The US artillery systems market continues its steady expansion, fueled by modernization initiatives and changing defense priorities. Robust government investment, technological advancements, and increased military tensions globally are driving significant growth between 2024 and 2035. Major companies including BAE Systems, General Dynamics, and Northrop Grumman are investing heavily in next-generation artillery systems to address evolving battlefield demands.
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Market Growth Drivers
Technological Advancements in Artillery Systems: The US artillery market is witnessing robust growth due to the integration of advanced technologies such as automated firing systems, precision-guided munitions, and improved fire control mechanisms. Companies like BAE Systems are spearheading development of self-propelled howitzers and deploying AI-enabled targeting solutions that enhance accuracy and reduce response times. Additionally, the emergence of network-centric warfare has prompted firms like Northrop Grumman to focus on systems that support enhanced situational awareness and integrated command and control, directly contributing to the adoption of advanced artillery platforms.
Growing Defense Budget and Modernization Initiatives: The continuous rise in the US defense budget has played a pivotal role in stimulating demand for modern artillery systems. The Department of Defense has prioritized the replacement of legacy systems with new-generation platforms equipped for multi-domain operations. General Dynamics, for instance, is heavily investing in R&D for future artillery concepts as part of the US Army’s ongoing modernization strategy, which includes the Extended Range Cannon Artillery (ERCA) program, poised to significantly boost procurement between 2024 and 2035.
Market Trends
Emphasis on Precision Strike Capabilities: Precision in artillery operations has become a top priority for the US military. This is reflected in the growing deployment of precision-guided munitions (PGMs), which allow for more effective target neutralization with minimal collateral damage. Companies such as Northrop Grumman have expanded their product portfolios to include advanced guidance kits and GPS-enabled artillery shells, aligning with the Department of Defense’s requirements for increased battlefield effectiveness. The trend toward precision engagement is also driving a shift from traditional unguided rounds to sophisticated, networked munition solutions.
Rising Demand for Mobile Artillery Platforms: The US defense sector is increasingly prioritizing mobility and rapid deployment capabilities in artillery systems. There is a growing trend toward wheeled self-propelled artillery and modular platforms, enabling quicker transportation and flexible response in various combat environments. Oshkosh Defense and BAE Systems are investing in lightweight, air-transportable artillery units with advanced automation to meet the Army’s requirements for fast-reaction forces. Increased deployment of such platforms is expected to redefine operational doctrines and support agile force projection.
Market Opportunities
Development of Autonomous Artillery Platforms: There is a significant opportunity in the development and deployment of autonomous or remotely operated artillery systems. Companies like Lockheed Martin are exploring AI-driven targeting and robotics, opening up prospects for systems that minimize operator risk and improve operational efficiency, thus attracting new procurement contracts over the forecast period.
Expansion into International Markets via FMS: Many US-based manufacturers are looking to boost export sales under Foreign Military Sales (FMS) programs. BAE Systems and General Dynamics are already engaging in international partnerships to export advanced artillery solutions, positioning the US as a key supplier in allied nations' modernization initiatives.
US Artillery Systems Market Revenue (USD Million), 2020-2035
The market revenue for US artillery systems has shown steady growth from 2020 through 2023, with a notable uptick starting in 2024 due to increased defense expenditure and modernization projects. Expected to be valued at USD 8,100 million in 2025, the revenue continues its upward trajectory, reaching an anticipated USD 13,600 million by 2035. The compound annual growth rate (CAGR) of 4.9% highlights confidence in ongoing procurement and technology upgrades. This trend underscores sustained investment in both new and upgraded artillery platforms, aligned with evolving military doctrines and technological innovation.
US Artillery Systems Market Share by Region (%), 2025
In 2025, the South region accounts for the largest share of the US artillery systems market, representing 37%—attributable to the heavy concentration of military bases and defense manufacturing facilities in states like Texas and Alabama. The Midwest and West regions follow with 25% and 18% market shares, respectively, hosting several key defense contractors. The Northeast holds a 12% share due to major technology development centers, while the other regions comprise 8%. This distribution reflects the concentration of defense investment and industrial hubs critical to artillery system development and production.
Recent Developments in US Artillery Systems Market
In March 2024, BAE Systems announced the successful live-fire test of its upgraded M109A7 self-propelled howitzer, integrating next-generation fire control and automation technologies for improved accuracy and crew survivability. The enhancements are part of an ongoing modernization contract with the US Army, aimed at extending the system's service life and compatibility with advanced ammunition.
In April 2024, General Dynamics Land Systems secured a major contract to develop and supply a new mobile artillery platform under the US Army’s Extended Range Cannon Artillery (ERCA) program. The new prototype is focused on achieving greater range and rapid deployment capabilities, aligning with evolving army requirements for multi-domain operations.
In May 2024, Northrop Grumman delivered its first batch of GPS-guided precision artillery munitions to the US Army, marking a significant milestone in the adoption of networked, high-precision fire support solutions. This delivery is expected to influence future procurement decisions as the army continues to prioritize accuracy and effectiveness for frontline units.
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