Global Naval Close-In Weapon System (CIWS) Market Size, Share, Trends and Forecasts 2031

Key Findings

• The naval close-in weapon system (CIWS) market centers on last-line defensive weapon solutions designed to intercept and destroy incoming anti-ship missiles, aircraft, drones, and small surface threats at very short ranges.

• Increasing sophistication, speed, and maneuverability of anti-ship missiles are pushing navies to invest heavily in advanced CIWS solutions.

• Integration of radar, electro-optical sensors, fire-control systems, and high-rate-of-fire guns or missiles is becoming standard in modern CIWS architectures.

• Emerging threats from swarm drones, low-flying cruise missiles, and loitering munitions are reshaping performance requirements for CIWS.

• Both gun-based and missile-based CIWS configurations are witnessing demand, with hybrid concepts gaining attention in new-build and upgrade programs.

• Modernization of existing fleets and procurement of new surface combatants and auxiliaries are key demand drivers for CIWS retrofits and installations.

• Asia-Pacific and the Middle East are high-growth regions as naval forces expand and upgrade to counter regional security challenges.

• Technology trends such as digital fire control, automation, remote operation, and network-centric warfare are redefining CIWS capabilities.

• Long-term support, upgrades, and life-extension contracts constitute a significant portion of CIWS supplier revenues.

• Strategic collaborations between defense primes, subsystem suppliers, and local shipyards are crucial for localization, technology transfer, and lifecycle support.

Naval Close-In Weapon System (CIWS) Market Size and Forecast

The global naval CIWS market was valued at USD 3.1 billion in 2024 and is projected to reach USD 6.0 billion by 2031, at a CAGR of 9.7%. Growth is strongly linked to rising naval budgets, modernization of surface fleets, and the evolving threat environment characterized by hypersonic, sea-skimming, and maneuvering anti-ship weapons. Both developed and emerging naval powers are prioritizing ship self-defense capabilities, with CIWS positioned as a critical final protective layer. Retrofit programs on legacy frigates, destroyers, and large amphibious ships are providing sustained demand, while new shipbuilding programs integrate CIWS from the design phase. Over the forecast period, a combination of hardware deliveries, software upgrades, and performance enhancements will support stable and recurring revenue streams for system integrators and their supply chains.

Market Overview

Naval CIWS are highly automated, short-range defensive systems that integrate sensors, computing, and high-velocity interceptors to defeat imminent threats in the terminal phase of attack. Typically mounted on surface combatants and high-value auxiliaries, CIWS can be gun-based (e.g., multi-barrel cannons) or missile-based, with some systems combining both for layered close-in protection. Their primary role is to neutralize incoming anti-ship missiles but they are increasingly used against aircraft, UAVs, fast inshore attack craft (FIAC), and asymmetric threats in congested maritime environments. Market activity spans new-build installations, mid-life upgrades, obsolescence management, and capability enhancements such as improved tracking, greater engagement ranges, and multi-target handling. As navies adopt network-centric concepts, CIWS must interoperate with ship combat management systems, electronic warfare suites, and off-board sensors, driving demand for open-architecture designs and software-driven upgrades.

Future Outlook

The future naval CIWS market will be defined by higher lethality, greater automation, and enhanced integration with broader ship and fleet defense architectures. Emerging requirements will emphasize rapid engagement of hypersonic and maneuvering threats, extended detection and tracking ranges, and improved kill probability under complex saturation attacks. Missiles optimized for close-in interception, guided projectiles, and advanced ammunition will complement traditional gun systems, while directed energy technologies may gradually enter the close-in defense segment as they mature. Software-defined fire-control systems and modular hardware will allow navies to incrementally upgrade capability without full system replacement. Growth opportunities will be strong in regions undertaking large-scale naval expansion, while established fleets will focus on upgrade paths that extend the useful life and relevance of existing CIWS installations through 2031 and beyond.

Naval Close-In Weapon System (CIWS) Market Trends

• Evolution Toward Multi-Layered Ship Self-Defense Architectures
  Navies are increasingly adopting layered defense concepts where CIWS complements long- and medium-range interceptors. CIWS now acts as the final hard-kill barrier against leakers that penetrate outer defense rings. This evolution is driving demand for systems with faster reaction times and higher engagement capacities. Designers are focusing on seamless integration between CIWS, decoys, and soft-kill electronic warfare suites. The trend also increases requirements for standardized interfaces with combat management systems across different vessel classes. As multi-layered defense becomes standard doctrine, demand for interoperable and network-centric CIWS solutions will continue to grow.

