Rocket and Missile Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Launch Mode (Surface-To-Surface, Surface-To-Air, Subsea-To-Surface, Air-To-Air and Air-To-Surface), By Propulsion (Solid Propulsion, Liquid Propulsion, Hybrid Propulsion, Turbojet, Ramjet and Scramjet), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 66.58 Billion
CAGR (2026-2031)	5.85%
Fastest Growing Segment	Hypersonic
Largest Market	North America
Market Size (2031)	USD 93.65 Billion

Market Overview

The Global Rocket and Missile Market will grow from USD 66.58 Billion in 2025 to USD 93.65 Billion by 2031 at a 5.85% CAGR. Rockets and missiles are self-propelled airborne systems utilized for delivering warheads in military operations or deploying payloads for space exploration. The global market is primarily driven by intensifying geopolitical instability and a consequential increase in national defense budgets aimed at modernizing strategic capabilities. Governments are prioritizing the acquisition of precision-guided munitions and tactical launch systems to ensure operational readiness and effective deterrence.

However, the industry faces a significant challenge regarding supply chain fragility, particularly the scarcity of critical raw materials and semiconductors required for complex guidance units. These logistical bottlenecks restrict production scalability and delay delivery schedules, creating a substantial hurdle for manufacturers striving to meet escalating order backlogs. According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, defense sector turnover increased by 13.8 percent to reach 183.4 billion euros.

Key Market Drivers

Escalating geopolitical tensions and a global surge in defense expenditures are fundamentally reshaping the procurement strategies for rocket and missile systems. As nations face intensifying cross-border security threats, governments are prioritizing the acquisition of long-range precision strike capabilities and integrated air defense architectures to ensure operational readiness. This strategic shift has necessitated a massive injection of capital into the aerospace defense sector to expand production lines for tactical weaponry. According to the Stockholm International Peace Research Institute (SIPRI), April 2025, in the 'Trends in World Military Expenditure, 2024' Fact Sheet, world military spending rose by 9.4 percent to reach 2718 billion USD, marking the steepest year-on-year increase since the end of the Cold War. This financial commitment directly accelerates the development of hypersonic technologies and advanced ballistic missile stockpiles required for modern deterrence.

Concurrently, the rapid proliferation of Low Earth Orbit (LEO) satellite constellations is revolutionizing the launch services segment of the market. The commercial imperative to establish global broadband connectivity and real-time earth observation networks requires high-frequency orbital access, driving the adoption of reusable launch vehicle architectures. These technological advancements have significantly lowered the cost per kilogram to orbit, enabling commercial entities to sustain aggressive deployment schedules. According to SpaceX, January 2025, in an official company update, the firm completed 134 successful missions using its Falcon rocket family in 2024, accounting for a majority of global orbital launches. The sustained appetite for both kinetic defense systems and space access is evident in the order books of major industry players. According to Lockheed Martin Corporation, January 2025, the company reported a record year-end backlog of 176 billion USD, reflecting enduring global demand for advanced defense technology and systems.

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Key Market Challenges

The Global Rocket and Missile Market faces a substantial growth impediment due to supply chain fragility, specifically the scarcity of critical raw materials and semiconductors essential for complex guidance units. This logistical instability restricts production scalability, causing manufacturers to struggle in converting record-high order backlogs into delivered revenue. When the flow of essential components—such as rare earth elements and advanced processors—is disrupted, production lines for precision-guided munitions stall, resulting in extended lead times and delayed deployment schedules that compromise the operational readiness of defense clients.

This contraction in the vendor base has created a precarious environment where the loss of even a single sub-tier manufacturer can halt major programs. According to the National Defense Industrial Association, in 2024, 'private sector respondents reported losing 26 percent of critical suppliers during the last three years', highlighting a severe erosion of the industrial base. This reduction in qualified sources forces missile manufacturers to rely on a shrinking pool of vendors, thereby amplifying the risk of bottlenecks and directly hampering the industry's ability to capitalize on rising global demand.

Key Market Trends

Growing Reliance on Indigenous Manufacturing and Supply Chain Sovereignty is reshaping the industrial landscape as nations strive to inoculate their defense capabilities against cross-border logistical disruptions. Governments are increasingly mandating the localization of critical sub-systems, compelling prime contractors to expand domestic production output rather than relying on fragmented global vendor bases. This strategic pivot drives the aggressive ramping of local assembly lines to ensure that strategic autonomy is maintained independent of international trade bottlenecks. According to Flight Global, March 2025, in the 'MBDA boosts missile output as backlog spikes to €37bn' report, the European missile systems house MBDA successfully produced and delivered 33 percent more missiles in 2024 than in the prior year, directly addressing the urgent demand for sovereign inventory replenishment.

