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Global Air Defense Systems Market Size, Share, Trends, Covid-19 Impact & Growth Forecast Report - Segmented By Component (Weapon System, Turret System, Missile Launching System, Fire Control System, Air Defense Radar, Electro-Optic Sensor & Laser Range Finder, Command & Control (C2) System, Others), System(Missile Defense System, Anti-Aircraft System, Counter Rocket, Artillery, And Mortar (C-RAM) System), Range (Long-Range Air Defense System, Medium-Range Air Defense System, Short-Range Air Defense System), Application(Land, Naval, Airborne), And Region (North America, Europe, APAC, Latin America, Middle East And Africa) – Industry Analysis From 2024 To 2029

Published: March, 2023
ID: 9228
Pages: 175
Formats: report pdf report excel report power bi report ppt

Global Air Defense Systems Market Size (2024 to 2029)

The global air defense systems market size was evaluated at USD 46.90 billion in 2024 and is estimated to reach USD 59.86 billion by the end of 2029, registering a CAGR of 5.0% during the forecast period 2024 to 2029.

Penetration of artificial intelligence in every aspect and growing prominence to adopt highly new technologies in aircraft, especially for military purposes across the globe, is sustained to project huge growth opportunities for the market in the coming years. Shifting trend towards the integration of the UAS capabilities with the air defense systems with the growing demand for unmanned aerial vehicles and drones. Drones and unmanned aerial vehicles are becoming popular these days, and integration of the systems with the active electronically scanned array for better detection and tracking capabilities in various fields is likely to project new opportunities for the market to grow eventually in the near future. This integration technology is bringing much more attention to the army forces so as to track, detect, and neutralize small drones & quadcopters that are posing security threats. This technology is esteemed to promote efficient defense against terrorist threats.

Global Air Defense Systems Market Drivers:

The safety of the citizens in a Nation against terrorist or missile attacks was guarded by the air defense systems. The demand for these systems is growing at a random rate with the increasing number of terrorist attacks across the world. Border conflicts have been arising between countries like India- China, Russia, Israel, and Gaza since 2021, which is prompting the need to adopt advanced air defense systems in the military forces. With the growing number of warfare systems, the government authorities are focusing on the development of advanced systems with the latest technology by investing huge amounts. The countries are indulged in increasing the spending on defense as cross-border conflicts are rising exponentially. For instance, the global spending on military will reach 2.24 trillion USD in 2022 with the sudden outbreak of the Russia and Ukraine war. According to recent reports, the US is positioned at the top with 39% of global spending, which is approximately USD 877 billion, whereas China has 13% and India has 3.6%.

A growing number of attacks is a sign of increased protection of the nation’s air space with all the advanced technological systems. Air defense systems play a crucial role in identifying a variety of airborne forces from enemies using long-range L-brand radars and satellites. These techniques help to produce high efficiency in war-like situations. Therefore, the global air defense systems market has been rising continuously for the past few years.

In addition, the increasing number of commercial aircraft and air passengers is leveling up the demand to adopt air defense systems. Rising cyber threats are anticipated to increase the need to provide high security for the passengers traveling through the aircraft, which is proportionally amplifying the defense systems market. The rising prevalence of the procurement of new missile defense systems is surging the growth rate of the air defense systems market. According to the reports, India procured three types of S-400 Triumph air defense systems delivered to India, the deal that was signed in 2018 with Moscow worth $5.4 billion in 2023. The Indian government is investing hugely in the development of the Aegis Ballistic Missile Defense System, which is an advanced system developed for warships.

Global Air Defense Systems Market Restraints:

However, fluctuations in the availability of raw materials due to supply chain disruptions may hamper the growth rate of the air defense systems market. In addition, the development cost of the defense systems is very high, which is eventually impeding the market value. Along with these factors, the lack of skilled people to operate highly advanced technical systems is eventually impeding the market growth rate. Key players are introducing various programs to improve knowledge among workforce operators, which is strategic to level up the demand for the adoption of the latest technological systems in the aircraft industry. 

The increasing number of technical issues in real-time due to unforeseen situations on the battlefield is imposing challenges for the market key players. The newly developed systems required vigorous testing and validation processes to ensure the safety and effectiveness of the overall performances in real time. These steps include long procedures and pose delays in manufacturing and getting approvals from higher authorities, which significantly limit the growth rate of the market.

Impact of COVID-19 on the Air Defense Systems Market:

The air defense systems market share hugely declined during the time of the COVID-19 pandemic period. Supply chain disruptions as the whole world went into lockdown restrictions hindered the demand for the manufacturing of the air defense systems. Also, expenditures on healthcare increased, which reduced the budget for the aircraft industries. Economic crisis hardly hit the nations that negatively impacted the market growth rate due to the COVID-19 pandemic. However, as the world is slowly getting into pre-COVID terms, all the activities were resumed in 2021, which is gaining traction over the market share.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

5.0%

Segments Covered

By Component, System, Range, Application, And Region

Various Analyses Covered

Global, Regional and Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

Rafael Advanced Defense Systems Ltd, Saab AB, Israel Aerospace Industries Ltd., Lockheed Martin Corporation, Leonardo S.p.A., BAE Systems, Rheinmetall AG, Thales Group, Kongsberg Gruppen, Raytheon Company, MBDA

 

This research report on the global air defense systems market has been segmented and sub-segmented based on component, system, range, application, and region.

