Product Code: FBI113835
Growth Factors of close-in weapon systems (CIWS) Market
The global close-in weapon systems (CIWS) market is experiencing strong growth as global navies modernize fleets and geopolitical tensions continue to rise. According to the latest industry insights, the market was valued at USD 3.15 billion in 2024, driven by increasing demand for point-defense solutions capable of responding to fast, low-altitude, short-range threats. In 2025, the market is projected to reach USD 3.35 billion, with significant investments in naval and land-based defensive upgrades. By 2032, the CIWS market is forecast to grow to USD 5.18 billion, registering a CAGR of 6.4% over the forecast period.
CIWS systems integrate rapid-fire guns or short-range missiles with radar, electro-optical sensors, fire-control computers, and automated engagement technology. These systems serve as the last line of defense for naval vessels and strategic land assets. Leading manufacturers including RTX Corporation, Northrop Grumman, Leonardo, Rheinmetall, and Thales Group continue to invest heavily in AI-enabled targeting, multi-sensor fusion, and hybrid gun-missile CIWS technology.
Market Drivers
A primary driver of market growth is the rapid modernization of naval fleets by major military powers such as the U.S., China, India, South Korea, and Japan. Rising threats from UAVs, hypersonic missiles, and loitering munitions are accelerating the demand for automated point-defense systems. With global defense expenditure reaching USD 2.4 trillion in 2024, navies are increasingly prioritizing CIWS upgrades for both new-build and legacy platforms.
Another significant driver is the need for systems capable of countering drone swarms and saturation attacks. These asymmetric threats require rapid tracking and engagement cycles, making CIWS indispensable for maritime and land-based defense installations. For example, Raytheon's Phalanx CIWS, deployed on 450+ naval vessels, demonstrates its operational importance worldwide.
Market Challenges
Despite strong demand, CIWS procurement faces challenges related to high acquisition costs, installation complexity, and ongoing maintenance requirements. An advanced CIWS unit such as the Phalanx Block 1B can cost USD 10-15 million, excluding integration and sustainment. Export regulations and technology transfer restrictions further limit market expansion, especially in regions with developing defense capabilities.
Additionally, modern CIWS must be integrated with combat management systems and electronic warfare suites-an engineering challenge for aging fleets lacking modular infrastructure.
Market Opportunities
Significant opportunities lie in emerging markets including India, Indonesia, Brazil, Saudi Arabia, and UAE, which are increasing defense budgets and pursuing naval modernization. The rise of counter-UAV CIWS provides a major growth avenue, as militaries adapt systems to detect, track, and neutralize unmanned platform threats. Hybrid systems combining radar, EO/IR, electronic warfare, and missile interceptors are gaining traction as nations prepare for multi-domain conflicts.
Key Market Trends
A major trend shaping the CIWS market from 2024 to 2032 is the development of hybrid gun-and-missile CIWS systems. Systems such as SeaRAM and Pantsir-ME offer layered defensive capabilities, allowing navies to intercept threats at multiple engagement distances.
Another key trend is the integration of AI and machine learning for autonomous targeting and faster reaction times. AI-driven fire-control systems enhance accuracy, reduce operator workload, and improve performance in complex threat environments.
Regional Outlook
North America leads the market with a valuation of USD 1.30 billion in 2024, driven by the U.S. Navy's modernization programs and extensive R&D investments. Europe remains a major market due to increased defense spending and CIWS upgrades amid rising security concerns following the Russia-Ukraine conflict.
Asia Pacific is projected to record the fastest CAGR, fueled by territorial disputes, naval expansion, and indigenous defense manufacturing initiatives in India, China, Japan, and South Korea.
The Middle East & Africa and Latin America exhibit steady growth as nations invest in coastal defense, naval fleet modernization, and counter-drone capabilities.
Conclusion
Growing from USD 3.15 billion in 2024 to USD 5.18 billion by 2032, the CIWS market is being shaped by increasing geopolitical tensions, the rise of drone and missile warfare, and rapid naval modernization. With advancements in hybrid interceptors, AI-enabled fire control, and multi-sensor tracking, the CIWS sector is positioned for robust global expansion throughout the forecast period.
