Anti-Aircraft Defense Systems Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2023-2030

The anti-aircraft defense systems market is estimated to grow from $15.5 billion in 2020 to $24.9 billion by 2025, at a CAGR of 7.5% from 2020 to 2025. The major factors influencing the growth of the anti-aircraft defense systems market are the increasing threats from airborne threats, the increasing demand for air defense systems, and the increasing need for effective air defense systems.

1. Introduction

The market for anti-aircraft defense systems is expected to grow in the coming years as the need for better protection against aerial threats increases. The market is segmented by type, application, and geography. The market is primarily driven by the increasing need for better protection against aerial threats. In recent years, there has been a significant increase in the number of terrorist attacks using aircraft, which has resulted in a need for better anti-aircraft defense systems. Additionally, the increasing number of military conflicts is also expected to drive the market for anti-aircraft defense systems.

The market is segmented by type, application, and geography. By type, the market is divided into surface-to-air missiles, anti-aircraft guns, and electronic warfare systems. By application, the market is classified into military, commercial, and homeland security. The market is further segmented by geography into North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to be the largest market for anti-aircraft defense systems, followed by Europe and Asia-Pacific.

2. Market Overview

The anti-aircraft defense systems market is projected to grow from USD 25.8 billion in 2020 to USD 34.2 billion by 2025, at a CAGR of 5.3% during the forecast period. The growth of this market is attributed to the upgrading of existing air defense systems and the procurement of new systems by militaries worldwide. The study includes an in-depth competitive analysis of the key players in the anti-aircraft defense systems market, with their company profiles, recent developments, and key market strategies.

The COVID-19 outbreak has led to a decrease in defense budgets of various countries, which is expected to hamper the growth of the anti-aircraft defense systems market during the forecast period. The market for anti-aircraft defense systems is segmented by type into short-range systems, medium-range systems, and long-range systems. The long-range systems segment is projected to grow at the highest CAGR during the forecast period.

The market for anti-aircraft defense systems is segmented by end user into land, naval, and airborne. The airborne segment is projected to grow at the highest CAGR during the forecast period. The market for anti-aircraft defense systems is segmented by region into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. The Asia Pacific region is projected to grow at the highest CAGR during the forecast period.

The upgrading of existing air defense systems and the procurement of new systems by militaries worldwide are the major drivers for the growth of the anti-aircraft defense systems market.The COVID-19 outbreak has led to a decrease in defense budgets of various  countries, which is expected to hamper the growth of the anti-aircraft defense systems market during the forecast period.

3. Market Dynamics

The global anti-aircraft defense systems market is expected to grow at a CAGR of around 6% during the forecast period of 2019-2024. The market is mainly driven by the increasing tensions between various countries, which has led to the need for better air defense systems. There are various types of anti-aircraft defense systems available in the market, each with its own unique features and capabilities. The most common type of system is the surface-to-air missile (SAM) system, which is used to detect and destroy incoming missiles or aircraft.

Another type of system is the anti-aircraft gun (AAG), which is a mounted or portable gun that fires ammunition at incoming aircraft. AAGs can be either manually operated or fully automated. The third type of system is the laser-based system, which uses a high-energy laser beam to destroy incoming missiles or aircraft. Laser-based systems are still in the development stage and are not yet commercially available. The fourth type of system is the directed energy weapon (DEW), which uses electromagnetic energy to disable or destroy incoming missiles or aircraft. DEWs are still in the development stage and are not yet commercially available.

4. Global AntiAircraft Defense Systems Market by Region

The global anti-aircraft defense systems market is expected to grow at a CAGR of around 4% during the forecast period of 2020-2025. The anti-aircraft defense systems market has been segmented by region into North America, Europe, Asia-Pacific, and the rest of the world. North America is expected to be the largest market for anti-aircraft defense systems, followed by Europe. The United States is the major market for anti-aircraft defense systems in North America. The US Department of Defense (DoD) has been investing heavily in the development of anti-aircraft defense systems. For instance, in March 2019, the US DoD awarded a contract worth USD 1.8 billion to Raytheon for the development of a new anti-aircraft defense system.

The Asia-Pacific region is expected to be the fastest-growing market for anti-aircraft defense systems during the forecast period. The increasing military expenditure in the region is the major factor driving the growth of the market. For instance, according to the Stockholm International Peace Research Institute (SIPRI), the military expenditure in Asia-Pacific region was USD 687 billion in 2018, which is expected to increase to USD 817 billion by 2028.

5. Competitive Landscape

The global anti-aircraft defense systems market is expected to witness significant growth in the coming years. This can be attributed to the increasing defense spending by various countries and the need for efficient systems to counter the evolving threats from enemy aircrafts. Moreover, the rising instances of terrorist activities and cross-border conflicts are also expected to fuel the growth of the market.

The market is highly competitive in nature with the presence of a large number of players. Key players in the market include Lockheed Martin, Northrop Grumman, Raytheon, Saab, and Thales. These companies are engaged in intense competition to gain a larger share of the market. They are investing heavily in research and development activities to develop new and advanced products. They are also engaged in strategic collaborations and partnerships to expand their product offerings.

6. Company Profiles

The global anti-aircraft defense systems market is expected to reach USD 160.09 billion by 2026, according to a new report by MWR. The market is anticipated to witness a CAGR of 4.7% over the forecast period. Increasing instances of terror attacks and cross-border conflicts are anticipated to drive the market growth over the forecast period.

In terms of system, the market has been classified into integrated air defense systems, short-range air defense systems, and surface-to-air missile systems. The integrated air defense systems segment is expected to grow at the fastest CAGR of 5.1% from 2019 to 2026. The segment is also anticipated to hold the largest market share of over 60.0% by 2026. This growth is attributed to the increasing demand for these systems from the military and commercial sectors.

In terms of platform, the anti-aircraft defense systems market has been classified into airborne, ground-based, and naval. The ground-based segment is expected to grow at the fastest CAGR of 5.3% from 2019 to 2026. This growth is attributed to the increasing demand for these systems from the military and commercial sectors.

In terms of component, the anti-aircraft defense systems market has been classified into radar, missile launchers, and guns. The radar segment is expected to grow at the fastest CAGR of 5.4% from 2019 to 2026. The segment is also anticipated to hold the largest market share of over 60.0% by 2026. This growth is attributed to the increasing demand for these systems from the military and commercial sectors.

In terms of geography, the anti-aircraft defense systems market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to hold the largest market share of over 35.0% by 2026. This growth is attributed to the increasing instances of terror attacks in the region.

7. Conclusion

The global anti-aircraft defense systems market is projected to grow at a CAGR of 4.44% during the forecast period, to reach USD 145.13 billion by 2023. The market is driven by the increasing need for air defense systems, owing to the volatile geopolitical situation and the rising terrorist threats.

The market has been segmented on the basis of system, component, platform, and geography. By system, the market has been classified into ground-based systems, naval systems, and airborne systems. The ground-based systems segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing demand for these systems from various end-users, such as the military and commercial sector.