Hypersonic Weapons Market Size, Share, and Trend Analysis, By Warhead Type (Conventional, Kinetic, Nuclear), By Type (HGV, HCM, Boost-Glide Systems, Others), By Subsystem (Propulsion Systems, Guidance and Control Systems, Warheads), By Platform, By Range, By End-Use, and By Region, Forecast 2025-2032

Hypersonic Weapon Market Overview and Key Insights:

The global hypersonic weapons market size reached USD 8.76 billion in 2024 and is expected to register a revenue CAGR of 12.3% during the forecast period. Rising defense budgets and strategic investments by major powers, and rapid demand for precision global strike capabilities are major factors driving revenue growth of the hypersonic weapon market.  

Market Driver:

Rising defense budgets and strategic investments by major powers are driving revenue growth of the hypersonic weapons market. In 2024, global military expenditure reached USD 2,718 billion, reflecting a 9.4% increase from the previous year. The United States, China, Russia, Germany, and India, as the top five defense spenders, collectively account for 60% of global military expenditure, translating to over USD 1,635 billion in potential defense procurement.

These countries are on the move with comprehensive modernization plans to accelerate their former strategic stability and also keep their technical advantage. Hypersonic weapons are being deployed significantly owing to increasing speed; as a result, these systems are becoming more and more important features of their military portfolios.

For companies working with the military sector, this signals more contracts with greater volumes and also the possibility of long-term financing of projects.  Moreover, NATO members collectively spent USD 1,506 billion in 2024, representing 55% of global military expenditure. The uniform increase across member states indicates strategic investments, coupled with geopolitical competition, which are creating a commercially favorable landscape.

Market Opportunity:

Rising geopolitical tensions and an increase in armed conflicts globally are projected to drive significant demand for hypersonic weapons systems. According to the Peace Research Institute, 2024 saw the largest number of state-based armed conflicts, with 61 reported across 36 nations. Both government procurement budgets and defense contractor opportunities are influenced by this environment.

More than 18 territorial disputes and military confrontations are taking place across Asia, including in India, Pakistan, Myanmar, Afghanistan, Cambodia, Thailand, and the Philippines. Russia and Ukraine continue to have serious problems. Furthermore, continuous wars in Mexico and Colombia are taking place in Latin America.

Additionally, the ongoing war between Israel and Palestine, as well as India and Pakistan, has accelerated the hypersonic weapon deployment. These countries hit by severe security threats will probably dedicate a larger share of their budgets to fast, precision strike systems, and thus, will put a higher priority on hypersonic technology investments rather than on the traditional ones.

Current Innovation:

Innovative liquid-fuelled design and commercial integration accelerate tactical hypersonic capability for precise, versatile military strikes are emerging as a major trend in the hypersonic weapons market. The U.S. Air Force is working on the Angry Tortoise project, which is shaping a new direction in the hypersonic weapons market. The program will deliver fast, precise strikes on both stationary and moving targets by combining an aerial target that mimics ballistic threats with Draper’s 4,000-pound-thrust hydrogen peroxide-kerosene rocket motor.   

The Air Force Research Laboratory (AFRL) awarded the contract valued at USD 28.6 million to aerospace company Ursa Major. New companies that have new ideas can clearly participate, making opportunities for them and increasing competition, which consequently helps to control the costs. Compared to typical solid-fuel systems, this new liquid-fueled design can be stored safely at room temperature, reducing handling risks and extending readiness, as well as improving procurement efficiency.

Restraints & Challenges:

Intense competition from larger defense contractors, heavy reliance on U.S. government and NATO contracts, and stringent export control regulations are some of the major factors restraining the revenue growth of the hypersonic weapon market. Companies of this market are heavily reliant on U.S. government and NATO contracts, which leads to funding uncertainties, annual budget caps, and shifts in fiscal policy. Such dependencies create cash flow volatility and reduce predictability in revenue streams. This also impacts investment planning and operational stability.

Also, Regulatory and export control frameworks also restraining commercial expansion of the market. Restrictions on foreign sales and international collaborations limit access to potential markets and impact growth potential outside the U.S. On 6th September 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an interim final rule establishing global export controls on a range of advanced technologies. This, in turn, further restricts the international transfer of hypersonic-related components and technology.

Type Segment Insights and Analysis:

Based on the type, the hypersonic weapon market is segmented into hypersonic glide vehicles (HGV), hypersonic cruise missiles (HCM), boost-glide systems, hypersonic tactical missiles, hypersonic strategic missiles, hypersonic anti-ship missiles, and others.

Hypersonic Glide Vehicles (HGVs) account for largest revenue share in 2024. HGVs launched by boost-glide systems are essentially vehicles that are going to operate at hypersonic speeds and at the same time, maneuver to escape those missile defense systems that are typically used.

