Air Defense Systems Market - Regional Outlook, Growth Potential, Competitive Market

Published Date : 22, 2022

The worldwide air defense systems market was valued at $34.95 billion in 2019. The growth is majorly due to the impending need for modernization of defense forces with advanced air defense systems and strengthening deterrence capability against rising aerial threats of ballistic missiles, drone swarms, combat aircrafts, and upcoming hypersonic missiles

Global Market $Million 2019

Global Air Defense Systems Market Revenue, $Million 34,956.8

  • Largest Market Segment (by Type), $Million Missile Defense System: 14,857.8
  • Largest Market Segment (by Component Type), $Million Weapon Systems: 22,022.8
  • Largest Market Segment (by Range Number), $Million Medium Range: 13,982.7
  • Largest Market Segment (by Platform), $Million Ground-based: 20,274.9 
  • Largest Market Segment (by Region), $Million North America: 12,414.8

The following figure represents the market share of the global air defense systems market by type:

  • Directed Energy Weapons: 1.9%
  • C-RAM: 18.5%
  • Anti-Aircraft System: 37.1%
  • Missile Defense System: 42.5%
Type 2019 $Million 2022 $Million
Missile Defense System 14,857.8 15,879.8
Anti-Aircraft System 12,980.6 13,583.7
Counter Rocket, Artillery, and Mortar 6,461.2 6,821.2
Directed Energy Weapon 657.2 1,187.7
Total 34,956.8 37,472.4

 

The following figure represents the global air defense systems market by region. It includes North America, Europe, Asia-Pacific, and Middle East.

  • North America - Market Share 2019: 35.51%
  • Asia-Pacific Market Share 2019: 32.61%
  • Europe Market Share 2019 -  23.60%
  • Middle East Market Share 2019: 8.28%

North America dominated the air defense systems market with a share of 35.51% in 2019. The U.S. is one of the prominent countries in the world and recorded the highest market revenue of $12,146.6 million in 2019

Market Driver - Technological Innovation in Air Defense Systems

The defense industry has experienced significant R&D in air defense systems over the past decade.

Many government and private defense companies and research organizations have been working on novel air defense systems to meet the modernization demand for air defense systems. Accuracy, stealth, maneuverability, cost-efficient, lethality, and range are some of the prominent factors being worked upon for developing advanced air defense systems to counter emerging threats. 

The U.S. Department is investing in various programs such as the U.S. Space Force’s Space Based Infrared System (SBIRS), Overhead Persistent Infrared (OPIR) ballistic missile early warning satellite systems, and high-power laser and microwave weapons, among others. Moreover, the U.S. budget request for FY2020 constitutes $235 million for developing lethal and non-lethal directed energy  technologies, such as high-power laser and microwaves. Like the U.S., other leading countries such as Russia, China, the U.K., and Germany are also working for the development of advanced air defense systems. The demand for these advanced air defense systems is expected to be one of the major market drivers for the air defense systems market in the future. 

Market Restraint - High Development Cost

High development cost is one of the major market restraint factors for the air defense systems market. Defense forces and companies are spending substantial amount on R&D activities to develop the missile defense systems and air defense radars. Therefore, only a few developed and developing nations are able to deploy missile defense systems. For instance, in April 2020 Lockheed Martin Corporation received a contract worth $6.07 billion from U.S. Army for production of Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors and associated equipment.

Market Opportunities - Growing Defense Programs for Directed Energy Weapon Systems

The countries such as the U.S., the U.K., China, and Russia have embarked various programs related to the design, development, integration, and deployment of directed energy weapon systems such as high-power laser and microwave weapons in defense forces through different platforms. Under the various programs, the prototype of directed energy weapons is currently in testing and demonstration phase. For instance, in August 2019, the U.S. Airforce awarded a contract to the Raytheon Company to supply two prototypes of High Energy Laser Weapon Systems (HELWS) worth $24 million. It is expected that the large-scale commercialization of directed energy weapon systems will be starting from 2022, as major programs are in developmental stages. Moreover, market opportunities for defense contractors and system integrators are expected to be enormous due to the growing number of defense programs for directed energy weapon systems in the future. Some of the ongoing directed energy defense programs are as follows:

  • High Energy Laser Tactical Vehicle Demonstrator (HEL TVD) Program
  • High Energy Liquid Laser Area Defense System (HELLADS) Program
  • High Power Microwave Program
  • Mobile Experimental High Energy Laser (MEHEL) Program
  • Multi-Mission High Energy Laser (MMHEL) Program
  • Robust Electric Laser Initiative (RELI) Program
  • Self-Protect High Energy Laser Demonstrator (SHiELD) Program
  • DragonFire/Laser Capability Demonstrator Program

The missile defense system segment currently holds the largest market share in the air defense system market by type, due to the number of ongoing programs running across the leading countries such as the U.S., the U.K., Russia, China, India, Saudi Arabia, and Germany. However, short range air defense systems are expected to lead the market share by range segment due to modernization and reinforce the short-range air defense deterrence capability.

Missile Defense Segment Dominating Market by Type The air defense systems industry by type is segmented into missile defense system, anti-aircraft system, counter-rocket, artillery & munition (C-RAM) system, and directed energy weapon system.

The missile defense system segment dominated the air defense systems industry with a share of 42.50% in 2019. Its market size was estimated at $14,857.8 million in 2019 

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