Air Defense System Market Size, Share, Industry Analysis, Trends, Growth Report, 2030

Air Defense System Industry Prospective:

The global air defense system market size was evaluated at $36 billion in 2022 and is slated to hit $56 billion by the end of 2030 with a CAGR of nearly 5.2% between 2023 and 2030.

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Air Defense System Market: Overview

An air defense system is a technology network that encompasses missiles, radars, command systems, and sensors used for identifying, tracking, and intercepting aircraft, missiles, rockets, and drones of enemies to protect a country from aerial attacks. Reportedly, it is used for improving the efficiency of air defense and military forces which can either operate solitarily or in joint operations. Air defense systems are developed post-research & development activities, testing, analyzing, and using simulation methods. These systems also perform a slew of operations including air space surveillance through the use of radar systems.

Key Insights

• As per the analysis shared by our research analyst, the global air defense system market is projected to expand annually at the annual growth rate of around 5.2% over the forecast timespan (2023-2030)
• In terms of revenue, the global air defense system market size was evaluated at nearly $36 billion in 2022 and is expected to reach $56 billion by 2030.
• The global air defense system market is anticipated to grow rapidly over the forecast timeline owing to a surge in the allocation of funds for defense activities.
• In terms of range, the long-range air defense system segment is slated to register the fastest CAGR over the forecast timeframe.
• Based on the platform, the land-based segment is predicted to lead the segmental growth in the next eight years.
• Based on type, the missile defense system segment is expected to dominate the segmental expansion in the forecast period.
• Region-wise, the European air defense system industry is projected to register the fastest CAGR during the assessment timeline.

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Air Defense System Market: Growth Factors

An increase in investment in the defense sector to embellish the global market trends

A surge in the allocation of funds for defense activities will steer the expansion of the global air defense system market. A prominent rise in the air traffic & thriving commercial aviation sector will steer the global market trends. An increase in geopolitical conflicts will proliferate the size of the global market. The rising significance of locating airborne threats will prop up the demand for air defense systems globally.  A rise in the focus on research activities related to defense systems will promote the growth of the global market. Furthermore, large-scale use of active electronically scanned array radars in air defense systems will help later improve detection & tracking abilities, thereby steering the expansion of the global market.

New product launches will contribute majorly towards the earnings of the global market in the coming years. Reportedly, in the first quarter of 2022, Lockheed Martin, a key U.S.-based player in the defense sector, received an order worth $4.7 billion for manufacturing radar and THAAD air defense systems.  Moreover, the development of new air defense systems was aimed at enhancing the defense capabilities of the U.S. and its allies to defend against short as well as medium-range ballistic missiles.

Air Defense System Market: Restraints

Less availability of skilled persons for air defense system testing & validation can hinder the global industry expansion

Lack of expertise as well as testing and validation will put brakes on the global air defense system industry. Moreover, unavoidable circumstances and issues created during the process of validation can delay deployment schedules and raise costs, thereby creating hurdles in the expansion of the global industry.

Air Defense System Market: Opportunities

Launching of new software tools is anticipated to open new growth opportunities for the market across the globe 

The introduction of new software and digital systems is predicted to open new facets of growth for the global air defense market in the forecasting years. Apart from this, key industry players are making use of high-power lasers, multi-location radars, and mobile air defense integrated systems as well as missile warning systems. This, in turn, will steer the expansion of the global market.  

Air Defense System Market: Challenges

Surging prices of air defense equipment can prove detrimental to the expansion of the industry globally

Surmounting costs of air defense systems subject to an increase in the manufacturing & upgrading costs of missile systems will create a huge obstacle in the expansion of the global air defense system industry. In addition to this, rising prices related to integration as well as execution of air defense systems will further restrict the expansion of the industry across the globe.   

Air Defense System Market: Segmentation

The global air defense system market is sectored into platform, type, range, component, and region.                                     

