Rocket and Missiles Market to Reach USD 82.96 Billion by 2030 as Defense Modernization and Hypersonic Technology Accelerate Demand

Rocket and Missiles Market Overview

The global Rocket and Missiles Market was valued at USD 60.537 billion in 2023 and is expected to reach nearly USD 82.96 billion by 2030, growing at a CAGR of 4.46% from 2024 to 2030. The market covers rockets, cruise missiles, ballistic missiles and torpedoes used across defense and space-related applications. Increasing geopolitical tensions, territorial conflicts, defense modernization programs, rising military expenditure and growing requirements for advanced air-defense capabilities are major factors supporting market expansion.

Technological advancement is further reshaping the industry. Development of hypersonic systems, precision-guided technologies, advanced propulsion, artificial intelligence, additive manufacturing and improved guidance systems is creating new opportunities for manufacturers and defense organizations. The MMR report identifies hypersonic technology as an important growth area because systems operating above Mach 5 present significant challenges for conventional defense architectures. Rising investments in air and missile defense, modernization of existing weapon inventories and increasing space-exploration and satellite-deployment activities are expected to generate additional demand. However, strict export regulations, high development costs, long testing cycles and complex global supply chains remain important market restraints.

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U.S. Market Trends and Investment in 2025

The United States remained a major force behind global rocket and missile demand in 2025, supported by defense modernization, missile-defense programs and increased emphasis on countering emerging threats. The U.S. Department of Defense's FY2025 weapons program included continued investment in Aegis Ballistic Missile Defense and Standard Missile-3 Block IIA, including procurement of 12 SM-3 Block IIA interceptors and further development of Aegis capabilities. In January 2025, the U.S. government also issued an executive order directing development of a next-generation missile defense shield, while the September 2025 announcement concerning U.S. Space Command highlighted Huntsville, Alabama, and missile defense as strategic priorities. Industry investment also accelerated: Lockheed Martin received a $383 million U.S. Navy contract in January 2025 for development of the Trident II D5 Life Extension 2 program, including plans for a new production facility in Florida and approximately 300 jobs. These investments demonstrate continued U.S. focus on strengthening missile production, strategic deterrence and next-generation defense capabilities.

Rocket and Missiles Market Segmentation

By Propulsion Type, the Solid segment held the largest market share in 2023. Solid propulsion has gained widespread adoption in ballistic systems because solid fuel offers storage advantages and provides substantial thrust. Its operational practicality and ability to support long-term storage make solid propulsion an important technology within the global rocket and missile industry.

By Speed, the Hypersonic segment is expected to register a high CAGR during the forecast period. Hypersonic systems are capable of speeds exceeding Mach 5 and are receiving significant attention because of their speed, maneuverability and potential to challenge existing defense systems.

The market is also segmented by Product into Cruise Missiles, Ballistic Missiles, Rockets and Torpedoes; by Guidance Mechanism into Guided and Unguided; and by Launch Mode into Surface-to-Surface, Surface-to-Air, Air-to-Air, Air-to-Surface, Subsea-to-Surface and other launch modes.

Rocket and Missiles Key Players
1. Lockheed Martin Corporation (United States)
2. Raytheon Technologies Corporation (United States)
3. Northrop Grumman Corporation (United States)
4. Thales Group (France)
5. MBDA (United Kingdom)
6. The Boeing Company (United States)
7. BAE Systems plc (United Kingdom)
8. Safran SA (France)
9. General Dynamics Corporation (United States)
10. Rheinmetall AG (Germany)
11. Leonardo S.p.A. (Italy)
12. Israel Aerospace Industries Ltd. (Israel)
13. Rafael Advanced Defense Systems Ltd. (Israel)
14. Mitsubishi Heavy Industries, Ltd. (Japan)
15. Tata Advanced Systems Limited (India)
16. L3Harris Technologies, Inc. (United States)
17. Hanwha Corporation (South Korea)
18. Orbital ATK (United States)
19. Roketsan A.S. (Turkey)
20. China Aerospace Science and Technology Corporation (China)
21. China Aerospace Science and Industry Corporation Limited (China)
22. Norinco Group (China)
23. Denel SOC Ltd. (South Africa)
24. UkrOboronProm (Ukraine)
25. Yuzhnoye Design Office (Ukraine)
26. Tactical Missiles Corporation (Russia)
27. Almaz-Antey (Russia)

Competitive Analysis

MMR identifies Lockheed Martin Corporation, Raytheon Technologies Corporation, Northrop Grumman Corporation, Thales Group and MBDA among the leading/key companies in the Rocket and Missiles Market. The report does not publish individual company market-share percentages, so these companies are presented according to their position in MMR's key-player list rather than assigning unsupported market-share rankings.

Lockheed Martin Corporation continues to expand its missile-defense and hypersonic capabilities. In September 2025, the U.S. Army awarded the company a $9.8 billion contract for PAC-3 MSE interceptor production, its largest contract in the company's Missiles and Fire Control history. Lockheed Martin is also investing in modular approaches to hypersonic payload delivery, supporting faster development and greater production flexibility.

Raytheon Technologies Corporation, operating through RTX's Raytheon business, is increasing production capacity and international partnerships. In 2025, Raytheon received a $250 million contract from Mitsubishi Electric for licensed ESSM Block 2 production in Japan. The company also announced investment in infrastructure and materials to increase ESSM production rates, while a new European Stinger co-production agreement with Diehl Defence is designed to expand global manufacturing capacity.

Northrop Grumman Corporation is investing heavily in advanced propulsion and manufacturing infrastructure. Its Hypersonics Capability Center is designed for large-scale production of air-breathing propulsion for hypersonic systems, while additional facilities and automated manufacturing initiatives are intended to increase production capacity and supply-chain resilience.

Thales Group benefited from increasing European demand for air-defense capabilities in 2025. The company reported a £1.16 billion UK Ministry of Defence contract for 5,000 LMM missiles in July 2025, while the European defense environment continued to support investments in missile and air-defense technologies.

MBDA accelerated missile production in 2025, supported by investments across its European industrial network. The company announced that it would invest €2.4 billion between 2025 and 2029 to increase production capacity, while investments at facilities in France and Italy supported accelerated ASTER missile deliveries.

Regional Analysis – United States

United States: North America accounted for 32.4% of the global Rocket and Missiles Market in 2023, according to MMR, making it the largest regional market. However, the report does not disclose a separate U.S.-only percentage of global market share. The United States remains the principal contributor to North American demand because of its large defense budget, extensive missile-defense programs, advanced aerospace and defense industry and ongoing modernization requirements. Government investment in strategic deterrence, air and missile defense, hypersonic technologies and next-generation weapons is expected to maintain strong demand. The U.S. focus on domestic production capacity and resilient defense supply chains also creates opportunities for missile manufacturers and advanced-material suppliers.

Related Reports: 

Global Military Antenna Market https://www.maximizemarketresearch.com/market-report/global-military-antenna-market/1616/ 

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Conclusion

The Rocket and Missiles Market is expected to maintain steady growth through 2030 as nations modernize defense capabilities and respond to increasingly sophisticated security requirements. The market's projected expansion to USD 82.96 billion reflects sustained investment in defense modernization, air and missile defense, strategic deterrence and advanced propulsion.

In our view, hypersonic technologies, solid propulsion, precision guidance, AI-enabled systems, advanced manufacturing and expanded missile-production capacity will represent major opportunities. Companies capable of improving production scalability, reducing development timelines and strengthening supply-chain resilience are likely to benefit from rising procurement requirements. Continued government spending and international defense cooperation will remain important catalysts for long-term market development.

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