Cruise Missile Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Launch Platform (Air, Surface Combatants, Submarine, and Land), By Range (Short-Range Missiles, Medium-Range Missiles, and Long-Range Missiles), By Speed (Subsonic, Supersonic, and Hypersonic), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.39 Billion
CAGR (2026-2031)	8.75%
Fastest Growing Segment	Long-Range Missiles
Largest Market	North America
Market Size (2031)	USD 10.57 Billion

Market Overview

The Global Cruise Missile Market will grow from USD 6.39 Billion in 2025 to USD 10.57 Billion by 2031 at a 8.75% CAGR. Cruise missiles are defined as guided, self-propelled projectiles that sustain flight through aerodynamic lift and operate within the atmosphere to deliver precision payloads at varying speeds and altitudes. The expansion of this market is primarily supported by escalating geopolitical tensions and the urgent requirement for nations to modernize their strategic defense capabilities with advanced long-range strike systems. According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, defense sector turnover increased by 13.8 percent, reflecting the substantial surge in investment toward military readiness and equipment procurement amid global instability.

A significant challenge impeding the broader expansion of the cruise missile market is the fragility of the specialized supply chain required for manufacturing these complex systems. The scarcity of critical high-tech components and raw materials often leads to severe production bottlenecks and inflated development costs, which can delay delivery schedules and constrain the ability of manufacturers to meet the rapidly rising global demand.

Key Market Drivers

The Global Expansion of Defense Budgets and Expenditure is a primary force propelling the Global Cruise Missile Market, as nations aggressively increase financial allocations to counter rising geopolitical instability. Governments are prioritizing the procurement of advanced munitions to ensure combat readiness, resulting in a surge of capital directed toward offensive and defensive missile systems. This fiscal growth allows defense departments to initiate large-scale acquisition contracts and sustain modernization efforts despite economic pressures. For instance, according to the Stockholm International Peace Research Institute (SIPRI), April 2025, global military expenditure rose by 9.4 percent in real terms during 2024 to reach a record $2.7 trillion. Such elevated spending levels directly facilitate the continuous development and deployment of cruise missile arsenals worldwide.

Concurrently, the Growing Demand for Long-Range Precision Strike Capabilities is reshaping market dynamics, driven by the strategic need to neutralize high-value targets from standoff distances. Military doctrines are increasingly focusing on systems that allow forces to strike adversaries while remaining outside the range of enemy air defenses, thereby enhancing platform survivability and operational effectiveness. This operational shift is evident in national procurement strategies that heavily favor extended-range guided weapons. According to IP Defense Forum, January 2025, the Japanese government allocated $6 billion in its 2025 defense budget specifically for a standoff defense system comprising long-range missiles. Reflecting this broader industry momentum, according to Flight Global, March 2025, European missile manufacturer MBDA secured record orders totaling €13.8 billion in 2024, underscoring the robust global appetite for precision strike solutions.

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Key Market Challenges

The fragility of the specialized supply chain constitutes a significant impediment to the growth of the Global Cruise Missile Market. These complex weapon systems rely heavily on a tiered network of suppliers for precision-engineered components, including advanced propulsion units, guidance sensors, and high-grade composite materials. When essential raw materials become scarce or specialized sub-components face production delays, the entire manufacturing process stalls. This fragility limits the industrial base's capacity to scale up production rapidly, preventing manufacturers from fulfilling the urgent strategic requirements of defense agencies on schedule. Consequently, this inability to meet demand creates a backlog that stifles revenue realization and dampens the market's overall expansion momentum.

The reliance on a limited number of qualified vendors further exacerbates this issue, creating single points of failure within the production ecosystem. According to the National Defense Industrial Association, in 2024, 49 percent of private sector respondents in the defense industrial base identified single or sole-source suppliers as their most pressing supply chain vulnerability. This high level of dependence means that a disruption at a single niche supplier can ripple through the entire value chain, causing severe delays and inflating development costs. Such instability not only hampers the delivery of existing orders but also constrains the market's ability to capitalize on rising global defense budgets, as manufacturers struggle to stabilize their logistics against these structural weaknesses.

Key Market Trends

The acceleration of hypersonic cruise missile development represents a critical evolution in strategic strike capabilities, driven by the necessity to penetrate advanced anti-access/area denial (A2/AD) networks. Unlike traditional subsonic systems, scramjet-powered hypersonic missiles sustain speeds exceeding Mach 5 while maneuvering within the atmosphere, making interception by existing air defense architectures extremely difficult. This operational advantage has compelled nations to transition rapidly from research prototypes to fielded programs, resulting in substantial funding increases for air-breathing propulsion technologies. According to Defence Industry Europe, September 2025, the U.S. Air Force has intensified its focus on the Hypersonic Attack Cruise Missile (HACM), with budget requests for the program rising to over $800 million for fiscal year 2026 to expedite its operational deployment.

