Global Artillery Systems Market By Type (Howitzer, Rocket, Anti-Air, Mortar, Other Types), By Component (Fire Control System, Gun Turret, Chassis, Engine, Other Components), By Range (Short Range, Medium Range, Long Range), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Artillery Systems Market size is expected to be worth around USD 22.0 Billion by 2033, from USD 11.2 Billion in 2023, growing at a CAGR of 7% during the forecast period from 2024 to 2033. In 2023, North America held a dominant market position, capturing more than a 42.3% share, holding USD 4.7 Billion revenue.

Artillery systems are a category of heavy military weapons built to launch munitions far beyond the range and power of infantry’s small arms. These systems, typically guns, howitzers, or mortars, are designed to deliver large shells or rockets to a distant target area, causing maximum damage upon impact. They play a critical role in ground-based warfare, serving as a key component in both defensive and offensive operations by targeting enemy troops, fortifications, and equipment from long distances.

The market for artillery systems involves the production, distribution, and upgrading of various types of artillery units for military use. This market is driven by the increasing demand from nations worldwide to bolster their defense capabilities against potential threats. The procurement of modern, more efficient, and highly mobile artillery systems is on the rise as countries seek to ensure preparedness for different combat scenarios and maintain a strategic advantage.

Several factors contribute to the growth of the artillery systems market. Advances in technology have led to the development of more accurate and lethal artillery systems, which are appealing to military forces. Increasing geopolitical tensions and the need for heightened national security measures have also pushed countries to upgrade and expand their artillery capabilities. Additionally, the integration of automation and network-centric warfare techniques is further boosting market growth.

There is a consistent demand in the artillery systems market driven by the need for modernization of military equipment. As older systems become outdated, many nations are investing in newer technology to keep their arsenals up to date. The demand is also influenced by ongoing global conflicts and the rising instability in several regions, which compel governments to strengthen their armed forces.

The artillery systems market is ripe with opportunities, especially in the development and supply of advanced precision-guided munitions that can reduce collateral damage and increase effectiveness in targeting. The push for systems that can be easily integrated with existing technology platforms presents a significant opportunity for manufacturers. There is also potential in emerging markets where countries are building up their military capabilities from the ground up.

Market expansion in the artillery systems sector is expected to continue as nations invest more heavily in defense budgets. The expansion is not only seen in the sales of new units but also in the upgrading of existing artillery systems with the latest technology. This trend is accompanied by a growing number of international collaborations and partnerships between countries and defense contractors, facilitating technology transfer and joint development projects to meet the specific needs of different military forces.

For Instance, In July 2024, BAE Systems plc secured a significant contract with the U.S. Army valued at USD 579.3 million. Under this agreement, the company is tasked with manufacturing additional units of the M992A3 ammunition carrier vehicles along with the M109A7 Paladin self-propelled howitzers. This contract not only underscores BAE Systems plc’s role as a major artillery system supplier but also solidifies its standing as a key defense partner to the U.S. military.

Key Takeaways

• The Global Artillery Systems Market is projected to experience substantial growth, anticipated to reach a valuation of USD 22.0 Billion by 2033, up from USD 11.2 Billion in 2023. This represents a steady compound annual growth rate (CAGR) of 7% over the forecast period from 2024 to 2033.
• The howitzer segment demonstrated a strong market presence in 2023, accounting for over 38.9% of the global market share. This segment’s performance is notable, indicating significant utilization and preference within global defense strategies.
• The fire control system segment was particularly dominant, securing more than 30.5% of the market share in 2023. The high demand for advanced targeting and firing accuracy capabilities underpins this segment’s substantial market share.
• In the range classification, the medium-range segment emerged as the leading category, capturing more than 38.1% of the market in 2023. This suggests a robust preference for artillery systems that offer a balance of range and effectiveness, suitable for various operational scenarios.
• Geographically, North America maintained the largest market share in the global artillery systems landscape, holding more than 42.3% in 2023. The region’s strong position reflects its ongoing investment in defense infrastructure and technological advancements in artillery systems.

