Precision Guided Artillery Ammunition Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Caliber (Medium Caliber, Large Caliber), By Technology (GPS Guided, Laser Guided, Inertial Navigation), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.08 Billion
CAGR (2026-2031)	3.72%
Fastest Growing Segment	Medium Caliber
Largest Market	North America
Market Size (2031)	USD 2.59 Billion

Market Overview

The Global Precision Guided Artillery Ammunition Market will grow from USD 2.08 Billion in 2025 to USD 2.59 Billion by 2031 at a 3.72% CAGR. Precision guided artillery ammunition consists of tube-launched projectiles or guidance kits that utilize GPS, laser, or inertial navigation systems to strike targets with high accuracy. The market is primarily driven by the operational necessity to minimize collateral damage in urban environments and the logistical advantage of neutralizing targets with fewer rounds, which significantly lowers the ammunition tonnage required for mission success. Furthermore, the urgent need to replenish depleted national inventories following recent high-intensity regional conflicts actively sustains procurement programs. According to the Association of the United States Army, in 2025, the production of 155mm artillery munitions reached 40,000 rounds per month, demonstrating the significant industrial mobilization underpinning the availability of these critical assets.

However, the expansion of this sector is hindered by complex supply chain constraints affecting the availability of guidance electronics and energetic materials. Manufacturers face difficulties in sourcing sufficient quantities of specialized microchips and propellants needed to scale production commensurate with shell body manufacturing. This disparity between component availability and demand creates delivery delays that could impede the broader adoption of these advanced indirect fire solutions.

Key Market Drivers

The surge in geopolitical tensions and regional security threats acts as a primary catalyst for the Global Precision Guided Artillery Ammunition Market. High-intensity conventional warfare has returned to the forefront of strategic planning, necessitating the rapid replenishment of depleted stockpiles and the deployment of accurate indirect fire solutions. Nations are prioritizing the procurement of guidance-enabled projectiles to ensure tactical superiority and minimize logistical burdens in contested zones. This urgency is reflected in major industrial contracts aimed at securing long-term supply. According to Rheinmetall, June 2024, in a press statement regarding artillery expansion, the company secured a framework contract worth up to €8.5 billion to supply 155mm ammunition to the German Bundeswehr and partner nations, underscoring the scale of demand generated by current security environments.

Widespread modernization of military artillery inventories further propels market growth as defense forces transition from legacy unguided systems to advanced precision capabilities. This shift requires significant investment in the industrial base to manufacture shell bodies and guidance kits that meet modern accuracy standards. Governments are actively funding the expansion of production lines to bridge the gap between operational requirements and manufacturing output. According to the European Commission, March 2024, in the 'Act in Support of Ammunition Production', the body allocated €500 million to ramp up manufacturing capacities to 2 million shells annually by the end of 2025. Additionally, the United States is aggressively scaling its domestic output to meet these modernized inventory needs. According to Defense News, October 2024, in an update on industrial base efforts, the U.S. Army's mobilization plan targets a sustained production rate of 100,000 155mm rounds per month by 2025, highlighting the commitment to fielding these assets at scale.

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Key Market Challenges

The expansion of the Global Precision Guided Artillery Ammunition Market is severely restricted by complex supply chain constraints that limit the availability of essential guidance electronics and energetic materials. While the production of metal shell bodies has accelerated, the final assembly of precision rounds is frequently stalled due to shortages of specialized microchips and specific propellant formulations. This disjointed manufacturing process creates a critical bottleneck, preventing manufacturers from converting raw inventory into finished, field-ready munitions at a pace that matches rising global demand.

These logistical disparities result in extended lead times and unpredictable delivery schedules, which directly discourages broader market adoption. Defense procurement agencies are less likely to transition fully to precision systems if the industrial base cannot guarantee consistent replenishment. The extent of this disruption is evident in recent industry shifts toward restructuring sourcing strategies to secure material flow. According to the Aerospace Industries Association, in 2025, nearly 60 percent of aerospace and defense companies explored opportunities to return production to domestic facilities to mitigate these persistent supply chain risks. This forced reallocation of resources to stabilize logistics slows the immediate production growth necessary to capitalize on current market opportunities.

Key Market Trends

The development of navigation solutions for GPS-denied environments is becoming a critical priority as electronic warfare capabilities increasingly disrupt standard satellite guidance on modern battlefields. Defense manufacturers are aggressively integrating anti-jamming technologies and Military Code (M-Code) receivers into precision-guided kits to maintain terminal accuracy when GPS signals are degraded or spoofed. This trend focuses on hardening the guidance electronics of artillery munitions against intense electromagnetic interference to ensure operational reliability in contested zones. According to Global Defense Corp, July 2024, in the 'BAE Systems awarded contract to produce jam-resistance GPS', the company secured a $325.5 million contract to supply advanced M-Code GPS modules specifically designed to provide secure positioning and navigation data for precision munitions operating in high-threat electronic warfare environments.

