Missile Defense System Global Market Report 2024

The missile defense system market size has grown rapidly in recent years. It will grow from $28.44 billion in 2023 to $31.76 billion in 2024 at a compound annual growth rate (CAGR) of 11.7%. Historical growth can be attributed to government spending and defense budgets, concerns related to terrorism and asymmetric threats, international treaties and agreements, the impact of strategic defense initiatives (SDI), and the influence stemming from the space race.

The missile defense system market size is expected to see rapid growth in the next few years. It will grow to $47.28 billion in 2028 at a compound annual growth rate (CAGR) of 10.5%. Forecasted growth is attributed to arms control impacts, geopolitical instability, emerging threats, military modernization, and space-based defense systems. Key trends include ICBM threats, hypersonic weapon development, drone threats, directed energy advancements, and AI integration.

The anticipated upsurge in global defense spending is poised to propel the growth of the missile defense system market in the forthcoming forecast period. This surge in defense expenditure enables the adoption of vital but costly missile defense system technologies. Advancements in weaponry and offensive capabilities on a global scale have spurred governments' imperative to deploy defense technologies as a preemptive measure against potential threats from foreign entities. For instance, as reported by the Stockholm International Peace Research Institute in April 2023, total global military expenditure surged by 3.7% in real terms in 2022, reaching a record high of $2,240 billion. In 2022, Russian military spending is estimated to have increased by 9.2%, amounting to $86.4 billion. Additionally, the collective military expenditure in Asia and Oceania stood at $575 billion, marking a 2.7% increase compared to 2021. Consequently, this substantial increase in global defense spending serves as a primary impetus behind the growth trajectory of the missile defense system market.

The projected escalation in geopolitical tensions is poised to drive the expansion of the missile defense system market in the foreseeable future. Geopolitical tensions signify political conflicts or disputes among nations, often revolving around territory, resources, power, or ideologies. Heightened tensions prompt nations to prioritize security measures, invest in advanced technologies, and engage in military modernization efforts aimed at countering perceived missile threats. This surge in demand for missile defense capabilities stems from increased global tensions. For instance, data from The Armed Conflict Location & Event Data Project (ACLED) in March 2022 revealed a notable increase in reported events of political violence targeting civilians. In 2020, there were 33,331 reported incidents, which surged by 12% to 37,185 events in 2021. Similarly, civilian fatalities rose by 8%, escalating from 35,879 in 2020 to 38,658 in 2021. Consequently, the mounting geopolitical tensions serve as a driving force behind the growth trajectory of the missile defense system market.

The burgeoning advancements and heightened adoption of artificial intelligence represent a prominent trend that is gaining traction within the missile defense system market. Artificial intelligence embodies computer-based intelligence or the capacity of machines to execute tasks efficiently or undertake tasks previously unattainable. Evolutions in artificial intelligence pertain to the acquisition of knowledge instrumental in crafting products utilizing AI or machine learning. An illustration of this progression occurred in 2021 when Rafael Advanced Defense Systems, an Israel-based firm, introduced the sea breaker maritime and land-based long-range missile. This sophisticated weapon system integrates artificial intelligence and decision-making algorithms, constituting a fifth-generation armament. The sea breaker facilitates precise strikes from a standoff position spanning up to 300 kilometers.

Key players in the missile defense system market are prioritizing strategic collaborations to ensure steadfast services for their clientele. Such collaborations entail mutually advantageous partnerships between independent entities, aiming to achieve common goals that align with their respective strategic objectives. An exemplar occurred in December 2022 when Lockheed Martin Corporation, a US-based aerospace company, disclosed a collaboration with Rafael Advanced Defense Systems Ltd., an Israel-based defense technology firm. The agreement involves joint efforts by Lockheed Martin and Rafael Advanced Defense Systems to develop, test, and manufacture High Energy Laser Weapon Systems (HELWS) across facilities in both the U.S. and Israel. Building upon Rafael's innovative IRON BEAM project, which features a 100kW-class High Energy Laser Weapon System tailored for ground-based air defense, this collaboration seeks to expand and refine this cutting-edge technology for introduction into the American market. The collective endeavor aims to bolster air and missile defense capabilities using advanced laser technology, specifically targeting emerging threats such as rockets, mortars, and UAVs. Additionally, the partnership explores avenues for broader applications within the United States and potentially in other global arenas.

In July 2023, L3Harris Technologies Inc., a prominent US-based aerospace and defense company, completed the acquisition of Aerojet Rocketdyne Holdings Inc. for an undisclosed financial sum. This strategic move has fortified L3Harris' defense industrial base, fostering increased competition and expediting innovation. The acquisition has also diversified L3Harris' portfolio by integrating Aerojet Rocketdyne's expertise in propulsion systems. This collaboration positions L3Harris at the forefront of advancements in critical areas such as missile defense systems, hypersonics, and advanced rocket engines. Aerojet Rocketdyne Holdings Inc., the acquired company, is a US-based aerospace and defense entity renowned for its specialization in propulsion systems and energetics.

Major companies operating in the missile defense system market report are

The Boeing Company, Lockheed Martin Corporation, Deloitte Touche Tohmatsu Limited, China Aerospace Science and Technology Corporation (CASC), General Dynamics Corporation, Honeywell International Inc., BAE Systems PLC, NEC Corporation, Safran S.A., Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Leidos Holdings Inc., Raytheon Intelligence & Space - a business segment of Raytheon Technologies Corporation, Textron Systems Corporation, Northrop Grumman Corporation - Mission Systems Sector, Booz Allen Hamilton Inc., Rheinmetall AG, General Atomics Aeronautical Systems Inc., Elbit Systems Ltd., Israel Aerospace Industries Ltd., Israel Military Industries Ltd. (IMI), MBDA France, Diehl Defence GmbH & Co. KG, Kongsberg Gruppen ASA, Rafael Advanced Defense Systems Ltd., DRS Technologies Inc., Hanwha Defense Systems Co. Ltd., LIG Nex1 Co. Ltd., CEA Technologies SAS.

North America was the largest region in the missile defense system market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the missile defense system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

The missile defense system market consists of sales of missile defense system components including satellite sensors, interceptors, and command and control. 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.