Orbital Defense Systems Global Market Report 2025

Orbital Defense Systems Market Overview

• Orbital Defense Systems market size has reached to $17.05 billion in 2024

• Expected to grow to $24.2 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%

• Growth Driver: Increasing Defense Budget Fueling The Growth Of The Market Due To Rising Investment In Advanced Space-Based Military Capabilities

• Market Trend: Strategic Alliances Driving Innovation And Operational Resilience I Orbital Defense

• North America was the largest region in 2024 and  is the fastest growing region.

What Is Covered Under Orbital Defense Systems Market?

Orbital defense systems refer to space-based setups that safeguard against threats by using satellites, tracking tools, and defense technologies to monitor and respond to hostile activities in or from space. They work together to protect assets in space or defend against attacks targeting Earth or orbital platforms.

The main components of orbital defense systems are satellites, ground stations, launch vehicles, and others. Satellites, whether natural or artificial, are key assets, with artificial satellites being purpose-built spacecraft deployed into orbit for communication, navigation, Earth observation, and scientific missions. These systems incorporate advanced technologies such as laser systems, kinetic interceptors, electronic warfare systems, and others. Orbital defense systems serve a range of applications across military, civil, and commercial domains and are utilized by governments, defense contractors, and commercial enterprises to ensure space security and operational resilience.

What Is The Orbital Defense Systems Market Size 2025 And Growth Rate?

The orbital defense system market size has grown exponentially in recent years. It will grow from $17.05 billion in 2024 to $18.33 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to rising geopolitical tensions, increasing defense budget allocations, growing satellite threat frequency, increasing private-sector space investments, and growing emphasis on space asset resilience.

What’s The Trade War Impact On Aerospace And Defense Industry?

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

How is the Orbital Defense Systems Market Segmented?

1) By Component: Satellites, Ground Stations, Launch Vehicles, Other Components

2) By Technology: Laser Systems, Kinetic Systems, Electronic Warfare Systems, Other Technologies

3) By Application: Military, Civil, Commercial

4) By End-User: Government, Defense Contractors, Commercial Enterprises

Subsegments:

1) By Satellites: Communication Satellites, Surveillance Satellites, Navigation Satellites, Reconnaissance Satellites, Anti-satellite (ASAT) Weapons, Earth Observation Satellites

2) By Ground Stations: Command And Control Centers, Data Processing Units, Antenna Systems, Power Systems, Security Infrastructure

3) By Launch Vehicles: Small Launch Vehicles (SLVs), Medium Launch Vehicles (MLVs), Heavy Launch Vehicles (HLVs), Reusable Launch Systems, Ballistic Missiles

4) By Other Components: Space Debris Removal Systems, Propulsion Systems, Sensors And Detectors, Software And Artificial Intelligence Systems, Payload Modules

What Is Driving The Orbital Defense Systems Market? Increasing Defense Budget Fueling The Growth Of The Market Due To Rising Investment In Advanced Space-Based Military Capabilities

The increasing defense budget is expected to propel the growth of the orbital defense systems market going forward. Defense budget refers to the funds allocated by a nation's military to purchase, replenish, and maintain its stockpile of bullets, shells, missiles, and other munitions. The defense budget is increasing due to heightened geopolitical tensions, expanded military operations, and the need to restock depleted ammunition supplies. Orbital defense systems rely heavily on defense budgets to secure funding for advanced technology development, deployment, and maintenance, ensuring effective protection against space-based threats. For instance, in December 2023, according to the House of Commons Library, a UK-based library, the UK won defense orders worth $16.04 billion (£12.0 billion) in real terms in 2022. This is a $6.15 (£4.6 billion) increase from 2021, reflecting a significant rise in defense procurement and investment in advanced military capabilities. Therefore, the increasing defense budget is driving the growth of the orbital defense systems market.

What Is Driving The Orbital Defense Systems Market? Increasing Defense Budget Fueling The Growth Of The Market Due To Rising Investment In Advanced Space-Based Military Capabilities

The increasing defense budget is expected to propel the growth of the orbital defense systems market going forward. Defense budget refers to the funds allocated by a nation's military to purchase, replenish, and maintain its stockpile of bullets, shells, missiles, and other munitions. The defense budget is increasing due to heightened geopolitical tensions, expanded military operations, and the need to restock depleted ammunition supplies. Orbital defense systems rely heavily on defense budgets to secure funding for advanced technology development, deployment, and maintenance, ensuring effective protection against space-based threats. For instance, in December 2023, according to the House of Commons Library, a UK-based library, the UK won defense orders worth $16.04 billion (£12.0 billion) in real terms in 2022. This is a $6.15 (£4.6 billion) increase from 2021, reflecting a significant rise in defense procurement and investment in advanced military capabilities. Therefore, the increasing defense budget is driving the growth of the orbital defense systems industry.

Who Are The Major Players In The Global Orbital Defense Systems Market?

Major Companies operating in the orbital defense systems market are Raytheon Technologies Corporation, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, L3Harris Technologies, Amentum Holdings Inc, General Atomics, AXIENT CORP, Rocket Lab USA Inc, Capella Space, Blue Canyon Technologies Inc, Loft Orbital Solutions Inc, LeoLabs Inc., Slingshot Aerospace Inc, SpaceWorks Enterprises Inc, Alba Orbital Limited, Voyager Technologies Inc, Kayhan Space Corp., FlyPix AI GmbH, Blackstar Orbital Technologies Corporation.

