The automatic weapons market is expected to grow from USD 16.06 billion in 2023 to USD 26.58 billion by 2028, at a CAGR of 10.60%. The market is driven by a number of factors, including the rising demand for precision strike weapons, increasing defense budgets, and growing investments in research and development.

Demand for Precision Strike Weapons

Automatic weapons can be equipped with advanced targeting systems that allow for more precise strikes, which can help to reduce civilian casualties and property damage. This is particularly important in unstable regions, where there may be a high risk of collateral damage. For example, in September 2021, the U.S. Navy confirmed an agreement with Northrop Grumman Corp. to manufacture the AGM-88G Advanced Anti-Radiation Guided Extended-Range Missile.

Increasing Defense Budgets

Global defense spending is on the rise, and many countries are investing in new and upgraded weapons systems. This includes automatic weapons, which are essential for modern militaries. For example, in 2022, the United States Department of Defense requested a budget of USD 773 billion, which included funding for the procurement of new automatic weapons systems.

Investments in Research and Development

Companies in the automatic weapons market are investing heavily in research and development to develop more advanced and lethal systems. This is being driven by the growing threat of terrorism and violent crimes, as well as the need for militaries to stay ahead of the curve. For example, in 2021, General Dynamics announced that it was developing a new type of automatic rifle that is lighter and more accurate than existing models.

Regional Analysis

North America is expected to remain the largest market for automatic weapons throughout the forecast period. This is due to the high defense budget of the United States and other countries in the region. However, the Asia Pacific region is expected to experience the fastest growth in the automatic weapons market during the forecast period. This is due to increased defense spending by countries such as China and India.

Challenges

The automatic weapons market faces a number of challenges, including strict government regulations and rising public awareness about gun violence. However, the growing demand for automatic weapons from militaries and law enforcement agencies is expected to offset these challenges.

Overall, the automatic weapons market is poised for significant growth in the coming years. The key factors driving this growth are the rising demand for precision strike weapons, increasing defense budgets, and growing investments in research and development.