United States (USA) Precision-Guided Munition Market Overview, 2031

Key Insights

• According to the research report, "United States Precision-Guided Munition Market Outlook, 2031," published by Bonafide Research, the United States Precision-Guided Munition Market is expected to reach a market size of more than USD 17.30 Billion by 2031.
• The U.S. precision-guided munition market is a cornerstone of the nation's defense industrial base, characterized by massive procurement surges across all military branches driven by geopolitical tensions, munitions stockpile replenishment needs, and lessons learned from the Ukraine conflict and Middle East engagements.
• The U.S. Department of Defense submitted a Fiscal Year 2026 budget request totaling $961.6 billion, comprising $848.3 billion in discretionary budget and $113.3 billion in mandatory funding the latter newly established to accelerate critical investments in ammunition production, missile defense, and industrial base capacity.
• The U.S. military is simultaneously pursuing a two-pronged strategy is investing in advanced long-range precision strike capabilities while also scaling up production of cost-effective precision-guided solutions to address the high consumption rates observed in modern conflicts.
• The Pentagon is aggressively ramping up PGM production capacity, with major contracts awarded to Lockheed Martin, RTX/Raytheon, Northrop Grumman, and BAE Systems totaling tens of billions of dollars in 2025 alone, reflecting an urgent need to rebuild and expand munitions inventories.

Market Outlook

• The U.S. PGM market is undergoing a historic transformation driven by the imperative to rapidly scale production capacity. The U.S. Army awarded Lockheed Martin an IDIQ contract worth up to $4.94 billion in March 2025 for Precision Strike Missile production, significantly increasing manufacturing capacity to meet growing demand. The Javelin Joint Venture between Raytheon and Lockheed Martin received a $900.5 million follow-on production contract in September 2025, with the team employing new tooling and test equipment to improve production line efficiency and support increased production rates.
• The Air Force issued contracts collectively worth approximately $7.8 billion in August 2025 to boost the Pentagon's stockpile of air-to-air, air-to-ground, and anti-ship munitions. The largest award nearly $4.3 billion went to Lockheed Martin for JASSM and LRASM production covering lots 22-26 and 9-12 respectively. Separately, RTX subsidiary Raytheon received $3.5 billion for AMRAAM production lots 39 and 40, the largest award in the program's history.
• The Navy is also significantly expanding its PGM procurement. In December 2025, the U.S. Navy awarded BAE Systems a five-year, indefinite delivery/indefinite-quantity contract worth up to $1.7 billion for APKWS laser-guidance kits, with an initial $322 million order to deliver tens of thousands of precision munitions to U.S. armed forces. The Navy is also seeking substantial increases in SM-6 and AIM-120 AMRAAM acquisitions.

Policies & Regulatory Landscape

• The Department of State's Directorate of Defense Trade Controls published a final rule on August 27, 2025, amending the International Traffic in Arms Regulations with revisions to the U.S. Munitions List designed to promote the competitiveness of the U.S. defense industrial base, effective September 15, 2025.
• The DDTC has also implemented policy changes affecting license application reviews for direct commercial sales of U.S. precision guided munitions, better aligning review policy for DCS with the Foreign Military Sales program.
• The FY2026 defense budget introduces a new $113.3 billion "mandatory funding" mechanism designed to bypass traditional budget framework restrictions, providing a "fast track" for presidentially designated critical priorities particularly ammunition production, missile defense, and industrial base capacity expansion.
• The DoD's Foreign Comparative Testing program continues to evaluate advanced precision munition technologies from allied nations. Projects include a dual-mode precision guided 120 millimeter mortar with both laser and GPS guidance capabilities for USSOCOM, designed to defeat material and armored vehicles with pinpoint accuracy in contested environments.
• The Army's Long Range Precision Fires modernization priority remains a central focus, with programs like PrSM and Extended Range Artillery Munitions receiving sustained investment to counter advances in adversary technologies.

PGM Procurement & Industry Impact

• The U.S. Army is prioritizing long-range precision strike capabilities through the Precision Strike Missile program. In July 2025, PrSM Increment 1 achieved Milestone C approval, signaling the program's transition into the Production and Deployment phase. The missile is designed to neutralize targets at ranges exceeding 400 kilometers and will replace the Army Tactical Missile System. On September 26, 2025, the Army successfully completed the PrSM Increment 1 Initial Operational Test and Evaluation at White Sands Missile Range, with four missiles launched against targets 200 kilometers away, meeting all objectives for range, trajectory, accuracy, and height of burst.
• The Army's Javelin anti-tank missile system continues to demonstrate strong global demand. The Javelin Joint Venture has produced more than 55,000 Javelin missiles and over 12,000 reusable Command Launch Units to date. The September 2025 production contract includes FMS orders for first-time users Brazil and Tunisia, as well as NATO allies Estonia and Bulgaria, and Australia bringing Javelin users to all continents except Antarctica.
• The Air Force is surging production of air-launched precision munitions. The JASSM and LRASM contract covers large lot procurement across multiple production lots, with LRASM derived from JASSM and sharing the same production line. The AMRAAM award represents the largest in the program's history, with the weapon also fired from ground launchers like NASAMS to defeat airborne threats.
• The Army continues to modernize its cannon artillery precision munitions. The Extended Range Artillery Munitions Science & Technology project has transitioned to Product Manager, Extended Range Artillery Munitions, with preparations underway for a program initiation brief to the Army Acquisition Executive.

