Air Defense Systems Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 46.42 Billion |
| Market Size (2029) | USD 58.51 Billion |
| CAGR (2024 - 2029) | 4.74 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Air Defense Systems Market Analysis
The Air Defense Systems Market size is estimated at USD 46.42 billion in 2024, and is expected to reach USD 58.51 billion by 2029, growing at a CAGR of 4.74% during the forecast period (2024-2029).
- The air defense systems market is poised to witness significant growth during the forecast period. Growing demand for the acquisition of advanced air defense systems by various defense personnel globally in order to upgrade their existing defense capabilities, coupled with growth in defense spending globally, are some of the factors that will lead to the market witnessing significant growth during the forecast period.
- Moreover, the changing modern battlefield scenarios coupled with growth in border unrest and a rise in a number of conflicts will bolster the growth of the market in the near future.
- On the other hand, the higher costs which are associated with the integration and implementation of air defense systems are limiting the capabilities of several nations to undergo long-term acquisition as well as operation contracts. Furthermore, the development of a newer generation of air and missile systems that are equipped with next-generation defense capabilities will lead to the opening of various businesses, thereby leading to the market witnessing significant growth in the near future.
Air Defense Systems Market Trends
The Air Based Segment Will Showcase Remarkable Growth During the Forecast Period
- The air-based segment is anticipated to show significant growth in the air defense systems market. Growth in worldwide military expenditure will lead to a substantial increase in the acquisition of the next generation of air defense systems by various defense personnel in the coming years to increase military capabilities, and this will lead to the market witnessing significant growth during the forecast period.
- There has been a substantial rise in terms of border unrest and conflicts worldwide. Such growth has prompted several defense forces across the world to focus on increasing their investments to acquire new and advanced air defense systems to upgrade their capabilities to neutralize aerial attacks conducted by enemy forces, thereby gaining a competitive advantage during changing modern warfare scenarios.
- For instance, in October 2023, the Czech Ministry of Defense announced that they are in plans to spend USD 120 million to procure 48 long-range, air-to-air missiles, which have been developed by Rafael Systems, which is an arms manufacturer based in Israel. Furthermore, the missile systems will be in the possession of the Czech Republic by 2027.
- On the other hand, various countries around the world are also now focused on the development of long range air defense systems in order to prepare their army for future warfare scenarios. For instance, in October 2023, India announced that they have commenced indigenous development of their own long-range air defense systems and are in plans to deploy the system between 2028 and 2029. Moreover, the long-range air defense system currently being developed by DRDO under the project Kusha will be able to detect and destroy incoming stealth fighters, aircraft, drones, cruise missiles, and precision-guided munitions at ranges up to 350-km and will be comparable to the Russian S-400 Triumf air defense system.
Asia-Pacific Dominates the Market During the Forecast Period
- Asia-Pacific held the highest shares in the market and continued its domination during the forecast period. Factors such as growing investments by various countries in the Asia-Pacific region for procurement of advanced air defense solutions, as well as notable developments in terms of next-generation air defense weapon systems, will lead to the market witnessing significant growth during the forecast period.
- Notable growth in terms of military spending by various countries within the region, coupled with increasing border unrest and conflicts, has led to significant growth in the demand for cutting-edge air defense technologies. Moreover, defense personnel in several countries within the region, in recent years, have started to increase their focus toward the acquisition of the next generation of advanced air defense systems to improve military proficiencies. For instance, in January 2023, India announced their plans to spend USD 522 million to acquire missiles and air defense systems from domestic players. Moreover, the Indian government will be acquiring very short-range air defense systems for the Army.
- On the other hand, there has also been growth in terms of the development of newer generations of advanced air defense systems within the Asia-Pacific region. For instance, in November 2023, Singapore announced that their next-generation air defense system, which is an Aster 30 Medium-range Surface-to-Air missile (MSAM), has successfully achieved full operational compatibility status.
- Moreover, the medium-range surface-to-air defense systems will now be able to counter various air threats ranging from fighter aircraft, helicopters, and unmanned aerial vehicles to precision-guided munitions. Thus, growth in acquisition, as well as the development of the next generation of air defense systems, will lead to the market witnessing significant growth within the Asia-Pacific region during the forecast period.
Air Defense Systems Industry Overview
The air defense systems market is characterized by fragmentation, with multiple players exerting influence. Notable entities in this domain include RTX Corporation, Rheinmetall AG, THALES, Lockheed Martin Corporation, and Northrop Grumman Corporation, among others.
A significant trend within the market involves substantial investments by various players in the research and development of advanced next-generation air defense systems. Additionally, key market participants are engaging in strategic collaborations with defense forces worldwide. This collaborative approach aims to align with military requirements, facilitating the development of cutting-edge technologies such as advanced hit-and-destruction gun ammunition. Simultaneously, these endeavors contribute to business expansion initiatives.
It is noteworthy that larger and more established market players are allocating considerable resources towards new technology development. In comparison to newly established defense players, they are making substantial investments, fostering product differentiation. Consequently, this emphasis on technological advancement is anticipated to propel more established players into acquiring a significant market share during the forecast period.