Such a feature enables armed forces to deploy hypersonic vehicles with accuracy, and it is gaining an unambiguous tactical advantage over the use of traditional weapons. Moreover, from a business point of view, a smooth and steady performance has positioned HGVs as the favored option of defense contractors and governments who are on the lookout for high-impact, budget-friendly solutions.

Platform Segment Insights and Analysis:

Based on the platform, the hypersonic weapon market is segmented into land-based, airborne, naval, and space-based.

Airborne segment is expected to generate a revenue CAGR of 14.6% by 2032. The use of airborne directed energy and missile defense systems has increased substantially. The Defence Research and Development Organisation (DRDO) of India, on 22^nd April 2025, is working to create a megawatt-grade laser weapon system for the air that will be a real breakthrough in technology. This aerial platform will be the one to kill the fast targets, such as short-range ballistic missiles, from very high altitudes, where the distance will be more than 500 kilometers.

Long-term procurement contracts, integration services, and continuous system upgrades can provide defense contractors with a lot of advantages, and the high price combined with the technological complexity of megawatt-grade systems is what makes multi-year revenue streams and premium pricing a reasonable option. Additionally, the trend allows for the supporting industries, such as laser optics, power management systems, and high-precision targeting technologies.

End-Use Segment Insights and Analysis:

Based on the end-use, the hypersonic weapon market is segmented into defence forces, homeland security, government bodies, and defence research & testing agencies.

The defense forces segment contributed a significant revenue share in 2024. Governments are progressively placing more emphasis on the development of hypersonic systems to uphold their technological advantage and improve their quick-reaction deterrence capability. The combination of these weapons’ incredible velocity, accuracy, and the capability to circumvent sophisticated air and missile defense systems.

Defense spending across major powers, such as the US, China, and European countries, has not stopped rising for a couple of years now, which results in a safe financing environment for the manufacturers and the system integrators. Generally, the programs of hypersonic weapons development that are long-term tend to comprise the development stage and testing, production, maintenance, as well as periodic upgrading, thus implying several income streams for long periods.

Geographical Outlook:

Hypersonic weapon market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamics. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different regions and countries.

North America Hypersonic Weapon Market:

North America registered the highest market share in the hypersonic weapons market. Rising investments in hypersonic defense systems are propelling revenue growth of the U.S. hypersonic weapons market. The U.S. Army’s FY2026 budget request, released in June 2025, includes USD 25 million under Project HX3. This investment will accelerate the development and testing of an “cost-effective, mass-produced hypersonic weapon” known as the Blackbeard Ground Launch (GL) system.

The U.S. defense and the Department of War are working on the prototype development contracts, integration programs, and subsystem upgrades linked to hypersonic defense architecture. The Department of War is investing in several private sector participants to compete for multiple R&D and testing companies, and diversifying revenue streams.

For instance, on 17^th May 2024, Lockheed Martin received a USD 756 million contract modification to continue supporting the U.S. Navy’s Conventional Prompt Strike (CPS) hypersonic weapons program under the Department of War. The contract encompasses program management, engineering development, systems integration, procurement of long-lead materials, and the development of specialized tools and equipment.

Asia Pacific Hypersonic Weapon Market:

Asia Pacific is expected to register the fastest revenue growth by 2032. China and India’s rising economies are transforming the Asia-Pacific into a new global superpower. Rising geopolitical tension in the South China Sea has increased the demand for hypersonic weapons. The South China Sea serves as an important maritime corridor for global trade and strategic mobility. According to the United States Energy Information Administration (EIA), this route carries approximately 80% of China’s energy imports and 40% of its trade volume.

Rising hypersonic missile developments in China, North Korea, South Korea, and Japan are driving market demand for hypersonic missile systems. On October 3^rd, 2025, China deployed Dongfeng-17 hypersonic ballistic missiles at a PLARF base near Taiwan, owing to the rising threats to U.S. forces in the Western Pacific and to Taiwan. In addition, North Korea conducted a hypersonic missile test in January 2025. This system can reach altitudes of 100 kilometers and glide toward East Sea targets.

Moreover, Japan is accelerating procurement and attracting private investment, which further accelerates the revenue expansion in this region. On March 11^th, 2025, the U.S. State Department notified Congress of a potential USD 200 million foreign military sale to support Japan’s Hyper Velocity Gliding Projectile program. These investments provide significant commercial opportunities for defense contractors specializing in hypersonic interceptors, advanced radar, sensor fusion, and electronic warfare systems.

