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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2026

Published Date: Nov 2019  |  Report ID: GMI2136  |  Authors: Ankita Bhutani, Preeti Wadhwani

Report Format: PDF   |   Pages: 330   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Air Defense System Market size estimated at USD 27 billion in 2018 and is poised to grow at over 3% CAGR between 2019 and 2026.
 

Air Defense System Market

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An air defense system includes defensive measures used to nullify enemy aircraft, missiles and UAVs. The air defense system acts as an anti-weapon system and provides protection again ballistic missiles and other airborne threats such as fighter jets and UAVs. The system is used for multiple operations, which include air space surveillance with the help of defense radars and electrooptic sensors. The major components include weapon system, fire control system, and command & control (C2) system.
 

The air defense system has evolved with the development of technologically advanced missile systems. The major industry players are investing in R&D activities for providing advanced defense systems. For instance, in 2018, Lockheed Martin invested USD 1.3 billion in R&D activities. Lockheed Martin has increased its R&D expenditure over the last three years investing USD 1.2 billion and USD 988 million in 2017 and 2016, respectively. The major components of air defense systems include weapon systems, which comprise turret systems and missile launching systems. The system also includes fire control system which comprise air defense radars and electrooptic sensors & laser range finders for detecting ballistic missiles and other airborne threats. For instance, in September 2019, the U.S. Army signed a contract of USD 281 million with Lockheed Martin to develop new radar systems. Under this contract, the company will provide Sentinel A4 radar system, which is an upgrade of the Sentinel A3 (AN/MPQ-64A3) radar system. The new system will improve the capabilities of existing radar systems and provide a more accurate date against rotary-wing aircraft, UAVs, cruise missiles, and other airborne threats.
 

The rising military expenditure and geopolitical tension among the countries are some of the major market trends fueling the demand for air defense system market. Most of the countries are now focusing on procuring anti-aircraft systems and missile defense systems to increase their border protection and be prepared for tackling the increasing nuclear threats across the globe.
 

Air Defense System Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: Over USD 27 Billion (2018)
Historical Data for: 2015 to 2018 Forecast Period: 2019 to 2026
Forecast Period 2019 to 2026 CAGR: 3.1% 2026 Value Projection: Over USD 35 Billion (2026)
Pages: 330 Tables, Charts & Figures: 491
Geographies covered (22): U.S., Canada, UK, Germany, Italy, Turkey, France, Russia, Poland, China, India, Japan, South Korea, Australia, Taiwan, Brazil, Mexico, South Africa, Saudi Arabia, Israel, UAE, Qatar
Segments covered: Component, Platform, Application, and Region
Companies covered (20): Saab AB, Israel Aerospace Industries Ltd., Lockheed Martin Corporation, Leonardo S.P.A., BAE Systems PLC, Rheinmetall AG, Thales Group, Kongsberg Gruppen, Raytheon Company, MBDA, Northrop Grumman Corporation, The Boeing Company, Aselsan A.S., JSC Concern Vko "Almaz-Antey", Hanwha Corporation, General Dynamics, Airbus Defence & Space, Rafael Advanced Defense Systems, L3 Harris Technologies, Elbit Systems
Growth Drivers:
  • Change in investment trends of government
  • Rise in defense budget
  • Need for upgradation of outdated air defense system
  • Political insurgencies and cross boarder conflicts
  • Introduction of new technologies
Pitfalls & Challenges:
  • Various treaties limiting the market scope
  • Limited client base and high involvement of government bodies

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Increasing demand for Electro-Optic Sensor & Laser Range Finder

The major components included in the air defense system are weapon systems, fire control systems, and command & control system. A fire control system is expected to grow at a CAGR of over 3% during the market forecast period due to the increase in demand for more precise location of the airborne threat, technological advancements in ballistic missiles and hyper sonics weapons. For instance, in September 2018, the U.S. Army signed a long-term contract of USD 231.5 million with Leonardo for the Lightweight Laser Designator Rangefinder (LLDR) 3 program. Under this contract, the company will provide modular target observation system, which can be mounted on the tripod for supporting the troops and scouts to execute a “Call-for-Fire” mission.
 

Air Defense System Market Size, By Component, 2018 & 2026, (USD Million)
Air Defense System Market Size, By Component, 2018 & 2026, (USD Million)

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A fire control system market is segmented into air defense radar and electro-optic sensor & laser range finder. Major fire control system providers offer complete solutions, which include radars, directors, and gun data computers for targeting and hitting. For instance, in December 2018, the U.S. Missile Defense Agency awarded a contract of USD 585 million to Lockheed Martin for Homeland Defense Radar Hawaii. Under this contract, the company will provide radar systems for ballistic missile defense systems, which are used for protecting Hawaii against ballistic attacks.
 

