Interceptor Missiles Market Size By Surface (Surface To Air, Water To Air), By Range (Upto 125 Kms, Between 125 To 200 Kms, Above 200 Kms), By Technology (THAAD, PAC-3, SM-3, HQ-19, HQ-9, Iron Dome, FD-2000, Patriot-GEM-T, Aegis Ashore, Aster), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: Feb 2018 | Report ID: GMI2401 | Authors: Preeti Wadhwani
Interceptor Missiles Market size was worth at over USD 5.5 billion in 2016 and its demand is projected to cross 3,000 units by 2024.
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Rising threats from enemy countries across the globe will primarily drive the interceptor missiles market share over the forecast timeframe. Various countries across the globe are purchasing these missiles to overcome these threats. For instance, South Korea purchased THAAD missile from the U.S. owing to threat from North Korea.
Increasing defense budget of various countries across the globe will further escalate the revenue generation. For instance, in 2016, U.S. defense budget was more than USD 604 billion and is likely to increase by 2018. Similarly, in November 2017, EU decided to increase the defense budget since its 23-member states signed a commitment. Increasing defense budget will lead to rise in purchasing power of the countries, propelling the industry growth over the coming years.
Excessive high manufacturing cost may hamper the industry growth and will also limit the new entrants to establish their business. Moreover, countries are hesitant in purchasing these missiles due to the frequent technological advancements that makes the existing technology obsolete which in turn will restrain the market, posing a challenge before the industry participants.
Regular technological advancements and upgradations in these missiles have gained traction among the industry players. For instance, a patriot missile, PAC 2 was upgraded to PAC-3 missile, which was further upgraded to GEM-T missiles. Various governments across the globe are purchasing these advanced missiles to increase protection against terror attacks. For instance, in 2017, government of UAE purchased 100 GEM-T and 60 PAC-3 missiles from U.S. military. These advancements are anticipated to instigate immense potential to the interceptor missiles market size.
|Base Year:||2016||Market Size in 2016:||5.5 Billion (USD)|
|Historical Data for:||2013 to 2016||Forecast Period:||2017 to 2024|
|Forecast Period 2017 to 2024 CAGR:||3.5%||2024 Value Projection:||14 Billion (USD)|
|Pages:||250||Tables, Charts & Figures:||569|
|Geographies covered (22):||U.S., Germany, Romania, UK, France, Russia, Italy, Poland, Netherlands, Uzbekistan, Turkmenistan, China, Japan, India, South Korea, Taiwan, Saudi Arabia, Israel, Kuwait, Turkey, UAE, Qatar|
|Segments covered:||Surface, Range, Technology and Region|
|Companies covered (5):||Aerojet Rocketdyne, Boeing Co., Lockheed Martin Corp., Rafael Advanced Defense Systems, Raytheon Co.|
Interceptor Missiles Market, By Surface
Surface to air is anticipated to capture maximum revenue share, accounting for nearly USD 12.5 billion by 2024. High usage of these missiles for defense against enemies will primarily drive the industry growth. Moreover, substantial revenue generation is attributed to easy deployment of these missiles on the ground. Provision of benefits such as portability and light-weight will propel the industry players to indulge in their manufacturing, further supporting the industry dominance till 2024.
Water to air missiles will grow significantly, exhibiting around 7% CAGR till 2024. High penetration of these missiles in countries including U.S., UK, France, and Italy will support the industry growth. Multiple countries across the globe are continuously attempting to adopt these missiles for protection of their naval borders, further strengthening the industry penetration.
Interceptor Missiles Market, By Range
Missiles of range up to 125 kms will showcase dominance in the industry, capturing over 65% volume share over the forecast timeframe. this can be credited to high demand of missiles such as Iron Dome, SM-3, and PAC-3 that conform to this range. Iron dome is highly prominent in Israel. Similarly, PAC-3 has high demand, especially from MEA, further impacting the industry growth positively.
Interceptor missiles market from range above 200 kms will witness gains at over 18% from 2017 to 2024 owing to increasing prominence of HQ-19 missiles. Usage of these missiles as an upgradation of HQ-9 missiles will further fuel the industry growth. Countries with strong defense power such as China are taking initiatives for the development of these missiles owing to their advanced features as compared to the conventional missiles.
Interceptor missiles Market, By Technology
PAC-3 technology accounted for around 30% share in 2016 and is anticipated to continue its dominance over the next eight years. This can be attributed to rising demand across the globe, especially in developed countries including the U.S. In January 2012, the U.S. army signed multiple contracts worth USD 921 million for PAC-3 missiles and related systems. High implementation of these missiles by the countries including Kuwait, UAE, Saudi Arabia, Israel, and Qatar will further have a significant contribution towards the substantial revenue generation.
HQ-19 missiles are likely to grow rapidly, exhibiting over 40% CAGR till 2024 owing to wide adoption of these missiles since 2017. They are continuously being implemented as a replacement for HQ-9 technology. These missiles have a range of about 500 kms and are equipped with a kinetic kill vehicle which in turn will further support the industry growth over the forecast timeframe.
Interceptor Missiles Market, By Region
MEA is likely to dominate the global interceptor missiles market, generating a demand of over 1,300 units by 2024. High deployment of these missiles owing to continuously rising enemy threats will primarily support the region’s dominance. Various countries are collaborating with major industry participants to enhance their defence capabilities. For instance, Qatar and UAE may sign a deal with Lockheed Martin for Patriot missiles. Moreover, UAE is the first foreign buyer of interceptor missiles after signing deal worth USD 3.4 billion with U.S. Department of Defense.
Europe is expected to exhibit over 7% CAGR till 2024 owing to rising sales of interceptor missiles across the region. For instance, in 2017, Poland purchased 208 PAC-3 MSE missiles for strengthening their defense power. Moreover, the country is expected to purchase 24 surface to air SM-3 missiles in 2018. High adoption of these missiles from Sweden and Romania will further contribute to the industry growth.
Competitive Market Share
Raytheon Co., Lockheed Martin Corp., Boeing Co., Rafael Advanced Defense Systems, and Aerojet Rocketdyne are among the prominent participants in interceptor missile market. New product developments and partnerships are among the major strategies implemented by these competitors. For instance, in January 2018, Rafael Advanced Defense systems join hands with government of Saudi Arabia to supply Iron Dome system to enhance their military power. Similarly, In July 2015, Lockheed Martin signed a deal with U.S. military worth USD 1.5 billion for manufacturing and delivery of PAC-3 and PAC-3 MSE Missiles.
Regular product enhancements are another strategy adopted by the manufacturers to enhance their visibility and gain competitive edge. For instance, in January 2018, Lockheed Martin enhanced the capabilities of Aegis missile by connecting key components of its Long-Range Discrimination Radar (LRDR). This product will detect threats from longer distance and reduced reaction time.
Interceptor missiles are used by military forces across the globe for the protection of their country and strengthen their defense power. Rising enemy threats in various regions across the globe will drive the industry growth. Regular upgradations in these missiles have further paved opportunistic ways for the industry participants. The industry is highly consolidated with few players capturing the global revenue share.
Various countries are collaborating with these industry participants to purchase more interceptor missiles for protection purposes. For instance, in December 2017, the U.S. Department of Defense signed a contract worth USD 0.5 billion for producing fire control systems for THAAD interceptors.
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