Global Close-In Weapon Systems (CIWS) Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

Close-In Weapon Systems (CIWS) Market Overview

Growth in military expenditure of both developed and developing economies will positively enhance the growth in the close-in weapon systems market. The increasing military expenditure in various developed and developing economies, to protect the sovereignty of the nation by defending the country's borders from any outside aggression and enhance the military capabilities of the nation, is driving the global market for close-in weapon systems (CIWS). The growing risk of international conflicts will further propel the growth of the close-in weapon systems (CIWS) market. 

With the increase in global maritime threats, several nations are increasing their investments in naval capabilities. Upgrades to the existing fleets and the fitting of new ships with Close-In Weapon Systems (CIWS) would improve their defense strategies. In fact, several nations, such as the United States, China, and Russia, have made significant investments in naval modernization efforts with an emphasis on integrating advanced weapon systems, such as CIWS, to combat threats from anti-ship missiles and aerial attacks.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Close-In Weapon Systems (CIWS) Market Growth

A number of countries, including the United States, China, and several European nations, are now embarking on programmes to modernize their naval forces in order to improve maritime security. As part of this process, it involves equipping the existing vessels with advanced Close-In Weapon Systems (CIWS) and installing such systems into the new ship designs. These programs work to enhance naval assets' toughness in contested waters by arming them with successful close-range protection capabilities, increasing the opportunities presented by the market for close-in weapon systems. 

Notably, each of the aforementioned countries is actively upgrading its fleets to include new-generation CIWS as part of its overall programmes to enhance and upgrade its current defence capabilities. The Royal Netherlands Navy improved the Goalkeeper Close-In Weapon Systems, which passed sea acceptance tests recently aboard HNLMS Johan de Witt.

It will equip an upgraded CIWS that equips more state-of-the-art radar and electro-optic capabilities that enable better protection against most current and up-to-date menaces in such kind, especially the use of drones and supersonic 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.

Key Trends and Developments

Global Close-In Weapon Systems (CIWS) Market Trends

The close-in weapon systems (CIWS) market is becoming increasingly advanced through the integration of technologies such as radar systems, AI-driven targeting, and directed energy weapons. These developments enhance the efficiency of CIWS in countering diverse threats, including drones, missiles, and rockets. The use of AI-powered tracking and laser technologies allows for improved precision and response times, while modular and retrofittable systems enable older platforms to be upgraded. Multifunctional CIWS, integrating radars, sensors, and directed energy systems, add up increased utility and multi-layered defense system integration. Furthermore, cost-effective, highly adaptable systems like RAPIDFire, and military rising budgets as in China grew 7.2%, propel the momentum of the close-in weapon systems market.

Opportunities in Close-In Weapon Systems (CIWS) Market

The increasing instances of agile small-scale threats posed by hostile entities with unmanned aerial vehicles and other high-speed craft have increased demands for close-in weapon systems designed to respond almost instantaneously.

Increasingly utilised for purposes of surveillance or attacks, unmaned aircraft, CIWS that are so armed with guns or artillery along with advanced features in radar play a crucial countering role as well. This trend of CIWS market is especially high in regions where naval forces are vulnerable to unconventional warfare tactics, especially in the Middle East. The SeaRAM system is a derivative of the famous Phalanx, marrying the capabilities of rapid-firing with Rolling Airframe Missiles, enhancing the Close-In Weapon System (CIWS) in defense against more threats, including fast-moving boats and a wide range of unmanned aerial vehicles (UAVs). It is highly effective in littoral environments where naval forces regularly encounter smaller, more agile adversaries.

Close-In Weapon Systems (CIWS) Market Restraints

The sales of Close-In Weapon Systems (CIWS) might be restricted in some parts of the world due to export controls and regulations. For example, the export of Close-In Weapon Systems (CIWS) is strictly controlled under the International Traffic in Arms Regulations (ITAR) by the US, which may impede the growth of the demand for close-in weapons systems (CIWS). 

Such control restricts the sales of such systems only to the trusted allies and regions wherein the risk that such systems might come into the hands of unauthorized persons or a country's adversaries is minimal. 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.

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Close-In Weapon Systems (CIWS) Industry Segmentation

Close-In Weapon Systems (CIWS) Market Share

By Type Insights

Based on type, gun-based close-in weapon systems are held to a prominent share in the market. The reason for this is due to the rising demand for various types of gun-based CIWSs, including AK_630, Pantsir-M, DARDO, Goalkeeper CIWS, Kashtan CIWS, and Myriad CIWS, among others. The Kashtan CIWS is likely to find its place in the forecast period due to its high ammunition storage and various other 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, missile-based CIWS are expected to offer growth to the market on account of cheap alternatives being developed for the costly missile-based CIWS. The 9M337 Sosna-R, for example is an effective but cheaper alternative to the tor missile system and Pantsir-S1.

By Platform Insights

The navy sector has the largest market share in close-in weapon systems because of the rising deployment of Close-In Weapon Systems on naval ships, which is crucial for offering advanced defensive capabilities against missiles, drones, and other aerial threats in high-pressure maritime settings. Naval forces around the world, including those in the United States, Europe, and Asia, have been investing heavily in CIWS technology to improve the resilience of their fleets.

Naval CIWS systems, among which are listed the Phalanx and SeaRAM, prove to be significantly important in close-in intercept/neutralization, as they allow for the approach of threats coming at close distance. These naval CIWSs are designed based on the necessity of rapid action in maritime defense.

Terrestrial CIWS, installed on military bases, land vehicles, or ground installations, are used to protect command centers, critical infrastructure, and high-value assets. The increasing threat of drone warfare, artillery bombardment, and missile attacks is driving the growth of the segment.

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.

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. 

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.

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.

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.

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

Startups are playing a crucial role in advancing defence technology by focusing on advanced automation, incorporating AI and developing compact, flexible solutions for short-range defence. Some major startups are specialising 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 the 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

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