Air Defense System Market size was estimated to be over USD 25 billion in 2020 and is anticipated to grow at a CAGR of over 5% from 2021 to 2027 owing to a rapid uptick in military expenditure due to the growing geopolitical tension among countries. This upsurge in defense expenditure by governments across the globe to safeguard national interest is anticipated to drive the product demand over the forecast timeframe.
The air defense system is used by the military to spot and nullify enemy UAVs, aircraft, and missiles. The system provides protection against air-borne threats including UAVs, fighter jets, and ballistic missiles. The air defense system acts as an anti-weapon system and is used in numerous operations such as air space surveillance with the help of electro-optical sensors and defense radars.
The major players in the air defense system market 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 Size in 2020:||USD 25 billion|
|Forecast Period:||2021 to 2027|
|Forecast Period 2021 to 2027 CAGR:||5%|
|2027 Value Projection:||USD 40 billion|
|Historical Data for:||2016 to 2020|
|No. of Pages:||300|
|Tables, Charts & Figures:||406|
|Segments covered:||Component, Systems, Range, Application|
|Pitfalls & Challenges:|
The factors challenging the air defense system market growth 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.
Rising importance to locate airborne threats will fuel the market demand for fire control systems
Based on component, the air defense system market is segmented into fire control system, weapon system, and command & control (C2) system. According to a market report, in North America, the fire control system held a market share of over 40% in 2020. The growing demand to precisely locate air-borne threats and technological advancements in hypersonic weapons & ballistic missiles will propel the segment growth.
For instance, in April 2021, Ruselectronics Holding, a Russian state-owned holding company, developed Magistr-SV automated air defense fire control system to instantly react to aerial attacks.
Rising emphasis of countries to safeguard their national infrastructure will drive the segment growth
Based on system, the air defense system market share is segmented into Counter Rocket Artillery Mortar (C-RAM) system, missile defense system, and anti-aircraft system. According to the market forecast, Europe C-RAM system is anticipated to register a CAGR of around 7% through 2027. Countries are emphasizing on developing indigenous C-RAM systems to safeguard their infrastructure from artillery attacks.
For instance, in June 2021, South Koreas Defense Project Promotion Committee outlined a budget of USD 2.56 billion to develop C-RAM systems to protect its critical national infrastructure from long-range artillery attacks.
Growing need to track multiple wide-ranging aerial threats will propel the LRAD segment growth
The Long-Range Air Defense (LRAD) accounted for over 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 will drive the market statistics of land application
Based on application, the land application is forecast to grow at a CAGR of over 5% through 2027 in Europe due to 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. For instance, in November 2021, Russia agreed to supply S-400 Triumf surface-to-air missile systems to India.
Presence of major players and high defense expenditure in Asia Pacific
The Asia Pacific air defense system market is anticipated to register a CAGR of over 7% through 2027 owing to the increasing military expenditure. Air defense system are gaining traction in Asia Pacific countries including India, China, and Taiwan due to rising conflicts over international borders. For instance, in March 2021, China allocated over USD 208 billion in defense, owing to growing political & military tensions with the U.S and India. Such high defense expenditure to safeguard its national interest will propel the market growth in the region through 2027.
Robust focus of OEMs on the expansion of manufacturing facilities to gain a competitive edge over rivals
Several air defense system companies are emphasizing on the expansion of manufacturing facilities to add flexibility for future expansion and deliver new technological advancements. For instance, in August 2021, Northrop Grumman Corporations new facility will support advanced missile defense solutions and a land-based strategic deterrent program. The new facility includes research labs, advanced engineering, multi-secured communications network, and software development factories, allowing staff to better collaborate and cater to the requirements of key customers.
Market leaders are adopting collaboration and partnership strategies with other air defense system companies to develop advanced missile systems. For instance, in August 2021, SpaceX collaborated with L3Harris to develop hypersonic missile defense systems for the U.S. Department of Defense. SpaceX and L3Harris will develop four missile detection satellites for the first launch in 2022. L3 Harris has incorporated infrared sensors for use in its weather detection satellites in the new spacecraft, which will be part of the U.S. National Defense Space Architecture.
Prominent players in the air defense system industry 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.
The air defense system market 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:
- Weapon Systems
- Turret Systems
- Missile Launching System
- Fire Control Systems
- Air Defense Radar
- Electro-Optic & Laser Range Finder
- Control and Command (C2) Systems
- Missile Defense System
- Anti-aircraft System
- Counter Rocket, Artillery & Mortar (C-RAM) System
- Short Range Air Defense (SRAD) System
- Medium Range Air Defense (MRAD) System
- Long Range Air Defense (LRAD) System
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Saudi Arabia
- South Africa