Short Range Air Defense System Market Report 2026

The short range air defense system market size has grown strongly in recent years. It will grow from $15.63 billion in 2025 to $16.45 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to increasing demand for short-range air defense systems in modern military operations, rising geopolitical tensions driving procurement of shorad systems, technological advancements in missile interception and tracking, adoption of integrated air defense solutions combining radar and missile systems, growth in maintenance, repair, and testing services for existing shorad platforms.

The short range air defense system market size is expected to see strong growth in the next few years. It will grow to $20.17 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to expansion of shorad systems with enhanced ai-driven target detection, rising development of mobile and modular short-range defense solutions, increasing integration with multi-layered air defense networks, adoption of advanced cybersecurity measures for shorad systems, growing demand for next-generation interceptor missiles and precision tracking technologies. Major trends in the forecast period include growing demand for mobile and adaptable shorad platforms, increased procurement of missile-based shorad over gun-based systems, rising focus on counter-uav and drone swarm defense capability, upgrades for legacy air defense systems with modern components, expansion of multi-layered air defense deployments in conflict-prone regions.

The rise in terrorism is expected to drive the growth of the short range air defense system market going forward. Terrorism involves the use or threat of violence to create fear and achieve political, ideological, religious, or social goals, often targeting civilians to induce panic. Short range air defense systems help prevent terrorist activities by detecting, tracking, and countering aerial threats from terrorists at military bases, critical infrastructure sites, airports, and public events. For example, in 2024, Vision of Humanity, an Australia-based non-government organization, reported that in 2023 the US accounted for 76% of terrorism-related deaths among Western democracies, even as incident rates fell to a 15-year low. Therefore, the rise in terrorism is fueling the growth of the short range air defense system market.

Prominent companies in the short-range air defense (SHORAD) systems market are prioritizing innovation, such as the development of vertical launched short-range surface-to-air missile systems, to deliver dependable services to their clientele. The vertical launched short-range surface-to-air missile system is a next-generation surface-to-air missile crafted for airborne targets within a range of 40 to 50 km and at an altitude of approximately 15 km. For instance, in February 2023, Bharat Dynamics Limited (BDL), an Indian manufacturer of ammunition and missile systems, in collaboration with the Defence Research and Development Organization (DRDO), introduced vertical launched short-range surface-to-air missile systems (VL SR SAM). This system serves as a ship-based, all-weather air defense system, employed by the navy for point defense with rapid reactions against fast-sea skimming threats.

In September 2023, Bharat Electronics Limited (BEL), an Indian aerospace and defense electronics company, entered into a partnership with Israel Aerospace Industries for an undisclosed amount. Through this collaboration, Bharat Electronics Limited (BEL) enhances its cooperation in the domain of short-range air defense systems and reinforces the 'make-in-India' policies to meet their high-end operational requirements. Israel Aerospace Industries, an Israel-based company, specializes in the manufacturing of short-range defense systems.

Major companies operating in the short range air defense system market are Israel Aerospace Industries, Saab AB, BAE Systems plc, Lockheed Martin Corporation, Thales Group, RTX Corporation, Rheinmetall AG, MBDA Inc., Leonardo S.p.A., Elbit Systems Ltd., Kongsberg Gruppen, ASELSAN A.Ş., L3Harris Technologies Inc., Boeing Company, General Dynamics Corporation, Nexter Systems, Diehl Defence GmbH & Co. KG, Bharat Electronics Limited, Norinco Group, Hensoldt AG, Denel Dynamics, Rafael Advanced Defense Systems Ltd., Avibras Indústria Aeroespacial S/A, LIG Nex1 Co. Ltd., Almaz Antey Corporation.

North America was the largest region in the short range air defense system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the short range air defense system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on defense-grade electronics, radar components, and missile guidance systems have increased procurement costs and slowed deployment timelines within the short-range air defense systems market by affecting global sourcing and cross-border defense partnerships. Ground-based and vehicle-mounted SHORAD systems are among the most impacted segments, especially across regions dependent on imported subsystems including Asia-Pacific, the Middle East, and parts of Europe. However, tariffs are also encouraging domestic manufacturing expansion, localized supply chains, and joint-development programs, which may strengthen long-term technological independence and competitiveness in the market.

The short-range air defense systems market research report is one of a series of new reports that provides short-range air defense systems market statistics, including short-range air defense systems industry global market size, regional shares, competitors with a short-range air defense systems market share, detailed short-range air defense systems market segments, market trends, and opportunities, and any further data you may need to thrive in the short-range air defense systems industry. This short-range air defense systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Short-Range Air Defense (SHORAD) systems are military equipment designed to provide protection against low-altitude aerial threats at short ranges, serving various purposes in military operations and defense strategies. These systems act as counter-weapon systems for a range of air threats.

The main component types of short-range air defense systems include weapon systems, fire control systems, command and control systems, and others. Weapon systems are combinations of interconnected components, including weapons, support equipment, electronics, and personnel, working together to achieve specific military or defense objectives. The various ranges include short-range (up to 5 km) and very short-range (up to 2 km), employing technologies such as radar-guided systems, electro-optical systems, infrared (EO/IR) systems, and jamming technologies.

The countries covered in the short range air defense system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The short-range air defense system (SHORAD) market consists of revenues earned by entities by providing services such as maintenance and repair services, cybersecurity services, and testing and evaluation services. The market value includes the value of related goods sold by the service provider or included within the service offering. The short-range air defense system (SHORAD) market also includes sales of iron dome, spyder, and, sky shield. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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