Description
The global missiles and missile defense systems market size was USD 45.6 billion in 2023 and is projected to reach USD 75.9 billion by 2031, with a CAGR of 6.5% during the forecast period from 2023 to 2031.
Global Missiles and Missile Defense Systems Market: Overview
The global market for missiles and missile defense systems comprises a wide range of equipment used in military operations. Missiles serve an array of operates, include targeted strikes, discouragement, and protection against threats. This market includes conventional and innovative missile systems, along with the required defense measures for detecting and eliminating hostile missiles. Market for these systems is motivated by international tensions, disputes over territory, and the need to bolster national security. Improvements in technology like as more precision targeting, better spectrum, and greater payload capacity all help to drive the development of this sector.
Global Missiles and Missile Defense Systems Market: Covid-19 Impact
The impact of COVID-19 on the missile defense system industry remains uncertain, with effects expected to persist for the foreseeable future. The pandemic prompted global authorities to enforce stringent restrictions on commodity trade throughout 2020 and briefly in 2021, causing a significant decrease in the supply of essential materials for ground defense systems. Additionally, national lockdowns resulted in partial or complete shutdowns of parts manufacturing facilities. As a result, the COVID-19 crisis has led to delays in efforts to develop advanced missile defense technologies worldwide.
Global Missiles and Missile Defense Systems Market: Growth Drivers
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Geopolitical Tensions:
Rising international tensions fuel demand for missiles and defense systems. The Russian takeover of Ukraine sparks an increase in global defense expenditure. Southeast Asian countries have invested significantly in US defense amid increasing concerns about China. The United States improves missile defense abilities using artificial intelligence-powered devices such as ADSR. Lockheed Martin arrives important contracts, include $950 million for missiles in Ukrainian and $50 billion for F-35s, confirming the robust worldwide consumer market for modern weapons systems.
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Technological Advancements:
Geopolitical tensions are growing towards an arms race as nations enhance their missile arsenals for deterrence and defense. The United States and its allies have concentrated on new ground-launched missiles in the the Indo-Pacific region in reaction to China and Russia’s worries following the termination of the INF Treaty. Countries in the Indo-Pacific are building up their brief to intermediate-range missile stockpiles, escalating regional worries about security. Developments in missile technology, such as hypersonic cruise missiles and AI-enabled weapons, are reshaping army plans, broadening battle locations, and having geopolitical implications.
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Defense Budgets and Investments:
Rising defense budgets, particularly in emerging nations, combined with investments in research and development (R&D) for new missile systems, help to drive market growth.
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Proliferation of Non-State Actors:
The proliferation of non-governmental organisations and terrorist organisations with possession of missile technology emphasises the significance of efficient missile defense apparatus for combating asymmetrical threats.
Global Missiles and Missile Defense Systems Market: Restraining Factors
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Regulatory Challenges:
Stringent laws and regulations governing arms exports, as well as international penalties provide hurdles for manufacturers and suppliers in the worldwide missile and missile defense systems industry.
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Cost Constraints:
Advanced missile systems have high development and procurement costs, which limit their affordability and accessibility, especially for lower defense budgets.
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Technology Transfer and Intellectual Property Rights:
Issues related to technology transfer, intellectual property rights, and cybersecurity concerns pose challenges for international collaboration and cooperation in missile defense programs.
Global Missiles and Missile Defense Systems Market: Opportunity Factors
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Rising Threat of Asymmetric Warfare:
The growing threat of unconventional warfare, such as terrorism and rebellion, increases the need for versatile and adaptive missile defenses. Systems like these play an important role in operations against terrorism and asymmetrical conflict scenarios.
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Growing Emphasis on Homeland Security:
Governments are concentrating more on homeland security and defending vital facilities from possible dangers. This involves investing in missile defense mechanisms to intercept and neutralise approaching threats, so enhancing overall national security.
Global Missiles and Missile Defense Systems Market: Challenges
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Proliferation of Missile Technology:
The proliferation of missile technology among non-state actors and rogue authorities poses an important risk to global security. Efforts to restrict the widespread distribution of missile technology and materials are essential for reducing this threat.
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Integration and Interoperability:
Achieving flawless interoperability and integration among diverse missile systems and defense resources is a difficult task. Standardization of protocols and interface is required for efficient collaboration and coordination in joint activities.
Global Missiles and Missile Defense Systems Market: Segmentation
Based On Type: The market is segmented into Surface-to-Air Missiles, Surface-to-Surface Missiles, Air-to-Air Missiles, Air-to-Surface Missiles, Anti-Ship Missiles, Ballistic Missiles, Cruise Missiles, and Others.
Based On Range: The market is segmented into Short Range, Medium Range, Intermediate Range, and Intercontinental Range.
Based On End User: The market is segmented into Military and Homeland Security.
Based On Region: Based on Region, the market is segmented into five key geographical regions namely – North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Global Missiles and Missile Defense Systems Market: Regional Insights
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Asia-Pacific
The Asia-Pacific area has seen an upsurge in the missiles and missile defense systems industry, encouraged by increased military spending & political unrest. Countries such as China, India, and South Korea engage in domestic missile programes to enhance their defense capabilities. Australia works with the United States of America and Japan to create an Integrated Air and Missile Defense (IAMD) capacity, urgently installing technologies to improve defense against air and missile threats while emphasizing cooperation in regional security and interoperability.
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North America
North America is a large market for missiles and missile defense systems, owing to substantial defense spending and technological innovation. The United States, in specific, invests substantially in missile defense systems to defend against growing threats.
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Europe
Europe represents another key market for missiles and missile defense systems, with countries such as Russia and France developing advanced missile technologies. The European Union is also investing in collaborative defense projects to enhance regional security.
Global Missiles and Missile Defense Systems Market: Competitive Landscape
Lockheed Martin Corporation, Raytheon Technologies Corporation, BAE Systems plc, Northrop Grumman Corporation, MBDA Inc., Thales Group, Rafael Advanced
Global Missiles and Missile Defense Systems Market: Recent Developments
- February 2024: BAE Systems completed the acquisition of Ball Aerospace from Ball Corporation for $5.5 billion. The transaction was funded through existing cash and new external debt.
- July 2022: L3Harris Technologies secured a contract to develop the Tranche 1 Tracking Layer satellite program for the Space Development Agency (SDA). This program, valued at up to $700 million, aims to detect, identify, and track advanced missile threats, serving as “eyes in the sky.”
- March 2019: Northrop Grumman Corporation was awarded a $713 million contract by the United States Army for the production of the Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS). This system will be deployed in the first phase of Poland’s WISA air and defense program.
