by Market Overview:
Air defense systems are used to protect military assets and strategic installations from aerial threats such as aircraft, drones, and missiles. They employ radars for detection and tracking, and employ missiles and rockets to intercept targets. Key products in this market include weapon systems, rocket and missiles, command and control systems and radar guidance systems. Air defense systems provide protection from attacks by delivering a layered defense architecture.
Market Dynamics:
The growth of the global air defense systems market is driven by increasing defense budgets around the world. Developing economies are increasing their defense spending for homeland security and protection of assets. For instance, according to data from Stockholm International Peace Research Institute (SIPRI), China’s defense spending increased by 83% between 2010-2019. Another key driver is the growing instances of cross border tensions and terrorist activities which is prompting nations to strengthen their air defense capabilities. Furthermore, advancement in technologies such as development of smart missiles with enhanced target acquisition capabilities is fueling the demand for modern air defense systems. However, high costs associated with development and procurement of sophisticated air defense systems remains a challenge.
The global Air Defense Systems Market Demand is estimated to be valued at US$ 16.94 Mn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The global air defense systems market can be segmented into missile defense systems and anti-aircraft systems. The missile defense systems segment dominates the market as countries are spending more on countermeasures for ballistic and cruise missiles especially intercontinental ballistic missiles that carry nuclear warheads. Countries are developing robust missile defense shields with technologically advanced systems like the Arrow, Patriot, and THAAD systems.
PEST Analysis
Political: Many regions are engaged in geopolitical conflicts which is increasing spending on air defense systems by countries. Defense budgets are rising to equip armed forces with necessary weapons.
Economic: The global air defense systems market is expected to grow at a high CAGR due to rising defense expenditures especially of developing countries to secure borders. Countries are allocating large portions of their GDP on defense.
Social: Safety and security concerns of citizens are increasing demand for ballistic missile defense systems and surface to air missiles from governments. This is propelling market growth.
Technological: Technological advancements are helping integrate new radar, command and control systems, and interceptor missiles in air defense platforms. The development of hypersonic missiles is also spurring innovations.
Key Takeaways
The global air defense systems market is expected to witness high growth, exhibiting 13% CAGR over the forecast period, due to increasing geopolitical tensions and security threats.
North America region dominates the market currently owing to large defense modernization programs and spending on advanced weapons by US and Canada. However, Middle East & Africa is expected to emerge as the fastest-growing regional market due to rising conflicts and security issues in the region which is prompting high military expenditure.
Key players operating in the air defense systems market are Hanwha Defense, Raytheon Company, Aselsan AS, Israel Aerospace Industries Ltd., The Boeing Company, Rheinmetall AG, Northrop Grumman Corporation, Thales Group, Kongsberg Gruppen, Lockheed Martin Corporation, Leonardo SpA, and SAAB AB. Major players are investing in the development of new integrated air and missile defense systems with advanced interceptor missiles and radars for diverse terrains and emerging threats.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