Air Defense Systems Market Leaders
RTX Corporation
Rheinmetall AG
Lockheed Martin Corporation
Northrop Grumman Corporation
THALES
*Disclaimer: Major Players sorted in no particular order
Air Defense Systems Market News
- January 2024: India made a significant announcement regarding the initiation of user trials for their domestically developed man-portable air defense missile systems. These systems are specifically designed to effectively eliminate hostile aircraft, drones, and helicopters at very short ranges.
- January 2024: The Ukrainian armed forces reported the successful deployment of their FrankenSAM air defense systems. This deployment was a strategic response to counter offensive attacks from Russia. Notably, the newly deployed mechanism demonstrated its effectiveness by successfully neutralizing a Shahed kamikaze drone launched by Russia at a distance of five miles. This successful interception highlights the capabilities and efficiency of the Ukrainian air defense systems in the face of emerging threats.
Air Defense Systems Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 System
5.1.1 Missile Defense Systems
5.1.2 Anti-aircraft Systems
5.1.3 Counter Unmanned Aerial Systems (C-UAS)
5.1.4 Counter-RAM Systems
5.2 Platform
5.2.1 Land-Based
5.2.2 Air-Based
5.2.3 Sea-Based
5.3 Range
5.3.1 Long-Range Air Defense Systems
5.3.2 Medium-Range Air Defense Systems
5.3.3 Short-Range Air Defense Systems
5.4 Type
5.4.1 Threat Detection
5.4.2 Countermeasures
5.5 Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.2 Europe
5.5.2.1 United Kingdom
5.5.2.2 Germany
5.5.2.3 France
5.5.2.4 Russia
5.5.2.5 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 China
5.5.3.2 India
5.5.3.3 Japan
5.5.3.4 South Korea
5.5.3.5 Rest of Asia-Pacific
5.5.4 Latin America
5.5.4.1 Brazil
5.5.4.2 Mexico
5.5.4.3 Rest of Latin America
5.5.5 Middle East and Africa
5.5.5.1 United Arab Emirates
5.5.5.2 Saudi Arabia
5.5.5.3 Israel
5.5.5.4 Egypt
5.5.5.5 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 RTX Corporation
6.2.2 IAI
6.2.3 Rheinmetall AG
6.2.4 THALES
6.2.5 Lockheed Martin Corporation
6.2.6 Saab AB
6.2.7 Leonardo S.p.A.
6.2.8 Kongsberg Gruppen ASA
6.2.9 Northrop Grumman Corporation
6.2.10 The Boeing Company
6.2.11 ASELSAN A.S.
6.2.12 Hanwha Systems Co., Ltd.
6.2.13 Rafael Advanced Defense Systems Ltd.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Air Defense Systems Industry Segmentation
An air defense system is used to neutralize enemy targets and also acts as a shield to defend a specific place from incoming enemy missiles. Furthermore, air defense systems include land, aerial, and marine-based technologies used by the defense forces to guard against a variety of missiles, including cruise and ballistic missiles.
The air defense systems market is segmented by system, platform, range, type, and geography. By system, the market is segmented into missile defense systems, anti-aircraft systems, counter unmanned aerial systems as well as counter ram systems. By platform, the market is segmented into land-based, air-based, and sea-based. By range, the market is segmented into long-range air defense systems, medium-range air defense systems, and short-range air defense systems. By type, the market is segmented into threat detection and countermeasures. The report also covers the market sizes and forecasts for the air defense systems market in major countries across different regions.
For each segment, the market sizing and forecasts have been done based on value (USD).
| System | |
| Missile Defense Systems | |
| Anti-aircraft Systems | |
| Counter Unmanned Aerial Systems (C-UAS) | |
| Counter-RAM Systems |
| Platform | |
| Land-Based | |
| Air-Based | |
| Sea-Based |
| Range | |
| Long-Range Air Defense Systems | |
| Medium-Range Air Defense Systems | |
| Short-Range Air Defense Systems |
| Type | |
| Threat Detection | |
| Countermeasures |
| Geography | |||||||
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Air Defense Systems Market Research FAQs
How big is the Air Defense Systems Market?
The Air Defense Systems Market size is expected to reach USD 46.42 billion in 2024 and grow at a CAGR of 4.74% to reach USD 58.51 billion by 2029.
What is the current Air Defense Systems Market size?
In 2024, the Air Defense Systems Market size is expected to reach USD 46.42 billion.
Who are the key players in Air Defense Systems Market?
RTX Corporation, Rheinmetall AG, Lockheed Martin Corporation, Northrop Grumman Corporation and THALES are the major companies operating in the Air Defense Systems Market.
Which is the fastest growing region in Air Defense Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Air Defense Systems Market?
In 2024, the Asia Pacific accounts for the largest market share in Air Defense Systems Market.
What years does this Air Defense Systems Market cover, and what was the market size in 2023?
In 2023, the Air Defense Systems Market size was estimated at USD 44.22 billion. The report covers the Air Defense Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Air Defense Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Air Defense Systems Industry Report
Statistics for the 2024 Air Defense Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Air Defense Systems analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