Who Are The Major Players In The Global Orbital Defense Systems Market?

Major Companies operating in the orbital defense systems market are Raytheon Technologies Corporation, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, L3Harris Technologies, Amentum Holdings Inc, General Atomics, AXIENT CORP, Rocket Lab USA Inc, Capella Space, Blue Canyon Technologies Inc, Loft Orbital Solutions Inc, LeoLabs Inc., Slingshot Aerospace Inc, SpaceWorks Enterprises Inc, Alba Orbital Limited, Voyager Technologies Inc, Kayhan Space Corp., FlyPix AI GmbH, Blackstar Orbital Technologies Corporation.

What Are The Key Trends Of The Global Orbital Defense Systems Market? Strategic Alliances Driving Innovation And Operational Resilience I Orbital Defense

Major companies operating in the orbital defense systems market are focusing on strategic partnerships to accelerate technological innovation, enhance space-based surveillance and defense capabilities, and secure government contracts for large-scale deployment. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in May 2025, Atmos Space Cargo GmbH, a Germany-based aerospace company, partnered with ARX Robotics GmbH, a Germany-based autonomous company, to launch Europe’s first orbital depot for autonomous defense systems, combining ATMOS’s re-entry capsules with ARX’s unmanned technologies. This alliance enables rapid deployment of autonomous systems for disaster response, surveillance, and defense, boosting Europe's operational resilience and expanding both companies’ strategic networks across the continent.

What Are The Key Trends Of The Global Orbital Defense Systems Market? Strategic Alliances Driving Innovation And Operational Resilience I Orbital Defense

Major companies operating in the orbital defense systems market are focusing on strategic partnerships to accelerate technological innovation, enhance space-based surveillance and defense capabilities, and secure government contracts for large-scale deployment. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in May 2025, Atmos Space Cargo GmbH, a Germany-based aerospace company, partnered with ARX Robotics GmbH, a Germany-based autonomous company, to launch Europe’s first orbital depot for autonomous defense systems, combining ATMOS’s re-entry capsules with ARX’s unmanned technologies. This alliance enables rapid deployment of autonomous systems for disaster response, surveillance, and defense, boosting Europe's operational resilience and expanding both companies’ strategic networks across the continent.

What Are Latest Mergers And Acquisitions In The Orbital Defense Systems Market? Lockheed Martin Acquires Terran Orbital To Expand Space Systems Capabilities

In October 2024, Lockheed Martin, a US-based aerospace and defense company, acquired Terran Orbital for an undisclosed amount. Through this acquisition, it aims to strengthen its presence in the space systems sector by integrating advanced small satellite manufacturing capabilities, expanding its production agility, and enhancing its support for US Space development agency programs and other national security space missions. Terran Orbital Corporation is a US-based aerospace and defense company that manufactures orbital defense satellites and systems.

What Are Latest Mergers And Acquisitions In The Orbital Defense Systems Market? Lockheed Martin Acquires Terran Orbital To Expand Space Systems Capabilities

In October 2024, Lockheed Martin, a US-based aerospace and defense company, acquired Terran Orbital for an undisclosed amount. Through this acquisition, it aims to strengthen its presence in the space systems sector by integrating advanced small satellite manufacturing capabilities, expanding its production agility, and enhancing its support for US Space development agency programs and other national security space missions. Terran Orbital Corporation is a US-based aerospace and defense company that manufactures orbital defense satellites and systems.

What Is The Regional Outlook For The Global Orbital Defense Systems Market?

North America was the largest region in the orbital defense system market in 2024. The regions covered in the orbital defense systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the orbital defense systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Is The Regional Outlook For The Global Orbital Defense Systems Market?

North America was the largest region in the orbital defense system market in 2024. The regions covered in this market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Orbital Defense Systems Market?

The orbital defense system market consists of revenues earned by entities by providing services such as space surveillance and tracking, missile detection and early warning, and orbital threat neutralization. The market value includes the value of related goods sold by the service provider or included within the service offering. The orbital defense system market also includes sales of high-altitude combat platforms, turreted weapon modules derived from advanced city destroyer armaments, and unified command and control networks linking orbital assets with the moon-based earth space defense facility. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

What Defines the Orbital Defense Systems Market?

The orbital defense system market consists of revenues earned by entities by providing services such as space surveillance and tracking, missile detection and early warning, and orbital threat neutralization. The market value includes the value of related goods sold by the service provider or included within the service offering. The orbital defense system market also includes sales of high-altitude combat platforms, turreted weapon modules derived from advanced city destroyer armaments, and unified command and control networks linking orbital assets with the moon-based earth space defense facility. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What is the Market Assessment and Strategic Outlook for the Orbital Defense Systems Industry?

The orbital defense systems market research report is one of a series of new reports from The Business Research Company that provides orbital defense systems market statistics, including the orbital defense systems industry's global market size, regional shares, competitors with the orbital defense systems market share, detailed orbital defense systems market segments, market trends and opportunities, and any further data you may need to thrive in the orbital defense systems market. This orbital defense systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

What is the Market Assessment and Strategic Outlook for the Orbital Defense Systems Industry?

The orbital defense systems market research report is one of a series of new reports from The Business Research Company that provides market statistics, including the orbital defense systems industry's global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the orbital defense systems market. This orbital defense systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.