Aircraft Weapons Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Aircraft (Fixed-Wing Aircraft, Rotorcraft), By Weapons Type (Air-To-Air Weapons, Air-To-Ground Weapons, Anti-Ship Weapons, Countermeasures), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.89 Billion
CAGR (2026-2031)	7.29%
Fastest Growing Segment	Rotocraft
Largest Market	North America
Market Size (2031)	USD 19.66 Billion

Market Overview

The Global Aircraft Weapons Market will grow from USD 12.89 Billion in 2025 to USD 19.66 Billion by 2031 at a 7.29% CAGR. Aircraft weapons comprise specialized munitions such as missiles, guided bombs, and guns designed for deployment from aerial platforms to neutralize air or surface targets. The market is primarily driven by escalating geopolitical instability and the imperative for military fleet modernization which fuels demand for advanced strike capabilities. Substantiating this growth, according to the Aerospace Industries Association, in 2024, United States aerospace and defense exports totaled 138.7 billion dollars.

Nevertheless, the market faces a significant challenge regarding the substantial costs associated with developing and integrating these complex systems. Budgetary constraints in emerging economies often delay the procurement of such high value assets and thereby impede broader market expansion.

Key Market Drivers

Increasing Global Defense Expenditure and Military Budget Allocations act as the foremost catalyst for the Global Aircraft Weapons Market, as nations prioritize the enhancement of aerial combat capabilities in response to security threats. Governments are channeling historic levels of funding into defense sectors to modernize fleets and procure advanced strike systems. This surge in financial commitment is highlighted by the Stockholm International Peace Research Institute, which noted in its April 2024 'Trends in World Military Expenditure, 2023' Fact Sheet that global military spending grew by 6.8 percent to $2443 billion in 2023. This expenditure directly translates into sustained industrial activity and robust order books for leading manufacturers. For instance, according to RTX, January 2024, in the '2023 Annual Report', the company reported a record backlog of $196 billion, reflecting the enduring global demand for integrated defense systems and aerial technologies.

Simultaneously, the Rising Demand for Precision-Guided Munitions is significantly influencing market expansion, driven by the operational requirement for surgical accuracy and minimized collateral damage in modern combat. Air forces are aggressively shifting procurement strategies toward smart weapons, such as air-to-air missiles and guided bombs, to replenish stockpiles and support network-centric warfare operations. This strategic prioritization is evident in major budget requests; according to the US Department of Defense, March 2024, in the 'Program Acquisition Cost by Weapon System' report, the department requested $29.8 billion specifically for missiles and munitions for Fiscal Year 2025. Such allocations underscore the critical focus on maintaining high readiness levels and acquiring sophisticated munitions capable of neutralizing high-value targets.

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Key Market Challenges

The substantial costs involved in the development and integration of complex aerial munitions constitute a formidable barrier to the growth of the Global Aircraft Weapons Market. Producing precision-guided missiles and advanced aerial gun systems requires immense investment in research, testing, and technology, which inevitably inflates the procurement price for end-users. Consequently, the high unit cost of these sophisticated assets restricts their accessibility primarily to nations with robust defense budgets.

This financial burden directly hampers market expansion by alienating potential buyers in cost-sensitive regions. Emerging economies, often facing strict budgetary constraints, are frequently compelled to delay or reduce their modernization programs because they cannot afford these high-value systems. This dynamic creates a concentrated market structure that relies heavily on wealthy nations, thereby limiting the overall volume of global transactions. Illustrating the massive financial scale inherent to this industry, according to the Aerospace, Security and Defence Industries Association of Europe (ASD), in 2024, the European defense industry generated a turnover of 183.4 billion euros. Such high valuation figures underscore the capital-intensive nature of the sector, which continues to impede broader adoption among financially constrained operators.

Key Market Trends

The development of hypersonic air-launched missiles represents a critical technological leap, fundamentally altering aerial engagement zones and response times. Nations are aggressively pursuing scramjet-powered cruise missiles and boost-glide vehicles that travel at speeds exceeding Mach 5, rendering traditional missile defense systems ineffective due to their high velocity and maneuverability. This shift compels defense manufacturers to innovate in thermal management and propulsion, creating a new high-value sub-segment within the broader munitions industry. Highlighting this strategic prioritization, according to the U.S. Air Force, March 2024, in the 'Fiscal Year 2025 Budget Overview', the service requested $517 million specifically to continue the development and flight testing of the Hypersonic Attack Cruise Missile (HACM).

