Air Defense System Market size to be worth over USD 40 billion by 2027

According to a new research report by Global Market Insights Inc., the global Air Defense System Market size is anticipated to reach over USD 40 billion by 2027 due to an increase in the defense budget across the globe along with the demand for advanced air defense systems.
 

The U.S. Missile Defense Agency allocated USD 8.9 billion to its FY2022 budget. The budget will focus on the development of a modern interceptor for homeland missile defense, a hypersonic defensive capability, and space-based tracking crucial for detecting challenging threats.
 

The air defense system plays a major part in a country’s defense forces. Countries are collaborating with air defense system industry players for the development of advanced multipurpose systems that can help numerous applications including air surveillance & detection. For instance, in September 2021, India and the U.S. signed an agreement for the development of Air-Launched Unmanned Aerial Vehicles (ALUAVs). The main objective is to promote collaborative technology exchange and create market opportunities for the co-development of future technologies for the Indian and U.S. military forces.
 

Growing investments in advanced technologies for the development of enhanced missile defense systems

Based on system, the air defense system market is classified into anti-aircraft system, missile defense system, and C-RAM system. In Asia Pacific, the missile defense systems segment is poised to grow at a CAGR over 8% through 2027. Rising investments in advanced technologies and strategic partnerships between regions for the development of advanced missile systems will fuel the segment growth. Increasing geopolitical threats are also contributing to the growth of missile defense systems in the air defense system market.
 

Countries are emphasizing on the ramp-up of their missile defense capabilities against aerial threats, thereby propelling segment growth. For instance, in September 2021, the Indian Air Force received its surface-to-air missile system, which can destroy an aircraft from a distance of 110 kms. The missile is powered by a control system and rocket motor to achieve high maneuverability during the terminal phase.
 

Browse key industry insights spread across 300 pages with 377 market data tables and 29 figures & charts from the report, “Air Defense System Market Size, By Component (Weapon System, Fire Control System, Command & Control (C2) System), By System (Missile Defense System, Anti-aircraft System, Counter Rocket, Artillery, and Mortar (C-RAM) System), By Range (Short Range Air Defense (SRAD) System, Medium Range Air Defense (MRAD) System, Long Range Air Defense (LRAD) System), By Application (Land, Naval, Airborne), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027’’, in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/air-defense-system-market
 

Medium range air defense systems will witness high demand owing to their high payload and interoperability

Based on range, In Europe, the medium range air defense segment held a market share of over 30% in 2020. The system provides improved force protection against a wide range of aerial threats. Improved interoperability, mobility, and defense capability against evolving threats, such as enemy aircraft, UAVs or cruise missiles, will drive the market demand for medium range air defense systems.
 

Growing marine security concerns are driving the market growth of naval applications

Based on application, In Asia Pacific, the naval application held a market size of over USD 1.5 billion in 2020. Naval air defense systems safeguard ships from missiles fired by surface craft and enemy aircraft. Modern naval air defense systems are fully incorporated with a ship’s electronic warfare defense system and some possess autonomous targeting & firing capabilities.
 

In June 2021, Russia's state-owned company in the arms industry, Almaz-Antey, launched its new range of naval air defense systems at the International Maritime Defence Show 2021 held in Saint Petersburg. Resurs is a new surface ship-borne naval air-defense system intended to engage both unmanned aircraft systems and manned air platforms including extremely low-flying Unmanned Aircraft Systems (UASs) at short ranges.
 

Presence of major players and high defense expenditure in North America

North America air defense system market held a share of over 35% in 2020 due to the presence of major market leaders of air defense systems, components, and system integrators. Prominent industry players in the region include Lockheed Martin, Thales Group, Raytheon Technologies, Northrop Grumman Corporation, and The Boeing Company. For instance, in July 2021, Raytheon Technologies received a five-year contract worth USD 320.67 million from the U.S. Army to manufacture air defense systems.
 

Some of the prominent industry players in the air defense system industry include L3Harris, Kongsberg Gruppen, Israel Aerospace Industries Ltd., Hanwha Corporation, Northrop Grumman Corporation, Thales Group, Bae Systems PLC, Leonardo S.P.A., Rheinmetall AG, Raytheon Company, Saab AB, MBDA, Aselsan A.S., General Dynamics, Elibit Systems, The Boeing Company and Lockheed Martin Corporation. Market players are focusing on developing advanced radar systems with enhanced capabilities to provide protection against ballistic & missile threats.