Next-generation weapons market set to hit $27.39B by 2030

The Business Research Company says the next generation weapons technology market will grow from $21.31 billion in 2026 to $27.39 billion by 2030, driven by higher defense spending, AI-enabled systems and hypersonic weapons. North America led the market in 2025, while Asia-Pacific is expected to grow fastest through the forecast period.

Why it matters: - The next generation weapons technology market is expanding as militaries invest in more precise, faster and more automated systems. - Higher spending on defense could accelerate adoption of hypersonic weapons, directed energy systems and AI-driven targeting. - The shift matters for military readiness, procurement priorities and the pace of modernization across defense markets.

What happened: - The Business Research Company projected the market will rise from $20 billion in 2025 to $21.31 billion in 2026. - The firm forecast the market will reach $27.39 billion by 2030. - The report estimated a 6.6% compound annual growth rate in 2026 and a 6.5% CAGR over the forecast period to 2030. - The report was released June 11, 2026, from London. - A free sample report is available here. - The full report is available here.

The details: - The market’s recent growth has been driven by higher global spending on advanced weapon platforms. - Precision-guided and smart munitions are becoming more widely deployed. - Missile technology and directed energy systems are advancing. - AI and autonomous systems are being integrated into defense operations. - Cybersecurity and electronic warfare capabilities are improving. - Future growth is expected to come from hypersonic weapons and next-generation missile systems. - Fully autonomous combat solutions are gaining wider acceptance. - AI-driven decision-making and predictive targeting are expanding. - Energy-based and non-kinetic weapons are attracting more investment. - Emerging defense markets are adopting modernized, network-centric warfare technologies. - Key trends include hypersonic weapons for long-range missions. - Precision-guided munitions remain in demand to reduce collateral damage. - Electronic warfare and countermeasure systems are advancing. - Directed energy weapons are being used more for missile defense and anti-drone missions. - Multi-domain warfare capabilities are being integrated across land, air and naval forces. - The report defines next generation weapons technology as advanced military systems that use AI, autonomous functions, hypersonic missiles and energy-based weapons to improve precision, adaptability and combat performance. - The report says these systems are designed to improve targeting accuracy, limit unintended damage, increase survivability and support real-time decisions in network-centric warfare.

Between the lines: - Rising defense budgets are the clearest near-term tailwind for the market. - SIPRI reported in April 2024 that global military expenditure reached $2.443 trillion in 2023, up 6.8% from the prior year. - That level of spending suggests governments are still prioritizing military modernization despite broader fiscal pressure. - North America held the largest regional market share in 2025. - Asia-Pacific is expected to post the fastest growth through the forecast period.

What’s next: - The market is likely to keep shifting toward autonomous, networked and long-range strike systems. - Defense buyers are expected to keep funding research, development and procurement tied to emerging threats. - The report’s 2026 edition adds market attractiveness scoring, TAM analysis, company scoring matrix graphics and tables, Excel-based forecasting dashboards, market hotspots infographics, key technologies and future trend analysis, plus updated graphics and tables. - The Business Research Company said its broader research library includes more than 17,500 reports across 27 industries and 60 geographies, supported by 1,500,000 datasets. - The company said its Global Market Model provides updated forecasts for decision-making.

The bottom line: - Defense modernization, not just weapons sales, is driving the outlook for next generation weapons technology through 2030.