Artillery Upgrades Investments

According to NATO latest study, In January 2024, NATO finalized agreements valued at $1.2 billion for the procurement of approximately 220,000 155mm artillery shells. This development is part of a wider strategy, initiated in July 2023, wherein NATO has secured contracts amounting to roughly $10 billion. These contracts aim to replenish depleted ammunition inventories, a direct response to ongoing military engagements in Ukraine.

Based on data from Army Recognition, On October 7, 2024, Poland’s defense procurement agency reported the arrival of twelve additional K9A1 self-propelled howitzers sourced from South Korea. This latest delivery has increased the total number of these units actively deployed within the Polish Armed Forces to 108. This increment signifies a pivotal enhancement in Poland’s artillery capabilities. Moreover, it underscores the deepening cooperation with the South Korean company, Hanwha Aerospace.

Artillery Systems Market In North America

In 2023, North America held a dominant market position in the Artillery Systems Market, capturing more than a 42.3% share with revenues amounting to USD 4.7 billion. This substantial market share is largely attributed to the significant defense spending by the United States, which remains the largest global military spender.

Which supports extensive research and development in military technology, including advanced artillery systems. This significant investment has spurred innovations in artillery capabilities, focusing on precision, range, and lethality, which are key to modern warfare. The region’s commitment to maintaining a technological edge in defense capabilities makes it a leading market for both the development and procurement of advanced artillery systems.

The strategic geopolitical landscape of North America also contributes to this dominance. With ongoing commitments to NATO and other international defense obligations, there is a continuous demand for updating and enhancing artillery capabilities to meet global security challenges. This demand is driven not only by domestic defense strategies but also by the needs of allied nations that rely on North American technology and support.

As stated by USAspending, in FY 2024, the Department of Defense (DOD) had $1.94 Trillion distributed among its sub-components. Continuous investment in military modernization and advanced artillery systems, such as self-propelled and precision-guided artillery, strengthens the region’s leadership.

Furthermore, North America is home to some of the world’s leading defense contractors and arms manufacturers, who play a crucial role in the artillery systems market. These companies are at the forefront of developing cutting-edge artillery solutions that incorporate artificial intelligence, drone technology, and cyber warfare capabilities, making their artillery systems among the most advanced and sought-after on the market.

Type Segment Analysis

In 2023, the Howitzer segment held a dominant market position in the artillery systems market, capturing more than a 38.9% share. This leadership can be attributed to several key factors that underline the segment’s widespread preference and deployment across various military forces globally.

Howitzers are highly valued for their versatility and effectiveness in providing both direct and indirect fire support, making them crucial assets on the battlefield. Their ability to fire at high trajectories and cover a substantial range with considerable accuracy makes them preferred systems in both offensive and defensive operations. This capability is particularly important in modern warfare where flexibility in response and precision are required to achieve tactical advantages and minimize collateral damage.

Technological advancements have further solidified the position of the Howitzer segment. Modern howitzers are equipped with automated systems, advanced targeting technology, and enhanced mobility that allow them to be deployed quickly and operate in diverse environments. These improvements have not only extended the operational capabilities of howitzers but have also increased their survival rate in conflict scenarios, making them a go-to choice for ground artillery needs.

Moreover, the continuous modernization efforts by nations to replace older artillery pieces with newer models that offer better range, accuracy, and lethality have driven the demand for howitzers. The integration of howitzers with network-centric warfare systems, where they can be synchronized with other military assets for coordinated operations, highlights their evolving role and ensures their prominence in artillery procurement strategies around the world.

Component Segment Analysis

In 2023, the Fire Control System segment held a dominant market position in the artillery systems components market, capturing more than a 30.5% share. This segment’s leadership is driven by several crucial factors that highlight its importance in enhancing the effectiveness and accuracy of artillery systems.

Fire control systems are integral components that greatly enhance the operational capabilities of artillery by providing precise targeting, aiming, and firing solutions. These systems utilize advanced sensors, radar, and computational algorithms to accurately determine the optimal trajectory and timing for shell deployment. This precision is essential in modern combat scenarios where the margin for error is minimal and the requirement for precision strikes is high, to avoid collateral damage and increase mission success rates.

