What Has Been the Growth Trajectory for the Air Defense System Market in Recent Years?
The air defense system market has seen considerable growth due to a variety of factors.
• The market for air defense systems has seen substantial growth in the past few years. The size of the market is set to increase from $33.05 billion in 2024 to $35.25 billion in 2025, recording a compound annual growth rate (CAGR) of 6.6%. The growth observed during the historic period was driven by factors such as military buildup during the cold war era, advancements in missile defense systems, looming threat from aerial warfare, transition from conventional to asymmetric warfare, and imperatives of national security.
What Is The Expected Growth In The Air Defense System Market By 2029?
The Air Defense System market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the air defense system market is projected to experience considerable growth. The market size is forecasted to reach $45.44 billion by the year 2029, expanding with a compound annual growth rate (CAGR) of 6.6%.
The predicted growth within this period can be ascribed to factors such as increasing defense budgets, escalating threats from unmanned systems, geopolitical uncertainties, the need for layered defense strategies, and the shift towards directed energy weapons. Key trends expected within the forecast period include advancements in missile technology, the rise in asymmetric warfare, the proliferation of drones and UAVs, the incorporation of integrated air defense networks, and heightened focus on cybersecurity.
What Main Forces Are Fueling Expansion In The Air Defense System Market?
The escalation of global conflicts is anticipated to fuel the growth of the air defense system market. These conflicts encompass various geopolitical and military stand-offs that have motivated nations to pour substantial investment into air defense capabilities. Emphasizing the importance of air defense systems, they are vital in conflicts and situations resembling warfare for defending airspace and shielding against airborne threats like missiles, drones, and aircraft. For instance, the Armed Conflict Location & Event Data Project (ACLED), a US-based NGO, reported 174 instances of violent crisis across the globe in 2022. This includes the all-out Russian invasion of Ukraine, which heightened the war to a severity that surpassed all other conflicts in terms of size and fatality. Thus, the increasing demand sparked by global conflicts is driving the growth of the air defense system market.
What Are The Primary Segments In The Global Air Defense System Market?
The air defense system market covered in this report is segmented –
1) By Type: Missile Defense System, Anti-Aircraft System, Counter Rocket, Artillery And Mortar (C-RAM) System
2) By Component: Weapon System, Fire Control System, Command And Control System, Other Components
3) By Range: Short Range Air Defense System, Medium Range Air Defense System, Long Range Air Defense System
4) By Application: Land, Naval, Airborne
Subsegments:
1) By Missile Defense System: Ballistic Missile Defense, Cruise Missile Defense, Terminal High Altitude Area Defense (THAAD), Aegis Ballistic Missile Defense
2) By Anti-Aircraft System: Short-Range Air Defense (SHORAD), Medium-Range Air Defense (MRAD), Long-Range Air Defense (LRAD), Surface-To-Air Missile (SAM) Systems
3) By Counter Rocket, Ground-Based Interception Systems, Airborne Interception Systems, Early Warning And Detection Systems, Integrated Command And Control Systems
4) By Artillery And Mortar (C-RAM) System: Ground-Based C-RAM Solutions, Integrated C-RAM Systems, Mobile C-RAM Platforms, Sensor And Detection Systems, Command And Control Systems
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Which Key Trends Are Driving Changes In The Air Defense System Market?
The trend of constructing advanced weaponry is rapidly gaining traction in the air defense systems market. The main players in the air defense market are concentrating on developing unique products to strengthen their market presence. Take for example, MBDA, a missile systems manufacturer based in France, that in October 2022, launched the VL MICA NG air defense system. This new generation anti-air missile system boasts improved handling capabilities for non-traditional targets and emerging threats with increasingly elusive infrared and radio frequency signatures. The system also expands on the current VL MICA system's capabilities to intercept traditional target types such as airplanes, helicopters, cruise missiles, and anti-ship missiles at greater distances.
Who Are the Key Players In The Air Defense System Market?
Major companies operating in the air defense system market include:
• Lockheed Martin Corporation
• BAE Systems plc
• Rheinmetall AG
• Thales Group
• Northrop Grumman Corporation
• Hanwha Corporation
• Leonardo SPA
• L3Harris Technologies Inc.
• Saab AB
• Israel Aerospace Industries Ltd.
• The Boeing Company
• Aselsan AS
• Airbus Defence and Space
• Elbit Systems Ltd.
• Kongsberg Gruppen ASA
• Cobham Ltd.
• MBDA Missile Systems
• Raytheon Technologies Corporation
• Defense Research and Development Organization
• Turkish Aerospace Industries Inc.
• Rafael Advanced Defense Systems Ltd.
• General Dynamics Corporation
• Almaz-Antey Corporation
• Mitsubishi Electric Corporation
• Rostec State Corporation
• Serco Group plc
What Is The Most Dominant Region In The Air Defense System Market?
North America was the largest region in the air defense system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the air defense system market report during the forecast period. The regions covered in the air defense system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