Simultaneously, the market is witnessing a paradigm shift toward the development of affordable and expendable missile solutions, aiming to address stockpile shortages and the prohibitive costs of "exquisite" precision munitions. Defense industrial strategies are increasingly prioritizing mass-producible systems that utilize commercial off-the-shelf components and additive manufacturing to ensure rapid replenishment during high-intensity conflicts. This trend focuses on overwhelming adversary defenses through volume rather than solely relying on individual platform survivability. Reflecting this industrial pivot, according to National Defense Magazine, September 2025, Anduril Industries announced plans to expand its manufacturing capacity to produce up to 5,000 Barracuda-500 autonomous cruise missiles annually by the end of 2026.

Segmental Insights

The Long-Range Missiles segment currently represents the fastest-growing category in the Global Cruise Missile Market. This expansion is primarily driven by rising geopolitical instability and the strategic requirement for standoff engagement capabilities, which allow armed forces to strike distant targets while keeping launch platforms safe from enemy air defenses. Major institutions such as the U.S. Department of Defense are heavily investing in these systems to enhance operational reach and survivability. Consequently, nations are prioritizing procurement strategies that focus on extended range and precision to maintain effective deterrence in contested environments.

Regional Insights

North America maintains a dominant position in the global cruise missile market, driven primarily by the substantial defense expenditure of the United States. The region benefits from the presence of established defense contractors who collaborate closely with the U.S. Department of Defense to develop advanced missile systems. Continuous investments in fleet modernization and the procurement of long-range strike capabilities by the U.S. Navy and Air Force further sustain this market leadership. Additionally, government-funded research initiatives focus on enhancing precision and range, ensuring steady demand within the region.

Recent Developments

• In December 2025, the Taurus Systems joint venture, a collaboration between MBDA and Saab, secured a contract to launch the production of the Taurus Neo cruise missile for the German Air Force. This agreement focused on delivering an enhanced version of the existing air-launched stand-off weapon, featuring advanced capabilities designed to defeat sophisticated air defense systems. The deal also included provisions for expanding production capacity to meet increased defense requirements. This development represented a strategic step in strengthening deep-strike capabilities for European forces, ensuring the continued operational relevance of the weapon system.
• In September 2024, Anduril Industries launched the Barracuda family of air-breathing, autonomous cruise missiles, aiming to provide a scalable and cost-effective strike capability. The new product line included three variants offering different ranges and payload capacities to suit diverse mission requirements. These weapons were engineered for hyper-scale production, utilizing commercially available components and simplified manufacturing processes to significantly reduce costs compared to traditional munitions. The modular design supported rapid software upgrades and adaptable payloads, addressing the growing military demand for affordable mass in precision strike inventories.
• In July 2024, MBDA announced a significant technological advancement for its SPEAR family of cruise missiles by integrating a new artificial intelligence capability known as Orchestrike. This breakthrough research enabled the missiles to collaborate and coordinate strikes autonomously within a swarm, sharing battlespace information to overcome complex air defenses. The manufacturer stated that this was the first time such collaborative AI had been applied to a cruise missile system while ensuring a human operator remained in the loop. The innovation aimed to enhance both missile and platform survivability by allowing the weapons to react dynamically to tactical challenges.
• In February 2024, Rafael Advanced Defense Systems showcased the Ice Breaker long-range cruise missile at a major defense exhibition, confirming the system was on track for delivery the following year. The company highlighted that this fifth-generation, autonomous, precision-guided weapon was designed to operate effectively in GNSS-denied environments using an advanced imaging infrared seeker and artificial intelligence. The missile features a low-observable design and is capable of being launched from various aerial platforms to engage stationary or moving targets. This development underscored the company's focus on providing versatile stand-off solutions for modern contested arenas.

Key Market Players

• Lockheed Martin Corporation
• RTX Corporation
• Northrop Grumman Corporation
• The Boeing Company
• MBDA Inc.
• L3Harris Technologies, Inc.
• Kongsberg Gruppen ASA
• Roketsan A.Ş.
• RAFAEL Advanced Defense Systems Ltd.
• BAE Systems plc

By Launch Platform	By Range	By Speed	By Region
Air Surface Combatants Submarine and Land	Short-Range Missiles Medium-Range Missiles and Long-Range Missiles	Subsonic Supersonic and Hypersonic	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Cruise Missile Market , By Launch Platform:

• Air
• Surface Combatants
• Submarine
• and Land

• Cruise Missile Market , By Range:

• Short-Range Missiles
• Medium-Range Missiles
• and Long-Range Missiles

• Cruise Missile Market , By Speed:

• Subsonic
• Supersonic
• and Hypersonic

• Cruise Missile 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