Increased focus on procurement of C-UAS due to the rise of UAVs`

Unmanned Aircraft System (UAS) is one of the major developments in the defense sector and its applications are constantly increasing. The applications of UAV range from surveillance to weapon deployment. The smaller UAS are major threats to government agencies across the globe due to their various applications and lower costs. The smaller UAS are mostly used for intelligence, surveillance and reconnaissance (ISR) mission.  Most of the countries currently do not poses capabilities for mitigating such mission and UAS threats and they only rely on the conventional air defense systems, which are effective against a large platform, which includes fighter jets, cruise missiles, MALE and HALE UAVs. An air defense system is not a viable solution against small UAVs, and governments are looking for a fast and cheap system to avoid such threats. The air defense system industry players are also focusing on providing such defense capabilities to government agencies supporting the growth of C-UAS and C-RAM system.
 

Rising demand for Long Range Air Defense (LRAD) system in Asia Pacific

The Long-Range Air Defense (LRAD) is expected to grow at a CAGR of over 5% due to the increasing procurement of ballistic missiles and fighter jets from countries such as India, China, Japan, Taiwan, and South Korea. Asia Pacific contributes over 25% of the global defense expenditure and China is leading with the largest share of investments in defense procurement. Russia and China are collaborating on the development of new advanced air defense system S-400 that is an LRAD system having the capability of intercepting missiles at the 2,200-mile range. Increasing industrial growth and rising geopolitical tension between China, India, and Pakistan are supporting the growth of LRAD systems.
 

Presence of major defense equipment manufacturers in North America

North America Air Defense System Market Revenue, By Application, 2015-2026, (USD Million)
North America Air Defense System Market Revenue, By Application, 2015-2026, (USD Million)

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North America held a market share of over 17% in 2018 due to the presence of major market leaders in defense system, components, and system integrators in the region. For instance, in December 2018, Sweden signed a contract with Raytheon for USD 692.9 million under the U.S. Army Contract Foreign Military Sales program. Under this contract, the company delivers Patriot System and GEM-T interceptor missiles. In September 2019, System Technical was awarded the U.S. Army Tank & Automotive Command (TACOM) for the maintenance of the Patriot System.
 

Air defense system industry characterized by strategic partnerships between players

The companies operating in the market are focusing on strategic partnerships and collaborations with other players and government organizations to capture the market share in 2018. For instance, in August 2019, Bahrain signed a contract with the U.S. Army for the procurement of the Patriot missile systems. The U.S. government has approved this contract for USD 2.48 billion and this includes nine M903, 60 PAC-3 missiles, and 36 Patriot GEM-T missiles. The new deal will help Bahrain to improve air defense system capabilities and provide better protection against cruise missiles, fighter jets, and ballistic missiles.
 

Some of the major industry players operating in the air defense system market include Saab AB, Israel Aerospace Industries Ltd., Lockheed Martin Corporation, Leonardo S.P.A., BAE Systems PLC, Rheinmetall AG, Thales Group, Kongsberg Gruppen, Raytheon Company, MBDA, Northrop Grumman Corporation, The Boeing Company, Aselsan A.S., JSC Concern Vko "Almaz-Antey", Hanwha Corporation, General Dynamics, Elibit Systems, and L3 Harris Technologies.
 

The air defense system market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue in USD from 2015 to 2026, for the following segments:

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

By System

  • Missile Defense System
  • Anti-Aircraft System
  • Counter Rocket, Artillery & 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

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
  • APAC
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Taiwan
  • LAMEA
    • Brazil
    • Mexico
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Qatar

 

Frequently Asked Questions (FAQ) :

The air defense system acts as an anti-weapon system and provides protection again ballistic missiles and other airborne threats such as fighter jets and UAVs. The system is used for multiple operations, which include air space surveillance with the help of defense radars and electrooptic sensors.
The LRAD system is expected to grow at a CAGR of over 5% from 2019 to 2026 due to increasing procurement of ballistic missiles and fighter jets from countries such as India, China, Japan, Taiwan, and South Korea.
The fire control system component segment accounts for majority of market share and is expected to grow at a CAGR of over 3% during the forecast period owing to increase in demand for more precise location of the airborne threat, technological advancements in ballistic missiles and hyper sonics weapons.
North America held a industry share of over 17% in 2018 due to presence of major market leaders in defense system, components, and system integrators in the region.

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