| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| Manned Anti-Tank Guided Missile System Market Size 2023 |
USD 362.7 million |
| Manned Anti-Tank Guided Missile System Market, CAGR |
4.00% |
| Manned Anti-Tank Guided Missile System Market Size 2032 |
USD 496.38 million |
Market Overview
The global Manned Anti-Tank Guided Missile System Market is projected to grow from USD 362.7 million in 2023 to an estimated USD 496.38 million by 2032, with a compound annual growth rate (CAGR) of 4.00% from 2024 to 2032. This growth is driven by the rising need for advanced military equipment to counteract armored threats, including tanks and other heavily fortified vehicles. Key drivers propelling this market include advancements in missile guidance technology, increased focus on precision-strike capabilities, and heightened concerns over national security. Modern manned anti-tank guided missile systems offer significant operational advantages, such as enhanced targeting accuracy, extended range, and versatility in various combat environments. Moreover, the integration of AI and other smart technologies in missile systems is becoming a significant trend, allowing defense forces to execute more effective missions with minimal collateral damage. These factors are anticipated to shape the market positively in the coming years. Geographically, North America is expected to hold a dominant position in the Manned Anti-Tank Guided Missile System Market, followed by Europe and Asia-Pacific. This dominance is attributed to the high defense budgets in the United States and other NATO countries, combined with ongoing modernization initiatives. Meanwhile, emerging economies in Asia-Pacific are increasingly investing in advanced weaponry to bolster their defense capabilities. Key players in the market include Raytheon Technologies, Lockheed Martin Corporation, MBDA, and Rafael Advanced Defense Systems, all of whom are actively involved in research and development to maintain a competitive edge.
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Market Drivers
Rising Geopolitical Tensions and Increased Defense Spending
Geopolitical instability and rising tensions between nations have driven the demand for advanced military technologies. Countries worldwide are focusing on strengthening their defense capabilities to address potential threats from hostile nations. In particular, modern anti-tank guided missile (ATGM) systems are essential for countering armored threats, which remain a significant concern for ground forces in various conflict-prone regions. As nations invest in advanced weaponry, the budget allocations for anti-tank guided missile systems are increasing. The United States, for example, has maintained a high defense budget, allowing for continuous upgrades to its military systems, including ATGMs. Additionally, regions such as Asia-Pacific and the Middle East are experiencing a rise in defense spending, which is expected to bolster the global market significantly.For instance, the Stockholm International Peace Research Institute (SIPRI) reported that the total global military expenditures increased by 3.7% in real terms in 2022, reaching a new high of $2240 billion. This rise in spending is largely driven by geopolitical tensions and the need for advanced military technologies, including anti-tank guided missile systems.The increased defense spending isn’t limited to large nations alone. Smaller nations, particularly those neighboring regions of high conflict, are also investing in state-of-the-art defense systems to ensure security and deterrence. These investments are being fueled by the increased risk of armored and mechanized threats in asymmetric warfare scenarios, where traditional tank and vehicle-based attacks are countered with precision-guided missile systems. Thus, geopolitical factors combined with substantial defense spending have been key drivers for the growth of the Manned Anti-Tank Guided Missile System Market.
Technological Advancements in Missile Guidance and Targeting Systems
The technological evolution in missile guidance and targeting systems has made modern ATGMs more effective and reliable, which has driven market demand. Precision and accuracy in target acquisition have become critical capabilities, especially in anti-armor warfare. Enhanced guidance systems, such as laser-guided, wire-guided, and infrared (IR) homing technologies, are now widely used in modern ATGM systems, allowing for superior precision and versatility across different combat scenarios. These advancements enable missile systems to engage targets over greater distances and provide enhanced penetration capabilities to defeat advanced armor.For instance, advances in missile guidance systems have enabled modern ATGMs to achieve a hit probability of over 90% in various combat scenarios. This high level of precision and reliability is a direct result of technological advancements in guidance and targeting systems, driving market demand for these sophisticated weapons.Additionally, the integration of artificial intelligence (AI) and machine learning (ML) algorithms in these systems is improving targeting accuracy, while simultaneously reducing the need for operator intervention. This automation enables forces to use ATGMs in scenarios where human operators might face limitations due to challenging combat environments. With ongoing research and development (R&D) efforts focused on enhancing these systems further, ATGMs are expected to become more sophisticated, ensuring they remain effective against evolving threats. Consequently, the constant improvements in missile technology are contributing to sustained growth in the Manned Anti-Tank Guided Missile System Market.
