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 Defense System is designed to damage attacking enemy planes, missiles, and to nullify their effectiveness. With the rising several issues such as country-to-country disputes, trade wars, and others drive the growth of the air defense system market. For instance, the United States and China have deteriorated their relationship over COVID-19. Similarly, the relationship between Russia and the European Union deteriorated when the Crimean peninsula was seized by Russia. As a result of these disputes, countries are concerned over the safety of their land, resulting in a demand for air defence system, these system are able to destroy aerial targets with high accuracy at short ranges. Thus, growing geopolitical instability is propelling the growth of the air defence system market.
In addition, the increasing research and development in missile defense technology is the major factor influencing the growth of the market during the forecast period. Several countries are investing heavily in their indigenous missile defense system. For instance, Russia is developing an S-500 system, that is anticipated to have a detection range of more than 600 Kms. Similarly, India is also working on its numerous indigenous missile defense systems which include the Prithvi Air Defense (PAD) missile system, Advanced Air Defense (AAD) missile system. Moreover, numerous countries are developing missile defense system with the collaboration of different countries. For instance, India & Israel evolved an exceptionally capable Barak-8 missile defense system.
Based on type, the missile defense system segment is expected to lead the air defense system market during the forecast period due to high investment to develop advance missile
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 air defense system 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.
Based on platform, the land segment holds the largest market share over the forecast period owing to the necessity of protecting personnel from aerial threats
The land-based segment has the largest market share in global air defence systems, largely due to the necessity of protecting personnel from aerial threats. Many countries are developing and procuring land-based air defence systems with cutting-edge technology. As a result of technological advancements in short range, medium range, and guided missile systems, the land segment is growing, the land sector is expected to hold a 71.6% market share by 2027.
Based on the range, the long-range defence system segment dominated and is expected to capture the major market share during the forecast period due to increase in attack threats from intercontinental ballistic missiles
Based on range, the global air defense system industry can be segmented as Short Range Air Defense (Shorad) System, Medium Range Air Defense (Mrad) System, Long Range Air Defense (Lrad) System. In terms of market share, the Long Range Air Defense (LRAD) is accounted to capture major market share and is expected to show this pattern over the forecast period. The growth in the segment is mainly attributed to the increase in attack threats from intercontinental ballistic missiles across the globe.
Based on region, Asia-Pacific is the fastest growing region in air defence system market over the forecast period due to rising defense expenditure
In terms of CAGR, Asia-Pacific is expected to witness a the fastest growth rate over the forecast period. The factors driving the Asia Pacific air defence system market upward are insurgencies, territorial disputes, terrorism, and unrest between neighbouring countries, as well as rising defence spending by emerging economies in the region. The increasing disputes in the South China Sea, as well as the increased conflicts there, are just some of the reasons why air defence is so essential. Major defence exporters like the United States, Russia, and Israel are offering air defence systems to Asian countries. Additionally, Russia and the United States are conducting their political efforts in the Asia-Pacific region in an effort to magnify their influence. In the air defence market, China is expected to register the second-highest growth rate due to the geopolitical tensions and border disputes and the growing military expenditures of the country with its neighbouring countries, investments are being made in advanced air defence systems. For instance, a military budget of USD 261 billion in 2020 will make it the region's top defence spender.
The report also provides an in-depth analysis of Air Defense System market dynamics such as drivers, restraints, opportunities, and challenges:
COVID-19 Impact on the Air Defense System Market Analysis:
COVID-19, appeared late in 2019, was underestimated both in terms of its ability to spread and harm people, as well as its capacity to bring businesses to a screeching halt. A number of countries are implementing either mitigation measures or full-on suppression strategies that are having a negative impact both on the population and industry. During the forecast period, the long-term effects of COVID-19 are expected to impact the growth of the industry in an incomparable way. During this ongoing research effort, underlying issues and potential paths forward about COVID-19 are being incorporated. This year's COVID-19 reports trends in consumer behaviour, purchasing patterns, supply chain restructuring, and government interventions. Based on the analysis and forecasts found in the updated report, the updated document offers insights, analysis, and estimates. The spread of COVID-19 can be condensed into five major impact points on the air defence industry:
The report also provides an in-depth analysis of key trends in the air defense system market:
The report also provides an in-depth analysis of recent news developments and investments:
The unique insights provided by this report also include the following:
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Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
COVID – 19 Opportunity Mapping
Regional Market Analysis