Global Air Defense Systems Market Is Expanding Owing To Growing Defense Expenditure

Air Defense Systems Market

The use of Air Defense Systems (ADS) is one of the central aspects of modern warfare. Various systems may perform this function, including missiles like the S-400 and Pantsir, and aircraft such as the F-15C Eagle and MiG-35 Fulcrum fighters. ADS are designed to detect and destroy hostile aircraft by tracking them in three dimensions. They have to identify the target, categorize it as friend or foe, and aim at that position in time and space — taking into account the speed of the target and the projectile. These tasks are aided by sensors that create an awareness of the battlefield, such as air surveillance radars. These transform radar returns into tracks of incoming aircraft, then identify them as friend or foe, and finally track them so that the interceptors can be launched at them.

Growing investments are estimated to augment growth of the global Air Defense Systems Market during the forecast period. For instance, a contract of USD 4.7 billion was secured by Lockheed Martin in April 2022. This investment will be used for manufacturing radar and THAAD air defense systems that will defend against short- and medium-range ballistic missiles. Moreover, rising cost of developing air defense systems and regulatory hurdles is anticipated to restrain growth of the global air defense systems market during the forecast period.

The Global Air Defense Systems Market Size Was Valued At US$ 14.9 Million In 2022 And Is Anticipated To Witness A Compound Annual Growth Rate (CAGR) Of 13.70% From 2023 To 2030.

The pandemic was first reported in 2019 in China. The pandemic had a huge impact on many businesses across the world. Several countries were using all their resources for battling COVID-19. This led to decrease in investments on defense systems. Thus, the pandemic had a negative impact on the growth of the global air defense systems market. However, in the post-pandemic era there has been an increase in demand for air defense systems, owing to increasing geopolitical tensions among some nations. This is expected to augment growth of the market.

Key Takeaways:

The global Air Defense Systems Market is expected to witness robust growth, exhibiting CAGR of 13.70 % over the forecast period, due to increasing product approvals. For instance, the resupply of (THAAD) missile interceptors to the UAE and Patriot missile interceptors to Saudi Arabia was approved by the U.S. State Department in August 2022.

Asia-Pacific is anticipated to witness robust growth in the global Air Defense Systems Market during the forecast period, due to growing investments and increasing development of advanced air defense systems.

Key players active in the global air defense systems market are Leonardo S.P.A., Hanwha Corporation, Israel Aerospace Industries Ltd., Northrop Grumman Corporation, The Boeing Company, Raytheon Company, JSC Concern Vko "Almaz-Antey", Saab AB, Elibit Systems, Lockheed Martin Corporation, L3 Harris, Bae Systems PLC, General Dynamics, Rheinmetall AG, Aselsan A.S., and Kongsberg Gruppen.