Nuclear Bombs and Missiles Market

The global nuclear missile and bomb market size was valued at $72.64 billion in 2020 and is projected to reach $126.34 billion in 2030, registering a CAGR of 5.4%.   

Nuclear bombs and missiles can be referred to as the weapons of mass destruction that use nuclear fission, fusion, or a combination of both to release huge amounts of heat and energy. These weapons use fissile materials as raw materials. The effects of nuclear weapons are not limited to the initial blast. These weapons release a huge amount of nuclear radiation such as gamma radiation, neutron radiation, and ionizing radiation for a long timeframe after detonation. The first nuclear weapon was tested by the U.S. in 1946, followed by other nations. Soviet Union tested the its first weapon in 1949, the UK in 1952, France in 1960, China in 1964, India in 1974, Pakistan in 1998, and North Korea in 2006. Such destructive ability of these weapons has allowed several nations and international organizations to put a ban on the design, development, and testing of nuclear bombs and missiles. Active efforts are being made to dismantle the existing nuclear arsenal by major countries. Despite such efforts, a notable budget is allocated towards the acquisition, maintenance, and renewal of these weapons, backed by defense think tanks and military leaders.

A group and countries as well as continents have formed treaties and comities to eliminate their existing nuclear arsenal. For instance, Antarctica banned nuclear tests in 1959, followed by a treaty banning to test nuclear weapon in our space or underwater in 1963. Regions such as South Pacific, South Africa, Southeast Asia and Africa have taken rigorous actions to limit proliferation of nuclear weapons, followed by countries such as Ukraine and Belarus that became nuclear free by 1996.

Factors such as rise in geopolitical conflicts and increase in defense budget allocation toward nuclear expenditure, are expected to support the nuclear missile and bomb market growth. For instance, the U.S. allocated 5.7% of total defense budget toward nuclear weapon spending in 2021, which is expected to rise 8.0% of total defense spending in 2030. The nuclear arms acquisition race by superpowers such as the U.S. and Russia to accelerate business opportunism within the coming years. In 2021, the U.S. and Russia had 5,550 and 6,255 nuclear warheads and are expected to reach 6,380 and 6,734 by 2030 respectively. The expenditure by major companies such as Lockheed Martin, BAE Systems, Airbus, and Boeing, toward research, development, management, conducting exhibitions and seminars to conduct importance and feasibility of nuclear weapons will encourage nations to increase their budget allocation. In 2021, the lobbyists engaged in conducting seminars, exhibitions, and business meetings along with think tanks responsible for future planning and management received around $120 million from corporate bodies and defense organizations, supporting business potential over the coming years.

The global nuclear missile and bomb market is segmented on the basis of type, range, status and region. By type, the market is divided into aircraft bombers and land base missiles, inter-continental ballistic missiles (ICBM), submarine-launched ballistic missile (SLBM), and others. The others segment includes reserve and retired nuclear warheads within the type segment. By range, the market is segmented into less than 1,000km, 1,000Km to 5,000km and greater than 5,000km. The status segment is bifurcated into active and reserve and retired. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Companies have adopted collaboration, long term agreements, joint ventures and association with think tanks such as Atlantic council, Brookings Institution, and Carnegie Endowment for International Peace as their key development strategies in the nuclear missile and bomb market.

The prominent players operating in the nuclear missile and bomb market are Airbus, Ariane group Sas, Bae Systems, Brahmos Aerospace, Lockheed Martin Corporation, MBDA, Northrop Grumman Corporation, Rafael Advanced Defense Systems Ltd, Raytheon Technologies Corporation, and The Boeing Company.

Increase in cross border conflicts

The rise in border disputes among neighboring nations, plans for territorial expansion and efforts to establish strategic and political dominance at global level remain primary factors that support the nuclear missile and bomb market. The ongoing dispute between Ukraine and Russia as of March 2022 is expected to notably impact the business dynamics in coming years. Other nations such as India and Pakistan, are entering a race to increase their nuclear arsenal to ensure political dominance.

The group of nations such as NATO are actively participating in discussion and initiatives taken within the nuclear weaponries segment and looking to update their existing forces. The UK has one of the strongest naval forces and relies on their nuclear submarine launch ballistic missiles. The country has done notable investment on developing Dreadnought-class, capable of carrying nuclear weapons. The submarine is expected to be in service by 2030. On similar lines, China is expected to develop 200 launch silos that are capable of launching nuclear warheads to close proximity regions.

Rise in nuclear testing and technology transfers

The rise in testing and experimentation of nuclear weapon testing and ratification of non-nuclear proliferation treaties will positively impact the business dynamics of nuclear missile and bomb market. Though the Treaty on the Prohibition of nuclear weapons (TPNW) entered into force as of January 2021, eight nuclear armed countries including the UK, Russia, France, China, India, Pakistan, Israel and North Korea have not supported the amendment whereas the U.S. has nor declined neither accepted the treaty. The policy prohibits development, testing, production, possession or sale of nuclear weapons.

New policies drafted by individual nations allowing them to develop, use and test nuclear weapons will have a major impact on the market in coming years. For instance, in 2020, France stated that the country will use its nuclear capabilities under extreme situation. Only one-time unique warning will be given to the opposition, barring which the country will be liable to use nuclear weapons by any means possible. Prolonged operations and life extension of nuclear reactors to be fully operational and supporting nuclear R&D activities are augmenting the nuclear missile and bomb market. For instance, an ageing nuclear reactor of Israel was scheduled to stop its operation in 2003; but has been postponed to 2023 and the Israel Atomic Energy Commission is exploring ways to prolong its operational life till 2040.

Collaboration with government, thin tanks and lobbyist

Collaboration with government bodies, research institutes, and think tanks will remain primary strategic initiatives practiced by companies across the globe to secure their market share. The increasing conflict between Russia and Ukraine as of March 2022, ratification of nonnuclear proliferation and testing treaties by several nations in past years, and formulation of nuclear strike policies will define the business opportunities in the coming years.

Collaboration of several companies into a single entity to engage in arms research, development and manufacturing activity is a command strategic initiative practiced by companies operating at the global level. For instance, MBDA is a consortium of three companies, Airbus (37.5%), BAE System (37.5%) and Leonardo (25%).

High initial investment and maintenance cost

A notable investment is required to test, develop, modernize and maintain nuclear arsenal. Such huge investments have a notable implication on defense budgets and economy of region. The rising cost of fissile material and costing to develop and test nuclear weapons is a major market challenge. To counter such huge costs and overheads, nations possessing nuclear weapons increase their budget allocation. For instance, the U.S. allocated 5.7% of its total nuclear budget toward nuclear expenditure, and plans to raise their allocation to 8.0% of total defense budget by 2030. Apart from the budget allocation toward nuclear spending, each test utilizes tremendous amount of financial as well as non-financial resources. Each test is expected to be worth $45 million to $95 million.

KEY BENEFITS FOR STAKEHOLDERS

• This study presents the analytical depiction of the global nuclear missile and bomb market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall nuclear missile and bomb market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the global nuclear missile and bomb market with a detailed impact analysis.
• The current nuclear missile and bomb market is quantitatively analyzed from 2020 to 2030 to benchmark financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 Nuclear Bombs and Missiles Market Report Highlights