Home > Aerospace & Defense > Air Defense System Market

Air Defense System Market Size, By Component (Weapon System, Fire Control System, Command & Control (C2) System), By System (Missile Defense System, Anti-aircraft System, Counter Rocket, Artillery, and Mortar (C-RAM) System), By Range (Short Range Air Defense (SRAD) System, Medium Range Air Defense (MRAD) System, Long Range Air Defense (LRAD) System), By Application (Land, Naval, Airborne), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI2136
  • Base Year: 2020
  • Report Format: PDF

Industry Trends

Air Defense System Market Size exceeded USD 25 billion in 2020 and is anticipated to grow at a CAGR of over 5% from 2021 to 2027. A rapid uptick in military expenditure due to the growing geopolitical tension among countries is driving the market growth.
 

Air Defense System Market Overview

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The rapid development of technologically advanced missile systems will fuel the market expansion. The major market players are increasingly investing in R&D activities for providing technically advanced defense systems. For instance, in October 2021, Lockheed Martin made significant investments in the development and manufacturing of hypersonic systems to counter emerging threats from near-peer adversaries. The corporation is capitalizing on major digital factory capabilities to deliver hypersonic technology and new warfare capabilities.
 

Market leaders are incorporating advanced technologies including multilocation radars, high-powered lasers, missile warning systems, and mobile air defense integrated systems, to effectively counter aerial threats. For instance, in November 2021, Lockheed Martin successfully tested its mission warning system in cooperation with the U.S. Space Force to enhance warning capabilities, cyber hardening, and resiliency. The airspace warning system is set to launch by 2025 to improve the accuracy of air defense systems.
 

The major market factor challenging the market progression is the limited client base and high involvement of multilateral organizations. For instance, the Missile Technology Control Regime (MTCR), which regulates the export of missile technology and is reinforced by the Hague Code of Conduct. This regulation significantly impacts the trade & commerce of ballistic missile systems, challenging the industry growth.
 

The industry expansion of air defense systems were adversely impacted credited to the COVID-19 pandemic in 2020. The stringent global lockdown and travel restrictions imposed by government bodies resulted in supply chain disruptions, suspension of manufacturing facilities, and unavailability of raw materials & labor. This resulted in delayed missile programs, reducing the market revenue of air defense system companies. However, the air defense system industry is poised to witness steady growth during the forecast period due to high government spending in the defense sector globally.
 

Rising importance to locate airborne threats will stimulate the air defense system market demand

In North America, the fire control system held 40% of the market share in 2020 led by the growing demand to precisely locate air-borne threats and technological advancements in hypersonic weapons & ballistic missiles.
 

Increasing emphasis of countries to safeguard their national infrastructure to spur the segment expansion

Air Defense System Market Size

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Europe C-RAM system is predicted to showcase 7% growth rate through 2027. Countries are emphasizing on developing indigenous C-RAM systems to safeguard their infrastructure from artillery attacks.
 

Growing need to track multiple wide-ranging aerial threats will propel the LRAD segment demand

In North America, Long-Range Air Defense (LRAD) captured USD 4 billion in 2020. The rising procurement of ballistic missiles and fighter jets from countries including Russia, China, India, Japan, the UK, and South Korea will contribute to the industry statistics. Increasing industrial growth and rising geopolitical tension among China, India, and Pakistan are supporting the growth of LRAD systems. Long range radars simultaneously track multiple, wide-ranging air threats from Air Breathing Targets (ABT) to Theatre Ballistic Missiles (TBM).
 

Strengthening of ground defense systems to prevent unauthorized access in territories to drive the market statistics of land application

In Europe, land application is estimated to attain a CAGR of 5% till 2027 impelled by the need for enhancing ground defense systems against unauthorized access in territories. Several government bodies are strengthening their surface-to-air missile systems by signing a contract with other countries.

 

Presence of major participants and high defense expenditure in Asia Pacific region

APAC Air Defense System Market

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Asia Pacific air defense system market is projected to expand at more than 7% during 2021 to 2027 owing to the increasing military expenditure. Air defense system are gaining traction in APAC countries including India, China, and Taiwan due to rising conflicts over international borders.
 

Robust focus of OEMs on the expansion of manufacturing facilities to gain a competitive edge over rivals

Prominent companies operating in the market include Hanwha Corporation, Northrop Grumman Corporation, Raytheon Company, Saab AB, Lockheed Martin Corporation, Bae Systems PLC, Thales Group, Rheinmetall AG, MBDA, Kongsberg Gruppen, Aselsan A.S., General Dynamics, L3 Harris, Elibit Systems, JSC Concern Vko "Almaz-Antey", The Boeing Company, Israel Aerospace Industries Ltd., and Leonardo S.P.A.
 

Several players are emphasizing on the expansion of manufacturing facilities to add flexibility for future expansion and deliver new technological advancements. Market leaders are adopting collaboration and partnership strategies with other air defense system companies to develop advanced missile systems.
 

The air defense system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027 for the following segments:

Market, By Component

  • Weapon Systems
    • Turret Systems
    • Missile Launching System
  • Fire Control Systems
    • Air Defense Radar
    • Electro-Optic & Laser Range Finder
  • Control and Command (C2) Systems

Market, By System

  • Missile Defense System
  • Anti-aircraft System
  • Counter Rocket, Artillery & Mortar (C-RAM) System

Market, By Range

  • Short Range Air Defense (SRAD) System
  • Medium Range Air Defense (MRAD) System
  • Long Range Air Defense (LRAD) System

Market, By Application

  • Land
  • Naval
  • Airborne

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Turkey
    • Poland
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Taiwan
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Qatar
    • Israel
       
Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The global market size of air defense system crossed USD 25 billion in 2020 and will record a CAGR of about 5% through 2027 owing to the increasing military expenditure and the escalating geopolitical tension among several countries.

Air defense systems are a type of missile defense that are used for shielding a country against incoming missiles, including intercontinental ballistic missile (ICBMs) or other ballistic missiles.

LRAD systems in North America was recorded at USD 4 billion in 2020 and will increase with the growing procurement of ballistic missiles and fighter jets from Russia, China, India, Japan, the UK, and South Korea.

Asia Pacific market is estimated to foresee expansion at a rate of 7% up to 2027, mainly driven by the rising conflicts over international borders in countries, such as India, China, and Taiwan.

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Premium Report Details

  • Published Date: Dec 2021
  • Companies covered: 20
  • Tables & Figures: 406
  • Countries covered: 22
  • Pages: 300

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