Military Fire Control Systems Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Naval, Ground-Based, Airborne), By Platform (Weapon Mounted, Vehicle Mounted), By Component (Gun Director, Computing Devices/Displays, Sensor, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.42 Billion
CAGR (2026-2031)	7.36%
Fastest Growing Segment	Airborne
Largest Market	North America
Market Size (2031)	USD 11.36 Billion

Market Overview

The Global Military Fire Control Systems Market will grow from USD 7.42 Billion in 2025 to USD 11.36 Billion by 2031 at a 7.36% CAGR. The Global Military Fire Control Systems Market consists of integrated networks comprising sensors, tracking radars, and ballistic computers designed to assist weapon systems in acquiring and neutralizing targets with high accuracy. The expansion of this market is primarily driven by the increasing global demand for precision munitions and the necessity to modernize naval and airborne platforms to counter asymmetric warfare threats. These drivers foster a consistent requirement for advanced target acquisition capabilities and automated solution calculators across land, sea, and air domains.

However, the market faces a significant challenge regarding the technical difficulty of integrating modern software architectures with legacy hardware components. This interoperability issue often leads to extended development timelines and increased production costs which can delay the deployment of upgraded capabilities. According to the North Atlantic Treaty Organization, in 2024, European Allies invested a combined total of 380 billion US dollars in defense, reflecting the substantial fiscal scale required to support such complex modernization programs.

Key Market Drivers

Rising Global Defense Expenditures and Strategic Modernization Initiatives act as the primary catalyst for the expansion of the military fire control systems market. As geopolitical instability necessitates the rapid overhaul of legacy defense architectures, governments are prioritizing heavy investments in high-precision weaponry and digitized command networks. This financial influx is critical for procuring advanced ballistic computers and electro-optical tracking systems that can operate across land, sea, and air domains. According to the Stockholm International Peace Research Institute, April 2024, in the 'Trends in World Military Expenditure, 2023', global military spending grew by 6.8 percent in real terms to reach $2443 billion. Such capital allocation directly supports the retrofitting of aging platforms with automated solution calculators, ensuring that armed forces maintain superiority in potential high-intensity conflicts.

The Integration of Artificial Intelligence and Automated Targeting Algorithms is fundamentally reshaping the technical capabilities of fire control units. Modern warfare requires systems that can analyze vast amounts of sensor data to identify and engage threats significantly faster than human operators. By embedding machine learning into targeting software, manufacturers are reducing the sensor-to-shooter cycle and enhancing hit probabilities in dynamic environments. According to the U.S. Department of Defense, March 2024, in the 'Fiscal Year 2025 Budget Request', the department requested $1.8 billion specifically to enable the adoption of artificial intelligence capabilities for warfighting integration. This technological shift is generating substantial industrial momentum as defense contractors secure large-scale orders for these next-generation solutions. Reflecting this sustained demand, according to RTX Corporation, in 2024, the company reported a record backlog of $221 billion, underscoring the long-term reliance on integrated defense technologies.

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Key Market Challenges

The technical complexity of retrofitting modern software architectures onto legacy hardware presents a formidable barrier to market acceleration. As military forces strive to enhance fire control capabilities, the incompatibility between advanced algorithmic solutions and aging physical platforms creates significant integration bottlenecks. These engineering hurdles inevitably result in prolonged testing phases and substantial cost overruns, effectively stalling the delivery of critical upgrades to end-users. Consequently, manufacturers face slower project completion rates, which restricts the speed at which new revenue streams can be realized from modernization contracts.

This friction is particularly impactful given the immense financial volume currently flowing into the sector to support equipment updates. According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, the defense sector turnover reached 183.4 billion euros. While this figure indicates robust demand, the inability to swiftly bridge the technological divide between generations of equipment dampens the potential for even faster market expansion. The friction caused by these interoperability issues ultimately limits the industry's capacity to convert high demand into deployed, operational assets within projected timeframes.

Key Market Trends

The Shift Toward Network-Centric Warfare and Connectivity is necessitating that fire control units function as integrated nodes within a digital battlefield rather than isolated systems. This trend focuses on bridging the gap between sensors and shooters, allowing for instantaneous data exchange that significantly reduces the time required to calculate and execute ballistic solutions for indirect fire. By embedding secure digital communications into targeting computers, manufacturers ensure that weapon systems can automatically process coordinates from remote observers. Highlighting this transition to digitized operations, according to Leonardo DRS, January 2025, in the press release 'Leonardo DRS Awarded $99 Million Contract to Modernize U.S. Army’s Mortar Fire Control System', the company secured a deal to equip the U.S. Army with networked computing capabilities that link mortar crews directly to the digital command grid.

