastest CAGR during the forecast period due to the rapid expansion of military forces across the world along with a rise in procurement of cruise missiles by forces to safeguard from any incoming ambush in case of any war situation.

Regional Insights

Region-wise, North America was the largest cruise missiles market in 2021 and is forecast to lead the market during the forecast period. This is due to the high defense budget, technological advancements, favorable regulations, and presence of key manufacturers in the region. However, Asia-Pacific is expected to witness the fastest demand growth by 2028 owing to the surge in investments in the defence sector, rise in terrorism activities, and unstable socio-political scenarios in the region. Further, emerging economies such as India and China are also investing heavily in cruise missiles, apart from modernizing their existing military equipment.

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Key Players

There is stiff competition in the global cruise missiles market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their smart weapon offerings based on their quality and their penetration in the target and emerging markets. Also, there have been some major mergers and acquisitions in the industry in recent years, which significantly influenced the competitive dynamics. For example:

• In November 2021, the Russian Navy successfully tested a potential hypersonic missile. The launch was performed in the latest series of tests of Zircon, which is anticipated to go into service by 2022. Zircon is expected to arm Russian submarines, frigates, and cruisers. It is one of the numerous hypersonic missiles of Russia under development.
• In September 2021, North Korea successfully introduced recently developed long-range cruise missiles. The missile test is the very first missile test in the past 6 months by North Korea.  
• In October 2019, the Indian Air Force (IAF) performed a test of 2 supersonic cruise missiles named BrahMos a surface-to-surface cruise missile to authenticate the IAF’s capability to counteract targets positioned up to 300 kilo meters with determined precision.

The following are the major players in the global cruise missiles market:

• Aerojet Rocketdyne Inc.
• Avibras Industria Aeroespacial SA
• China Aerospace Science and Industry Group Corporation Limited
• Defense Research and Development Organization (DRDO)
• Kongsberg Gruppen ASA
• Lockheed Martin Corporation
• MBDA Inc.
• Raytheon Technologies Corporation
• Roketsan Roket Sanayii ve Ticaret AS
• Tactical Missile Corporation
• The Boeing Company

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s cruise missiles market realities and future market possibilities for the forecast period of 2022 to 2028. After a continuous interest in our cruise missiles market report from the industry stakeholders, we have tried to further accentuate our research scope to the cruise missiles market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors

Market Segmentation

This report studies the market, covering a period of 12 years of trends and forecasts. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The cruise missiles market is segmented into the following categories:

By Speed Type

• Hypersonic
• Subsonic
• Supersonic

By Range Type

• Long-range Missiles
• Medium-range Missiles
• Short-range Missiles

By Application Type

• Attack
• Defensive

By Launch Platform Type

• Air
• Land
• Surface Combatants
• Submarine

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected].