Canada Land-based Smart Weapons Market

Canada Land-based Smart Weapons Market Insights Forecasts to 2035

• The Market Size is Expected to Grow at a CAGR of around 4.80% from 2025 to 2035
• The Canada Land-based Smart Weapons Market Size is expected to reach at a substantial share by 2035

According to a research report published by Decision Advisior and Consulting, the Canada Land-based Smart Weapons Market is expected to grow at a CAGR of 4.80% during the forecast period 2025-2035. The increasing frequency of geopolitical tensions, terrorism, and political upheaval, the growing requirement for accuracy and precision in targeting enemy assets, and the significant increase in international arms trade are some of the primary factors driving the market. 

Market Overview

The Canadian land-based smart weapons market is described as the industry dedicated to the development, purchase, and deployment of precision-guided, technologically sophisticated weapon systems for use in ground-based military operations. These weapons incorporate guiding technology such as satellite, radar, infrared, and laser systems to improve accuracy, limit collateral damage, and boost tactical effectiveness. These weapons are often deployed on ground-based platforms, such as vehicles or fixed launchers, and can be employed to carry out tactical and strategic tasks. GPS, laser designation, and other modern guidance technologies are used to direct land-based guided missiles, rockets, and artillery shells. These weapons' flight paths can often be changed in real time to avoid obstructions, maintain a clean aim, and ensure that the desired target is hit exactly. Land-based smart weapons not only reduce collateral damage and personnel dangers, but they also boost mission performance. Land-based smart weapons can be more cost-effective than other weapon systems since they use fewer bullets to meet mission objectives.

Canada established a new centralised Joint Forces Command to improve military coordination, with an initial focus on deploying counter-drone technologies across bases—smart land-based systems to protect infrastructure from aerial threats.?

The government has budgeted CAD 357.7 million across regions to increase defence industry capabilities, including research, supply chains, and stocks for smart weapons systems. Nearly CAD 40 million was given to Atlantic Canada to upgrade companies in preparation for international precision munition contracts.

Report Coverage

This research report categorises the market for the Canada land-based smart weapons market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada land-based smart weapons market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada land-based smart weapons market.

Driving Factors

The market is mainly propelled by the increasing demand for accuracy and precision in identifying enemy targets, such as vehicles, structures, and more. Correspondingly, the increasing defence budgets of various nations aimed at enhancing current weaponry and ensuring military preparedness are driving growth in the market. Additionally, various technological progressions, including the incorporation of GPS, artificial intelligence (AI), laser targeting systems, and sophisticated sensors offering improved flexibility and lethality, are leading to an increased adoption of these weapons. The market is additionally driven by the significant increase in arms sales and military modernisation initiatives. Additional factors influencing the market consist of swift urbanisation, rising disposable income levels, enforcement of rigorous national security policies, and significant research and development (R&D) initiatives.

Restraining Factors

The Canadian land-based smart weapons market is constrained by high costs, stringent regulations, cybersecurity hazards, and financial constraints.

Market Segmentation

The Canada land-based smart weapons market share is classified into product and technology.

• The ammunition segment held a substantial share in 2024 and is expected to grow at a remarkable CAGR during the forecast period.

The Canada land-based smart weapons market is divided by product into missiles, ammunition, and other products. Among these, the ammunition segment held a substantial share in 2024 and is expected to grow at a remarkable CAGR during the forecast period. These additional capabilities allow for precise fire at long ranges with a near-vertical trajectory at both line-of-sight (LOS) and non-line-of-sight (NLOS) targets in open or built-up regions, in all weather situations. These developments and purchase orders are expected to drive segment growth during the projection period.

• The satellite guidance segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

The Canada land-based smart weapons market is segmented by technology into satellite guidance, radar guidance, infrared guidance, and laser guidance. Among these, the satellite guidance segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. This is due to key manufacturers of defence ammunition being developed or offering GPS-based guidance kits to transform a regular artillery round into a precision-guided weapon. A GPS-guided kit with a nose and tail subsystem that houses the manoeuvring components is installed on the smoothbore mortar rounds used.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada land-based smart weapons market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• General Dynamics Land Systems Canada
• Rheinmetall Canada
• General Dynamics Mission Systems Canada
• DEW Engineering & Development
• Others

Recent Developments:

• In May 2025, the Government of Canada contracted Saab for the Carl-Gustaf M4, a man-portable multi-role weapon system with smart targeting capabilities, announced at CANSEC 2025 in Ottawa. This recoilless rifle supports guided munitions for precision strikes in various combat scenarios.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2035. Decision Advisior has segmented the Canada land-based smart weapons market based on the below-mentioned segments:

Canada Land-based Smart Weapons Market, By Product

• Missiles
• Ammunitions
• Other Products

Canada Land-based Smart Weapons Market, By Technology

• Satellite Guidance
• Radar Guidance
• Infrared Guidance
• Laser Guidance

FAQ

1. What is the expected growth rate of the Canadian land-based smart weapons market?

The market is expected to grow at a CAGR of approximately 4.80% during the forecast period from 2025 to 2035.

2. What are land-based smart weapons?

Land-based smart weapons are technologically advanced precision-guided weapon systems used in ground military operations. They use guidance technologies like satellite, radar, infrared, and laser to accurately target enemy assets while minimising collateral damage.

3. What factors are driving the growth of this market in Canada?

Key drivers include rising geopolitical tensions, increasing demand for precision targeting, growth in the international arms trade, technological advancements (such as GPS and AI integration), increased defence budgets, and government investments to enhance defence capabilities.

4. What are the main product segments in this market?

The market is segmented into missiles, ammunition, and other products. Ammunition has held a substantial market share and is expected to grow significantly due to its long-range precision fire capabilities.

5. Which guidance technology segment dominates the market?

Satellite guidance led the market in 2024 and is projected to maintain substantial growth. This technology often converts conventional artillery into precision-guided munitions using GPS.

6. What challenges or restraints does the market face?

The market faces high development and production costs, stringent regulations, cybersecurity threats, and financial constraints that could restrain growth.

7. What recent government initiatives support this market?

Canada has allocated CAD 357.7 million to enhance defence industry capabilities, including smart weapons development. Specific investments include CAD 40 million for Atlantic Canada to prepare companies for international precision munition contracts. Also, the new Joint Forces Command focuses on deploying counter-drone technologies with smart land-based defence systems.

8. Who are the key players in the Canadian land-based smart weapons market?

Prominent companies include General Dynamics Land Systems Canada, Rheinmetall Canada, General Dynamics Mission Systems Canada, DEW Engineering & Development, among others.

9. Can you provide an example of a recent product development in this market?

In May 2025, the Canadian government contracted Saab for the Carl-Gustaf M4, a man-portable multi-role weapon system with smart targeting, supporting guided munitions for precision combat strikes.