Artillery and Systems Market Outlook

The global artillery and systems market is anticipated to reach a size of approximately USD 20 billion by 2035, experiencing a robust compound annual growth rate (CAGR) of around 5% during the forecast period from 2025 to 2035. The growth of this market can be attributed to increasing military expenditure, the modernization of armed forces, and the rising geopolitical tensions worldwide. Moreover, advancements in artillery technology, including precision-guided munitions and automated systems, are expected to further drive market expansion. The demand for enhanced firepower and operational efficiency in military operations, alongside the growing emphasis on defense capabilities, also plays a crucial role in propelling the market forward. As nations strive to upgrade their artillery systems to maintain strategic advantages, the market exhibits promising potential for growth in the coming decade.

Growth Factor of the Market

The artillery and systems market is driven by several growth factors that contribute to its expansion. One of the most significant factors is the increasing military budgets of various countries, especially in regions experiencing rising tensions and conflicts. Nations are focusing on modernizing their artillery systems to improve their defense capabilities, which includes investing in advanced technologies that enhance the accuracy and effectiveness of artillery operations. Furthermore, the trend toward joint military exercises and defense collaborations among allied nations is boosting demand for advanced artillery systems that can integrate seamlessly across different platforms. Additionally, the growing focus on homeland security and counter-terrorism operations has led to an increased requirement for versatile and mobile artillery systems that can be deployed rapidly. Lastly, the adoption of automation and smart technologies in artillery systems is poised to revolutionize the market, offering enhanced operational efficiency and reduced manpower requirements, thereby driving growth.

Key Highlights of the Market

• Increasing military expenditure driving demand for advanced artillery systems.
• Focus on modernization and technological advancements in artillery.
• Growing emphasis on homeland security and counter-terrorism operations.
• Collaboration between nations enhancing joint military capabilities.
• Shift towards automation and smart technologies in artillery operations.

By Product Type

Self-propelled Artillery:

Self-propelled artillery (SPA) represents a vital segment within the artillery and systems market. These mobile artillery systems are equipped with their own propulsion capabilities, enabling rapid deployment and movement on the battlefield. SPAs are particularly favored in modern warfare due to their ability to provide immediate fire support while remaining mobile, thereby reducing vulnerability to counter-battery fire. The integration of advanced targeting systems and automation in SPAs enhances their effectiveness and accuracy. As military forces prioritize mobility and versatility, the demand for self-propelled artillery is expected to witness significant growth, particularly in regions with dynamic operational requirements.

Towed Artillery:

Towed artillery systems consist of cannons that are towed by vehicles for mobility. They are known for their reliability and cost-effectiveness, making them a preferred choice for many military forces. The ability to easily relocate these systems allows for flexible deployment in various combat scenarios. Towed artillery can be quickly set up and fired, providing critical fire support during operations. However, the trade-off for their lower mobility compared to self-propelled systems is often compensated by their performance and affordability in large numbers. As military forces aim to balance cost and effectiveness, towed artillery remains an essential component of their artillery arsenal.

Rocket Artillery:

Rocket artillery systems utilize rockets to deliver munitions over long distances, serving as a powerful option in modern warfare. The ability to launch multiple rockets in a short time frame allows for saturation bombardments, which are effective against dispersed targets. The advancement of precision-guided rockets has enhanced the role of rocket artillery, enabling forces to engage high-value targets with increased accuracy while minimizing collateral damage. As nations seek to enhance their strike capabilities and rapid-response options, the rocket artillery segment is projected to experience significant growth, driven by technological advancements and evolving military strategies.

Mortars:

Mortars are short-barreled artillery pieces designed to fire projectiles at high angles. They are typically lightweight and portable, allowing for easy transportation and quick deployment in diverse combat situations. Mortars are highly valued for their capability to engage targets in defilade positions, making them a critical asset in urban warfare and close support roles. The development of advanced mortar systems that incorporate smart technology and precision-guided munitions is driving innovation in this segment. As the need for adaptable and responsive artillery solutions continues to rise, the mortar market is expected to see substantial growth.