In platform terms, the air defense system market across the globe is segregated into land-based, air-based, and sea-based segments. Furthermore, the land-based segment, which led the platform segment in 2022, is predicted to continue leading the segmental growth even during the forecast timeline. The expansion of the segment during 2023-2030 can be due to the escalating popularity of land-based air defense systems with their surging use for protecting land from aerial attacks and guaranteeing the security of command stations of an army operating on land area.  

Based on the range, the global air defense system industry is sectored into long-range air defense systems, short-range air defense systems, and medium-range air defense system segments. Additionally, the long-range air defense system segment, which acquired a massive share of the global industry in 2022, is anticipated to record the fastest CAGR over the coming eight years. The segmental expansion over the forecast timeframe can be due to the surging significance of locating aerial threats along with the need for protecting territories from adversaries.

Moreover, a large number of emerging economies in Asia such as China and India are developing their long-range air defense systems for shielding their region from aerial attacks of enemy. Citing an instance, the Government of India’s Defense Agency DRDO through Project Kusha is developing a long-range air defense system and planning to deploy it by 2029. Reportedly, the new air defense system will identify and destroy aircraft, cruise missiles, precision-guided munitions, drones, and stealth fighters of the enemy at ranges up to nearly 350 KM. For the record, the new air defense system is compared with the S-400 Triumf air defense system of Russia. Reportedly, the new air defense system developed by India makes use of long-range surface-to-air missiles that have exceptional interception abilities.

Based on the type, the global air defense system market is sectored into the missile defense system, C-RAM system, and anti-aircraft system segments. Additionally, the missile defense system segment, which acquired a key share of the global market in 2022, is predicted to lead the segmental expansion over the forecast timeline. The segmental surge over the forecast timespan can be a result of a huge demand for missile-defense systems in defense applications coupled with a rise in their use in war. An increase in the allocation of funds by the government for missile development programs in countries such as Russia, Iran, India, China, North Korea, the U.S., and France has contributed significantly to the growth of the segment.  

Based on the components, the air defense system market globally is divided into fire control systems, command & control systems, weapon systems, and other segments.  

Air Defense System Market: Report Scope

Air Defense System Market: Regional Insights

Asia-Pacific is predicted to retain its leading position in the global air defense system market over the forecast timespan

Asia-Pacific, which contributed about two-thirds of the global air defense system market earnings in 2022, will be a leading region over the forecast timeline. Moreover, the regional market expansion in the next eight years is subject to a rise in defense budgets by governments of countries such as India, China, Vietnam, North Korea, South Korea, Thailand, Australia, Japan, Maldives, Thailand, Philippines, Taiwan, and Pakistan. Prominent in the territorial disputes between India & Pakistan, China & India, North Korea & South Korea, China & Taiwan, Japan & China, and Japan & North Korea over land as well as water bodies will steer the growth of the market in the region.

The European air defense system industry is set to record the fastest CAGR in the forecast period. The regional industry expansion over 2023-2030 can be attributed to the ongoing conflict between Ukraine and Russia leading to a rise in the procurement of air defense systems by Russia, Ukraine, Poland, Finland, Sweden, Estonia, Romania, Lithuania, and Latvia. Moreover, a rise in the allocation of funds to air defense systems by neighboring countries of Russia and Ukraine will steer the regional industry demand.   

Air Defense System Market: Competitive Space

The global air defense system market profiles key players such as:

• Hanwha Corporation
• Israel Aerospace Industries Ltd.
• Thales Group
• Leonardo S.P.A.
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Raytheon Company
• The Boeing Company
• Kongsberg Gruppen
• Elibit Systems
• L3Harris Technologies Inc.
• Aselsan A.S.
• General Dynamics
• Rheinmetall AG
• Saab AB
• Bae Systems PLC.

The global market is consolidated with only a few giant players acquiring a dominant share of the market across the globe.  

The global air defense system market is segmented as follows:

By Platform

• Land-Based
• Air-Based
• Sea-Based

By Range

• Long -Range Air Defense System
• Short-Range Air Defense System
• Medium-Range Air Defense System

By Type

• Missile Defense System
• C-RAM System
• Anti-Aircraft System

By Component

• Weapon System
• Command & Control System
• Fire Control System
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa