Global Close-In Weapon Systems (CIWS) Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2024-2032)

Close-In Weapon Systems (CIWS) Market Overview

Growing military expenditure in both developing and developed economies is expected to boost the growth of the close-in weapon systems (CIWS) industry. The global market for close-in weapon systems (CIWS) is being driven by the increasing military expenditure in various developed and developing economies, in order to protect the sovereignty of the nation by defending the country’s borders from any outside aggression and enhancing the military capabilities of the nation. The growth of the close-in weapon systems (CIWS) market will further be aided by the growing risk of international conflicts.

With the rise in global maritime threats, several countries are increasing investments in naval capabilities. This involves upgrading existing fleets and equipping new ships with Close-In Weapon Systems (CIWS) to improve their defensive strategies. Countries such as the United States, China, and Russia are making substantial investments in naval modernisation efforts that focus on integrating advanced weapon systems, including CIWS, to counter threats from anti-ship missiles and aerial attacks.

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Close-In Weapon Systems (CIWS) Market Trends

Increased Integration of Advanced Technology in CIWS

The Close-In Weapon Systems (CIWS) readily integrates high-energy laser technologies and AI-powered tracking capabilities. These advancements allow CIWS to detect and react to fast-moving threats, such as drones and hypersonic missiles, with improved precision. For instance, Raytheon's Phalanx system has been upgraded with advanced radar and infrared tracking technologies that rely on AI algorithms. These improvements allow the system to detect, identify, and track multiple fast-moving threats, significantly improving its response time and accuracy and contributing to the close-in weapon systems (CIWS) market revenue.

Countries such as China and the United States are further leading the development of laser-based CIWS options to provide traditional missile and gun systems, providing cost-effective and efficient point-defence solutions against asymmetric threats. For instance, China increased its defence budget by 7.2% for 2024, to reach around USD 222 billion. This funding is aimed at advancing the modernisation of the People’s Liberation Army (PLA) in various areas, including the deployment of CIWS.

Growing Focus on Modular and Retrofittable Systems

Several countries are increasingly investing in modular Close-In Weapon System (CIWS) designs that can be easily integrated into a variety of platforms, including smaller ships and land-based systems. This advancement allows for the modernisation of current military assets by adding advanced CIWS capabilities, which extend the operational lifespan and enhance the readiness of older platforms, which can enhance the close-in weapon systems (CIWS) market value.  For instance, the RAPIDFire system, which was developed through a partnership between Thales and Nexter, is a modular Close-In Weapon System (CIWS) designed for flexible installation on both naval vessels and ground platforms. It is used by the French Navy to address a variety of threats, including drones, missiles, and small boats. It is equipped with a 40mm CTA cannon and an automated ammunition management system and can be switched between both depending on the specific threat encountered.

Retrofit programs are gaining popularity in many countries, including NATO allies, to ensure that their existing fleets are well-equipped to address modern threats without the need to build entirely new vessels.

Industry News

August 2024

The Taiwanese Navy announced that they have launched the latest variant of the Phalanx Close-In Weapon System (CIWS) into its main surface combatants. This variant can enhance their ability to take out incoming threats and serve as the last line of defence.

June 2024

ASELSAN, a major Turkish defence company, announced that its Gökdeniz Close-In Weapon System (CIWS) was installed on the Philippine Navy's newest corvette, BRP Miguel Malvar.

Opportunities in Close-In Weapon Systems (CIWS) Market

The increasing use of agile, small-scale threats, such as unmanned aerial vehicles (UAVs) and high-speed boats operated by hostile forces, has fuelled the demand for Close-In Weapon Systems (CIWS) that can quickly respond to these challenges. With UAVs being used more often for surveillance and offensive missions, CIWS equipped with rapid-firing artillery and advanced radar technologies have gained an important role in countering these threats. This trend of close-in weapon systems (CIWS) market is especially prominent in regions where naval forces are vulnerable to unconventional warfare tactics, particularly in the Middle East.

The SeaRAM system, which is an adaptation of the renowned Phalanx, combines the capabilities of rapid-firing with Rolling Airframe Missiles, improving the Close-In Weapon System (CIWS) to defend against a wider range of threats, including fast-moving boats and a wide range of unmanned aerial vehicles (UAVs). This system is particularly useful in environments where naval forces frequently come across smaller, more agile opponents.

Close-In Weapon Systems (CIWS) Market Restraints

The sales of Close-In Weapon Systems (CIWS) may be restricted in some parts of the world due to export controls and regulations. For instance, some CIWS technologies face strict export controls, which prevents them from selling their products to regions and countries not under the approved network and alliance. For instance, the US places severe restrictions on the export of Close-In Weapon Systems (CIWS) under the International Traffic in Arms Regulations (ITAR) which may affect the close-in weapons systems (CIWS) demand growth. Such controls limit the sales of such systems to only the trusted allied countries and regions where there is a limited risk of these systems falling into the hands of unauthorised parties or adversaries of the country.

