ROCKETS AND MISSILES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Global Rockets and Missiles Market Size and Forecast – 2025-2032

The Global Rockets and Missiles Market is estimated to be valued at USD 61.72 billion in 2025 and is expected to reach USD 94.04 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.2% from 2025 to 2032.

Key Takeaways of the Global Rockets and Missiles Market:

• The missiles segment dominates the market holding an estimated share of 46. 6% in 2025.
• The defense segment leads the market holding an estimated share of 44.3% in 2025.
• North America is estimated to lead the market with a share of 38.6% in 2025.
• Asia Pacific, holding a share of 16. 4% in 2025, is projected to be the fastest growing region.

Market Overview:

Governments are investing a lot in advanced missile defense systems and precision-guided munitions to improve their military capabilities. Also, the rising demand for satellite launches and space exploration missions is adding to the growth of the rockets and missiles market. Technological advancements in propulsion systems, guidance, and navigation are also contributing to the market's expansion.

Current Events and their Impact:

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Segmental Analysis

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Global Rockets and Missiles Market Insights, by Product Type – Missiles Dominate Due to Their Versatility

Missiles segment is expected to account for the highest share of 46.6% in the market in 2025 owing to their versatility, precision, and effectiveness in modern warfare. Militaries worldwide are adopting missiles to engage targets at long ranges with high accuracy, reducing the risk to personnel and assets. Globally, governments are investing a lot in the development and procurement of cutting-edge missile technologies to maintain their strategic advantage and deter potential adversaries. In 2023, the U.S. Department of Defense significantly expanded its procurement of Lockheed Martin’s Long-Range Precision Fires (LRPF) missile systems, including the Precision Strike Missile (PrSM) program.

Moreover, advancements in missile technology have added to the growth of this segment. Advanced guidance systems, stealth technology, and smart warheads have improved the effectiveness of missiles in complex battlefields.

Global Rockets and Missiles Market Insights, by Application – Defense Applications Lead Due to Ongoing Geopolitical Conflicts

The defense segment is projected to contribute the highest share of 44.3% in the global rockets and missiles market in 2025. Rockets and missiles play a big role in modern military operations and homeland security strategies. Governments are spending substantial amounts for the procurement and modernization of their rocket and missile arsenals to keep pace with the evolving threat landscape. The development of new technologies, such as hypersonic missiles, stealth missiles, and precision-guided munitions, has further accelerated the growth of the defense segment.

Moreover, the defense segment's growth is fueled by the need for air defense systems. With the proliferation of missile threats from hostile nations and non-state actors, countries are prioritizing the deployment of advanced missile defense systems to protect their critical infrastructure, population centers, and military assets.

Impact of Artificial Intelligence (AI) on the Rockets and Missiles Market:

In missile guidance and targeting systems, AI algorithms enable real-time data processing from various sensors, allowing for dynamic flight path corrections and improved hit accuracy. Machine learning models also support predictive maintenance for rocket systems by analyzing operational data to forecast potential component failures, thus improving system reliability and mission readiness.

Lockheed Martin deployed AI in its “Next Generation Interceptor” (NGI) program, developed for the U.S. Missile Defense Agency. The NGI leverages AI to enhance threat discrimination and interception accuracy against advanced ballistic missile threats. Through onboard AI, the interceptor can process threat data autonomously and make split-second decisions during high-velocity engagements.

Regional Insights:

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North America Rockets and Missiles Market Analysis and Trends

North America, holding a share of 38.6% in 2025, is expected to dominate the global rockets and missiles market. The region boasts a robust defense industry, with the presence of major aerospace and defense companies like Lockheed Martin, Raytheon Technologies, and Northrop Grumman. The region's strong technological capabilities, coupled with supportive government policies and contracts, have contributed to its leading position in the market. Additionally, North America's geopolitical interests and its involvement in various global conflicts have driven the demand for rockets and missiles in the region.

Asia Pacific Rockets and Missiles Market Analysis and Trends

The Asia Pacific region, holding a share of 16.4% in 2025, is projected to exhibit the fastest growth in the global rockets and missiles market. This growth can be ascribed to the increasing defense expenditure by countries in the region, such as China, India, Japan, and South Korea. These nations are focusing on modernizing their military capabilities and investing in indigenous rocket and missile development programs. The rising geopolitical tensions in the region, particularly in the South China Sea and the Korean Peninsula, have further fueled the demand for advanced rocket and missile systems. Moreover, the presence of emerging players and the establishment of joint ventures and collaborations between local and international companies have contributed to the rapid growth of the market in the Asia Pacific region.