Segmentation
By System Type
- Gun-Based
- Missile-Based
- Laser-Based
- Hybrid
By Platform
By Range
- Short Range (< 2 Km)
- Medium Range (2-9 Km)
- Long Range (> 9 Km)
By Technology
- Radar-Guided
- EO/IR
- Laser-Guided
- Active & Passive Homing
- Hybrid
By Fit
By Region
- North America (By System Type, Platform, Range, Technology, Fit, and Country)
- U.S. (By Platform)
- Canada (By Platform)
- Europe (By System Type, Platform, Range, Technology, Fit, and Country)
- U.K. (By Platform)
- Germany (By Platform)
- France (By Platform)
- Russia (By Platform)
- Netherlands (By Platform)
- Rest of Europe (By Platform)
- Asia Pacific (By System Type, Platform, Range, Technology, Fit, and Country)
- China (By Platform)
- India (By Platform)
- Japan (By Platform)
- Australia (By Platform)
- South Korea (By Platform)
- Rest of Asia-Pacific (By Platform)
- Rest of the World (By System Type, Platform, Range, Technology, Fit, and Country)
- Middle East & Africa (By Platform)
- Latin America (By Platform)
Table of Content
1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
2. Executive Summary
3. Market Dynamics
- 3.1. Market Drivers
- 3.2. Market Restraints
- 3.3. Market Opportunities
- 3.4. Market Trends
4. Key Insights
- 4.1. Key Industry Developments - Key Contracts & Agreements, Mergers, Acquisitions and Partnerships
- 4.2. Latest Technological Advancements
- 4.3. Porters Five Forces Analysis
- 4.4. Supply Chain Analysis
- 4.5. Qualitative Insights - Impact of Increasing Geo-political tensions, Ongoing, and Recent Conflicts in Europe, the Middle East, and the Asia-Pacific on Global CIWS Market.
5. Global Close-in Weapon Systems Market Analysis, Insights and Forecast, 2019-2032
- 5.1. Key Findings / Definition
- 5.2. Market Analysis, Insights and Forecast - By System Type
- 5.2.1. Gun-Based
- 5.2.2. Missile-Based
- 5.2.3. Laser-Based
- 5.2.4. Hybrid
- 5.3. Market Analysis, Insights and Forecast - By Platform
- 5.4. Market Analysis, Insights and Forecast - By Range
- 5.4.1. Short Range (>2 Km)
- 5.4.2. Medium Range (2-9 Km)
- 5.4.3. Long Range (9 Km <)
- 5.5. Market Analysis, Insights and Forecast - By Technology
- 5.5.1. Radar-Guided
- 5.5.2. EO/IR
- 5.5.3. Laser-Guided
- 5.5.4. Active & Passive Homing
- 5.5.5. Hybrid
- 5.6. Market Analysis, Insights and Forecast - By Fit
- 5.6.1. OEM-Fit
- 5.6.2. Retro-Fit
- 5.7. Market Analysis, Insights and Forecast - By Region
- 5.7.1. North America
- 5.7.2. Europe
- 5.7.3. Asia-Pacific
- 5.7.4. Rest of the World
6. North America Close-in Weapon Systems Market Analysis, Insights and Forecast, 2019-2032
- 6.1. Market Analysis, Insights and Forecast - By System Type
- 6.1.1. Gun-Based
- 6.1.2. Missile-Based
- 6.1.3. Laser-Based
- 6.1.4. Hybrid
- 6.2. Market Analysis, Insights and Forecast - By Platform
- 6.3. Market Analysis, Insights and Forecast - By Range
- 6.3.1. Short Range (>2 Km)
- 6.3.2. Medium Range (2-9 Km)
- 6.3.3. Long Range (9 Km <)
- 6.4. Market Analysis, Insights and Forecast - By Technology
- 6.4.1. Radar-Guided
- 6.4.2. EO/IR
- 6.4.3. Laser-Guided
- 6.4.4. Active & Passive Homing
- 6.4.5. Hybrid
- 6.5. Market Analysis, Insights and Forecast - By Fit
- 6.5.1. OEM-Fit
- 6.5.2. Retro-Fit
- 6.6. Market Analysis, Insights and Forecast - By Country
- 6.6.1. U.S.
- 6.6.1.1. Market Analysis, Insights and Forecast - By Platform
- 6.6.1.1.1. Land
- 6.6.1.1.2. Naval
- 6.6.2. Canada
- 6.6.2.1. Market Analysis, Insights and Forecast - By Platform
- 6.6.2.1.1. Land
- 6.6.2.1.2. Naval
7. Europe Close-in Weapon Systems Market Analysis, Insights and Forecast, 2019-2032
- 7.1. Market Analysis, Insights and Forecast - By System Type
- 7.1.1. Gun-Based
- 7.1.2. Missile-Based
- 7.1.3. Laser-Based
- 7.1.4. Hybrid
- 7.2. Market Analysis, Insights and Forecast - By Platform
- 7.3. Market Analysis, Insights and Forecast - By Range
- 7.3.1. Short Range (>2 Km)
- 7.3.2. Medium Range (2-9 Km)
- 7.3.3. Long Range (9 Km <)
- 7.4. Market Analysis, Insights and Forecast - By Technology
- 7.4.1. Radar-Guided
- 7.4.2. EO/IR
- 7.4.3. Laser-Guided
- 7.4.4. Active & Passive Homing
- 7.4.5. Hybrid
- 7.5. Market Analysis, Insights and Forecast - By Fit
- 7.5.1. OEM-Fit
- 7.5.2. Retro-Fit
- 7.6. Market Analysis, Insights and Forecast - By Country
- 7.6.1. U.K.