The increasing incorporation of digital and networked technology into military equipment has also spurred the growth of the fire control system segment. Modern fire control systems are capable of integrating with other military assets, allowing for real-time data sharing and decision-making. This connectivity ensures greater situational awareness and coordinated operations, making fire control systems a key investment area for defense forces aiming to leverage network-centric warfare capabilities.

Furthermore, ongoing military modernization programs across the globe stress the replacement of outdated artillery systems with newer, more advanced ones equipped with sophisticated fire control mechanisms. The focus on enhancing the accuracy and responsiveness of artillery units in diverse operational theaters has made fire control systems a critical component for defense contractors and military planners alike, maintaining its lead in the components market for artillery systems.

Range Segment Analysis

In 2023, the Medium Range segment held a dominant market position in the artillery systems market, capturing more than a 38.1% share. This prominence can be attributed to several strategic advantages that medium range artillery systems offer to military forces. Medium range artillery systems strike a critical balance between reach and mobility, which makes them exceptionally useful in a variety of combat scenarios.

Typically capable of covering distances that extend beyond the effective range of short-range systems, but without the logistical and operational complexities of long-range artillery, these systems provide a practical solution for targeting enemy positions with high accuracy while maintaining a safer distance from direct fire.

The versatility of medium range artillery systems makes them ideal for integration into a broad spectrum of military operations, from conventional battlefield engagements to counter-insurgency operations and peacekeeping missions. Their ability to be deployed rapidly and used effectively in diverse terrains – from densely wooded areas to urban environments – enhances their appeal to military forces that require flexible and responsive fire support.

Additionally, advancements in technology have made medium range systems more effective and reliable. Modern medium range artillery systems are often equipped with enhanced fire control systems, automated loading, and better mobility, which allows for quicker setup and relocation. This reduces their vulnerability to counter-battery fire and increases their operational lifespan on the battlefield.

The continuous improvement in precision-guidance technology also ensures that these systems can deliver munitions with pinpoint accuracy, making them a preferred choice for many nations looking to upgrade their artillery capabilities without the extensive costs associated with long-range systems.

Key Market Segments

By Type

• Howitzer
• Rocket
• Anti-Air
• Mortar
• Other Types

By Component

• Fire Control System
• Gun Turret
• Chassis
• Engine
• Other Components

By Range

• Short Range
• Medium Range
• Long Range

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Drivers

Increased advancements in artillery capabilities to enhance for modern warfare

Increased advancements in artillery capabilities such as automation and precision-guided munitions, are driving the market by making artillery systems more efficient and effective in modern warfare. These technologies enhance accuracy, reduce collateral damage, and improve the mobility of artillery units on the battlefield.

Modern warfare demands rapid response and adaptability, and advanced artillery systems offer the ability to strike targets with precision over long distances. This boosts their strategic value, making them essential for both offensive and defensive operations.

As militaries worldwide seek to modernize their forces, these advancements attract investment in next-generation artillery, ensuring that countries stay competitive in their defense capabilities and meet evolving combat requirements.

Restraint

Delays in the Development and Procurement Plans of Artillery Systems

Delays in the development and procurement of artillery systems act as a significant restraint on the market. These deploys often stem from complex technical requirements and lengthy testing processes, which extend timelines beyond initial projections. Governments and defense contractors face difficulties in meeting deadlines, and slowing down system upgrades and deployment.

Budgetary constraints and shifting defense priorities also contribute to delays, as funds may be reallocated or cut, further complicating the procurement processes. This creates uncertainty for manufacturers and affects production schedules.

Additionally, regulatory hurdles, such as approvals and compliance with international arms treaties, add layers of complexity. These delays disrupt modernization efforts, hindering the timely availability of advanced artillery systems to meet evolving defense needs.

Opportunities

Increasing Defense Expenditure

Increasing defense expenditure presents a significant opportunity for the artillery systems market as governments allocate more resources to modernize and enhance their military capabilities. This surge in funding allows for the acquisition of advanced artillery systems, boosting demand for cutting-edge technologies.

