In an era of heightened geopolitical tension, shifting military doctrines and fast-changing technology, the Mortar Systems Market has emerged as a steady growth segment in the broader artillery and indirect-fire domain. According to The Insight Partners, the mortar systems market was valued at about US$ 2.30 billion in 2023, and is forecast to reach around US$ 3.54 billion by 2031, representing a CAGR of approximately 5.5% over 2023-2031.
Let’s unpack what is driving this growth, how companies are strategising, what the key segments are, and who the major players dominating this market.

Growth Drivers & Strategic Growth-Paths

Rising defence budgets & procurement contracts

One of the most visible engines for this market is the steady rise in global military expenditure. TIP notes that global military spending reached US$ 2,148 billion in 2022, up from previous years. More of that investment is going into modernising artillery and indirect-fire systems, including mortars.
In particular, procurement contracts for mortar systems themselves are increasing: e.g., in July 2023, the US Special Operations Command awarded a contract to OKSI for precision guidance kits for 81 mm mortar rounds. Similarly, other contracts are being awarded to major vendors in Europe and other regions. This direct demand acts as a major enablement for companies to scale, invest, and refine offerings.

Shift toward self-propelled and modular systems

TIP emphasises that one of the key trends is the growing uptake of self-propelled mortar systems (versus towed/hand-held). These systems reduce deployment time, enhance mobility and integration with mechanised forces. Alongside, there is a push for modular, lightweight designs that allow armed forces to tailor mortar systems to different mission types. For example: vehicle-mounted vs infantry portable.
From a strategic point of view, companies that adopt a “system” approach — integrating fire-control, munitions, platform mobility and even network connectivity — stand to gain. The business model is evolving from supplying a standalone mortar tube to offering an integrated solution.

Technology & precision enhancement

While the mortar is a relatively mature class of weapon, innovation is playing a meaningful role. Precision-guided mortar rounds, aided fire-control systems, digital integration and networked indirect fire capabilities are increasingly relevant. TIP mentions the opportunity for “smart and precision-guided ammunition” as a driver.
In practice, growth strategy for manufacturers and integrators involves:

• Investing in R&D for next-gen mortar systems.
• Partnering with defence ministries to tailor solutions to specific requirements (digitised fire-control, C4ISR integration).
• Expanding into growth geographies (see regional insights below).

Geographical expansion & development of indigenous capability

TIP identifies the Asia-Pacific region as the fastest-growing area for mortar systems, with North America currently dominant. For companies, growth strategies include: localising manufacturing, forming joint ventures or partnerships with local defence entities, and supplying to export markets. This helps both cost-control and meets “make-in-country” demands in many nations.

Key Market Segments

TIP’s segmentation of the mortar systems market is clear and helps firms tailor strategy accordingly. Two primary axes: calibre and type.

By Calibre

• Small calibre – e.g., lightweight mortars for infantry use.
• Medium calibre – typically more range, used by mechanised units. In 2022, this held the larger share.
• Large calibre – heavy mortars, vehicle-mounted, greater lethality.
  Each segment addresses different trade-offs of mobility, range, weight and cost. Manufacturers targeting special operations forces might prioritise small calibre; those targeting armoured forces might focus on large calibre or vehicle-mounted options.

By Type

• Towed / Hand-Held – traditional mortar systems, lighter, less mobile in mechanised context.
• Self-Propelled – mounted on vehicles (tracked or wheeled), offering greater mobility, crew protection and integration with modern armoured formations. TIP notes the self-propelled type held the larger share in 2022 and is a prominent trend.
  From a product strategy perspective, firms often build their offerings with modularity: e.g., a vehicle-mounted mortar that can be reconfigured, or an infantry portable system with optional fire-control add-ons.

By Geography

The report covers five regions: North America, Europe, Asia Pacific, Middle East & Africa, South America. TIP states that North America dominated in 2022, but Asia Pacific is expected to witness the highest CAGR in coming years.
Each region presents different demand drivers: alliance/defence spending in North America, border tensions and “make-in-country” policies in Asia Pacific, replacement of ageing systems in Europe, and growth potential in Middle East & Africa.

