The global smart weapons market, valued at $3.6 billion in 2013, is expected to reach $5.3 billion by 2018, according to an industry report.

The United States, which has about a third of the global market, is the most attractive for smart weapons, which include anti-armor weapons, guided munitions, guided projectiles, guided rockets and stand-off missiles. The Middle East is the second-largest market and expected to increase from $350.9 million in 2013 to $712.1 million in 2018, according to the “Global Smart Weapon Market forecast and analysis 2013 — 2018,” report by Texas-based research and consultancy Markets and Markets.

According to the report, rising tensions, sectarian violence, unrest in the Arab world, oil revenue and rising GDPs have severely influenced defense spending. […]