Industry Overview
The global missile defence system market size is expected to reach USD 37.5 billion by 2030 from USD 21.5 billion in 2023, witnessing a CAGR of 5.5% during the forecast period 2025-2030. A missile defence system is used to defend against attacks from stand-off weapons, bombers, helicopters, unmanned aerial vehicles (UAVs), and combat aircraft. Missile defence systems are designed to counter aerial threats over a range of distances ranging from short to extended, and medium to long. Moreover, due to rising geopolitical tensions and concerns about terrorism, governments are increasing their military budget, which leads to rising investment in the purchase of missile defence systems across their land and maritime borders. During the projected period, this is anticipated to primarily fuel the market's growth.
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Missile Defense System Market Segmentation
Insight by Technology
Based on technology, the market for missile defense system is segregated into a fire control system, weapon system, countermeasure system, and command and control system. The weapon system includes Turret System, interceptors, and Missile launchers. The fire control system includes Air Defense Radar & Fire Control Radar, and Surveillance Radar. Weapon system accounts for the largest share in the missile defense system market owing to the rising tensions at the country’s border, increased focus on missile improvement, robust technological development in the defense sector, and surge in adoption of autonomous weapon systems such as drones and missiles, thereby accelerating the market development of weapon systems in the missile defense system industry. In August 2022, The United States intends to significantly enhance the missile defense system on the island of Guam, the part of American territory that is closest to China. This is a necessary action owing to expanding missile and hypersonic weapon threats from Beijing.
Insight by Domain
Based on a domain the missile defense system market is categorized into ground, air, marine, and space. The ground platform segment is anticipated to contribute the largest share in the industry owing to the surging need to protect ground stations and personnel from aerial threats. This has resulted in the increased need to develop multi-domain integration capable missile defense systems globally, thereby market expansion of ground domain in the missile defense system market.
Insight by Range
Based on range, the missile defence system market is classified into short, medium, and long. The short-range missile segment is anticipated to contribute the highest revenue during the forecast period. Short-range missiles are increasingly in demand as a result of ongoing military engagements involving numerous nations and the need to protect against close short-range threats from hostile attacks. The vertical launch short-range surface-to-air missile (VL-SRSAM) of the Indian Navy completed flight testing at Chandipur's Integrated Test Range.
Insight by Threat Type
Based on threat type, the missile defence system market is segmented into Subsonic Missiles, Supersonic Missiles, and Hypersonic Missiles. Hypersonic missiles are anticipated to grow at a faster pace during the forecast period owing to ongoing research and development activities, technological development, and the surging need to develop advanced missile defence systems globally.
Global Missile Defense System Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. 21.5 Billion
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Revenue Forecast in 2030
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U.S.D. 37.5 Billion
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Growth Rate
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5.5%
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Segments Covered in the Report
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By Technology, By Domain, By Range, and By Threat Type
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia-Pacific, Middle East, and the Rest of the World
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Industry Dynamics
Missile Defense System Market Growth Drivers
There is a continuous increase in the arrival of deceptive, dangerous, and agile threats that have led governments across several countries to invest more in the defense budget and strengthen their military presence, thereby resulting in the market development of missile defense systems. Missile defense systems are used to counter incoming missiles such as ballistic missiles, cruise missiles, and others. Missile defense systems form a shield defense in a specific range of area and are also used for several operations such as air space surveillance using radars and electro-optic sensors. The integration of artificial intelligence (AI) in missile systems will accelerate the market growth of the missile defense system industry. Additionally, businesses are developing advanced surveillance systems that can detect and stop approaching stealth threats, which is projected to accelerate market growth.
Missile Defense System Market Challenges
The escalating expenditures to develop missile defense systems and international plans to transport these systems & weapons across different nations are the most important factors that could restrain the growth of the missile defense system market.
The COVID-19 pandemic has impacted the missile defense industry owing to the drying up of private funding, the reduction in global defense spending in 2020, a slowdown in production, disruption in the supply chain, and the delay of scheduled contracts. This has resulted in a postponement of R&D activities regarding missile defense technology, thus posing a challenge to the growth of the missile defense industry.
Missile Defense System Market Opportunities
The market for missile defence industry is offering several market opportunities to the industry players owing to the below-mentioned reasons:
- Developing Economies have Increased their defence budget and implemented missile defence systems. Hence creating market opportunities for defence market players to supply air defence technologies to these nations.
- Surging Market Growth in Supersonic and Hypersonic Missiles
Missile Defense System Market Geographic Overview
North America is anticipated to dominate the missile defense system market owing to increased expenditure on the defense budget, develop modern strategies for aggressive space-based missile defense systems, and mounting demand for technologically developed missile defense systems. Moreover, North America is the major consumer of defense equipment and is procuring developed weaponry so as to attain military dominance and ensure security and peace.
Missile Defense System Market Competitive Insight
The industry players that are operating in the anti-drone technology are emphasizing enhancing Industry players and government organizations are collaborating to create technologically sophisticated missiles and missile defense systems, such as hypersonic missiles.
Lockheed Martin has been successful in giving its clients access to economical, well-proven, and in-production missiles and missile systems. Precision strike weapons from Lockheed Martin systems provide extended standoff ranges to keep pilots and aircraft safe. They also feature smart submunitions for maximum flexibility for the warfighter, fire support mobile artillery, and guided munitions to control the battlefield. Other Lockheed Martin systems include air-to-air missiles to give pilots aerial superiority, anti-armor missiles launched from helicopters to destroy enemy tanks and other armored vehicles, man-portable short-range anti-armor and assault weapons, kinetic energy hyper-velocity missiles to defeat all present and future armored threats, hit-to-kill air defense systems to shield the troops from ballistic missiles, cruise missiles, and enemy aircraft.
Air and missile defense systems created and backed by Boeing have defended the country, warfighters, allies, and international partners from dangers like intercontinental ballistic missiles and hostile aircraft. They have delivered rapid, reliable e supply quick, dependable capabilities in support of readiness across the globe, thereby Boeing's proven portfolio of precision air and missile defense technologies continues to set the industry standard for performance and price. Their product & systems include Avenger, Directed Energy, Aegis Ballistic Missile Defense, PAC-3 Missile Seeker, and Ground-based Midcourse Defense.
Some of the major players operating in the missile defense market include Boeing, Lockheed Martin Corporation, Saab, Northrop Grumman, Raytheon Technologies Corporation, Thales, General Dynamics Corporation, SAFRAN, BAE Systems, and Hanwha Defense.
Recent Development by Key Players
Boeing has secured a USD 460.6 million contract from the Missile Defense Agency for continued system engineering and integration of a ballistic missile defense system for Guam. The National Team–Systems and Engineering contract covers specialized system engineering guidance, integration, system development and data product delivery for MDA’s ongoing modification of the BMDS architecture. Boeing shall provide technical reports, system reliability assessments, predictive analysis and SE&I data inputs.
Lockheed Martin (LMT.N) has opened new tab has won a USD 17 billion contract to develop the next generation of interceptors to defend the United States against an intercontinental ballistic missile attack. The interceptor program is focused at defeating current ballistic missile threats and future technological advances from countries such as North Korea and Iran.
The Missile Defense System Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Technology
- Fire Control System
- Weapon System
- Countermeasure System
- Command and Control System
- By Domain
- By Range
- By Threat Type
- Subsonic Missiles
- Supersonic Missiles
- Hypersonic Missiles
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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