Howitzers:

Howitzers are versatile artillery systems capable of firing shells at both high and low angles, making them effective in a variety of combat scenarios. They are known for their long-range capabilities and high rate of fire, providing significant fire support during military operations. The trend toward modernizing howitzers with advanced targeting systems, automated loading mechanisms, and improved ammunition types is driving demand. As military forces increasingly prioritize long-range strike capabilities, the howitzer segment is poised for growth, especially as nations upgrade their artillery inventories to enhance overall combat effectiveness.

By Application

Military:

The military application segment dominates the artillery and systems market, as armed forces worldwide rely heavily on artillery for fire support during combat operations. Artillery systems are integrated into the military's operational framework, providing crucial capabilities for offensive and defensive actions. With the modernization of military forces and the need for advanced weaponry to counter emerging threats, the demand for artillery systems within military applications is expected to rise. The constant evolution of warfare tactics, the emphasis on joint operations, and the integration of technology into military strategies will further accelerate the growth of this segment in the coming years.

Homeland Security:

Homeland security represents a vital application segment for the artillery and systems market. As nations face increasing threats from terrorism and other internal security challenges, the role of artillery systems in homeland defense is becoming more prominent. Artillery can be deployed in counter-terrorism operations and in response to domestic threats, ensuring rapid and effective responses. The focus on ensuring the safety and security of citizens drives the need for versatile and mobile artillery systems that can adapt to various scenarios. As governments prioritize national security, the homeland security application for artillery systems is expected to grow significantly.

By Technology

Electromagnetic:

Electromagnetic technology in artillery systems represents a cutting-edge advancement that enhances firing capabilities and improves precision. Electromagnetic guns, such as railguns, utilize electromagnetic forces to launch projectiles with unprecedented speed, increasing range and lethality. This technology not only reduces the need for traditional propellants but also offers lower logistical demands concerning ammunition supply. As nations invest in research and development of electromagnetic artillery solutions, the market is expected to experience growth driven by technological innovations and the potential for enhanced battlefield effectiveness.

Electrothermal:

Electrothermal technology is another innovative approach that enhances artillery firing capabilities through the combination of thermal and electrical energy. By using electrical energy to heat the propellant, this technology increases the efficiency and velocity of projectiles fired from artillery systems. The advantages of electrothermal systems include reduced recoil, increased range, and improved accuracy, which are critical for modern military operations. As nations explore advanced artillery solutions that provide tactical advantages, the demand for electrothermal technology is anticipated to grow, contributing to overall market expansion.

Chemical:

Chemical artillery technology involves the use of chemical propellants to launch projectiles, which has been a long-standing method in artillery systems. Despite the emergence of advanced technologies, chemical propulsion remains relevant due to its established reliability and efficiency. Modern advancements in chemical propellants aim to enhance performance, reduce emissions, and improve safety during operations. The chemical segment continues to evolve, with a focus on optimizing existing systems for better operational effectiveness. As military forces seek reliable and proven artillery solutions, chemical technology will maintain a significant presence in the market.

Mechanical:

Mechanical technology encompasses traditional artillery systems designed for effective and straightforward operations. These systems rely on mechanical components for firing and reloading, which has proven effective in various combat scenarios. The simplicity and reliability of mechanical artillery systems make them a preferred choice for many armed forces, especially in less technologically advanced regions. The mechanical segment is expected to persist due to the continuous need for affordable and accessible artillery solutions, particularly in developing nations where budget constraints are prevalent.

Others:

This category includes a variety of specialized technologies and innovations in artillery systems that do not fit into the other defined segments. These may encompass hybrid approaches that combine various technologies, such as advanced materials for construction, precision guidance systems, and automation of artillery operations. As research and development efforts focus on enhancing the capabilities of artillery systems, the 'Others' segment is likely to experience growth, contributing to the overall evolution and diversification of the market.