- 7.6.1.1. Market Analysis, Insights and Forecast - By Platform
- 7.6.1.1.1. Land
- 7.6.1.1.2. Naval
- 7.6.2. France
- 7.6.2.1. Market Analysis, Insights and Forecast - By Platform
- 7.6.2.1.1. Land
- 7.6.2.1.2. Naval
- 7.6.3. Germany
- 7.6.3.1. Market Analysis, Insights and Forecast - By Platform
- 7.6.3.1.1. Land
- 7.6.3.1.2. Naval
- 7.6.4. Russia
- 7.6.4.1. Market Analysis, Insights and Forecast - By Platform
- 7.6.4.1.1. Land
- 7.6.4.1.2. Naval
- 7.6.5. Netherlands
- 7.6.5.1. Market Analysis, Insights and Forecast - By Platform
- 7.6.5.1.1. Land
- 7.6.5.1.2. Naval
- 7.6.6. Rest of Europe
- 7.6.6.1. Market Analysis, Insights and Forecast - By Platform
- 7.6.6.1.1. Land
- 7.6.6.1.2. Naval
8. Asia-Pacific Close-in Weapon Systems Market Analysis, Insights and Forecast, 2019-2032
- 8.1. Market Analysis, Insights and Forecast - By System Type
- 8.1.1. Gun-Based
- 8.1.2. Missile-Based
- 8.1.3. Laser-Based
- 8.1.4. Hybrid
- 8.2. Market Analysis, Insights and Forecast - By Platform
- 8.3. Market Analysis, Insights and Forecast - By Range
- 8.3.1. Short Range (>2 Km)
- 8.3.2. Medium Range (2-9 Km)
- 8.3.3. Long Range (9 Km <)
- 8.4. Market Analysis, Insights and Forecast - By Technology
- 8.4.1. Radar-Guided
- 8.4.2. EO/IR
- 8.4.3. Laser-Guided
- 8.4.4. Active & Passive Homing
- 8.4.5. Hybrid
- 8.5. Market Analysis, Insights and Forecast - By Fit
- 8.5.1. OEM-Fit
- 8.5.2. Retro-Fit
- 8.6. Market Analysis, Insights and Forecast - By Country
- 8.6.1. China
- 8.6.1.1. Market Analysis, Insights and Forecast - By Platform
- 8.6.1.1.1. Land
- 8.6.1.1.2. Naval
- 8.6.2. India
- 8.6.2.1. Market Analysis, Insights and Forecast - By Platform
- 8.6.2.1.1. Land
- 8.6.2.1.2. Naval
- 8.6.3. Japan
- 8.6.3.1. Market Analysis, Insights and Forecast - By Platform
- 8.6.3.1.1. Land
- 8.6.3.1.2. Naval
- 8.6.4. Australia
- 8.6.4.1. Market Analysis, Insights and Forecast - By Platform
- 8.6.4.1.1. Land
- 8.6.4.1.2. Naval
- 8.6.5. South Korea
- 8.6.5.1. Market Analysis, Insights and Forecast - By Platform
- 8.6.5.1.1. Land
- 8.6.5.1.2. Naval
- 8.6.6. Rest of the Asia-Pacific
- 8.6.6.1. Market Analysis, Insights and Forecast - By Platform
- 8.6.6.1.1. Land
- 8.6.6.1.2. Naval
9. Rest of the World Close-in Weapon Systems Market Analysis, Insights and Forecast, 2019-2032
- 9.1. Market Analysis, Insights and Forecast - By System Type
- 9.1.1. Gun-Based
- 9.1.2. Missile-Based
- 9.1.3. Laser-Based
- 9.1.4. Hybrid
- 9.2. Market Analysis, Insights and Forecast - By Platform
- 9.3. Market Analysis, Insights and Forecast - By Range
- 9.3.1. Short Range (>2 Km)
- 9.3.2. Medium Range (2-9 Km)
- 9.3.3. Long Range (9 Km <)
- 9.4. Market Analysis, Insights and Forecast - By Technology
- 9.4.1. Radar-Guided
- 9.4.2. EO/IR
- 9.4.3. Laser-Guided
- 9.4.4. Active & Passive Homing
- 9.4.5. Hybrid
- 9.5. Market Analysis, Insights and Forecast - By Fit
- 9.5.1. OEM-Fit
- 9.5.2. Retro-Fit
- 9.6. Market Analysis, Insights and Forecast - By Sub-Region
- 9.6.1. Middle East & Africa
- 9.6.1.1. Market Analysis, Insights and Forecast - By Platform
- 9.6.1.1.1. Land
- 9.6.1.1.2. Naval
- 9.6.2. Latin America
- 9.6.2.1. Market Analysis, Insights and Forecast - By Platform
- 9.6.2.1.1. Land
- 9.6.2.1.2. Naval
10. Competitive Analysis
- 10.1. Global Market Rank Analysis (2024)
- 10.2. Competitive Dashboard
11. Company Profiles
- 11.1. RTX Corporation (U.S.)
