Global Hypersonic Missiles Market Outlook to 2030

Global Hypersonic Missiles Market Overview

• In 2023, the Global Hypersonic Missiles Market was estimated at USD 5.10 billion, showing important growth during the historical period (2018-2023). This expansion is driven by the increasing defense budgets worldwide and the strategic importance of hypersonic technology, which offers unparalleled speed and precision for long-range strikes.
• Prominent players in the global hypersonic missiles market include Lockheed Martin, Raytheon Technologies, Northrop Grumman, and Boeing. These companies are leading the development and deployment of hypersonic missile systems, leveraging advanced materials and propulsion technologies to achieve superior performance.
• The United States, China, and Russia are at the forefront of hypersonic missile development due to their extensive investments in military R&D. The U.S. benefits from a robust defense industrial base and government funding, while China and Russia have prioritized hypersonic capabilities as part of their broader military modernization efforts.
• The U.S. Navy awarded Lockheed Martin a USD 534 million contract in 2023 for systems engineering and testing of the CPS hypersonic missiles, which are planned for deployment on Navy submarines and surface warships by 2028. CPS is a conventional boost-glide hypersonic missile designed to strike valuable mobile targets at Mach 5 or faster.

Global Hypersonic Missiles Market Segmentation

The Global Hypersonic Missiles Market can be segmented based on type, launch platform, and region:

• By Type: The market is segmented into hypersonic glide vehicles (HGVs) and hypersonic cruise missiles. In 2023, hypersonic glide vehicles held the largest market share due to their ability to evade missile defenses and deliver precision strikes at high speeds. This segment's dominance is driven by the ongoing development and deployment of advanced HGV systems by leading military powers.
• By Launch Platform: The market is further segmented into air-launched, sea-launched, and land-launched platforms. Air-launched hypersonic missiles led the market in 2023, supported by the versatility and rapid deployment capabilities of these platforms. The development of aircraft capable of carrying hypersonic missiles, such as the B-52 Stratofortress, has bolstered this segment's growth.By Region: The global market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa (MEA). North America dominated the market with a substantial share in 2023 due to the U.S.'s advanced defense infrastructure and extensive R&D investments. The region's leadership is also supported by its strategic partnerships and collaborations in missile defense systems.

Global Hypersonic Missiles Market Competitive Landscape

• Raytheon Technologies: In 2023, Raytheon was awarded a USD 407.6 million contract modification to enhance the HACM program, building on a nearly USD 1 billion contract awarded in 2022. This funding aims to support additional research, development, testing, and evaluation work through 2028, with the missile expected to be operational by fiscal year 2027.
• Northrop Grumman: On August 3, 2023, Northrop Grumman opened the HCC, which is specifically designed for the large-scale manufacturing of air-breathing propulsion systems, including scramjets and ramjets. This facility aims to support the development and production of the U.S. Air Force's Hypersonic Attack Cruise Missile (HACM) and other future hypersonic systems.

Global Hypersonic Missiles Industry Analysis

Growth Drivers:

• Strategic Military Investments and Modernization Initiatives: The increasing focus on military modernization across leading global powers is driving the demand for hypersonic missiles. In 2024, the U.S. Department of Defense allocated over USD 4.7 billion specifically for the development of hypersonic weapons systems as part of its broader defense budget. This investment reflects the strategic priority placed on hypersonic capabilities to maintain a technological edge over adversaries. Similarly, Chinas defense spending on advanced missile systems increased by 7.5% in 2023, underlining the global arms race in hypersonic technology.
• Rising Defense Expenditure in Asia-Pacific: The Asia-Pacific region has witnessed a rise in defense budgets, particularly in countries like India, Japan, and South Korea. In 2023, India's defense budget saw a 13% increase from the previous year, reaching USD 71 billion, with a portion dedicated to the acquisition of hypersonic missile technology. This regional escalation in defense spending is driven by geopolitical tensions and the need to counterbalance neighboring powers, which in turn is fueling the growth of the hypersonic missiles market.
• Technological Collaboration and Joint Ventures: Collaborative efforts between nations and defense contractors are boosting the development and deployment of hypersonic missile systems. In 2023, the U.S. and Australia announced a joint program for hypersonic research under the Southern Cross Integrated Flight Research Experiment (SCIFiRE). These collaborations are essential for pooling resources and expertise, accelerating technological advancements, and ensuring the rapid deployment of hypersonic capabilities.

Challenges:

• High Development and Operational Costs: The development of hypersonic missiles involves cutting-edge technologies and materials, leading to exorbitant costs. As of 2024, the average development cost for a single hypersonic missile system exceeds USD 300 million, according to the U.S. Government Accountability Office (GAO). These high costs pose a substantial challenge, especially for countries with limited defense budgets, potentially slowing down the market growth.
• Arms Control and Regulatory Issues: The proliferation of hypersonic weapons is raising concerns about global arms control and regulatory frameworks. In 2024, the United Nations initiated discussions on the need to establish international regulations governing the development and deployment of hypersonic missiles. However, the lack of consensus among major powers has stalled the creation of binding agreements, creating uncertainty for defense contractors and impacting the pace of market growth.

Global Hypersonic Missiles Market Government Initiatives

• U.S. Department of Defense Funding: The U.S. government has allocated substantial funding for hypersonic missile development, with the Department of Defense's budget for hypersonic programs reaching USD 4.7 billion in 2023. This funding supports a range of initiatives, including the development of new missile systems and the enhancement of testing facilities.
• Russia's National Armament Program: Russia's National Armament Program, updated in 2023, emphasizes the development and deployment of hypersonic weapons as a critical component of its military strategy. The program includes substantial investments in research, development, and procurement of hypersonic missile systems.

Global Hypersonic Missiles Market Future Outlook to 2028

The global hypersonic missiles market is expected to witness remarkable growth during the forecast period in 2023-2028, driven by continued advancements in missile technology, strategic military investments, and the ongoing arms race among major powers.

Future Market Trends

• Increased Defense Collaboration: By 2028, increased defense collaboration among allies is expected to drive the development and deployment of hypersonic missiles. Joint programs, such as those between the U.S. and its NATO allies, will focus on developing interoperable hypersonic systems to enhance collective defense capabilities.
• Advancements in Counter-Hypersonic Technologies: As hypersonic missiles become more prevalent, investments in counter-hypersonic technologies are expected to rise. By 2028, new missile defense systems capable of intercepting hypersonic threats are anticipated to enter service, driven by advancements in radar, sensor, and interceptor technologies.