Anti-Aircraft Missiles Market Report 2025

The anti-aircraft missiles market size has grown strongly in recent years. It will grow from $9.86 billion in 2024 to $10.64 billion in 2025 at a compound annual growth rate (CAGR) of 7.9%. Growth during the historic period can be attributed to heightened threats from hostile aircraft incursions, increased investment in military modernization initiatives, a rise in cross-border conflict incidents, greater adoption of short-range missile systems, and expanding demand for mobile air defense units.

The anti-aircraft missiles market size is expected to see strong growth in the next few years. It will grow to $14.27 billion in 2029 at a compound annual growth rate (CAGR) of 7.6%. Growth in the forecast period is expected to be driven by the rising threat of aerial terrorism and drone attacks, increased adoption of network-centric warfare strategies, the growing proliferation of ballistic missiles, heightened investment in hypersonic missile defense systems, and the expansion of commercial aviation in conflict-prone regions. Key trends anticipated during this period include the development of hypersonic interceptor missiles, the advancement of lightweight missile platforms, enhanced integration with radar and sensor networks, incorporation into multi-layered defense architectures, and innovations in fire-and-forget missile technologies.

The growth of the anti-aircraft missiles market is being driven by a rise in defense contracts, which are fueled by increasing geopolitical tensions and heightened military spending. Defense contracts are formal agreements between governments and private entities for the provision of military equipment, services, or technologies. The growing volume of such contracts reflects national efforts to strengthen security and military readiness in response to evolving global threats. Anti-aircraft missile systems play a significant role in these contracts by offering strategic defense capabilities and fostering technological innovation. According to the UK Parliament's House of Commons Library, in 2022, the UK secured defense contracts worth approximately USD 15 billion (£12 billion), which represents an increase of around USD 5.8 billion (£4.6 billion) compared to the previous year.

Companies in the anti-aircraft missiles sector are focusing on innovations such as missile-equipped drones to improve accuracy and operational efficiency in air defense. These drones are designed to carry and launch missiles during defense operations without human pilots onboard. In March 2025, Airbus SE introduced a concept called LOAD (Low-Cost Air Defense), a drone armed with missiles intended to counter threats from enemy drones and loitering munitions. Based on the Do-DT25 platform, LOAD can carry up to three guided missiles, has a range of 100 kilometers, and is launched by catapult and recovered by parachute for reuse. It is remotely operated and capable of autonomous threat detection, requiring human authorization before engaging targets.

In November 2024, Bharat Dynamics Limited, an Indian defense manufacturer, entered into a partnership with Rosoboronexport to jointly develop and produce new variants of the Pantsir air defence missile-gun system. This collaboration is intended to strengthen India’s air defense capabilities by promoting local production and technology transfer, aligning with national efforts toward self-sufficiency in defense. Rosoboronexport is a Russian company that specializes in the production of anti-aircraft defense missile systems.

Major players in the anti-aircraft missiles market are Raytheon Technologies Corporation, Lockheed Martin Corporation, Airbus Defense And Space, General Dynamics, Northrop Grumman Corporation, BAE Systems PLC, Thales SA, L3 Harris, Leonardo S.P.A., Hanwha Corporation, Elbit Systems, Israel Aerospace Industries Ltd., Diehl Defence GmbH And Co. KG, Saab AB, Kongsberg Gruppen, MBDA SAS, Aselsan A.S., Rafael Advanced Defense Systems Ltd., Almaz-Antey Air and Space Defense Corporation, Denel SOC Ltd.

Asia Pacific was the largest region in the anti-aircraft missiles market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in anti-aircraft missiles report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the anti-aircraft missiles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Anti-aircraft missiles are precision-guided weapons engineered to detect, track, and neutralize enemy aircraft or airborne threats. They are launched from platforms based on land, sea, or air to safeguard both military installations and civilian zones. These systems employ radar, infrared, or other targeting technologies to effectively engage high-speed aerial targets.

The primary categories of anti-aircraft missiles include air-to-air, surface-to-air, and anti-ballistic missiles. Air-to-air missiles function by transferring energy between airflows without mixing them. Their propulsion mechanisms are typically classified into solid propellant, liquid propellant, and hybrid propellant systems. Warhead types include high-explosive, fragmentation, and nuclear options. These missiles are utilized by various branches of the military, such as the air force, army, navy, and coast guard.

The anti-aircraft missiles market research report is one of a series of new reports that cover anti-aircraft missiles market statistics, including the anti-aircraft missiles industry's global market size, regional shares, competitors with the anti-aircraft missiles market share, detailed anti-aircraft missiles market segments, market trends and opportunities, and any further data you may need to thrive in the anti-aircraft missiles market. This anti-aircraft missiles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The anti-aircraft missiles market consists of revenues earned by entities by providing services such as air defense protection, threat deterrence, surveillance and target tracking, rapid response capability, and force multiplication. The market value includes the value of related goods sold by the service provider or included within the service offering. The anti-aircraft missiles market also includes sales of man-portable air-defense systems, missile launchers and missile guidance systems, interceptor missiles, and naval air defense missiles. 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 and 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.

This product will be delivered within 1-3 business days.