Global Rockets and Missiles Market Outlook for Key Countries:

U.S. Rockets and Missiles Market Analysis and Trends

The U.S. rockets and missiles market is characterized by its technological advancements, extensive research and development activities, and the presence of major defense contractors. The country's defense budget allocation for missile defense systems and its involvement in various international conflicts have been key drivers for the market. In 2023, the U.S. Army awarded Lockheed Martin a contract worth over $4.7 billion for the production and delivery of Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors and associated equipment. Notable players like Lockheed Martin, Raytheon Technologies, and Boeing have a significant impact on the U.S. rockets and missiles market, with their cutting-edge rocket and missile technologies and large-scale defense contracts.

China Rockets and Missiles Market Analysis and Trends

China rockets and missiles market has been growing rapidly, driven by the country's increasing defense spending and its focus on developing indigenous missile technologies. State-owned enterprises like China Aerospace Science and Technology Corporation (CASC) and China Aerospace Science and Industry Corporation (CASIC) play a pivotal role in the country's market, with their extensive research and development capabilities.

India Rockets and Missiles Market Analysis and Trends

India’s geopolitical concerns and its efforts to establish a strong deterrence against potential threats have driven the demand for advanced missile systems. The Defence Research and Development Organisation (DRDO) and companies like Bharat Dynamics Limited (BDL) have been instrumental in the development and production of various missile systems for the Indian armed forces.

Russia Rockets and Missiles Market Analysis and Trends

Russia rockets and missiles market is characterized by its technological prowess and its position as a major exporter of missile systems. The country has a well-established defense industry, with companies like Almaz-Antey and Tactical Missiles Corporation playing a significant role in the development and production of advanced rocket and missile technologies. Russia's geopolitical interests and its involvement in regional conflicts have also contributed to the demand for its missile systems in the global market.

Israel Rockets and Missiles Market Analysis and Trends

Israel rockets and missiles market is known for its advanced technologies and its focus on developing cutting-edge missile defense systems. The country's geopolitical challenges and its need for robust defense capabilities have driven the demand for innovative rocket and missile solutions. Companies like Rafael Advanced Defense Systems and Israel Aerospace Industries (IAI) have been at the forefront of developing state-of-the-art missile technologies, such as the Iron Dome and David's Sling missile defense systems.

Market Players, Key Development, and Competitive Intelligence:

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Key Developments:

• In May 2025, Rocket Lab, a publicly traded aerospace manufacturer and launch services provider, expanded deeper into the defense sector with the acquisition of Geost, a supplier of electro-optical and infrared (EO/IR) sensor payloads used in U.S. military satellites.
• In April 2025, Lockheed Martin, the global security and aerospace company, and Rheinmetall, a leading international system house in the defense industry, agreed to expand their existing cooperation. An extension of an already existing Memorandum of Understanding (MoU) from June 2024 was signed between both partners. The companies intend to extend the scope of collaboration in order to serve as a European center of excellence for the manufacturing and distribution of various rockets and missiles.
• In April 2025, General Atomics Electromagnetic Systems (GA-EMS) signed a Memorandum of Understanding (MOU) with Rafael Advanced Defense Systems Ltd., Israel, to be their partner and the U.S. prime contractor to manufacture a long-range, precision-guided strike missile. GA-EMS’ Bullseye missile will meet U.S. military specifications and will provide multi-platform launch capabilities.
• In October 2024, L3Harris Technologies' business unit, Aerojet Rocketdyne, doubled its monthly production of motors for GMLRS rockets that are heavily used in Ukraine.

Top Strategies Followed by Global Rockets and Missiles Market Players

• Established players heavily invest in research and development (R&D) to develop cutting-edge technologies, such as hypersonic missiles and advanced guidance systems.
  • Raytheon Technologies (now part of RTX Corporation) invested heavily in developing the Hypersonic Attack Cruise Missile (HACM) for the U.S. Air Force.

• Mid-level players prioritize cost-effective solutions, targeting markets where budget constraints are a significant factor.
  • Bharat Dynamics Limited (BDL), an India-based state-owned enterprise, offers indigenously developed missile systems like Akash and Nag, which are competitively priced alternatives to Western counterparts.

• Small-scale players differentiate themselves by addressing specific customer requirements or focusing on emerging technologies.
  • Rocket Lab, originally focused on small satellite launches, is expanding into the defense segment through its Hypersonic Suborbital Test Vehicle (HASTE) platform.

Market Report Scope

Market Dynamics

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Global Rockets and Missiles Market Driver - Rising Global Defense Expenditure

Governments across the globe are increasingly allocating larger budgets towards strengthening their military capabilities, with a particular focus on advanced weaponry systems such as rockets and missiles. As reported by Stockholm International Peace Research Institute (SIPRI) in April 2024, global military expenditure reached a record high of USD 2.44 trillion in 2023, marking a 6.8% increase from 2022. This surge in defense spending is primarily attributed to the escalating geopolitical tensions, regional conflicts, and the need for nations to maintain a robust deterrence against potential threats.