• Shift from Purely Gun-Based to Hybrid and Missile-Based CIWS
  While rotary cannon systems remain widely deployed, there is a clear trend toward missile-based and hybrid CIWS architectures. Missile-based systems offer greater engagement range and flexibility when tackling highly maneuverable or steep-diving threats. Hybrid installations combine the volume fire of guns with precision missile intercepts to handle diverse target sets. This shift encourages navies to evaluate trade-offs among cost, magazine depth, and engagement envelope. Manufacturers are responding by offering scalable product families that can be tailored to different ship sizes and mission profiles. Over time, hybrid CIWS options are expected to become more prevalent on larger surface combatants and high-value units.

• Rising Importance of Counter-UAS and Asymmetric Threat Defense
  CIWS are increasingly expected to defeat small UAVs, swarm drones, and fast attack craft in littoral and contested waters. These small, agile targets often operate in cluttered environments, stressing detection and tracking capabilities. Upgrades to electro-optical sensors and tracking algorithms are therefore becoming critical across CIWS programs. Ammunition types and missile seekers are being adapted to improve effectiveness against low radar cross-section targets. As asymmetric tactics proliferate among both state and non-state actors, navies see CIWS as a flexible tool for close-in force protection. This expanded mission set is reshaping the design and employment concepts of future CIWS solutions.

• Adoption of Digital, Open-Architecture Fire Control and Software Upgrades
  Modern CIWS are moving toward open-architecture computing platforms that support rapid software updates and integration with other ship systems. Digital fire-control algorithms are becoming more sophisticated to handle multiple simultaneous threats and complex trajectories. Open architectures reduce vendor lock-in and allow navies to insert national software or security modules more easily. This trend supports incremental capability improvements over the system life rather than infrequent large-scale retrofits. It also enhances cybersecurity resilience by allowing timely patches and upgrades. As a result, software and systems integration expertise are becoming as important as the physical weapon hardware itself.

• Increased Emphasis on Maintainability, Availability, and Lifecycle Support
  Navies are demanding CIWS solutions with high operational availability and reduced maintenance burdens to support extended deployments. System designers are therefore emphasizing modular line-replaceable units, built-in test equipment, and predictive maintenance tools. Long-term performance-based logistics contracts are becoming more common, aligning supplier incentives with fleet readiness outcomes. This focus on sustainment is also driving investments in training simulators, digital twins, and remote diagnostics for CIWS fleets. Optimization of spare parts inventories and support footprints is a key priority, especially for navies operating globally dispersed forces. Life-cycle cost performance is thus a central competitive differentiator in the CIWS market.

• Exploration of Directed Energy and Advanced Ammunition Concepts
  Research and demonstration programs are exploring the use of high-energy lasers and advanced projectiles for future close-in defense applications. Directed energy offers the potential for deep magazines and low cost per shot once power and thermal challenges are managed. In parallel, guided and air-burst munitions are being developed to increase lethality against drones and small boats. These technologies are not yet widespread but are influencing long-term planning and roadmaps for CIWS evolution. Vendors are designing current systems with potential growth paths to integrate new effectors when they mature. Over the forecast horizon, incremental fielding of such technologies could reshape performance expectations for close-in defense systems.

Market Growth Drivers

• Escalating Anti-Ship Missile Threats and Advanced Strike Capabilities
  The proliferation of sea-skimming, maneuvering, and increasingly faster anti-ship missiles is a primary driver of CIWS demand. Naval platforms face threats from both sophisticated state adversaries and proliferated export systems. CIWS provides a vital last-ditch capability when outer-layer defenses are saturated or bypassed. As missile technology advances, navies seek CIWS with improved tracking, faster response, and higher accuracy. The need to protect high-value capital ships and logistics vessels underpins sustained investment in close-in defense. This overarching threat evolution is likely to remain a central market driver throughout the forecast period.

• Global Naval Modernization and Surface Fleet Expansion
  Many countries are pursuing ambitious naval modernization programs including new frigates, destroyers, corvettes, and amphibious ships. CIWS integration is a standard requirement for these new platforms, often specified early in the design process. Parallel mid-life upgrade programs on legacy vessels provide further opportunities to install or replace aging CIWS. As fleets expand numerically and technologically, the total installed base of CIWS grows correspondingly. Defense planners prioritize survivability enhancements that safeguard crew and mission effectiveness. This combination of new-build and retrofit activity creates a robust demand pipeline for CIWS suppliers globally.