The Development of Soldier-Borne Small Arms Fire Control Systems is simultaneously driving the miniaturization of precision targeting technologies for dismounted infantry. By integrating ballistic calculators, atmospheric sensors, and laser rangefinders into compact rifle-mounted optics, industry players are enabling individual soldiers to engage moving targets with hit probabilities previously reserved for vehicle-mounted platforms. These "smart sights" are becoming particularly critical for countering asymmetric threats such as small drones at the squad level. Underscoring this tactical evolution, according to EDR Magazine, May 2025, in the article 'Smartshooter awarded a $13M U.S. Army contract for Smash 2000L fire control systems', the U.S. Army ordered these advanced handheld units to support its Transformation In Contact forces, reflecting the growing operational reliance on intelligent small arms optics.

Segmental Insights

The Airborne segment is identified as the fastest-growing category within the Global Military Fire Control Systems Market due to the accelerating modernization of military aircraft fleets. Defense ministries are increasingly investing in the integration of precision targeting capabilities into both manned fighters and unmanned aerial vehicles. This expansion is driven by the operational necessity to improve engagement accuracy and reaction times during complex aerial missions. Consequently, the demand for systems that manage weapon release and trajectory from aerial platforms is rising significantly as nations aim to maintain strategic air superiority against emerging threats.

Regional Insights

North America maintains a leading position in the global military fire control systems market due to extensive defense appropriations by the United States. The region benefits from significant investments by the United States Department of Defense aimed at modernizing land, naval, and airborne fleets. This dominance is further supported by the concentration of established defense contractors in the area, enabling the consistent development of integrated targeting solutions. Consequently, the continuous prioritization of precision engagement capabilities and fleet upgrades ensures North America remains the primary hub for market expansion.

Recent Developments

• In February 2025, Saab received a significant order from BAE Systems Hägglunds to supply the Universal Tank and Anti-Aircraft System (UTAAS) fire control solution for the CV90 combat vehicle. Valued at approximately SEK 700 million, the contract encompassed the delivery of the modular sighting system, which ensures high hit probability against both ground and aerial targets. The technology enables the gunner to operate with a stabilized independent line of sight, maintaining the target in the reticle center during engagement. This order underscored the continued demand for the CV90 platform and reinforced the established industrial cooperation between the two defense companies.
• In January 2025, Leonardo DRS was awarded a contract valued at over $99 million by the U.S. Army to provide next-generation Mortar Fire Control Systems. The indefinite delivery/indefinite quantity agreement covered the production of advanced hardware and fielding services designed to modernize the Army’s indirect fire capabilities. The improved system integrated a precision pointing device, an inertial navigation system, and a ruggedized computer to facilitate rapid digital communication and ballistic calculations. This technology was engineered to allow mortar crews to accurately engage targets and coordinate effectively within the digital battlefield environment.
• In September 2024, Rheinmetall successfully conducted the first firing tests of its Skyranger 35 air defense system integrated onto a Leopard 1 main battle tank chassis. The operational demonstration highlighted the system's advanced fire control unit, which fused data from a 360-degree search radar, a tracking radar, and electro-optical sensors to detect and engage agile aerial targets. The tests utilized the 35mm revolver cannon to validate the platform's ability to neutralize threats such as unmanned aerial systems. This development represented a significant step in offering a cost-effective, highly mobile air defense solution by leveraging existing heavy armored vehicle fleets.
• In July 2024, BAE Systems Bofors entered into a strategic partnership with Chess Dynamics to supply the fire control element for the Tridon Mk2 air defense system. This collaboration focused on integrating a specialized variant of the Hawkeye Air Defence fire control solution, which featured high-definition thermal imagers, daylight cameras, and high-performance laser range finders. The electro-optic system was designed to provide precise three-dimensional tracking coordinates of both air and surface targets to the gun control mechanism. This joint effort aimed to enhance the system's capability to counter evolving threats, including drones and cruise missiles, for improved ground-based air defense.

Key Market Players

• Elbit Systems Ltd.
• BAE Systems plc
• Lockheed Martin Corporation
• General Dynamics Corporation
• Safran S.A.
• Rheinmetall AG
• Bharat Electronics Ltd
• Saab AB
• RTX Corporation
• Northrop Grumman Corporation

By Application	By Platform	By Component	By Region
Naval Ground-Based Airborne	Weapon Mounted Vehicle Mounted	Gun Director Computing Devices/Displays Sensor Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Military Fire Control Systems Market, By Application:

• Naval
• Ground-Based
• Airborne

• Military Fire Control Systems Market, By Platform:

• Weapon Mounted
• Vehicle Mounted

• Military Fire Control Systems Market, By Component:

• Gun Director
• Computing Devices/Displays
• Sensor
• Others

• Military Fire Control Systems 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