Increasing Focus on Modernization Programs and Replacement of Obsolete Systems
Many countries are undertaking large-scale military modernization programs to phase out outdated weapons systems and introduce new-generation ATGMs. Older systems are often less accurate and lack the advanced features present in newer technologies, such as improved guidance, remote operability, and enhanced durability. As part of these modernization efforts, militaries are prioritizing the replacement of legacy systems with advanced, manned anti-tank guided missile systems that offer superior operational capabilities. These systems provide a tactical edge in modern warfare environments, where threats are more dynamic and require rapid responses. For instance, India has taken significant steps to modernize its military, including conducting sea trials for its first domestically produced aircraft carrier in 2023. Similarly, China has set ambitious goals for the modernization of the People’s Liberation Army (PLA), aiming for full modernization and integration of artificial intelligence (AI) and autonomy into its command and control systems by 2035. Additionally, NATO countries have been actively investing in defense expenditure, with several member states meeting the 2% GDP defense spending target. These modernization efforts include the procurement of advanced anti-tank guided missile (ATGM) systems, which have been observed in over 4,000 firings worldwide in the past decade. The modernization trend is particularly strong in NATO countries, as well as in emerging economies such as India and China, which are investing heavily in upgrading their military arsenals. By integrating state-of-the-art ATGMs, these countries aim to enhance the combat readiness and effectiveness of their ground forces. Additionally, military modernization programs not only drive demand for new ATGM systems but also create opportunities for defense contractors to supply a steady stream of upgrades and technical enhancements over the lifecycle of these systems. This focus on modernization has made it one of the pivotal drivers behind the market’s continued expansion.
Demand for Versatile and Portable Anti-Tank Systems for Urban and Guerilla Warfare
Modern warfare is increasingly characterized by urban and guerilla warfare, where traditional heavy weaponry may be ineffective or cumbersome. In response, there is a growing demand for versatile, portable ATGM systems that can be deployed easily by infantry units and special forces. Manned anti-tank guided missile systems offer the flexibility to engage armored vehicles in a variety of combat settings, including close-quarters, rural, and urban environments. These systems are designed to be portable, allowing infantry units to carry and operate them with ease, even in difficult terrain. As the nature of warfare evolves to include more complex and diverse operational environments, the need for highly maneuverable, yet powerful, anti-tank solutions has grown significantly.Furthermore, the versatility of modern ATGMs makes them suitable for multiple missions, from disabling main battle tanks to engaging smaller, lightly armored vehicles. This adaptability has increased their popularity among military forces around the world. Defense organizations are recognizing the strategic advantages offered by these systems in both conventional and unconventional warfare, leading to heightened demand. As the shift towards portable, multi-functional weapon systems continues, the market for manned anti-tank guided missile systems is poised for steady growth.Overall, these market drivers—rising geopolitical tensions, technological advancements, modernization programs, and demand for versatile systems—are collectively fueling the expansion of the global Manned Anti-Tank Guided Missile System Market. As defense budgets increase and technology continues to evolve, the demand for these sophisticated weapon systems is expected to maintain a robust growth trajectory.
Market Trends
Integration of Advanced Targeting and Guidance Technologies
One of the most significant trends in the Manned Anti-Tank Guided Missile System Market is the integration of advanced targeting and guidance technologies. Modern anti-tank missile systems increasingly utilize sophisticated laser guidance, infrared homing, and fire-and-forget technologies, allowing operators to achieve greater precision and reliability in diverse combat conditions. These systems are evolving to feature multi-spectral targeting, which enables them to engage targets effectively even under challenging visibility conditions, such as night operations or adverse weather. The push for better targeting capabilities is also evident in the adoption of artificial intelligence (AI) and machine learning (ML) algorithms, which enhance guidance systems by providing predictive targeting and automated tracking functions.For instance, the Mistral 3 missile system, which is equipped with infrared passive homing and laser proximity fuse, has a range of up to 7.5 km. Additionally, the Multi-Spectral Targeting System (MTS) by Raytheon has accumulated nearly four million operational flight hours and is integrated on more than 20 platforms. AI and ML algorithms are being utilized in guidance systems to improve predictive targeting and automated tracking functions.In addition to improving operational accuracy, these advanced systems also offer tactical advantages, such as longer range, higher mobility, and reduced collateral damage. The development of dual-purpose missiles, which can engage both armored vehicles and infantry positions, reflects the growing demand for versatile, multi-role systems. These advancements are driven by a combination of defense industry innovation and rising end-user expectations for high-precision weaponry capable of adapting to dynamic battlefield requirements. As a result, the trend of integrating cutting-edge guidance technologies is likely to continue shaping the market landscape in the coming years.