As countries seek to modernize their armed forces and enhance their combat readiness, the demand for cutting-edge rocket and missile technology continues to grow. Moreover, the ongoing research and development efforts in this field, coupled with the adoption of innovative materials and propulsion systems, are further fueling the market's expansion.

Global Rockets and Missiles Market Opportunity – Miniaturization & AI-Enabled Systems

Miniaturization involves the development of smaller, lighter, and more compact components, allowing for the creation of more agile and efficient rocket and missile systems. This trend is driven by advancements in materials science, manufacturing techniques, and electronics, enabling the production of highly capable and cost-effective solutions.

Additionally, the incorporation of AI technologies, such as machine learning and computer vision, is revolutionizing the capabilities of rockets and missiles. AI-enabled systems can enhance target recognition, improve guidance and navigation, and optimize payload delivery. These intelligent systems can process vast amounts of data in real-time, making split-second decisions and adapting to changing battlefield conditions.

MBDA’s Enforcer system is a lightweight, shoulder-launched missile designed for infantry use, that integrates compact targeting systems and AI-driven guidance to enable precision strikes in complex urban environments.

Analyst Opinion (Expert Opinion):

• The Russia-Ukraine war has triggered a sharp surge in demand for short- and medium-range missile systems across Europe, pushing North Atlantic Treaty Organization (NATO) allies to replenish and modernize their arsenals. This regional tension has significantly boosted orders for systems like HIMARS, Javelins, and Patriot missiles, contributing to a sustained upward trajectory in Western defense budgets.
• Rising tensions between China and Taiwan, along with maritime disputes in the South China Sea, are prompting countries like Japan, India, and Australia to accelerate the procurement of long-range precision missiles and indigenous defense capabilities. These developments are fueling growth in the Asia Pacific region, now the fastest-growing rockets and missiles market.
• Conflicts in Gaza, Yemen, and Syria continue to drive missile defense acquisitions across the Middle East. At the same time, normalized ties between Israel and several Arab nations have opened new export channels. Israel’s defense exports—48% of which are missiles and rocket systems—hit a record high in 2024, highlighting how conflict and diplomacy can simultaneously shape market flows.

Market Segmentation

•  Product Type Insights (Revenue, USD Bn, 2020 - 2032)
• • Missiles
  • Rockets/Rocket Artilleries
  • Torpedoes
•  Application Insights (Revenue, USD Bn, 2020 - 2032)
• • Defense
  • Space Exploration
  • Commercial Launch
  • Scientific Research
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Lockheed Martin
  • Raytheon Technologies (RTX)
  • Boeing
  • Northrop Grumman
  • BAE Systems
  • General Dynamics
  • Rafael Advanced Defense Systems
  • Airbus Defence & Space
  • L3Harris (Aerojet Rocketdyne)
  • Rocket Lab
  • General Atomics
  • Rheinmetall
  • MBDA
  • Thales
  • Saab

Sources

Primary Research Interviews

Stakeholders:

• Defense Contractors and Systems Integrators (e.g., Project Leads, Missile Program Managers)
• Missile and Rocket Propulsion Manufacturers (e.g., Aerojet Rocketdyne, Rafael Advanced Defense)
• Military Procurement Officers and Defense Ministry Officials
• Engineers and Scientists from Aerospace R&D Agencies
• Supply Chain Managers in Defense Logistics Firms
• Strategic Defense Consultants and Regional Security Analysts

Databases:

• U.S. Department of Defense (DoD) Procurement Data
• European Defence Agency (EDA) Armaments Database
• Defense Budget Tracker – Congressional Budget Office (CBO), U.S.
• Global Firepower Index Database
• Asia-Pacific Defense Technology Archive

Magazines:

• Defense Technology International (DTI)
• Military & Aerospace Electronics
• Strategic Defense Review (SDR)
• Space and Missile Systems Report
• Defense Procurement Digest

Journals:

• Journal of Missile Systems Engineering
• International Journal of Defense Technology
• Aerospace Science and Technology Journal
• Journal of Strategic Studies in Security & Warfare
• Defense Innovation & Technology Journal

Newspapers:

• The Defense Times
• Global Military Review
• Asia Defense News Network
• Defense Monitor Weekly (U.S.)
• The National Security Herald

Associations:

• International Association of Missile Technology (IAMT)
• Aerospace Industries Association (AIA – U.S.)
• European Defence Industry Group (EDIG)
• Missile Defense Advocacy Alliance (MDAA)
• Asian Aerospace and Defense Forum (AADF)

Public Domain Sources:

• U.S. Congressional Research Service (CRS)
• European Space Policy Institute (ESPI)
• United Nations Office for Disarmament Affairs (UNODA)
• Stockholm International Peace Research Institute (SIPRI)
• ResearchGate

Proprietary Elements:

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of Information for Last 8 Years