Air Based Defense Equipment Market Report 2026

The air based defense equipment market size has grown strongly in recent years. It will grow from $174.46 billion in 2025 to $186.62 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to growth in global military aviation and air defense programs, technological advancements in radar and surveillance systems, increased production of military aircraft and drones, expansion of satellite-based defense communication systems, government defense budgets driving procurement of air-based defense equipment.

The air based defense equipment market size is expected to see strong growth in the next few years. It will grow to $252.46 billion in 2030 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to rising adoption of advanced radar and sensor technologies, growth in unmanned aerial vehicle (UAV) deployment for defense, increased investment in satellite-based defense infrastructure, modernization of air force fleets with next-generation aircraft, integration of AI and automated systems in air-based defense operations. Major trends in the forecast period include rising production of multirole fighter aircrafts for advanced combat missions, increasing deployment of uavs and combat drones in modern warfare, growing upgrades in radar, fire control, and command systems, expansion of air-based surveillance and reconnaissance capabilities, higher defense spending driving modernization of air-based defense fleets.

The rise in aerial attacks is expected to drive the growth of the air-based defense equipment market in the coming years. An aerial attack refers to a violent action intended to harm or damage people or assets from the air. Air-based defense equipment plays a crucial role in countering such threats, using fighter aircraft to intercept and eliminate enemy aircraft. These systems can also be operated from the ground or from ships in marine environments, targeting and destroying aircraft and other airborne threats. For example, in January 2023, according to the Armed Conflict Location and Event Data Project (ACLED), a US-based non-governmental organization specializing in detailed conflict data, Houthi cross-border aerial attacks rose significantly, with drone incidents increasing by 377%, missile incidents by 153%, and combined attacks by 56%. The Houthis are a large clan originating from Yemen’s northwestern Saada province. Therefore, the rise in aerial attacks is contributing to the expansion of the air-based defense equipment market.

Major companies in the air-based defense equipment market are focusing on developing technologically advanced solutions, such as ballistic missiles, to strengthen strategic deterrence, enhance precision targeting, and improve national security capabilities against emerging threats. Ballistic missiles are weapon systems designed to deliver explosive payloads over long distances through a ballistic trajectory, primarily powered by rocket propulsion. For instance, in June 2024, Israel Aerospace Industries, an Israel-based aerospace and defense company, introduced a new variant of its Lora ballistic missile to enhance Israel’s long-range strike abilities. Ballistic missiles offer considerable advantages, including long-range performance that enables strikes from great distances with minimal fuel consumption, as they travel above the atmosphere and rely on gravity for propulsion. The missile includes advanced navigation features such as GPS guidance and anti-jamming capabilities and can be equipped with various warheads. This successful launch positions Israel among the countries with advanced air-launched missile technology, marking a significant step forward in its military capabilities.

In February 2024, BAE Systems plc, a UK-based defense, security, and aerospace company, acquired Ball Aerospace & Technologies Corp. from Ball Corporation for an undisclosed amount. Through this acquisition, BAE Systems aims to strengthen its role in the space and defense sectors by expanding its technological capabilities and leveraging Ball Aerospace & Technologies Corp.’s expertise in space, science, and mission systems to promote innovation and deliver advanced mission-critical solutions. Ball Aerospace & Technologies Corp. is a US-based company specializing in space technology, scientific instruments, and satellite systems.

Major companies operating in the air based defense equipment market are Lockheed Martin Corporation, Airbus Group SE, The Boeing Company, Leonardo SpA, Bae Systems plc, Raytheon Technologies Corporation, Honeywell International Inc., Northrop Grumman Corp, Rostec State Corporation, Textron Inc, Aviation Industry Corporation of China Ltd., General Dynamics Corp, Thales SA, Almaz Antey Corporation, Safran S.A., PJSC United Aircraft Corporation, Mitsubishi Heavy Industries Ltd., JSC Tactical Missiles Corporation, Rafael Advanced Defense Systems Ltd., Israel Aerospace Industries Ltd., Bharat Electronics Ltd., Hindustan Aeronautics Ltd., Larsen & Toubro Ltd., JSC Rosoboronexport Ltd., Sukhoi Aviation Corporation, ANTK imeni A.N. Tupoleva, Brazilian multinational aerospace corporation, GE Aviation Systems Ltd., Pratt & Whitney Aircraft Company.

Asia-Pacific was the largest region in the air-based defense equipment market in 2025. Western Europe is expected to be the fastest growing region in the forecast period. The regions covered in the air based defense equipment 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 aerospace components, avionics systems, and defense technologies have driven up manufacturing costs and slowed procurement cycles for air-based defense equipment, especially in import-dependent regions across Asia and Europe. Segments most affected include fighter aircraft and drones relying on advanced electronics and propulsion systems. However, tariffs are also promoting domestic production, strengthening local defense manufacturing ecosystems, and encouraging technology innovation to reduce reliance on foreign suppliers.

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

Air-based defense equipment encompasses the support and auxiliary gear essential for air-based defense operations, involving aircraft and radar systems. These systems consist of mobile components deployed in the air and composite installations on the ground.

Key categories of air-based defense equipment comprise fighter aircraft, military helicopters, military gliders, and drones. Fighter aircraft are fixed-wing planes engineered for air-to-air combat engagements with other aircraft. Operations can be either autonomous or manual, and these systems incorporate various components such as weapon systems, fire control systems, command and control systems, and other essential elements.

The countries covered in the air based defense equipment market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The air-based defense equipment market consists of sales of air-based defense equipment including radar, satellites, sonars, and aircraft. 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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