According to our latest study on "Artillery Systems Market Analysis and Forecast to 2031 - by Caliber, Range, Type, and Component," the market is expected to grow from US$ 11.99 billion in 2023 to US$ 20.98 billion by 2031; it is anticipated to record a CAGR of 7.2% from 2023 to 2031. The report includes growth prospects owing to the current artillery systems market trends and their foreseeable impact during the forecast period.
The evolving modern warfare scenario has compelled governments of various countries across the globe to assign significant funds and financial aid toward respective defense and military forces. The defense budget allocation supports army and military forces to obtain enhanced technologies and equipment from domestic or international developers. On the other hand, military and army vehicle upgrades are on the rise owing to growing defense budget allocation. Furthermore, the increasing governmental expenditure showcases governments' focus on strengthening national security forces. There is an increased need to reinforce military and border security forces with advanced surveillance, communication, navigation equipment, artilleries, armaments, and vehicles, among others; hence, military forces worldwide are focusing on investing significant amounts in procuring artillery systems and other advanced technologies. Defense forces' constant inclination to acquire new technologies for noncombat and combat operations further boosts military expenditure worldwide.
As per the Stockholm International Peace Research Institute (SIPRI), global military expenditure increased to US$ 2443 billion in 2023, representing a 13.7% increase from 2022. The US, China, India, Russia, and Saudi Arabia were the top five spenders in 2023, accounting for around 61% of global expenditures. The figure given below depicts the yearly spending of these countries.
Table 1. Military Expenditure of Top Five Countries (2021-2023)
Country 2021 (US$ Billion) 2022 (US$ Billion) 2023 (US$ Billion)
US 800.67 876.94 916.00
China 293.35 291.96 296.00
Russia 65.91 86.37 109.01
India 76.59 81.36 83.60
Saudi Arabia 55.56 75.01 75.80
Source: SIPRI
The increasing military expenditure encourages incorporating advanced warfare technologies such as high-range antennas, self-propelled artillery, advanced communication devices, unmanned vehicles, radars, missile detection systems, surveillance and navigation systems, and modern warfare technologies. In addition, a high military budget supports the countries in assigning resources for the advancement and upgrade of their existing air, ground-based, and naval defense systems.
Key Findings of Market Study:
The artillery systems market has been segmented into the 5 major regions: North America, Europe, Asia Pacific, Middle East and Africa, South and Central America.
Heightened geopolitical tensions in the region, particularly in the South China Sea and the Korean Peninsula, have led to increased focus on strengthening military capabilities. This includes the acquisition of sophisticated artillery systems for strategic deterrence. In December 2023, Rob Phillips, spokesperson for the US Army Pacific, announced the US military's intention to deploy land-based intermediate-range missiles in APAC in the coming year. This strategic move represents the first potential deployment of such weapons in the region since the US withdrew from the Intermediate-Range Nuclear Forces (INF) Treaty in 2019. This development underscores the evolving dynamics of the APAC artillery systems market, as geopolitical factors influence military strategies and deployments in the region. The deployment of intermediate-range missiles could contribute to shaping the landscape of artillery systems in the APAC market.
Significant insights drawn from the prolonged Ukraine conflict, as of September 2023 spanning 570 days, have left a lasting impact on the Indian Army's strategic vision for enhancing firepower. The lessons learned are steering the army's focus toward greater mobility, precision attacks, extended range, swift strikes, and enhanced survivability. This shift aligns with India's heightened efforts to procure a diverse range of weaponry, encompassing guns, rocket systems, and missiles. The evolving priorities in India's artillery modernization reflect broader trends in the APAC artillery systems market as regional forces adopt strategies based on current geopolitical challenges and warfare dynamics.
In September 2023, the Indian Army set forth a proposal amounting to INR 6,000 crore for the procurement of next-generation guns, emphasizing their development and manufacturing by domestic companies. These cutting-edge weapons are envisioned to serve as a cornerstone in bolstering the artillery force of the Indian Army. The initiative aligns with broader trends in the APAC artillery systems market, emphasizing a shift toward indigenous development and modernization efforts among regional armed forces.
The APAC artillery systems market is characterized by a confluence of geopolitical, technological, and strategic factors. The region's commitment to military modernization, combined with a focus on indigenous capabilities and collaborative defense initiatives, positions APAC as a pivotal player in the global artillery systems market.
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