Air Defense System Market size is set to surpass USD 40 billion by 2027, according to a new research report by Global Market Insights Inc.
The market growth is attributed to an increase in the defense budget across the globe along with the demand for advanced air defense systems. The U.S. Missile Defense Agency allocated USD 8.9 billion to its FY2022 budget. The budget will focus on the development of a modern interceptor for homeland missile defense, a hypersonic defensive capability, and space-based tracking crucial for detecting challenging threats.
The air defense system plays a major part in a country’s defense forces. Countries are collaborating with air defense system market players for the development of advanced multipurpose systems that can help numerous applications including air surveillance & detection. For instance, in September 2021, India and the U.S. signed an agreement for the development of Air-Launched Unmanned Aerial Vehicles (ALUAVs). The main objective is to promote collaborative technology exchange and create market opportunities for the co-development of future technologies for the Indian and U.S. military forces.
The COVID-19 pandemic led to a temporary shutdown of air defense system companies, impacting the market revenue. Perpetuated lockdowns led to the shutdown of industrial facilities and disrupted the global supply chain of air defense systems. The pandemic also slowed down the transit of raw materials between countries, hampering the production of air defense systems. However, with relaxation in travel restrictions and economic recovery, the air defense system industry will witness significant growth during the forecast period.
Growing investments in advanced technologies for the development of enhanced missile defense systems
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In Asia Pacific, the missile defense systems segment in the air defense system market is poised to showcase 8% growth rate through 2027 led by the rising investments in advanced technologies and strategic partnerships between regions for the development of advanced missile systems. Increasing geopolitical threats are also contributing to the growth of missile defense systems in the market. Projects, such as BrahMos, are also supporting the segment growth and offering new market opportunities. Countries are emphasizing on the ramp-up of their missile defense capabilities against aerial threats, thereby propelling the segment expansion.
Browse key industry insights spread across 300 pages with 377 market data tables and 29 figures & charts from the report, “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’’, in detail along with the table of contents:
Medium range air defense systems will observe high demand owing to their high payload and interoperability
In Europe, the medium range air defense segment held 30% of the air defense system market share in 2020. The system provides improved force protection against a wide range of aerial threats. Improved interoperability, mobility, and defense capability against evolving threats, such as enemy aircraft, UAVs or cruise missiles, will drive the market demand for medium range air defense systems.
Growing marine security concerns are spurring the market expansion of naval applications
In Asia Pacific, the naval application valued at USD 1.5 billion in 2020. Naval air defense systems safeguard ships from missiles fired by surface craft and enemy aircraft. Modern naval air defense systems are fully incorporated with a ship’s electronic warfare defense system and some possess autonomous targeting & firing capabilities.
Presence of major players and high defense expenditure in North America
North America air defense system market accounted for 35% of revenue share in 2020 impelled by the presence of major market leaders of air defense systems, components, and system integrators. Prominent industry players in the region include Lockheed Martin, Thales Group, Raytheon Technologies, Northrop Grumman Corporation, and The Boeing Company.
Some of the prominent companies operating in the market include L3Harris, Kongsberg Gruppen, Israel Aerospace Industries Ltd., Hanwha Corporation, Northrop Grumman Corporation, Thales Group, Bae Systems PLC, Leonardo S.P.A., Rheinmetall AG, Raytheon Company, Saab AB, MBDA, Aselsan A.S., General Dynamics, Elibit Systems, The Boeing Company and Lockheed Martin Corporation. Market participants are focusing on developing advanced radar systems with enhanced capabilities to provide protection against ballistic & missile threats.