- 11.1.1. Overview
- 11.1.2. Products & services
- 11.1.3. SWOT Analysis
- 11.1.4. Recent Developments
- 11.1.5. Strategies
- 11.1.6. Financials (Based on Availability)
- 11.2. Breda and Oto Melara (Italy)
- 11.2.1. Overview
- 11.2.2. Products & services
- 11.2.3. SWOT Analysis
- 11.2.4. Recent Developments
- 11.2.5. Strategies
- 11.2.6. Financials (Based on Availability)
- 11.3. Thales Naval (Thales Group) (France)
- 11.3.1. Overview
- 11.3.2. Products & services
- 11.3.3. SWOT Analysis
- 11.3.4. Recent Developments
- 11.3.5. Strategies
- 11.3.6. Financials (Based on Availability)
- 11.4. Tulamashzavod (Russia)
- 11.4.1. Overview
- 11.4.2. Products & services
- 11.4.3. SWOT Analysis
- 11.4.4. Recent Developments
- 11.4.5. Strategies
- 11.4.6. Financials (Based on Availability)
- 11.5. Rheinmetall (Germany)
- 11.5.1. Overview
- 11.5.2. Products & services
- 11.5.3. SWOT Analysis
- 11.5.4. Recent Developments
- 11.5.5. Strategies
- 11.5.6. Financials (Based on Availability)
- 11.6. General Dynamics Corporation (U.S.)
- 11.6.1. Overview
- 11.6.2. Products & services
- 11.6.3. SWOT Analysis
- 11.6.4. Recent Developments
- 11.6.5. Strategies
- 11.6.6. Financials (Based on Availability)
- 11.7. Norinco (China)
- 11.7.1. Overview
- 11.7.2. Products & services
- 11.7.3. SWOT Analysis
- 11.7.4. Recent Developments
- 11.7.5. Strategies
- 11.7.6. Financials (Based on Availability)
- 11.8. Aselsan (Turkey)
- 11.8.1. Overview
- 11.8.2. Products & services
- 11.8.3. SWOT Analysis
- 11.8.4. Recent Developments
- 11.8.5. Strategies
- 11.8.6. Financials (Based on Availability)
- 11.9. Lockheed Martin (U.S.)
- 11.9.1. Overview
- 11.9.2. Products & services
- 11.9.3. SWOT Analysis
- 11.9.4. Recent Developments
- 11.9.5. Strategies
- 11.9.6. Financials (Based on Availability)
- 11.10. FABA Sistemas (Poland)
- 11.10.1. Overview
- 11.10.2. Products & services
- 11.10.3. SWOT Analysis
- 11.10.4. Recent Developments
- 11.10.5. Strategies
- 11.10.6. Financials (Based on Availability)
- 11.11. BAE Systems (U.K.)
- 11.11.1. Overview
- 11.11.2. Products & services
- 11.11.3. SWOT Analysis
- 11.11.4. Recent Developments
- 11.11.5. Strategies
- 11.11.6. Financials (Based on Availability)
- 11.12. Leonardo S.p.A (Italy)
- 11.12.1. Overview
- 11.12.2. Products & services
- 11.12.3. SWOT Analysis
- 11.12.4. Recent Developments
- 11.12.5. Strategies
- 11.12.6. Financials (Based on Availability)
- 11.13. L&T (India)
- 11.13.1. Overview
- 11.13.2. Products & services
- 11.13.3. SWOT Analysis
- 11.13.4. Recent Developments
- 11.13.5. Strategies
- 11.13.6. Financials (Based on Availability)
- 11.14. Northrop Grumman (U.S.)
- 11.14.1. Overview
- 11.14.2. Products & services
- 11.14.3. SWOT Analysis
- 11.14.4. Recent Developments
- 11.14.5. Strategies
- 11.14.6. Financials (Based on Availability)