Missile Guidance System Market Size | Industry Trends & Forecast 2025

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Code: MTA10182

Publication Date: Oct 2025

What is the size of Missile Guidance System Market?

According to 6Wresearch internal database and industry insights, the Missile Guidance System Market was valued at USD 9.45 Billion in 2024 and is expected to reach USD 14.30 Billion by 2031, growing at a CAGR of 6.10% during 2025-2031.

The primary factors contributing to this growth are rising defence budgets by countries, improvements in missile technology, and greater demand for precision-guided munitions. Additionally, continually mounting geopolitical tensions and active military modernisation programs are significant contributors to market growth.

Growth Factors for Missile Guidance System Industry

Increased military spending across nations.
Technological improvements in guidance systems and missile accuracy.
Increased demand for precision-guided munitions to reduce collateral damage.
Increased geopolitical instability leading to improved defence capabilities.
Ongoing development in missile defence technologies.

Missile Guidance System Market Trends

Recent and/or emerging trends in this field of Missile Guidance Technology include GPS-, infrared-and radar-based guidance systems. There is increasing focus on developing more effective, affordable and lightweight systems, but integrating artificial intelligence to improve accuracy. The increased utilisation of autonomous missile systems is another trend. In addition, the world's defence powers are continuing to buy more and more technology in their defence budgets, which is also related to trends.

Emerging Developments in the Missile Guidance System Market

The Missile Guidance System market is expected to grow with emerging developments such as the integration of next-generation GPS and laser guidance systems to enhance missile accuracy. Increased emphasis on hypersonic missile technologies is anticipated to further revolutionise the defence industry. Companies are focusing on developing multi-modal guidance systems to improve targeting efficiency. With defence contractors increasingly adopting artificial intelligence for tracking and decision-making, missile systems are becoming more autonomous.