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)
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)
Global Air Defense System Market by Platform Outlook (Revenue, USD Million, 2021-2027)
Global Air Defense System Market by Range Outlook (Revenue, USD Million, 2021-2027)
Global Air Defense System Market by Component Outlook (Revenue, USD Million, 2021-2027)
The key players operating in the air defense system market are: