Air Defense System Market Size (By Component: Weapon Systems, Fire Control Systems, and Control and Command (C2) Systems; By System: Anti-aircraft System, Missile Defense System, and Counter Rocket, Artillery & Mortar (C-RAM) System; By Application: Land, Naval, and Airborne; By Range: Short Range Air Defense System, Medium Range Air Defense System, and Long-Range Air Defense System) – Global Industry Analysis, Market Size, Opportunities and Forecast 2022 – 2030

The global air defense system market accounted for US$ 35,478 Mn in 2021 and is expected to reach US$ 55,405 Mn by 2030 with a considerable CAGR of 5.1% during the forecast timeframe of 2022 to 2030.

An air defense system is a structure that is developed to eliminate or decrease the effectiveness of threatening air action.  It's used to enhance the effectiveness and readiness of air defense and other military forces, whether operating alone or in a joint warfare context, by conducting research, development, engineering, testing, and analysis of current and future air defense and related technologies and services. The primary goal of the air defense system is to keep enemy air attacks from interfering with maneuver force operations. Field units and other strategic threats are protected from attacks by cruise missiles, fixed-wing ground-attack jetliners, and armed helicopters by air defense forces. Besides that, the Air defense system is based on a comprehensive and integrated use of airborne and/or field-based active and passive sensor systems, command and control centers, and various types of weapons. The air defense system serves as also used for a variety of operations such as air space surveillance using radars and electro-optic sensors.

Drivers

• Rising importance to locate airborne threats
• Growing need to track various wide-ranging aerial attacks
• High focus on R&D associated with air defense systems
• Development of new innovative technologies in the air defense system market

Restraints

• Limited customer bases and high involvement of government entities
• Heavy investment costs in the developing

Opportunities

• Growing government investments in air defense system projects
• Political insurgencies and cross border conflicts in the Asia Pacific

Report Coverage: 

Air Defense System Market Dynamics

The impending need for rapid modernization of defense forces with innovative air defense systems and strengthening national defense capability against increasing aerial threats such as drone swarms, ballistic missiles, military aircraft, and the latest hypersonic missiles is driving the growth. Increasing military expenditure for the improved performance and improvement of air and missile defense systems, as well as rising global instabilities around the world, are driving the market growth. Additionally, the vastly different nature of defense military operations has fueled the market growth. Furthermore, the growing advancement of air and anti-missile defense systems in emerging economies, as well as technological advancements, are expected to have an equal impact on the market's overall growth over the coming years. Apart from this, high investment costs in the development of air defense systems may stifle market growth. 

Market Segmentation

Market By Component

• Weapon Systems
  • Turret Systems
  • Missile Launching System
• Fire Control Systems
  • Air Defense Radar
  • Electro-Optic & Laser Range Finder
• Control and Command (C2) Systems

Based on the components, the air defense system market is categorized into three types: missile defense systems, anti-aircraft systems, and C-RAM systems. The missile defense system segment accounted for the largest market during the forecast. Missile defense systems are a type of missile defense system that is designed to protect a country from incoming missiles such as intercontinental ballistic missiles and other ballistic missiles. Furthermore, missile defense refers to a weapon, system, or technology that detects, tracks, intercepts, and destroys attacking missiles. Besides that, the Counter Rocket, Artillery, and Mortar systems (C-RAM) are expected to be in high demand in the coming years, owing to their effectiveness in intercepting missiles while also raising timely alarms to protect operating bases.

Market By System

• Anti-aircraft System
• Missile Defense System
• Counter Rocket, Artillery & Mortar (C-RAM) System

Based on the systems, the anti-aircraft system garners the most attention in the air defense system market over the forecasting years. Anti-aircraft defense, also known as AA defense, is a military system intended to defend against air attacks. This system could use individual sea, land, or air-based technologies, or a coordinated combination of all three. Recently, HQ-9 is the most advanced of China's 3rd generation of anti-aircraft defense systems, and it is distinguished by high combat capabilities in a dynamic jamming environment, including the enemy's massive use of multiple means of air attack.

Market By Application

• Land
• Naval
• Airborne

The market for air defense systems has been divided into three platforms: naval, land, and airborne. The land segment is expected to lead the market in 2021, accounting for more than half of the market. Technological advancements in short-range, moderate and guided missile systems are supporting the demand of the land segment of the market. However, air force bases, critical military infrastructure, strategic assets, and other ground-based platforms depend on layered air defense systems for all-around security against advanced symmetric and asymmetric attacks, including small, moderate aerial targets. Furthermore, military spending on the cutting-edge ground or field-based defense weapons, as well as the incorporation of machine intelligence in various weapon systems is expected to promote the evolution of next-generation ground defense systems during the projected timeframe.

Market By Range

• Short Range Air Defense System
• Medium Range Air Defense System
• Long Range Air Defense System

Based on the range, the long-range defense system segment is projected to dominate the market in 2021. Some of the major factors driving the growth of the global long-range air defense systems segment include an increase in military expenditure for the development of air defense systems, an increase in procurements of long-range air defense systems, changing nature of warfare, and an increase in geopolitical instabilities around the globe. Long-range missile strikes, intercontinental ballistic missiles, and asymmetric warfare are some of the factors driving the growth of the long-range defense (LRAD) system segment of the market. Furthermore, rising industrial growth and geopolitical tensions between China, India, and Pakistan are boosting the growth of LRAD systems.

Air Defense System Market Regional Overview

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Brazil
• Mexico
• Rest of Latin America

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

North America is expected to hold a sizable market share in 2021. The increase in military spending in the United States can be attributed to the market expansion of the North American air defense system. The addition of a new, advanced, and innovative defense system added to the existing, overage system will also have a massive influence on the market throughout the forecast period. Moreover, the rise of political insurgencies in the United States, China, and Russia will also benefit market growth. The United States is keeping a close watch on these nations' armed forces and is upgrading its defense systems accordingly. For example, the United States allocated a defense spending of USD 717 billion in 2019, 4.9 percent more than in previous years. As a result, the United States is the world's largest defense spender. 

Competitive Landscape

Some of the prominent players in global air defense system market are Hanwha Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, Saab AB, Lockheed Martin Corporation, Bae Systems PLC, Thales Group, Rheinmetall AG, Kongsberg Gruppen, Aselsan A.S., The Boeing Company, and Israel Aerospace Industries Ltd.