Rocket Missile Market Analysis

ID: MRFR/AD/8843-HCR

167 Pages

Swapnil Palwe

October 2025

Rocket and Missile Market Research Report Information By Launch Mode (Surface-To-Surface, Surface-To-Air, Subsea-To-Surface, Air-To-Air and Air-To-Surface), Propulsion (Solid Propulsion, Liquid Propulsion, Hybrid Propulsion, Turbojet, Ramjet and Scramjet) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and Latin America) - Forecast till 2035

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Market Analysis

In-depth Analysis of Rocket Missile Market Industry Landscape

The Rocket and Missile market is a crucial part of the defense enterprise, representing modern technology in the field of projectile arms. This means that missile industries are controlled by changing world geopolitics, ever-advancing military strategies as well as constant drive to improve on advanced missile systems targeting defensive and deterrent purposes. Contemporary warfare relies significantly on rockets and missiles for long- range delivery, location specificity, and neutralization capabilities towards emerged threats.

One of the key drivers shaping market dynamics for rocket and missile systems is global geopolitics. As part of national defense strategies, countries have invested heavily in their missile capabilities. The market responds by advancing its missiles through longer-range designs, more accurate guidance systems or payload diversification. Worldwide military deterrence balance is shaped by ongoing development and deployment of sophisticated missile systems.

Technological advancement lies at the center of the Rocket and Missile systems market dynamics. Persistent research aims at enhancing propulsion technologies, guidance & control systems as well as materials used in designing missiles. The market evolves introducing innovations such as hypersonic weapons, precision-guided munitions or stealth capabilities to enhance overall effectiveness or versatility of missile systems. These advancements not only enhance offensive capabilities but also lead to robustness in constructing air-defense mechanisms with missiles.

The threat landscape created by ballistic missiles proliferation and non-state actors with access to advanced weaponry shapes the market dynamics for Rocket and Missile Systems. To counter possible attacks on critical infrastructure; nations invest into improving their missile defense capacity even further. For example, advanced anti-missile systems including interceptors, radars or command & control infrastructure are being developed & deployed by the market to protect against different types of missile threats in a layered manner. Missiles' global developmental trend results into greater security across national borders.

Rocket and Missile Systems’ global marketplace dynamics are influenced largely through international collaborations and partnerships. Defense contractors cooperate with technology providers and governments thus pooling together their resources/ expertise so that they can come up with sophisticated missile technologies. These collaborations help in sharing of knowledge, standardizing efforts, as well as ensuring that participating countries can profit from joint research and development initiatives. The market’s collaborative nature implies that missile technology is globally interconnected.

The commercialization of space and the rise of space exploration initiatives contribute to the market dynamics of Rocket and Missile systems. Satellites launch services for commercial purposes, commercial satellite deployments as well as intercontinental ballistic missiles (ICBMs) intended for space or satellite launching are some of the elements within this industry. Therefore, the demand for reliable and cost-effective launch vehicles has compelled the market to develop new generation solutions such as reusable rockets which have made more small satellites’ applications feasible outside defense sector.

Key challenges in market dynamics comprise arms control agreements, export controls & ethical issues surrounding use of missile technologies. For instance, international agreements like Missile Technology Control Regime (MTCR) seek to limit proliferation of missile technologies towards non-peaceful uses. In order to comply with these agreements plus export control legislations; missile makers have devised various strategies and operations in relation to their trade activities.

Market Highlights

Author

Swapnil Palwe

Team Lead - Research

With a technical background as Bachelor's in Mechanical Engineering, with MBA in Operations Management , Swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the Automotive/A&D domain. Swapnil has worked on major projects in verticals such as Aerospace & Defense, Automotive and many other domain projects. He has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.

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FAQs

What is the projected market value of the global rocket and missile market?

global rocket and missile market is projected to acquire the market value of USD 54 Billion during the forecast period from 2022 to 2030

At what CAGR is the global rocket and missile market estimated to expand?

The global rocket and missile market is estimated at 5% during the forecast period from 2022 to 2030

What is the USP of the global rocket and missile market during the forecast period?

Development of guided missile systems is the anticipated market USP of the rocket and missile market.

Who are the key players of the global rocket and missile market?