• Heightened Focus on Littoral Operations and Asymmetric Threats
  Naval forces are increasingly tasked with operating in congested littoral environments where asymmetric threats are prevalent. Small boats, suicide craft, and low-cost drones can pose significant danger to surface units in these waters. CIWS offers rapid, locally controlled firepower to counter such surprise attacks at close range. Expanded roles in maritime security, counter-piracy, and coastal patrol further reinforce the need for reliable close-in protection. As mission profiles diversify beyond traditional blue-water operations, multi-role CIWS capabilities become more attractive to procurement authorities. This shift in operational focus thus adds momentum to market growth.

• Technological Advancements in Sensors, Fire Control, and Interceptors
  Continuous improvement in radar sensitivity, electro-optical resolution, and data processing power has significantly enhanced CIWS performance. Modern systems can detect and track smaller, faster, and more complex targets than earlier generations. At the same time, advances in gun stabilization, ammunition design, and missile seekers increase kill probability. These capabilities make CIWS more effective and therefore more compelling as a defensive investment. Navies are motivated to replace legacy analog systems with digital, networked alternatives that leverage these advancements. The technology trajectory strongly supports ongoing and repeat acquisition of upgraded CIWS solutions.

• Rising Defense Budgets in Emerging Maritime Powers
  Several emerging economies are investing in blue-water capabilities and larger, more capable surface fleets. These navies often start with relatively low self-defense baselines and thus procure CIWS as part of comprehensive capability-building programs. Regional security concerns and maritime disputes further drive interest in credible naval deterrence. International collaborations and offsets facilitate access to advanced CIWS technologies for these customers. As their fleets grow and mature, follow-on orders for additional ships and upgrades will expand the installed base of CIWS. This creates attractive long-term growth prospects, particularly in Asia-Pacific and parts of the Middle East.

• Lifecycle Upgrades and Performance Enhancement Programs
  Many navies operate CIWS that were fielded decades ago and now require modernization to address new threats. Upgrades may include new search and tracking radars, improved electro-optical directors, updated fire-control computers, and enhanced ammunition types. Such programs extend the useful life of existing installations while significantly boosting capability. They also provide sustained business for original equipment manufacturers and their partners through service and support contracts. The relative cost-effectiveness of upgrading compared to full replacement encourages navies to pursue these options. As long as threat environments evolve, CIWS lifecycle enhancement will remain a key driver of ongoing market activity.

Challenges in the Market

• High Acquisition and Integration Costs for Advanced CIWS
  Modern CIWS solutions are technologically complex and carry substantial acquisition costs for navies, especially when integrated into sophisticated combat systems. Shipyard installation, structural modifications, and integration with combat management systems add to the overall expense. Smaller or budget-constrained navies may postpone or limit CIWS procurement in favor of more basic capabilities. Complex integration projects can also lead to schedule overruns and cost escalations. Vendors must carefully manage cost and risk to remain competitive in tender processes. Balancing advanced capability with affordability remains a persistent challenge in this niche market.

• Space, Weight, and Power Constraints on Smaller Platforms
  Many surface combatants and patrol vessels have limited space and power margins for heavy or power-hungry CIWS installations. Designers must often make trade-offs among weapons, sensors, and mission systems to fit within platform constraints. This limitation can restrict the type or number of CIWS mounts that can be installed on a given ship. Retrofitting older hulls is especially challenging where structural reinforcement may be required. These constraints drive demand for more compact, lightweight, and energy-efficient CIWS designs. However, engineering such solutions without compromising performance is technically demanding.

• Rapidly Evolving Threats Outpacing Legacy System Capabilities
  Threat systems such as hypersonic missiles and advanced decoys are evolving faster than many fielded CIWS solutions were designed to counter. Legacy systems may struggle to track and intercept such targets within the available reaction time. Upgrading these systems while maintaining platform compatibility can be complex and resource-intensive. There is an ongoing risk that some CIWS will become operationally obsolete before the end of their intended service life. Navies must plan and fund continuous modernization to avoid capability gaps in close-in defense. Keeping pace with threat evolution represents an enduring challenge for both users and suppliers.