Industry News

• Lockheed Martin secured a $4.94 billion IDIQ contract from the U.S. Army in March 2025 for PrSM production, utilizing digital tools including augmented reality, ARISE advanced modeling and simulation, data analytics, and software factory capabilities to drive development and improve producibility. The company is also leveraging advanced manufacturing capabilities and investing in production facilities to quickly and affordably deliver JASSM and LRASM capabilities.
• RTX/Raytheon, through the Javelin Joint Venture with Lockheed Martin, secured the $900.5 million Javelin production contract in September 2025, with the joint venture continuing to invest in production facilities to meet global demand. Raytheon also received a $74 million contract from the U.S. Navy in July 2025 to produce RAM Guided Missile Launching Systems.
• Northrop Grumman received multiple Army orders for Precision Guidance Kits in 2025, including a $26.9 million contract in July and a $13 million order in September, as part of a multi-year agreement valued at $1.49 billion. The company also received an Air Force contract worth up to $100 million to provide long-term support for the Stand in Attack Weapon Subsystem.
• BAE Systems was awarded a five-year IDIQ contract worth up to $1.7 billion by the U.S. Navy in December 2025 for APKWS laser guidance kits, with an initial $322 million order, driven by lessons learned from Ukraine and rising demand.
• General Dynamics Ordnance and Tactical Systems received an Army contract in June 2026 to develop an American version of the Leonardo Vulcano Derived 155mm precision-guided munition for the Extended Range Artillery Projectile program.

Segment Analysis

United States Precision-Guided Munition Market By Product Type
• Tactical missiles represent a major product category within the precision-guided munition market due to their widespread integration into modern defense inventories. These systems typically have a production lead time of 18-30 months and a storage life of 15-25 years under controlled conditions. Scheduled maintenance inspections are generally conducted every 2-4 years, while lifecycle upgrades are commonly performed after 10-15 years of service.
• Guided rockets and artillery shells are designed to improve precision while maintaining compatibility with existing launch systems. Manufacturing cycles generally range from 8-18 months, with storage life between 10-20 years. Depot inspections are typically scheduled every 3–5 years, while component replacement intervals generally occur after 8-12 years.
• Guided bombs combine conventional bomb bodies with advanced guidance kits, allowing modernization of existing inventories. Production lead times generally range from 12-24 months, while storage life extends from 15-25 years. Routine servicing is commonly performed every 2-3 years, and guidance kit upgrades are typically implemented after 8-12 years.

United States Precision-Guided Munition Market By Subsystem
• Guidance and navigation systems form the core subsystem responsible for precision control and flight path management. Manufacturing lead times generally range from 8-18 months, while operational service life extends from 10-20 years. Preventive maintenance is typically scheduled every 2-4 years, with software updates performed periodically throughout the lifecycle.
• Target acquisition systems incorporate advanced sensors and processing technologies to support object detection and tracking. Production cycles generally require 6-15 months, while subsystem service life ranges from 10-18 years. Environmental qualification testing commonly lasts between 500 and 1,500 hours, followed by periodic recalibration during scheduled maintenance.
• Propulsion systems provide the necessary energy for controlled flight and maneuverability while maintaining long-term reliability. Manufacturing generally requires 12-24 months, with storage life between 10-20 years. Major inspections are commonly performed every 3-5 years, while propulsion refurbishment may be scheduled after 10-15 years.

United States Precision-Guided Munition Market By Launch Platform • Airborne platforms account for a significant share of precision-guided munition integration due to compatibility with multiple aircraft types. Platform integration programs generally require 12-24 months, while certification activities typically extend over 6-12 months. Scheduled maintenance planning commonly follows 12-24-month service intervals, supporting long-term operational readiness.
• Land-based platforms support the deployment of multiple precision-guided munition categories through mobile and fixed launch systems. Integration timelines generally range from 10-20 months, while major maintenance intervals occur every 12-36 months. Platform modernization programs are commonly implemented after 10-15 years of service.
• Naval platforms incorporate precision-guided munitions into integrated combat and weapons management systems designed for long term deployment. Platform integration generally requires 18-30 months, while lifecycle support extends beyond 20 years. Scheduled maintenance activities are commonly performed every 18-36 months, with system upgrades occurring throughout the service life.

Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Precision-Guided Munition Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Tactical Missiles
• Guided Rockets and Artillery Shells
• Guided Bombs (PGMs/Smart Bombs)
• Loitering Munitions
• Interceptor Missiles
• Torpedoes
• Hypersonic Missiles

By Subsystem
• Guided and Navigation Systems
• Target Acquisition Systems
• Propulsion Systems
• Warheads
• Power Supply Systems

By Launch Platform
• Airborne
• Land-based
• Naval
• Unmanned Systems