Top Players & Competitive Landscape

TIP lists the major market participants in its report. Some of the key players profiled include:

• Hirtenberger Defence Systems
• General Dynamics Ordnance and Tactical Systems
• Thales
• Elbit Systems Ltd
• Rheinmetall AG
• Raytheon Technologies Corporation
• RUAG Group
• Northrop Grumman Corporation
• ST Engineering
• Arquus
  
  

These companies span heavy industry, defence specialists, and system integrators. Common strategic themes observed among them include: product diversification (infantry to vehicle-mounted), international expansion, joint development contracts with governments, and emphasising advanced technology (precision, fire-control, modularity).
From a business strategy viewpoint, smaller niche players may focus on specific calibres, or regional markets; large players may leverage global scale and integrate mortars into wider artillery/armoured vehicle portfolios.

Growth Strategies for Stakeholders

Based on the insights, here are a few growth-oriented strategies that firms (manufacturers, integrators, defence ministries) might adopt:

1. Product Innovation & Modularisation
   Develop mortar systems that can be adapted (calibre variants, vehicle or dismounted use), integrate digital fire-control and precision munitions. This helps meet future-proofed requirements and command-and-control integration.
2. Geographic Market Expansion & Local Partnerships
   Enter growth markets (Asia Pacific, Middle East, Africa) via partnerships, joint ventures or local manufacturing to comply with local procurement policies and cost structures.
3. Service & Lifecycle Support Offerings
   Mortar systems often involve long lifecycle support, training, upgrades. Companies can build recurring revenue through maintenance, ammunition supply, system upgrades—shifting from pure hardware to solutions provider.
4. Export & Alliances
   Leverage export opportunities via alliances with governments or international contractors. Offer interoperability with existing platforms (e.g., NATO-aligned systems) and secure long-term contracts.
5. Cost-Efficient Manufacturing & Supply-Chain Resilience
   Given volatility in defence budgets and supply-chain disruptions, focusing on efficient production, standardised components, modularity and ensuring raw-material/component availability (as the report mentions components like barrels, bipods, base plates) is critical.
6. Focus on Mobility & Rapid Deployment
   Given the modern battlefield’s emphasis on mobility, rapid posture shifts and urban/irregular warfare, systems that can be deployed quickly and mounted on vehicles or unmanned platforms gain an edge. Manufacturers should align product designs accordingly.

Challenges & Future Outlook

While the growth trajectory is positive, it’s not without headwinds. Some of the challenges include: procurement cycles and budget constraints (defence budgets are large but also under scrutiny), component supply-chain issues, the pace of technological change and competition from other indirect-fire systems (e.g., rocket artillery, UAV-delivered munitions).
That said, the outlook remains favourable: the TIP study highlights that mortars will continue to play an important role as nations seek diversified artillery capabilities—from infantry portable to vehicle-mounted systems.
In particular, growth in self-propelled systems and medium-calibre segments, combined with growth in Asia Pacific and other emerging markets, will sustain the CAGR of ~5.5%. Companies that position themselves as integrated system suppliers (hardware + software + service) will likely lead.

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Conclusion

The global mortar systems market is firmly poised for steady growth through the 2020s, driven by rising defence expenditure, increasing adoption of advanced artillery systems, and technological innovation (mobility, modularity, precision).
For defence manufacturers and system-integrators, the key to growth lies in: innovating mortar solutions for modern requirements; expanding into growth geographies; and shifting toward service-oriented business models.

Segments such as medium-calibre and self-propelled variants are likely to see higher demand, and regions like Asia Pacific will provide new growth frontiers. Meanwhile, major players such as Hirtenberger, General Dynamics, Thales, Elbit, Rheinmetall and others will continue to set the pace.
In short: while mortar systems may seem a mature class of weapon, the evolving nature of warfare, mobility demands, precision requirements and global procurement dynamics are ensuring that this market remains dynamic—and one that is worth watching.