Focus on Portability and Modular Design
Another prominent trend in the Manned Anti-Tank Guided Missile System Market is the growing focus on portability and modular design. Modern warfare increasingly demands versatile, easily deployable systems that provide flexibility to both infantry and mechanized units. To meet this need, manufacturers are developing lighter and more compact missile systems that are man-portable and can be operated by small teams. These portable systems allow for rapid deployment, which is crucial in fast-paced urban and guerrilla warfare scenarios. The emphasis on modular design also facilitates easy upgrades and maintenance, allowing military forces to adapt existing systems to meet changing tactical requirements without the need for complete replacements. Modularity is particularly valued for its ability to accommodate different warhead types, allowing operators to select and install the optimal payload for specific mission objectives. Additionally, modular systems can be mounted on a variety of platforms, including vehicles, helicopters, and drones, enabling multi-domain operations. This trend is aligned with the increasing focus on cost-efficiency within defense budgets, as modular and portable systems generally reduce long-term operational costs by minimizing the need for multiple, dedicated platforms. The focus on portability and modularity in ATGM systems reflects a strategic shift toward adaptable, cost-effective solutions that support a wide range of mission profiles and operational environments.
Market Restraints and Challenges
High Development and Acquisition Costs
The Manned Anti-Tank Guided Missile System Market faces significant cost-related challenges due to the high expense associated with the development, acquisition, and maintenance of these advanced systems. The sophisticated technologies integrated into modern ATGMs, such as AI-enhanced guidance systems, multi-spectral targeting, and fire-and-forget capabilities, drive up development costs, making these systems relatively expensive for procurement by defense agencies. The high cost is especially prohibitive for smaller nations or those with limited defense budgets, which often limits the market’s overall growth potential. Additionally, the costs involved in training personnel to effectively operate these advanced systems can be substantial. Specialized training is required to ensure that operators can utilize the full capabilities of the systems under diverse combat conditions, further increasing the overall expenditure associated with ATGM adoption. As defense agencies seek to manage and allocate budgets across various priorities, the high costs associated with acquiring and sustaining these missile systems may hinder wider adoption, especially among countries where budget constraints are a significant concern. This factor represents a notable restraint on market growth, particularly in regions with limited defense spending capacity.
Regulatory Constraints and Export Control Challenges
Strict regulatory frameworks and export control policies also pose challenges for the Manned Anti-Tank Guided Missile System Market. Anti-tank missiles are categorized as sensitive defense technology, and their export is often subject to stringent regulations, including international arms control agreements and non-proliferation treaties. These regulations are designed to prevent the proliferation of advanced weaponry to volatile regions or non-state actors, but they can also limit market expansion by restricting the ability of manufacturers to reach certain international customers. Export controls not only impact sales but also introduce lengthy approval processes and bureaucratic hurdles for defense contractors. These challenges are exacerbated by evolving geopolitical concerns, which may lead to the imposition of new restrictions or trade barriers, impacting companies’ ability to tap into emerging markets. Additionally, differences in regulatory standards between countries can create complexities in establishing international partnerships and collaborations. As a result, regulatory constraints and export controls represent a significant challenge for companies aiming to expand their market reach globally, potentially limiting the overall growth of the Manned Anti-Tank Guided Missile System Market.