Global Air Defense Systems Market - By Component:

  • Weapon System
  • Turret System
  • Missile Launching System
  • Fire Control System
  • Air Defense Radar
  • Electro-optic Sensor & Laser Range Finder
  • Command & Control (C2) System
  • Others

The air defense radar segment is leading with the dominant share of the market. Rising demand to detect air targets in defense is elevating the segment growth. Defense radars are highly efficient in finding the targets and their position up to 300 miles. For instance, AN/TP-59 is the world’s largest radar capability system that is developed for the US marine cops to provide long surveillance. The weapon system segment is next in leading the largest share with the increasing number of geopolitical conflicts among the countries. 

Global Air Defense Systems Market - By System:

  • Missile Defense System
  • Anti-aircraft System
  • Counter Rocket, Artillery, and Mortar (C-RAM) System

The missile defense system segment is deemed to grow at a CAGR of 8% during the foreseen period. Anti-craft systems are set to have the dominant air defense systems market share throughout the period. Growing demand to launch more missile-type systems with high advancements is leveraging the market size.

Global Air Defense Systems Market - By Range:

  • Short Range Air Defense (SRAD) System
  • Medium Range Air Defense (MRAD) System
  • Long Range Air Defense (LRAD) System

The range air defense system segment has been gaining traction over the market share in the past few years and is expected to continue with the same growth rate in the coming years. Increasing intercontinental ballistic missiles and asymmetric warfare are majorly prompting the growth rate of this segment.

Global Air Defense Systems Market - By Application:

  • Land
  • Naval
  • Airborne

The land segment is expected to lead the market share with approximately 72.3%. The rising number of terrorist attacks and growing expenditure on developing missiles with the latest technology are greatly influencing the growth rate of the air defense systems market.

Global Air Defense Systems Market - By Region:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

North America is ruling with the dominant share of the air defense systems market. The US is one of the major countries gearing with a prominent share of the market. High spending on defense is increasing the growth rate of the market in the US. The US Army focuses on launching advanced technological systems, especially in warfare. They rely much on ground-launched missiles ranging from hand-held to vehicle-mounted systems. Following the US, Canada is next in having a significant growth rate in the air defense system market with the rising demand to procure various missiles.

Asia Pacific region is growing at the fastest growth rate in the past few years, with the rising conflicts between India and China, India and Pakistan, and other countries. India and China are highly investing in the development of various defense systems. India is planning to unveil the Ashwin Advanced Air Defense System, which is a land-borne air defense system, in a few months. There is a growing number of ballistic missile attacks in India where the Indian government is planning to launch advanced ballistic missiles under the Indian Ballistic Missile Defense Program, where S-400 systems are among them. China is planning to increase its army forces with highly efficient and radar capabilities equipment. Research and development activities are in full swing in China, where the new nuclear-tipped ballistic missiles have the power to even destroy the satellite orbit.

Europe is likely to hit the highest share of the market due to the ongoing Russia and Ukraine war. Russia is launching ballistic missiles on Ukraine. Also, increased air strikes with drones are expected to stretch the demand for air defense systems in Russian army forces.

KEY MARKET PLAYERS:

Major Players in the Air Defense Systems Market are Rafael Advanced Defense Systems Ltd, Saab AB, Israel Aerospace Industries Ltd., Lockheed Martin Corporation, Leonardo S.p.A., BAE Systems, Rheinmetall AG, Thales Group, Kongsberg Gruppen, Raytheon Company, and MBDA                         

RECENT HAPPENINGS IN THE MARKET:

  • On January 18, 2024, Saab received a contract to enhance Sweden’s future mobile air defense requirements and capabilities between 2024-2026. The Swedish Defense Material Administration (FMV) plans to integrate its Mobile Short Range Air Defense (MSHORAD) with the BvS10 armored vehicles.
  • In December 2023, Israel Aerospace Industries Ltd. was all set to supply air defense systems to Israel’s military with a $ 1.2 billion deal.

RELATED REPORTS:

https://www.marketdataforecast.com/market-reports/sea-based-military-electro-optical-and-infrared-systems-market
https://www.marketdataforecast.com/market-reports/torpedo-market
https://www.marketdataforecast.com/market-reports/global-airborne-SATCOM-market

 

 

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FAQ's

1. What factors are driving the growth of the global air defense systems market?

Factors driving the growth of the global air defense systems market include increasing geopolitical tensions, the proliferation of advanced aerial threats, modernization initiatives by defense forces, and the need to replace aging air defense systems with more capable and technologically advanced solutions.

2. What types of air defense systems are commonly deployed by defense forces?

Commonly deployed air defense systems include surface-to-air missile systems (SAMs), anti-aircraft artillery (AAA), short-range air defense (SHORAD) systems, integrated air defense systems (IADS), and counter-drone systems.

3. What are the challenges facing the global air defense systems market?

Challenges facing the global air defense systems market include evolving threats such as hypersonic missiles and stealth aircraft, budget constraints, interoperability issues, and the need to balance effectiveness with cost-efficiency.

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