Artillery Systems Market Overview and Growth Projections
The Artillery Systems Market was valued at USD 6.218 billion in 2023. Projections indicate a growth from USD 6.6669396 billion in 2024 to USD 10.862 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.29% during the forecast period (2024 – 2032). The market is set to experience substantial growth driven by strong demand from the military sector and numerous military modernization programs across various countries.
Artillery Systems Market Trends
Increased Defense Expenditure Driving Market Growth
The architecture of the international security system has been damaged by rising hegemonism, unilateralism, and influence politics, stoking multiple crises. The ambiguity surrounding many countries’ territorial claims, such as the Middle Eastern Cold War between Saudi Arabia and Iran, disturbs the geopolitical situation. Governments typically respond by increasing military spending to boost domestic security. Military superpowers like the United States, the United Kingdom, China, and India have enhanced their military equipment and combat abilities. The armed services are updating their weaponry, and development and procurement work are ongoing to ensure defensive systems are combat-ready. The drive for indigenization affects how these systems are created locally in different countries.
Military spending increased by 2.6% in real terms from 2019 to USD 1981 billion in 2020. According to SIPRI, the United States, China, India, Russia, and the United Kingdom were the top military spenders in 2020, collectively accounting for 62% of global spending. As defense spending increases, a portion is allocated to artillery systems, enhancing market prospects. Additionally, the push for indigenization influences local development and production of these systems.
Geopolitical Crises Fueling Defense Investments
Current geopolitical crises, fueled by hegemonism and power politics, compromise the international security system’s design. Nations invest significantly in modernizing their armed forces to gain a tactical edge on the battlefield. Countries like the United States are investing in artillery systems to build long-range precision firing capabilities. As global challenges become more serious, increasing military strength becomes crucial for all nations. This expansion drives the market, with defense funds allocated to artillery programs.
Long-range artillery systems provide ground forces with crucial cover fire by disabling enemy fire support. In 2020, Russia constructed the S35 Koalitsiya-SV self-propelled howitzer, featuring an automatic real-time firing control system. It employs 152 mm rounds up to a range of 50 KM and can fire up to 10 rounds per minute, outperforming similar systems. Such developments are anticipated to drive market growth.
Artillery Systems Market Segment Insights
Range Segmentation
The artillery systems market is segmented based on range into short range, medium range, and long range. The short-range segment dominated the market. Short-range artillery systems, with a range of 5 to 30 km, are effective against close-range, lower-flying targets where efficiency and accuracy are crucial. The necessity for such systems has grown, especially in Asia-Pacific countries facing geopolitical splits.
Component Segmentation
Based on components, the artillery systems market includes gun turret, fire control system, ammunition handling system, auxiliary system, and others. The fire control system category generated the most income due to the growing need for weapon assemblies with fast fire rates and reduced recoil. The demand for auxiliary systems is expected to rise by 2.1% from 2022 to 2029, driven by increased demand for weapon systems designed for low-cost reproductions by ordnance factories in countries like China and India.
Type Segmentation
The market is segmented by type into mortars, howitzers, rocket artillery, and others. The howitzers category generated the most income. Howitzers, armored mobile artillery systems, are widely used as combat support weapons, often employing shoot-and-scoop attacks to avoid counter-battery fire. In December 2020, the People’s Liberation Army unveiled an assault vehicle-based howitzer offering more mobility than truck-based howitzers, capable of operating in difficult off-road terrains.
Regional Insights
- North America
The North American artillery systems market Outlook will dominate this market due to the United States, the largest military spender globally, having the most cutting-edge defense equipment. This significantly contributes to the market’s growth in North America, driven by the rising demand for superior protection solutions in the defense and military sectors.
- Europe
Europe accounts for the second-largest market share, encouraged by increased terrorist assaults and investments by nations such as the UK, France, Russia, and Germany. The German artillery systems market held the largest market share, with the UK market being the fastest growing in the European region.
- Asia-Pacific
The Asia-Pacific artillery systems market is expected to grow at the fastest CAGR from 2023 to 2032. Modernization of combat platforms by the military forces of several Asia-Pacific nations will drive market growth. Major nations investing in artillery systems and related technology include South Korea, China, and India. China’s artillery systems market held the largest market share, with the Indian market being the fastest-growing in the Asia-Pacific region.
Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will further propel the artillery systems market. Market participants engage in strategic initiatives to broaden their reach, including new product launches, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations.
Key Companies
- Avibras (Brazil): Avibras is known for its advanced defense products, including artillery systems.
- BAE Systems (UK): A leading defense contractor providing a wide range of artillery systems.
- China North Industries Corporation (Norinco) (China): A major player in the Chinese defense industry, offering various artillery solutions.
- Denel SOC Ltd (South Africa): Specializes in artillery and related defense systems.
- Elbit Systems (Israel): Provides a range of defense technologies, including C4ISR systems and artillery solutions.
- General Dynamics (US): A leading defense contractor with significant contributions to the artillery market.
- Hanwha Group (South Korea): Known for its advanced artillery systems and defense technologies.
- IMI Systems (Israel): Offers various artillery systems and defense solutions.
- Kmw+Nexter Defense Systems (Netherlands): Provides integrated artillery systems and defense technologies.
- Lockheed Martin (US): A major defense contractor involved in artillery systems and related technologies.
Notable Developments
- Elbit Systems Ltd: In March 2022, Elbit Systems reported receiving contracts to deliver an artillery munitions production line in an Asia-Pacific nation, valued at approximately USD 130 million, to be executed over 2.5 years.
- Lockheed Martin Corp: In September 2020, Lockheed Martin received a contract from the US Army worth USD 183 million to produce and provide 28 High Mobility Artillery Rocket System launchers and associated hardware, with first deliveries expected in 2022.
Conclusion
The artillery systems market growth is set for significant growth, driven by increased defense expenditure, geopolitical tensions, and technological advancements. With strong demand from the military sector and numerous modernization programs, the market is expected to expand substantially during the forecast period. Key players are investing in research and development and engaging in strategic initiatives to broaden their market reach. Despite challenges such as budget constraints and technological complexities, the future prospects for the artillery systems market remain promising.
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