Integrating CIWS into naval or land-based platforms requires complex engineering to ensure optimal placement and performance. These systems must be adaptable to different environments and capable of functioning effectively under harsh conditions, such as at sea. In addition, there are many operational issues associated with CIWS such as automation and the heat energy dry mechanisms, which can lead to wear and tear, and fuel demand for regular maintenance and repair.

Market Dynamics

Several countries such as the United States, China, and various European countries, are launching efforts to modernise their naval forces to enhance maritime security. This initiative includes upgrading current ships with advanced Close-In Weapon Systems (CIWS) and integrating these systems into the designs of new vessels. These programs aim to strengthen the resilience of naval assets in contested water bodies by equipping them with effective close-range defence capabilities, which further boosts the close-in weapon systems (CIWS) market opportunities.

For instance, both the United States and Canada are upgrading their naval fleets to incorporate state-of-the-art CIWS as part of their broader defence enhancement strategies. The Royal Netherlands Navy enhanced its Goalkeeper Close-In Weapon Systems (CIWS), which passed sea acceptance trials on the HNLMS Johan de Witt not long ago. This upgraded version offers advanced radar and electro-optic tracking capabilities, enabling it to effectively address modern threats such as drones and high-speed missiles. The Goalkeeper CIWS is a crucial last line of defence for Dutch Navy vessels, ensuring they are equipped to address both current and future challenges in high-risk situations.

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Close-In Weapon Systems (CIWS) Industry Segmentation

Global Close-In Weapon Systems (CIWS) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Close-in weapon systems (CIWS) are defined as a defence system, typically mounted on a shipboard, which is used for detecting and destroying short-range incoming missiles. It is usually installed in large warships and can be gun-based or missile-based.

Based on type, the market is divided into:

• Gun Based
• Missile Based

On the basis of platform, the industry is segmented into:

• Terrestrial
• Navy

The major regional markets include:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Close-In Weapon Systems (CIWS) Market Share

By Type Insights

Based on type, gun-based close-in weapon systems account for a significant share in the market. This can be attributed to the growing demand for various gun-based CIWS, including AK_630, Pantsir-M, DARDO, Goalkeeper CIWS, Kashtan CIWS, and Myriad CIWS, among others. The Kashtan CIWS is likely to gain traction in the forecast period, owing to its high ammunition storage and various advantages, including its ability to protect ships against ASMs, anti-radar missiles, and aerial threats from the aircraft, among others, which can enhance close-in weapon systems (CIWS) industry revenue. It can also engage smaller vessels and ground targets.

Meanwhile, the missile-based CIWS are likely to provide growth opportunities to the market, owing to the development of cheaper alternatives to the costlier missile-based CIWS. For instance, the 9M337 Sosna-R is an effective and cheaper alternative to the tor missile system and Pantsir-S1.

By Platform Insights

The Navy sector accounts for a major close-in weapon systems (CIWS) market share due to the increased deployment of Close-In Weapon Systems (CIWS) on naval ships, which are essential for providing advanced defensive capabilities against missiles, drones, and various aerial threats in high-pressure maritime settings. Naval forces around the globe, including those in the United States, Europe, and Asia, have been making substantial investments in CIWS technology to enhance the resilience of their fleets.

Naval CIWS systems, such as the Phalanx and SeaRAM, play a crucial role in intercepting and neutralising threats that approach at close range. These systems are specifically engineered for maritime operations, where the ability to respond quickly to threats is crucial.

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Close-In Weapon Systems (CIWS) Market Regional Analysis

North America Close-In Weapon Systems (CIWS) Market Growth

North America accounts for a significant share of the market and is anticipated to remain a major market in the forecast period as well. This can be attributed to the increasing military expenditure of the US, along with the growing research and development activities in the nation, owing to the rising challenges faced by it due to terrorism, which can enhance the growth of the close-in weapon systems (CIWS) industry.

For instance, the US Department of Defense proposed a defence budget of USD 842 billion for 2024, focusing on technological advancements, and countering China's growing influence. Some of their major initiatives include the Pacific Deterrence Initiative, which was expected to see a 40% increase in funding, raising its total to USD 9.1 billion, aimed at strengthening the US military presence in the Indo-Pacific region.

Asia Pacific Close-In Weapon Systems (CIWS) Market Trends

Russia and China are also likely to be significant markets for close-in weapon systems as these countries have witnessed a surge in spending on weapon systems. For instance, Russia enhanced its naval capabilities, through the innovation and implementation of systems such as the Kashtan Close-In Weapon System (CIWS), also known as Kortik, which is installed on several vessels of the Russian Navy.

As per the close-in weapon systems (CIWS) market dynamics and trends, the growing ambition of China towards maintaining its dominance in the oceans is also expected to be a major factor driving the growth of the market.