Market Segmentation Analysis
By Missile Type
The missile type segment is categorized into various missile technologies, including Tube-Launched, Optically-Tracked, Wire-Guided (TOW), Missile Moyenne Portée (MMP), Javelin, FGM-148 Javelin, and others. The TOW missile system, known for its wire-guided mechanism and versatility in various combat environments, has traditionally held a strong market position due to its reliability and widespread use by multiple military forces. This missile type is particularly valued for its long-range capabilities and ability to engage both armored vehicles and fortified positions, making it a critical component in anti-tank operations. The Javelin and FGM-148 Javelin missiles represent a more advanced category within this segment, known for their fire-and-forget capability. These missiles, which are typically shoulder-fired and feature infrared guidance systems, have gained traction due to their ease of use, portability, and precision targeting. The Javelin system, for instance, allows operators to engage targets without maintaining visual contact, enhancing operational flexibility and safety. Meanwhile, the MMP, a recent addition to this category, offers enhanced multi-target capabilities, including effective engagement of both armored vehicles and fortifications, as well as its ability to perform in a range of conditions. These advanced missiles are driving market growth as defense forces seek versatile, high-precision solutions for modern battlefield requirements.
By Firing Platform
The firing platform segment is divided into vehicle-mounted and man-portable systems. Vehicle-mounted systems are typically employed by armored vehicles and are suited for rapid deployment in open terrain, making them indispensable for mechanized units. These systems provide a tactical advantage by delivering sustained firepower while maintaining mobility, allowing military forces to engage targets from protected positions. The demand for vehicle-mounted systems is largely driven by modern militaries’ preference for systems that integrate with existing vehicle platforms, providing them with greater operational flexibility and enhanced range. The ability to equip vehicles with powerful anti-tank capabilities further strengthens ground forces’ ability to respond to armored threats in various combat scenarios. On the other hand, man-portable systems offer high mobility and ease of deployment, making them well-suited for infantry and special operations units. These systems, typically operated by one or two soldiers, allow for swift setup and maneuverability in challenging terrain, such as urban or forested environments. Man-portable ATGM systems have gained popularity due to their versatility and ability to be deployed in close-quarters combat situations where larger vehicle-mounted systems may be impractical. As urban and asymmetric warfare become increasingly prevalent, the demand for portable, flexible solutions is expected to drive the growth of this segment.
Segments
Based on Missile Type
- Tube-Launched, Optically-Tracked, Wire-Guided (TOW)
- Missile Moyenne Portée (MMP)
- Javelin
- FGM-148 Javelin
- Others
Based on Firing Platform
- Vehicle-Mounted
- Man-Portable
Based on End User
- Military
- Homeland Security
Based on Region
- North America
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
Regional Analysis
North America (35%):
North America, led by the United States, holds the largest share in the global market, accounting for approximately 35% of the market. This dominance is attributed to the substantial defense budget of the United States, which prioritizes advanced military technologies and continuous modernization programs. The U.S. military’s strong focus on acquiring cutting-edge anti-tank guided missile systems, such as the FGM-148 Javelin, aligns with its broader strategy of ensuring global military superiority. Additionally, the presence of major defense contractors, including Raytheon Technologies and Lockheed Martin Corporation, further strengthens the region’s market position. These companies are actively involved in research and development (R&D) efforts, leading to the production of highly advanced ATGMs that address the complex requirements of modern warfare.
Europe (28%):
Europe holds a significant portion of the market, with around 28% market share. This region’s growth is driven by rising geopolitical tensions, particularly in Eastern Europe, where countries are enhancing their military capabilities in response to perceived threats from neighboring regions. Nations like Germany, the United Kingdom, and France are investing heavily in manned anti-tank guided missile systems as part of their broader defense modernization initiatives. Additionally, collaborative efforts through NATO encourage member countries to adopt compatible, high-performance ATGM systems. European manufacturers such as MBDA and Saab AB play a pivotal role in developing these systems, with a focus on creating versatile, portable solutions suitable for diverse combat environments.
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Key players
- BAE Systems
- Denel Dynamics
- Elbit Systems Ltd
- General Dynamics Corporation
- KBP Instrument Design Bureau
- Lockheed Martin Corporation
- MBDA
- Rafael Advanced Defense Systems
- Raytheon Company
- ROKETSAN A.S.
- Saab AB
- Thales Group
- Northrop Grumman
- Hensoldt
- Leonardo S.p.A.