Simultaneously, the proliferation of loitering munitions and kamikaze drones is reshaping the economic asymmetry of air warfare. These relatively low-cost, expendable systems allow air forces to conduct precision strikes and suppression of enemy air defenses without risking expensive manned aircraft or depleting stockpiles of high-end cruise missiles. The market is witnessing a surge in demand for these systems as they offer versatile loitering capabilities and human-in-the-loop targeting adjustments. This rapid adoption is evident in industrial performance; according to AeroVironment, June 2024, in the 'Fiscal 2024 Fourth Quarter and Fiscal Year Results', the company reported a 74 percent revenue increase in its Loitering Munition Systems segment compared to the previous fiscal year, reflecting the intensifying global operational reliance on these assets.

Segmental Insights

Based on insights from reputable market intelligence firms, the Rotorcraft segment is recognized as the fastest-growing category in the Global Aircraft Weapons Market. This upward trajectory is primarily driven by the escalating demand for versatile aerial platforms capable of delivering close air support in asymmetric warfare and counter-insurgency operations. Defense ministries are actively prioritizing fleet modernization, upgrading inventories with helicopters integrated with precision-guided munitions and advanced targeting systems. Additionally, the unique operational flexibility of rotorcraft in challenging urban and rugged terrains significantly enhances their tactical utility, thereby stimulating substantial procurement activity globally.

Regional Insights

North America leads the Global Aircraft Weapons Market primarily due to extensive defense investments and strategic procurement programs. The United States Department of Defense directs significant funding toward strengthening aerial combat capabilities, creating sustained demand for weapon systems. Furthermore, the region benefits from a concentrated base of established manufacturers that support fleet modernization projects and new platform development. These factors, combined with continuous efforts to upgrade existing inventories, ensure North America remains the central hub for market activity and development in the sector.

Recent Developments

• In November 2024, Northrop Grumman delivered the first Stand-in Attack Weapon (SiAW) test missile to the U.S. Air Force, marking a critical step in the weapon's flight test program. This next-generation air-to-ground missile is specifically designed to defeat rapidly relocatable targets, such as enemy air defense radars and mobile missile launchers, within contested environments. The inert test vehicle will be used to verify that launch aircraft can safely carry and release the weapon. This development underscores the rapid technological advancements being made by key manufacturers in the Global Aircraft Weapons Market to counter sophisticated anti-access/area denial threats.
• In September 2024, Lockheed Martin unveiled the AGM-158 XR, an "extreme range" variant of the Joint Air-to-Surface Standoff Missile (JASSM), during a major industry conference. This new air-launched cruise missile is designed to provide significantly increased standoff range compared to existing variants, allowing aircraft to strike heavily defended targets from safer distances. The introduction of this weapon addresses the growing need for long-range precision fires in the Global Aircraft Weapons Market. The company plans to leverage established production processes to streamline the manufacturing and delivery of this advanced strike capability to military customers.
• In May 2024, Boeing was awarded a major indefinite-delivery/indefinite-quantity contract with a ceiling of $7.5 billion by the U.S. Air Force for the production of Joint Direct Attack Munition (JDAM) tail kits. This agreement encompasses the supply of tail kits, spares, repairs, and technical assistance, as well as Laser JDAM sensor kits which convert unguided gravity bombs into precision-guided munitions. The contract, which extends through February 2030, reinforces the company's significant role in the Global Aircraft Weapons Market. It also supports Foreign Military Sales, ensuring these critical air-launched capabilities are available to international allies.
• In January 2024, Raytheon, a business of RTX, secured a $345 million contract from the U.S. Air Force to produce and deliver more than 1,500 units of the StormBreaker smart weapon. This network-enabled, air-to-surface munition is equipped with a tri-mode seeker that allows it to engage moving targets in adverse weather conditions, including darkness and smoke. The contract highlights the continued demand for versatile, precision-guided solutions in the Global Aircraft Weapons Market. The weapon is currently fielded on the F-15E Strike Eagle and F/A-18E/F Super Hornet, with integration efforts continuing for the F-35 Joint Strike Fighter.

Key Market Players

• General Dynamics Corporation
• Rostec
• Rheinmetall AG
• Northrop Grumman Corporation
• RTX Corporation
• Rafael Advanced Defense Systems Ltd.
• Diehl Stiftung & Co. KG
• Tactical Missile Corporation
• Thales S.A.
• Lockheed Martin Corporation

By Aircraft	By Weapons Type	By Region
Fixed-Wing Aircraft Rotorcraft	Air-To-Air Weapons Air-To-Ground Weapons Anti-Ship Weapons Countermeasures	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Aircraft Weapons Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Aircraft Weapons Market , By Aircraft:

• Fixed-Wing Aircraft
• Rotorcraft

• Aircraft Weapons Market , By Weapons Type:

• Air-To-Air Weapons
• Air-To-Ground Weapons
• Anti-Ship Weapons
• Countermeasures

• Aircraft Weapons Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE