Missiles and Missile Defense Systems Market Global Report 2026

The missiles and missile defense systems market size has grown strongly in recent years. It will grow from $21.03 billion in 2025 to $22.2 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to escalation of the Cold War arms race, development of ballistic missile technologies, establishment of missile defense shield systems, advancements in radar and tracking capabilities, and increasing geopolitical conflicts.

The missiles and missile defense systems market size is expected to see strong growth in the next few years. It will grow to $27.79 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to the rising threat of hypersonic weapons, expansion of space-based surveillance infrastructure, increased defense modernization initiatives, growing investment in directed energy weapon systems, and escalation of asymmetric warfare risks. Major trends in the forecast period include hypersonic missile interception and defense technologies, expansion of space-based missile tracking and early warning systems, integrated multi-layer air and missile defense networks, deployment of advanced directed energy weapons, and evolution of electronic warfare and countermeasure systems.

The increase in military spending is expected to drive the growth of the missiles and missile defense systems market going forward. Military spending refers to the financial resources allocated by governments to maintain, modernize, and strengthen their armed forces and defense capabilities. Military spending is increasing due to escalating geopolitical conflicts and evolving security threats, encouraging governments to invest heavily in advanced defense technologies and military modernization initiatives to enhance national security. Military spending supports missiles and missile defense systems by financing the research, development, procurement, testing, and deployment of advanced missile and interception technologies. For instance, in April 2026, according to the Stockholm International Peace Research Institute, a Sweden-based independent international institute, global military expenditure reached $2.88 trillion in 2025, representing a 2.9% real-term increase compared to 2024. Therefore, the increase in military spending is driving the growth of the missiles and missile defense systems market.

Leading companies operating in the missiles and missile defense system market are focusing on adopting strategic partnerships to enhance strike capabilities, improve rapid response operations, and strengthen next-generation defense preparedness. A strategic partnership is a collaborative agreement between organizations to combine resources, expertise, and technologies for achieving shared business goals, strengthening capabilities, and expanding market opportunities. For example, in April 2024, Lockheed Martin Corporation, a US-based aerospace and defense company, partnered with CoAspire, a US-based aerospace company, to unveil the Mako Multi-Mission Hypersonic Missile during Sea Air Space 2024. It is designed for deployment from multiple combat aircraft platforms, including the F-35, and offers multi-role strike capabilities against missile defense systems and maritime targets. The system emphasizes affordability, survivability, and high-speed operational flexibility to support next-generation military missions.

In July 2023, L3Harris Technologies, a US-based aerospace and defense technology firm, acquired Aerojet Rocketdyne for an undisclosed value. Through this acquisition, the company reinforced its position within the missile and defense sector by broadening its expertise in rocket propulsion systems, strengthening involvement in key missile programs, and enhancing supply chain integration for advanced defense technology solutions. Aerojet Rocketdyne is a US-based company specializing in the development of rocket propulsion systems used across missiles and missile defense applications.

Major companies operating in the missiles and missile defense systems market are Lockheed Martin Corporation, RTX Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Mitsubishi Heavy Industries Ltd., MBDA Missile Systems, Safran S.A., Boeing Defense Space & Security, L3Harris Technologies Inc., Leonardo S.p.A., Thales Group, Kawasaki Heavy Industries Ltd., Rheinmetall AG, Hanwha Aerospace Co. Ltd., Elbit Systems Ltd., Israel Aerospace Industries Ltd., Saab AB, Diehl Defence GmbH & Co. KG, Kongsberg Defence & Aerospace AS, Rafael Advanced Defense Systems Ltd., Roketsan Roket Sanayii ve Ticaret A.S., Tactical Missiles Corporation JSC.

North America was the dominant region in the missiles and missile defense systems market in 2025. Asia-Pacific is expected to be the rapidly expanding region in the forecast period. The regions covered in missiles and missile defense systems report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the missiles and missile defense systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The missiles and missile defense systems market consists of revenues earned by entities by providing services such as surveillance and threat monitoring, target acquisition and tracking, command and control operations, and early warning and threat assessment. The market value includes the value of related goods sold by the service provider or included within the service offering. The missiles and missile defense systems market also includes sales of surface-to-air missiles, interceptor missiles, missile launch systems, radar and tracking systems, command and control systems, guidance systems, and propulsion 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 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.

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

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