Denel Dynamics (South Africa), Mesko SA (Poland), Lockheed Martin Corporation (U.S.), and Roketsan AS (Turkey) are some of the renowned players in the global rocket and missile market.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

Key Market Trends & Highlights

Market Size & Forecast

2023 Market Size

Market Trends

Rocket Missile Market Market Drivers

Market Segment Insights

Regional Insights

Industry Developments

Q2 2024: Lockheed Martin wins $4.5 billion U.S. Army contract for next-generation missile systems Lockheed Martin was awarded a $4.5 billion contract by the U.S. Army to produce next-generation missile systems, including upgrades to the Precision Strike Missile (PrSM) program, aimed at enhancing long-range strike capabilities.
Q2 2024: Northrop Grumman opens new missile manufacturing facility in West Virginia Northrop Grumman inaugurated a new state-of-the-art missile manufacturing facility in West Virginia, expanding its production capacity for advanced missile systems to meet growing defense demand.
Q2 2024: Rafael and Raytheon sign partnership to co-develop next-gen air defense missile Israeli defense company Rafael and U.S.-based Raytheon announced a strategic partnership to co-develop a new generation of air defense missiles, targeting both domestic and international markets.
Q3 2024: India successfully tests Agni-Prime ballistic missile India's Defence Research and Development Organisation (DRDO) announced the successful test launch of the Agni-Prime ballistic missile, marking a significant milestone in the country's indigenous missile development program.
Q3 2024: MBDA secures €1.2 billion contract to supply air defense missiles to Germany European missile manufacturer MBDA signed a €1.2 billion contract to supply Germany with advanced air defense missile systems as part of the country's military modernization efforts.
Q3 2024: South Korea's Hanwha Aerospace wins $1 billion missile export deal with UAE Hanwha Aerospace secured a $1 billion contract to export guided missile systems to the United Arab Emirates, strengthening South Korea's position in the global defense market.
Q4 2024: Aerojet Rocketdyne completes acquisition by L3Harris Technologies Aerojet Rocketdyne announced the completion of its acquisition by L3Harris Technologies, creating a combined entity with expanded capabilities in rocket propulsion and missile systems.
Q4 2024: Japan's Mitsubishi Heavy Industries unveils new hypersonic missile prototype Mitsubishi Heavy Industries revealed a prototype of its new hypersonic missile, designed for rapid deployment and enhanced maneuverability, as part of Japan's defense modernization strategy.
Q1 2025: U.S. Department of Defense awards $2.1 billion missile contract to Raytheon Raytheon Technologies received a $2.1 billion contract from the U.S. Department of Defense to supply advanced missile systems for both domestic and allied military forces.
Q1 2025: Thales launches new surface-to-air missile system for export markets Thales Group announced the launch of its latest surface-to-air missile system, targeting export markets in Asia and the Middle East, with enhanced targeting and countermeasure capabilities.
Q2 2025: BAE Systems appoints new CEO to lead missile and rocket division BAE Systems named a new CEO for its missile and rocket division, signaling a strategic focus on innovation and international expansion in advanced weaponry.
Q2 2025: Kongsberg signs $475 million contract to deliver Naval Strike Missiles to U.S. Navy Kongsberg Defence & Aerospace secured a $475 million contract to supply its Naval Strike Missile system to the U.S. Navy, supporting fleet modernization and enhanced maritime strike capabilities.

Segmentation

By Launch Mode

Surface-To-Surface: This segment accounted for the largest market share in 2019 and is expected to register a steady CAGR during the forecast period. The surface-to-surface rockets and missiles are conventional weapons and thus are primarily used by the military forces.
Air-To-Surface: The segment is expected to register the highest CAGR during the review period. The increasing use of guided missiles that are launched by fighter jets and helicopters is expected to drive the growth of this segment.
Surface-To-Air: The segment accounted for the second-largest market share in 2019. This can be attributed to the increasing use of surface-to-air missiles for destroying enemy aircraft.

By Propulsion

Solid Propulsion: The segment dominated the rocket and missile market in 2019. This is due to the wide use of solid-state propulsion systems in rockets.
Hybrid Propulsion: The segment is expected to register the highest CAGR during the forecast period. This is due to the increasing demand for hybrid propulsion systems for intercontinental ballistic missiles.
Turbojet: The segment is expected to witness steady growth during the forecast period, 2019 to 2026. The turbojet propulsion systems are widely used in missiles.

By Region

North America: North America dominates the rocket and missile market and is projected to continue to do so throughout the forecast period. The increasing adoption of rocket and missile by the US and Canada for performing military missions are expected to drive the growth of the regional market.
Europe: Europe accounted for the second-largest market share in 2019 primarily due to the presence of prominent players, such as Kongsberg Gruppen ASA, Thales Group, MBDA Holdings SAS, and Saab AB, and increasing investments by these companies in developing advanced rockets and missiles.
Asia-Pacific: The market in this region is projected to expand at a high CAGR during the forecast period. Increasing defense expenditure and rising terrorist activities in India, Indonesia, and Australia are driving the growth of the regional market.
Middle East & Africa: The increasing defense expenditures by countries such as Saudi Arabia, the UAE, and Israel is driving the growth of the rocket and missile market in the Middle East & Africa.
Latin America: An increase in the use of advanced weapon systems by the defense organizations in Brazil and Mexico is also expected to boost the demand for rockets and missiles in the region.

Future Outlook

Rocket Missile Market Future Outlook

Market Segmentation

Report Scope

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