Raytheon Beats Other Major Players In The Missiles Market To Win $2 Billion Contract To Develop Nuclear Cruise Missile For US Air Force
US defense contractor company Raytheon has been awarded a $2 billion contract to design and develop the Long Range Standoff (LRSO) weapon system for the US Air Force (USAF). The LRSO is a nuclear-armed cruise missile with an expected range of more than 1,500 miles. It will replace Boeing’s 1980s-era AGM-86B Air-Launched Cruise Missile (ALCM). Due to the nuclear capabilities of LRSO, it must meet all requirements and certifications from the beginning, unlike other weapon systems that can be upgraded later.
The USAF has planned to procure around 1,000 LRSOs which will be developed in Tucson, Arizona. The contract was announced in July 2021 and the production is expected to be completed in February 2027. This deal plays a minor role in the broader overhaul and modernization of the entire nuclear arsenal of the US that is planned over the next 30 years. In the coming years, the missiles market will pick up worldwide as other countries too continue to strive towards nuclear modernization.[i]
According to the Global Market Model, the global missiles market size is expected to grow from $15.98 billion in 2020 to $16.21 billion in 2021 at a compound annual growth rate (CAGR) of 1.4%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The global missiles market is expected to then reach $19.48 billion in 2025 at a CAGR of 4.7%.
With this nuclear modernization, technological advancements are expected to drive the growth of the missiles market. For instance, artificial intelligence is a key trend gaining the popularity in the missiles market. Countries across the world are designing artificial intelligence missiles to hit targets that humans cannot reach. Artificial intelligence gives missiles the potential to strike moving targets and also provides greater accuracy over other technologies. Another example, the US Army project in August 2019, the Cannon-Delivered Area Effects Munition (C-DAEM) aims to create missiles with artificial intelligence to select their targets beyond the reach of human surveillance.
The countries covered in The Business Research Company’s Missiles Global Market Report 2021: COVID-19 Impact And Recovery To 2030 are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and the USA.
About The Global Market Model
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[i] https://www.military.com/daily-news/2021/07/02/air-force-gives-raytheon-2-billion-nuclear-cruise-missile-development.html