The Development of Hypersonic Glide Vehicles and Scramjet Propulsion is accelerating the creation of next-generation strike capabilities designed to bypass modern anti-access/area-denial architectures. Industry players are heavily investing in specialized infrastructure to manufacture advanced air-breathing engines capable of sustaining speeds above Mach 5 for extended durations, a critical requirement for long-range maneuverability. These propulsion breakthroughs are essential for transitioning hypersonic prototypes into fielded operational systems. According to Design Development Today, June 2025, in the 'Northrop Grumman Expands Propulsion Capacity with New Maryland Facility' article, Northrop Grumman is executing a 100 million USD investment at its Elkton site to construct a new innovation center dedicated to meeting the production needs for hypersonic air-breathing propulsion systems.

Segmental Insights

The Hypersonic segment is recognized as the fastest-growing area within the Global Rocket and Missile Market due to the urgent strategic requirement to overcome advanced air defense systems. These weapons possess unique flight characteristics, combining extreme speeds with maneuverability, which renders current interception capabilities ineffective. Defense departments worldwide are significantly increasing investments in this technology to ensure national security and maintain a credible deterrent. This shift in military priorities drives rapid market expansion, as nations compete to operationalize these assets and address the capability gap in modern warfare.

Regional Insights

North America maintains a leading position in the global rocket and missile market, primarily driven by significant defense expenditure in the United States. The region benefits from extensive procurement programs authorized by the United States Department of Defense, which prioritizes the modernization of tactical and strategic weaponry. Additionally, the presence of established defense contractors facilitates consistent product development and supply chain stability. These factors, combined with ongoing investments in missile defense capabilities to counter regional threats, solidify North America’s status as the principal market for missile technologies.

Recent Developments

• In September 2024, Anduril Industries unveiled the Barracuda family of air-breathing, software-defined cruise missiles, specifically designed for hyper-scale production and affordable mass deployment. The new product line included three variants offering varying ranges and payload capacities, all compatible with multiple air, ground, and maritime platforms. The company emphasized that these autonomous air vehicles were engineered to require significantly fewer tools and parts than competing systems, enabling rapid manufacturing rates to meet surging inventory demands. This launch addressed the critical market need for adaptable, cost-effective precision munitions capable of supporting high-end conflicts and executing collaborative combat missions alongside manned aircraft.
• In September 2024, Raytheon and Northrop Grumman successfully completed a static fire test of an advanced long-range solid rocket motor, marking a significant breakthrough in hypersonic propulsion technology. Conducted at a specialized laboratory in West Virginia, the test demonstrated a novel wired end-burning technology designed to extend the range and performance of next-generation defensive systems. The companies leveraged combined digital engineering expertise and model-based systems engineering to validate the motor's design maturity and simulate its performance in a digital environment. This collaborative research effort aimed to accelerate the development of hypersonic capabilities and deliver enhanced responsive solutions to meet the evolving threats faced by allied military forces.
• In July 2024, MBDA strengthened its collaboration with the United Kingdom Ministry of Defence by renewing a strategic partnership on complex weapons for another decade. The deal, valued at £6.5 billion, was formalized through the second Portfolio Management Agreement, intended to accelerate the delivery of advanced weapon systems such as the Future Cruise and Anti-Ship Weapon and the Land Precision Strike capability. This renewed collaboration aimed to enhance the agility and readiness of the armed forces while generating significant savings and efficiencies in procurement. The agreement also supported continued investment in British manufacturing technologies and sustained thousands of specialized jobs across the company’s extensive supply chain.
• In March 2024, Lockheed Martin secured a contract valued at $219 million from the United States Army to produce additional Early Operational Capability Precision Strike Missiles. This agreement marked the fourth production award for the long-range surface-to-surface missile system, aimed at significantly increasing manufacturing capacity to meet growing defense demands. The Precision Strike Missile, designed with an open systems architecture, provides a critical long-range precision fires capability intended to replace older tactical ballistic missiles. The company highlighted that this contract would accelerate the delivery of these next-generation deterrent capabilities, which are compatible with existing high-mobility artillery rocket launchers employed by ground forces.

Key Market Players

• Lockheed Martin Corporation
• Raytheon Technologies Corporation
• Northrop Grumman Corporation
• MBDA
• Thales Group
• BAE Systems plc
• Defense Space & Security
• Saab AB
• Israel Aerospace Industries Ltd
• Roketsan AS

By Launch Mode	By Propulsion	By Region
Surface-To-Surface Surface-To-Air Subsea-To-Surface Air-To-Air and Air-To-Surface	Solid Propulsion Liquid Propulsion Hybrid Propulsion Turbojet Ramjet and Scramjet	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Rocket and Missile Market, By Launch Mode:

• Surface-To-Surface
• Surface-To-Air
• Subsea-To-Surface
• Air-To-Air and Air-To-Surface

• Rocket and Missile Market, By Propulsion:

• Solid Propulsion
• Liquid Propulsion
• Hybrid Propulsion
• Turbojet
• Ramjet and Scramjet

• Rocket and 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