Competitive Analysis
The Manned Anti-Tank Guided Missile System Market is highly competitive, with several prominent defense contractors vying for market share through innovation, partnerships, and government contracts. Major players like Lockheed Martin, Raytheon, and Rafael Advanced Defense Systems focus on advancing missile guidance and targeting technologies, enhancing precision and range. European firms such as MBDA and Thales Group are known for their versatile, multi-platform systems that cater to both regional and global defense needs. Additionally, companies like Northrop Grumman and General Dynamics leverage their extensive portfolios to integrate ATGM systems with other military platforms, such as armored vehicles and drones. The competition is intense, with each company aiming to secure a competitive edge by investing in research and development (R&D), forming strategic alliances, and expanding their geographical reach. This dynamic landscape underscores the importance of technological advancements and adaptability in securing contracts and meeting evolving defense requirements.
Recent Developments
- In July 2023, BAE Systems was awarded a $37 million contract to design the Next Generation Evolved SeaSparrow Missile Launch System (NGELS).
- In September 2023, Denel held a successful capability demonstration of the 155mm T5-52 self-propelled howitzer, showcasing its advanced technology.
- In April 2024, Elbit Systems was awarded a $50 million contract for its new air defense system, “Red Sky”.
- In June 2023, General Dynamics Land Systems was awarded a $769 million contract to advance to the next phase of the XM30 Mechanized Infantry Combat Vehicle competition.
- In August 2024, KBP unveiled the new short-range ADS Pantsir-SMD-E at the Army-2024 exhibition.
- In February 2024, Lockheed Martin successfully completed a Missile Defense Agency acquisition milestone for the Next Generation Interceptor program.
- In June 2024, MBDA unveiled the AI-based Ground Warden tool for finding hidden targets at the Eurosatory 2024 defense exhibition.
- In September 2024, the Netherlands picked Rafael to supply upgraded anti-tank systems for an investment of up to €250 million.
Market Concentration and Characteristics
The Manned Anti-Tank Guided Missile System Market is characterized by moderate to high market concentration, with a few leading defense companies holding a significant portion of the market share due to their technological expertise, extensive product portfolios, and established relationships with major military organizations globally. Key players such as Lockheed Martin, Raytheon, MBDA, and Rafael Advanced Defense Systems dominate the market, leveraging their capabilities in research and development to introduce advanced missile guidance, targeting, and firing solutions. The market is defined by a strong focus on technological innovation, as well as high barriers to entry due to regulatory constraints, significant capital requirements, and the need for sophisticated manufacturing processes. This concentrated structure is reinforced by defense contractors’ long-term contracts with government agencies, which support sustained revenue streams and limit opportunities for new entrants, thereby shaping a competitive landscape driven by technological advancements and strategic partnerships.
Report Coverage
The research report offers an in-depth analysis based on Missile Type, Firing Platform, End User and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
- Rising defense budgets worldwide, especially in the U.S., China, and India, are expected to drive sustained demand for advanced anti-tank guided missile systems, supporting market growth over the next decade.
- Many countries are prioritizing military modernization efforts, replacing outdated anti-tank systems with more advanced, precision-guided missile systems that offer superior range and targeting accuracy.
- Integration of artificial intelligence (AI) and machine learning into missile guidance systems will enhance targeting capabilities, making ATGMs more effective in complex, dynamic combat environments.
- Emerging economies in Asia-Pacific and the Middle East are likely to increase investments in manned ATGM systems as they focus on bolstering defense capabilities amidst rising regional tensions.
- Growing emphasis on mobile, easily deployable systems will increase demand for man-portable ATGMs, which are ideal for urban and guerrilla warfare scenarios where flexibility and rapid deployment are essential.
- Future ATGMs will emphasize modular designs that allow for integration with a variety of platforms, including land vehicles, helicopters, and drones, catering to diverse operational needs.
- As defense budgets face scrutiny, there will be a growing demand for cost-effective, long-lasting systems that deliver high performance while reducing the need for frequent upgrades and replacements.
- Key players are likely to pursue strategic partnerships and joint ventures to expand their technological capabilities, access new markets, and meet the complex needs of modern militaries globally.
- Leading defense companies are expected to increasingly target export markets as they seek to offset regulatory restrictions by focusing on regions with growing demand, such as Southeast Asia and Africa.
- Companies will invest in the development of dual-role ATGMs that can engage both armored and non-armored targets, providing flexibility in response to varying threat profiles in contemporary combat zones.