Middle East & Africa Hypersonic weapons market:

Middle East & Africa contributed a substantial revenue share in 2024. The Middle East and Africa contributed to a significant revenue share in 2024. Rising threats in major maritime trade routes like the Strait of Hormuz and the Red Sea are creating considerable prospects for sophisticated hypersonic weapons. SIPRI estimates that between 2020 and 2024, the Middle East accounted for more than 27% of worldwide armament imports

This region is now embroiled in 45 military conflicts, including those involving Iran, Iraq, Syria, Yemen, Libya, Palestine, and others. In March 2024, three crew members were killed by a Houthi missile strike on the Greek-owned, Barbados-flagged yacht. These factors are anticipated to boost market revenue growth throughout the forecast period.

Growing security concerns are driving new production contracts for missile tracking and defense systems. For instance, on July 25^th, 2025, Turkey launched its Tayfun Block-4 hypersonic missile, owing to increasing escalation in regional capabilities and growing threat perceptions across neighboring countries.

Competition Analysis:

The hypersonic weapon market is characterized by numerous players, with major players competing across segments and regions. The list of major players included in the Hypersonic weapon market report is:

• RTX Corporation
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Thales Group
• BAE Systems plc
• L3Harris Technologies, Inc.
• General Dynamics Corporation
• Kongsberg Gruppen AS
• Hanwha Group
• Kratos Defense & Security Solutions, Inc.
• Castelion Corporation
• Elbit Systems Ltd.
• MBDA
• URSA Major Technologies Inc

Strategic Developments in Hypersonic Weapon Market:

• On July 4^th, 2025, Castelion corporation secured USD 350 million in a Series B round led by Lightspeed Venture Partners and Altimeter Capital. This financing follows a USD 100 million Series A closed in January, which was also led by Lightspeed. Castelion’s weapons are designed to deliver advanced hypersonic capabilities to address that national security gap. Castelion has received funding and recognition from multiple U.S. Department of Defense entities, including the Air Force Research Laboratory and Naval Air Systems Command.
• On January 8^th, 2025, Kratos secured its largest contract to date from the U.S. Department of Defense to deliver the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0. Over the five-year agreement, the California-based technology company will provide comprehensive systems engineering, integration, and testing services, encompassing integrated subscale, full-scale, and air-launch operations. The contract’s total value is around USD 1.45 billion if all options are exercised.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Hypersonic Weapon Market Report:

The hypersonic weapon market report offers a detailed analysis of market size, including historical revenue (in USD Billion) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Warhead Type Outlook (Revenue, USD Billion; 2022-2032)
  • Conventional
  • Kinetic
  • Nuclear

• Type Outlook (Revenue, USD Million; 2022-2032)
  • Hypersonic Glide Vehicles (HGV)
  • Hypersonic Cruise Missiles (HCM)
  • Boost-Glide Systems
  • Hypersonic Tactical Missiles
  • Hypersonic Strategic Missiles
  • Hypersonic Anti-Ship Missiles
  • Others

• Subsystem Outlook (Revenue, USD Billion; 2022-2032)
  • Propulsion Systems
    • Scramjet
    • Boost-Glide
    • Turbojets
    • Ramjet
    • Dual-Combustion Ramjet (DCR)
    • Liquid and Solid-Fueled Rockets
  • Guidance and Control Systems
    • Inertial Navigation System (INS)
    • Global Navigation Satellite System (GNSS)
    • Terrestrial Guidance System
    • Command Guidance System
  • Materials and Structures
  • Sensors and Avionics

• Platform Outlook (Revenue, USD Billion; 2022-2032)
  • Land-Based
  • Airborne
  • Naval
  • Space-Based

• Range Outlook (Revenue, USD Billion; 2022-2032)
  • Short-Range
  • Medium-Range
  • Long-Range

• End-Use Outlook (Revenue, USD Billion; 2022-2032)
  • Defense Forces
    • Army
    • Navy
    • Air Force
  • Homeland Security
    • Border Security
    • Critical Infrastructure Protection
    • Law Enforcement Agencies
  • Government Bodies
  • Defense Research & Testing Agencies

• Regional Outlook (Revenue, USD Million; 2022-2032)
  • North America
    1. U.S.
    2. Canada
    3. Mexico
  • Europe
    1. Germany
    2. France
    3. U.K.
    4. Italy
    5. Spain
    6. Russia
    7. Benelux
    8. Nordic Countries
    9. Rest of Europe
  • Asia Pacific
    1. China
    2. India
    3. Japan
    4. South Korea
    5. Singapore
    6. Oceania
    7. ASEAN Countries
    8. Rest of APAC
  • Latin America
    1. Brazil
    2. Rest of LATAM
  • Middle East & Africa
    1. GCC Countries
    2. South Africa
    3. Israel
    4. Turkey
    5. Rest of MEA

Frequently Asked Questions (FAQ) About the Hypersonic Weapon Market Report