Europe Close-In Weapon Systems (CIWS) Market Outlook

The regional market growth is driven by increased efforts by various government bodies to modernise the Navy.  For instance, Italy is enhancing its naval capabilities with the Pattugliatore Polivalente d'Altura (PPA) program, which aims to equip modular offshore patrol vessels with advanced defensive systems. These vessels support various naval operations and play a crucial role in Italy's initiative to modernise its navy.

As per the close-in weapon systems (CIWS) industry analysis, the FREMM frigates, which will be finished by 2025, are expected to contain upgraded weapon systems to improve protection and increase operational flexibility for multi-role missions.

Middle East and Africa Close-In Weapon Systems (CIWS) Market Drivers

Ongoing geopolitical tensions and long-standing regional conflicts are significantly increasing the demand for Close-In Weapon Systems (CIWS). Countries in these areas are focusing on strengthening their defence capabilities. In particular, Gulf nations such as Saudi Arabia and the United Arab Emirates are making substantial investments to modernise their naval fleets to address threats in major maritime routes, especially in the Persian Gulf, which can further increase demand of close-in weapon systems (CIWS) market.

Saudi Arabia launched the Saudi Naval Expansion Program II (SNEP II), which signifies a significant financial commitment to enhancing its naval capabilities. This initiative includes the acquisition of advanced, high-end vessels, such as the Avante 2200 corvettes manufactured by the Spanish shipbuilding firm Navantia.

Latin America Close-In Weapon Systems (CIWS) Market Analysis

Countries such as Brazil and Mexico are readily improving their defence capabilities to address regional security issues. These countries are modernising their naval forces by integrating Close-In Weapon Systems (CIWS) to protect coastal regions and vital maritime routes. For instance, Brazil is making efforts to improve its naval defences as part of a strategy to secure its significant offshore oil resources and boost close-in weapon systems (CIWS) market expansion.

The Brazilian government allocated around USD 29.9 billion for the modernisation of its defence sector between 2024 and 2028, with a substantial focus on improving the capabilities of the Brazilian Navy.

Innovative Startups in Close-In Weapon Systems (CIWS) Market

Startups are playing a crucial role in advancing defence technology by mainly focusing on advanced automation, incorporating AI and developing compact, flexible solutions for short-range defence. Some major startups specialise in AI-driven autonomous systems that can be customised for various defence applications, including close-in weapon systems. These innovations aim to improve response times and accuracy through machine learning algorithms that improve target identification and tracking capabilities and positively impact close-in weapon systems (CIWS) demand forecast.

Anduril Industries

Anduril, a U.S.-based startup, is making significant advancements in defence technology through its AI-driven autonomous systems, which can be customised for a range of defence purposes, including Close-In Weapon Systems (CIWS). The company focuses on the integration of machine learning to improve real-time target identification and tracking, thereby enhancing the speed and precision of responses in defence situations.

Fortem Technologies

Fortem Technologies is gaining prominence due to its counter-drone technology as well as innovation in areas that intersect with CIWS. The company’s DroneHunter system employs radar and AI to autonomously detect and neutralise aerial threats, such as unmanned aerial vehicles (UAVs) and other small flying objects. This system is particularly relevant for CIWS applications, especially in scenarios where rapid and accurate interception of short-range threats is essential.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global close-in weapon systems (CIWS) market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Several major players are focused on developing integrated Close-In Weapon Systems (CIWS) for naval and ground forces. They have also invested heavily in CIWS which combines advanced sensor technology with high firing rates, allowing for effective interception of threats from both sea and air. Additionally, some companies are expanding their global footprint by partnering with allied nations in the Asia-Pacific and Middle East regions.

Key Industry Players

ASELSAN A.S.

ASELSAN, based in Turkey, is a leading player in the defence electronics sector, specialising in advanced technology systems for military and civilian applications. Founded in 1975, ASELSAN designs and manufactures a wide range of products, including communication systems, radar systems, electro-optical systems, and unmanned systems.

BAE Systems.

BAE Systems, headquartered in the United Kingdom, is one of the largest defence, aerospace, and security companies in the world. With a presence in over 40 countries, BAE Systems focuses on developing high-end military equipment, such as submarines, combat vehicles, electronic systems, and munitions, among others.

General Dynamics Corporation

General Dynamics is an American defence company which operates across various sectors such as aerospace, combat systems, marine systems, and information technology, among others.

Other major players in the close-in weapon systems (CIWS) market are Raytheon Technologies Corporation and Lockheed Martin Corporation, among others.

Recent Developments

March 2024

Larsen & Toubro Ltd., a supplier of infrastructure, Engineering and Defence announced that it signed a contract for the supply of Close-In weapon systems (CIWS) which are indigenously developed, to the Indian Air Force.

March 2024

Aselsan and SSB signed a contract worth 82,000,000 Euros for the procurement of Close-In Weapon Systems (CIWS) under which deliveries are expected to take place between 2024 and 2027.