The integration of ramjet propulsion for extreme range extension represents a technological leap, enabling artillery systems to engage targets at distances previously achievable only by missiles. Unlike traditional rocket-assisted projectiles that have limited burn times, ramjet-powered shells utilize an air-breathing engine to sustain high-supersonic velocities throughout the flight trajectory, significantly increasing kinetic energy and strike reach. This innovation allows ground forces to neutralize deep-strike targets while remaining outside the counter-battery fire range of adversaries. According to The Defense Post, May 2024, in the 'Rheinmetall to Deliver Unnamed 100 Km Artillery Round to Ukraine: CEO', Rheinmetall announced plans to supply prototypes of artillery shells capable of reaching ranges up to 100 kilometers, a performance milestone driven by the incorporation of advanced propulsion technologies such as ramjet engines.

Segmental Insights

The Medium Caliber segment is recognized as the fastest-growing category within the Global Precision Guided Artillery Ammunition Market, driven by the rising strategic emphasis on versatile field systems. This growth is attributed to the widespread adoption of intermediate artillery platforms which offer a superior balance between mobility and firepower compared to heavier alternatives. Defense forces are actively investing in these munitions to enable precise, rapid-response capabilities essential for modern urban and expeditionary warfare. Furthermore, the integration of cost-effective guidance technologies into this segment facilitates accurate target engagement with minimized collateral damage, prompting increased procurement by military organizations globally.

Regional Insights

North America maintains a leading position in the Global Precision Guided Artillery Ammunition Market, primarily driven by substantial defense expenditures and comprehensive military modernization programs. The region benefits from a robust industrial base of key manufacturers developing systems that improve accuracy and minimize collateral errors. Furthermore, the United States Department of Defense actively funds the development and procurement of these guided munitions to support strategic operational objectives. This consistent government investment, combined with a focus on integrating guidance technologies into field operations, ensures North America remains the primary regional market.

Recent Developments

• In October 2025, General Atomics Electromagnetic Systems successfully completed a live-fire test of its Long Range Maneuvering Projectile (LRMP) at the Yuma Proving Ground in Arizona. The demonstration verified the 155mm projectile's ability to execute guided flight maneuvers and maintain high precision while engaging targets at extended ranges. Fired from a standard Army howitzer, the munition confirmed its compatibility with existing artillery platforms, showcasing a significant advancement in the Global Precision Guided Artillery Ammunition Market. This test validated the system’s design for delivering long-range, precision-strike capabilities to ground forces operating in contested environments.
• In June 2025, BAE Systems Bofors secured a significant contract worth approximately SEK 600 million from the Swedish Defence Materiel Administration to supply additional BONUS precision-guided munitions. This agreement, marking the third major order from Sweden since 2017, reinforced the company's position in the Global Precision Guided Artillery Ammunition Market. The BONUS round is designed to detect and neutralize heavy armored targets, such as main battle tanks, by deploying two sensor-fuzed submunitions mid-flight. The procurement aimed to bolster the Swedish Armed Forces' indirect fire capabilities, ensuring high-accuracy engagement against moving threats using their existing Archer artillery systems.
• In August 2024, the U.S. State Department approved a Foreign Military Sale to the Government of Denmark for the acquisition of Precision Guidance Kits (PGK) manufactured by Northrop Grumman. The transaction, valued at an estimated $85 million, included the delivery of over 5,000 M1156 PGK units along with essential logistics and technical support. These innovative kits are engineered to transform conventional 155mm artillery shells into GPS-guided munitions, thereby significantly enhancing accuracy and reducing the logistical burden of ammunition resupply. This development highlighted the growing demand for scalable solutions within the Global Precision Guided Artillery Ammunition Market to modernize allied forces.
• In June 2024, KNDS France was awarded a contract by the French procurement agency to support the final development stages of the KATANA 155mm high-precision guided ammunition. This agreement followed successful firing campaigns where the munition demonstrated meter-level accuracy through a combination of global navigation satellite systems and inertial guidance units. Designed to engage high-value targets in complex urban environments while minimizing collateral damage, the KATANA shell represents a key product launch effort in the Global Precision Guided Artillery Ammunition Market. The company confirmed that the modular ammunition would be ready for full market distribution within two years.

Key Market Players

• General Dynamics Corporation
• Rheinmetall AG
• BAE Systems plc
• Saab AB
• Nammo AS
• MESKO SA
• Thales S.A.
• Singapore Technologies Engineering Ltd.
• MSM Group
• Elbit Systems Ltd

By Caliber	By Technology	By Region
Medium Caliber Large Caliber	GPS Guided Laser Guided Inertial Navigation	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Precision Guided Artillery Ammunition Market, By Caliber:

• Medium Caliber
• Large Caliber

• Precision Guided Artillery Ammunition Market, By Technology:

• GPS Guided
• Laser Guided
• Inertial Navigation

• Precision Guided Artillery Ammunition 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