Defense budgets focused on upgrading existing systems or procuring new ones create lucrative opportunities for manufacturers to introduce innovative solutions. Investments in precision-guided munitions, automation, and extended-range artillery become feasible with increased spending.

Additionally, rising defense expenditure promotes collaborations between defense contractors and governments, facilitating the development of next-generation systems. these investments are particularly strong in regions experiencing geopolitical tensions, creating a sustained demand for advanced artillery platforms.

Challenges

Stringent defense regulations and export control policies

Stringent defense regulations and export control policies pose significant challenges for the artillery systems market. Many countries impose strict rules to prevent the misuse of military technology, limiting the ability of defense companies to freely export artillery systems. this restricts market expansion, especially in regions with high demand.

These regulations often require lengthy approval processes, delaying deals and leading to potential revenue losses. Companies must navigate complex compliance frameworks, which increases operational costs and administrative burdens.

Additionally, restrictions on the transfer of advanced technologies between countries further hinder collaborations and innovation. This can slow down the development of next-generation artillery systems and limit market growth opportunities in the global defense sector.

Growth Factors

The artillery market is growing due to rising defense budgets worldwide, driven by geopolitical tensions and regional conflicts. Countries are investing in advanced artillery to enhance their military capabilities and strengthen defense strategies.

Technological advancements, such as automation, precision-guided munitions, and improved mobility, are further boosting market growth. These innovations enhance the effectiveness and operational flexibility of artillery systems making them essential for modern warfare.

Additionally, the increasing demand for versatile systems, capable of both offensive and defensive roles, is propelling the market. Key regions like Asia Pacific and North America are experiencing strong growth as governments focus on upgrading their artillery systems to meet evolving military needs.

Latest Trends

The artillery systems market is witnessing a shift towards automation and AI integration, enhancing targeting precision and reducing human intervention. This trend improves operational efficiency and battlefield effectiveness.

Another significant trend is the increasing adoption of precision-guided munitions, allowing for more accurate strikes and minimizing collateral damage. This shift is crucial for modern combat, where precision is key to tactical success.

Additionally, there’s a growing focus on mobile, self-propelled artillery systems, which offer greater flexibility and rapid deployment in various terrains, these systems are becoming integral to military strategies as they support both offensive and defensive operations with enhanced mobility.

Key Players Analysis

Lockheed Martin is a leading defense contractor known for advanced artillery systems including the M270 Multiple Launch Rocket Systems (MLRS) and precision-guided munitions. The company focuses on technological innovations and modernization programs to enhance firepower and operational efficiency.

Another prominent player in the market is BAE Systems offers a wide range of artillery solutions, including self-propelled howitzers and advanced ammunition systems. Their commitment to research and development allows them to deliver cutting-edge technologies that improve the effectiveness and mobility of artillery units.

Top Key Players in the Market

• BAE Systems Plc
• Lockheed Martin Corporation
• Rheinmetall AG
• General Dynamics Corporation
• Elbit Systems Ltd
• Tata Advanced Systems Limited
• Thales Group
• KNDS Deutschland GmbH & Co. KG
• Avibras Indústria Aeroespacial S/A
• ST Engineering
• Other Key Players

Recent Developments

• In September 2024, Zen Technologies Ltd and its subsidiary AI Turing Technologies launched four advanced remote-controlled weapon and surveillance systems, significantly boosting defense capabilities. The new lineup includes the RCWS – 7.62 x 51 MMG (Parashu), tank-mounted RCWS – 12.7 x 108 HMG (Fanish), naval RCWS – 12.7 x 99 HMG (Sharur), and the artillery rugged camera (Durgam).
• In May 2023, Rostec, based in Russia, disclosed enhancements to the Pantsir S1 Air Defence Gun Systems among other artillery systems. These updates, derived from combat experiences in the Ukraine conflict, include advanced guidance capabilities and extended range. The improvements aim to optimize performance under combat conditions, reflecting a strategic adaptation to the observed operational challenges and enemy tactics.
• In June 2023, Lockheed Martin and Rheinmetall are partnering to offer a European-made rocket launcher based on Lockheed’s High Mobility Artillery Rocket Systems (HIMARS) system to Germany and its neighbors.

Report Scope