Air Defense System Market Revenue, Key Players, Supply-Demand, Investment Feasibility and Forecast to 2027

The Global Air Defense System Market was valued at USD 30 Bn in 2020 and is expected to reach USD 48.8 Bn by 2027, with a growing CAGR of 7.2% during the forecast period.

Air-based warfare has changed in recent years with the emergence of more lethal, agile, and untraceable threats with autonomous capabilities. The corresponding need for air defense capabilities has increased due to threats growing; as a result, countries are under increasing pressure to protect their borders against potential adversaries.

The market is expected to grow mainly due to the growth of air-based threats and the increasing defense expenditures that will facilitate both the procurement and R&D of newer technologies. In addition, these growth rates are dependent on several associative factors, such as the allocation of funds. However, an economic downturn in the near term and various technical problems may adversely affect the programs, which may ultimately lead to delaying or cancelling the programs.

Based on type, the market is segmented into missile defense system, anti-aircraft system counter rocket, artillery, and mortar (C-Ram) system. The missile defense system segment is expected to lead the market during the forecast period owing to the high expenditure by several countries like US, China, Iran, India, Russia, North Korea, and France for the development of advanced missile defense system.

Among the major players in the market, Raytheon Company, Israel Aerospace Industries Ltd, Rheinmetall AG, Lockheed Martin Corporation, and Thales Group are a few. Due to the growing competition in the industry, innovation becomes a crucial factor for players to stand out. The requirement for efficient detection of aerial threats has grown as stealth technology has advanced. In response, R&D investments have been made in air defense technologies in significant numbers. Major defense exporting countries are seeking to sell their air defense systems to countries without the capability of manufacturing their own defenses. Additionally, local manufacturing of air defense systems is getting underway, with several of the new, locally developed air defense systems expected to be operational in the forecast period.

Global Air Defense System Market by Region Outlook (Revenue, USD Million, 2021-2027)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

In terms of geography, Asia-Pacific is growing at the highest CAGR during the forecast period. The growth in the region is attributed to the high spending in a defense sector, growing R&D expenditure, and regional instability. Moreover, increasing territorial disputes in the region, coupled with the increase in the conflicts in the South China Sea, are a number of the considerable factors which have necessitated the significance of air defense in the region.

The Global Air Defense System Industry Segmentation:

Global Air Defense System Market by Type Outlook (Revenue, USD Million, 2021-2027)

  • Missile Defense System
  • Anti-Aircraft System Counter Rocket
  • Artillery
  • Mortar (C-Ram) System

Global Air Defense System Market by Platform Outlook (Revenue, USD Million, 2021-2027)

  • Airborne
  • Land
  • Naval

Global Air Defense System Market by Range Outlook (Revenue, USD Million, 2021-2027)

  • Short Range Air Defense (ShoRAD) System
  • Medium Range Air Defense (MRAD) System
  • Long Range Air Defense (LRAD) System

Global Air Defense System Market by Component Outlook (Revenue, USD Million, 2021-2027)

  • Weapon System
  • Fire Control System
  • Command and Control System
  • Others

Key Findings:

  • Based on the type, the missile defense system segment is expected to lead the air defense system market during the forecast period
  • Based on the platform, the land segment holds the largest market share over the forecast period
  • Based on the range, the long-range defense system segment dominated and is expected to capture the major market share during the forecast period
  • Based on regions, Asia-Pacific is growing at the highest CAGR during the forecast period

The key players operating in the air defense system market are:

  • IAI
  • Rheinmetall AG
  • Thales Group
  • Lockheed Martin Corporation
  • Raytheon Technologies Corporation
  • Airbus S.A.S.
  • General Dynamics Corporation
  • MBDA
  • Northrop Grumman
  • Tactical Missiles Corporation joint stock company (JSC)
  • Rafael Advanced Defense Systems Ltd.
  • Hanwha Group
  • Saab AB
  • Aerojet Rocketdyne
  • Almaz Antey

Recent News:

  • In July 2021, Hensoldt and International Aerospace Industries signed a contract to supply Germany with new radar systems.
  • In July 2021, the world's biggest defense company Thales and India's Bharat Dynamics Limited (BDL) signed an agreement to work on an air defense system with support from the Indian and British governments.

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