By Range

Short Range:

Short-range artillery systems primarily target objectives within a limited distance, typically ranging from a few hundred meters to several kilometers. These systems are often used for direct fire support in close combat scenarios, providing rapid and effective responses to immediate threats. The demand for short-range artillery is driven by the need for tactical flexibility in urban warfare and asymmetric conflict situations. As military forces increasingly engage in operations that require quick and precise fire support, the short-range artillery segment is expected to maintain its relevance and witness steady growth.

Medium Range:

Medium-range artillery systems bridge the gap between short-range and long-range systems, offering the ability to engage targets several kilometers away. These systems are essential for providing effective fire support over a wider area while maintaining mobility. The versatility of medium-range artillery makes it suitable for various operational scenarios, including counter-battery fire and area suppression. As military strategies evolve to incorporate multi-domain operations, the medium-range segment is projected to grow as forces seek systems that can adapt to shifting battlefield dynamics.

Long Range:

Long-range artillery systems are designed to engage targets at extended distances, often exceeding 30 kilometers. These systems are equipped with advanced targeting and firing mechanisms to ensure accuracy and effectiveness over vast areas. The increasing emphasis on long-range strike capabilities among military forces is driving growth in this segment, as nations aim to enhance their deterrence and operational reach. As technological advancements continue to improve the performance of long-range artillery systems, the demand for these capabilities is expected to rise significantly, especially for precision-guided munitions.

Extended Range:

Extended-range artillery systems push the boundaries of traditional artillery capabilities, allowing engagements at distances greater than 100 kilometers. These systems utilize advanced propulsion techniques, including rocket-assisted projectiles, to achieve unprecedented ranges. The primary advantage of extended-range artillery lies in its ability to strike high-value targets while minimizing exposure to enemy fire. As nations invest in next-generation artillery technologies and prioritize long-range capabilities, the extended-range segment is expected to witness substantial growth, reflecting the strategic shift in defense operations.

By Region

In terms of regional analysis, North America holds a dominant position in the artillery and systems market, accounting for approximately 35% of the global market share. The United States, in particular, is a key player in this region due to its substantial defense budget and commitment to technological advancements in military capabilities. The U.S. armed forces are actively modernizing their artillery systems, focusing on enhanced precision and mobility to address contemporary threats. Furthermore, the involvement of various defense contractors in research and development initiatives is expected to contribute to the steady growth of this segment, with a projected CAGR of around 6% during the forecast period.

Europe follows closely, accounting for about 25% of the global market share. The region is experiencing increased military spending in response to evolving security dynamics and geopolitical tensions, particularly in Eastern Europe. Countries such as Germany, France, and the United Kingdom are prioritizing the modernization of their artillery capabilities, prompting investments in advanced technologies and systems. The growing emphasis on collaboration among European nations to improve defense interoperability is also driving demand for artillery systems. The European artillery and systems market is projected to grow at a CAGR of approximately 4% during the forecast period, reflecting the region's commitment to enhancing military effectiveness.

Opportunities

The artillery and systems market presents numerous opportunities fueled by technological advancements and evolving military requirements. One of the most significant opportunities lies in the development of smart artillery systems equipped with precision-guided munitions. These systems enable forces to engage targets with high accuracy while minimizing collateral damage, making them essential in modern warfare scenarios. As nations prioritize the modernization of their artillery capabilities to adapt to the complexities of contemporary conflict, the demand for smart artillery solutions is expected to grow significantly. Additionally, the integration of automation and artificial intelligence in artillery operations offers further opportunities for increased efficiency and effectiveness, transforming how artillery units operate on the battlefield.

Moreover, the ongoing geopolitical tensions and rising defense budgets worldwide create ample opportunities for manufacturers and suppliers in the artillery and systems market. Countries are increasingly investing in advanced weaponry to enhance their defense capabilities, which includes replacing outdated artillery systems with next-generation solutions. The focus on joint military operations and collaborations among allied nations also opens avenues for the development of interoperable artillery systems that can function seamlessly in multinational exercises. With the continuous evolution of warfare strategies, there is a pressing need for artillery systems that can adapt to diverse environments and operational demands, thus creating a favorable landscape for market growth.

Threats

The artillery and systems market faces several threats that could hinder growth during the forecast period. One of the primary threats is the rapid pace of technological advancements, which can render existing artillery systems obsolete. As nations invest in cutting-edge technologies, manufacturers must continuously innovate to keep up with emerging trends. Failure to adapt to the changing landscape of warfare may result in a loss of competitive advantage. Moreover, the influx of low-cost alternatives from emerging markets poses a threat to established players, potentially leading to price wars that can negatively impact profitability. The global supply chain disruptions caused by geopolitical tensions and economic instability may also affect the availability of critical components for artillery systems, posing challenges for manufacturers reliant on complex supply networks.

Another significant threat is the changing nature of warfare, particularly the increasing focus on asymmetric warfare and non-state actors. As military strategies evolve, there is a growing emphasis on unconventional tactics that may not rely heavily on traditional artillery systems. This shift could lead to a reduced demand for conventional artillery platforms, necessitating manufacturers to adapt their offerings to meet the changing operational landscape. The potential for stringent regulations and export controls regarding advanced military technologies may also pose challenges for companies looking to enter new markets. Overall, these threats underscore the need for agility and innovation within the artillery and systems market to navigate the evolving defense landscape successfully.

Competitor Outlook

• BAE Systems
• Lockheed Martin
• General Dynamics
• Northrop Grumman
• Raytheon Technologies
• Rheinmetall AG
• Elbit Systems
• Thales Group
• Oshkosh Defense
• Saab AB
• Hanwha Defense
• Kraken Robotics
• Leonardo S.p.A.
• Howa Machinery, Ltd.
• QinetiQ Group plc

The overall competitive landscape of the artillery and systems market is characterized by the presence of several established players alongside emerging companies, all vying for market share in a rapidly evolving environment. Major defense contractors are actively investing in research and development to enhance their product offerings and stay ahead of technological advancements. The competition is particularly fierce in regions like North America and Europe, where military budgets are substantial, and there is a pressing need for modernization. Additionally, companies are increasingly collaborating with governments and other defense firms to develop innovative solutions that cater to the unique demands of modern warfare. The emphasis on automation, smart technologies, and interoperability is shaping competitive strategies, leading to a dynamic market environment.

BAE Systems is a prominent player in the artillery and systems market, known for its cutting-edge technologies and comprehensive product portfolio. The company focuses on providing advanced artillery systems that meet the diverse needs of military forces worldwide. BAE's investment in research and development has led to innovations in self-propelled artillery and precision-guided munitions, positioning the company as a leader in the market. Lockheed Martin is another key competitor, recognized for its expertise in defense technology and solutions. The company offers a wide range of artillery systems and is heavily involved in the development of next-generation artillery technologies, ensuring its strong presence in the market. Raytheon Technologies, with its emphasis on precision weapons and advanced targeting systems, continues to play a crucial role in shaping the future of artillery and systems.

Furthermore, Rheinmetall AG and Elbit Systems are significant contributors to the market, both focusing on providing innovative artillery solutions that enhance the capabilities of armed forces. Rheinmetall's expertise in land systems and artillery modernization is complemented by Elbit's focus on smart technologies and automation. Both companies are poised to benefit from the growing demand for advanced artillery systems as military forces worldwide prioritize modernization initiatives. In summary, the artillery and systems market remains competitive, with established players driving innovation, while emerging companies explore niche opportunities, ultimately leading to a dynamic landscape as the industry evolves to meet the challenges of modern warfare.