• Stringent Testing, Qualification, and Certification Requirements
  CIWS must meet rigorous safety, reliability, and performance standards before being accepted into naval service. Live-fire trials, environmental testing, and shock qualification impose significant cost and time burdens on development programs. Any deficiencies uncovered in testing can lead to redesign and schedule delays. Export customers may impose additional national requirements that necessitate further testing or customization. These factors create high barriers to entry for new competitors and can constrain innovation speed. Managing testing and certification risk is therefore a critical aspect of CIWS program execution.

• Export Controls, Regulatory Constraints, and Geopolitical Factors
  CIWS components frequently fall under strict export control regimes due to their strategic nature and advanced technology. Licensing processes can be lengthy and sometimes politically sensitive, especially for sales into contested regions. Sanctions and shifting geopolitical alliances may disrupt planned deals or limit support for in-service systems. Suppliers must navigate a complex landscape of international regulations and bilateral defense agreements. These constraints can restrict market access and introduce uncertainty into long-term business planning. As global geopolitics fluctuates, export-related challenges are likely to persist.

• Sustainment Complexity and Obsolescence Management
  CIWS are long-lived assets that depend on reliable supply of spare parts, technical expertise, and software support over decades. Component obsolescence, particularly in electronics and computing hardware, can jeopardize long-term sustainment. Navies and suppliers must devise proactive obsolescence management strategies to avoid capability degradation. Maintaining skilled personnel and specialized test equipment for older system variants can be difficult and costly. When supportability becomes too challenging, navies are forced into earlier-than-planned replacement decisions. This sustainment complexity is a structural challenge that shapes total cost of ownership for CIWS fleets.

Naval Close-In Weapon System (CIWS) Market Segmentation

By System Type

• Gun-Based CIWS

• Missile-Based CIWS

• Hybrid Gun–Missile CIWS

By Platform Type

• Destroyers and Cruisers

• Frigates and Corvettes

• Aircraft Carriers and Amphibious Assault Ships

• Offshore Patrol Vessels (OPVs)

• Auxiliary and Support Vessels

By Component

• Sensors (Radar and Electro-Optical/Infrared)

• Fire Control Systems and Computers

• Weapon Modules (Guns, Missiles, and Ammunition)

• Power and Stabilization Systems

• Integration and Software

By Engagement Capability

• Anti-Missile Defense

• Anti-Aircraft and Anti-UAV Defense

• Anti-Surface and Asymmetric Threat Defense

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

Leading Key Players

• Raytheon Technologies Corporation

• BAE Systems plc

• Rheinmetall AG

• Leonardo S.p.A.

• Thales Group

• General Dynamics Corporation

• MBDA

• Israel Aerospace Industries (IAI)

• Hanwha Aerospace

• China North Industries Group Corporation (NORINCO)

Recent Developments

• Raytheon Technologies expanded the capabilities of its well-known CIWS family through upgraded sensors and computing for improved target discrimination and multi-threat engagement.

• BAE Systems announced enhancements to its naval gun-based close-in defense solutions with new ammunition types optimized for counter-UAS and swarm scenarios.

• Rheinmetall AG introduced a modular, containerized CIWS concept to enable flexible deployment on a wide range of surface platforms and auxiliary vessels.

• Leonardo S.p.A. collaborated with regional shipyards to integrate its CIWS suites into new frigate and corvette programs under local industrial participation frameworks.

• Thales Group advanced its radar and fire-control offerings to support next-generation CIWS with higher tracking accuracy and improved performance in cluttered littoral environments.

This Market Report Will Answer the Following Questions

• What is the projected size and growth rate of the global naval CIWS market through 2031?

• Which system types—gun-based, missile-based, or hybrid—are expected to see the strongest demand?

• How are evolving missile and drone threats shaping technical requirements for next-generation CIWS?

• What role do software, open architectures, and digital fire control play in future system competitiveness?

• Which regions are contributing most to new-build and retrofit CIWS opportunities?

• How do integration, space, weight, and power constraints influence system selection and ship design?

• What are the key regulatory, export control, and testing challenges facing CIWS manufacturers?

• Who are the leading players in this market and what are their principal product and partnership strategies?

• How will lifecycle support, upgrades, and obsolescence management affect long-term CIWS procurement?

• What emerging technologies, such as directed energy or advanced ammunition, are likely to impact the CIWS market landscape?