From $81.7 billion in 2022, the global market for bombs and nuclear missiles will surpass $137.3 billion by 2032, registering a compound annual growth rate (CAGR) of 5.4%, according to a report by Allied Market Research. The Portland-based research firm's projections may come as music to the ears of the defence sector firms after governments cut their defence spending to augment the budget on healthcare during the pandemic era and delays owing to lockdowns.
The report cites the increase in investments by governments and corporations amid an increase in cross-border conflicts such as the ongoing Russia-Ukraine war as the primary driving factors for market growth. The rise in nuclear testing and technology transfer is also cited as a key driver.
"Elevated geopolitical tensions often result in a heightened demand for advanced military capabilities, which may encompass nuclear weapons and missile systems. Nations directly involved or situated in proximity to the conflict may perceive the necessity of fortifying their defense capabilities, potentially instigating investments in nuclear arsenals and missile technologies," the report noted.
The Inter-Continental Ballistic Missile (ICBM) segment is projected to post the highest CAGR of 7.1% from 2023 to 2032, as countries aim to fortify national security by acquiring the capability to target distant locations. The demand for modifying the existing warheads will boost the prospects of the 1,000 to 5,000 km segment, which is projected to post the highest CAGR of 14.6% from 2023 to 2032.
The greater than 5,000 km segment held the highest market share in 2022, accounting for more than four-fifths of the global nuclear bombs and missiles market revenue, and is estimated to maintain its leadership status throughout the forecast period.
Active weapons, however, accounted for the "lion's share"—nearly three-fourths of the market in 2022, it said, due to evolving geopolitical threats and the need for modernisation to counter emerging challenges.
Among regions, North America is expected to dominate the market during the forecast period as there is an increase in the allocation of defense budgets for nuclear weapons and the rise in the testing of existing nuclear weapons such as missiles to maintain reliability and functionality.
The Asia-Pacific region is expected to witness the fastest CAGR of 14.6% from 2023 to 2032, owing to a rise in the development and testing of nuclear weapons such as missiles by countries in the region to maintain national security.
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