Space-Based Missile Warning and Defense System Market Report 2025

The space-based missile warning and defense system market size has grown strongly in recent years. It will grow from $40.85 billion in 2024 to $43.82 billion in 2025 at a compound annual growth rate (CAGR) of 7.3%. The growth during the historic period can be attributed to the rising demand for real-time threat detection, an increase in defense satellite launches, expansion of cloud-based infrastructure, and the growth of military drills.

The space-based missile warning and defense system market size is expected to see strong growth in the next few years. It will grow to $57.52 billion in 2029 at a compound annual growth rate (CAGR) of 7%. The growth expected in the forecast period is driven by the rising threat of hypersonic missiles, increasing development of anti-satellite missiles, escalating cross-border infiltration, and the growing demand for multi-layered defense systems. Key trends include technological advancements, the development of advanced radar systems, hypersonic threat detection technologies, improvements in missile-tracking satellites, and progress in space-based missile defense systems.

The rise in geopolitical tensions is expected to drive the growth of the space-based missile warning and defense system market. Geopolitical tensions arise from conflicts or strains between countries or regions due to competing political, territorial, economic, or strategic interests, often shaped by geography. Territorial disputes contribute to these tensions by increasing mistrust and prompting military build-ups to defend claimed areas. As a result, the demand for space-based missile warning and defense systems grows, as nations seek strategic early-warning capabilities to deter surprise attacks and maintain military dominance in contested zones. For example, in February 2024, the Institute for Economics and Peace, an Australia-based think tank, reported that deaths from terrorism rose by 22% in 2023 to 8,352, with attacks becoming notably more lethal, averaging 2.5 deaths per incident compared to 1.6 in 2022. Therefore, the growing geopolitical tensions are fueling the expansion of the space-based missile warning and defense system market.

Key companies in the space-based missile warning and defense system market are focusing on advanced ground systems to improve real-time data processing. Advanced ground systems consist of specialized software and hardware platforms on Earth that gather, analyze, and distribute data from space-based sensors to support missile warning and defense operations. For instance, in May 2024, RTX Corporation, a US-based defense firm, launched the Future Operationally Resilient Ground Evolution Mission Data Processing Application Framework (FORGE MDPAF). This modular and flexible system enables quick integration of mission-specific applications to process, analyze, and disseminate satellite data, including overhead persistent infrared (OPIR) information from the U.S. Space Force’s SBIRS constellation, the upcoming Next Gen OPIR satellites, and other civil and environmental sensors.

In February 2024, BAE Systems, a US-based defense, aerospace, and security company, acquired Ball Aerospace from Ball Corporation for an undisclosed sum. This acquisition enhances BAE Systems' position in aerospace and defense by broadening its expertise in space technologies, C4ISR (command, control, communications, computers, intelligence, surveillance, and reconnaissance), and environmental monitoring. Ball Aerospace and Technologies Corp. is a US-based firm that designs and manufactures spacecraft, advanced instruments and sensors, components, data exploitation systems, and radio-frequency solutions.

Major players in the space-based missile warning and defense system market are Raytheon Technologies Corporation, Lockheed Martin Corporation, Airbus SE, Northrop Grumman Corporation, Mitsubishi Heavy Industries, BAE Systems, Thales Group, L3 HARRIS, Leidos Holdings Inc, Hanwha Defense, Israel Aerospace Industries, MBDA, Rafael Advanced Defense Systems, Kongsberg Gruppen, General Atomics, Sierra Nevada Corporation, BlueHalo, Omni Federal, Auria.Space, and SpaceSUR.

North America was the largest region in the space-based missile warning and defense system market in 2024. The regions covered in space-based missile warning and defense report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the space-based missile warning and defense 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.

A space-based missile warning and defense system consists of a network of satellites and ground components aimed at detecting, tracking, and providing early alerts for missile launches, while also supporting missile defense efforts. These systems employ advanced infrared sensors and surveillance technologies in space to continuously monitor global missile activities, allowing for quick response and interception to safeguard military forces and national security.

The key components of space-based missile warning and defense systems include weapon systems, radar systems, command and control units, and early warning systems. Weapon systems integrate technologies that detect, track, and, when necessary, neutralize incoming missile threats through coordinated sensors, interceptors, and command centers. These systems are deployed across various platforms, including airborne, land, and naval, and are used by aerospace industries, defense organizations, government agencies, and the military.

The space-based missile warning and defense system market research report is one of a series of new reports that provides space-based missile warning and defense system market statistics, including space-based missile warning and defense system industry global market size, regional shares, competitors with a space-based missile warning and defense system market share, detailed space-based missile warning and defense system market segments, market trends and opportunities, and any further data you may need to thrive in the space-based missile warning and defense system industry. This space-based missile warning and defense system 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.

The space-based missile warning and defense system market consists of sales of electro-optical and radar sensors, low Earth orbit satellites, and mission data processing systems. 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.

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