Missile Defense System Market by Technology (Fire Control System, Weapon System, Countermeasure System, and Command and Control System), Range (Short, Medium, and Long), Threat type, Domain (Ground, Air, Marine, and Space), and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Missile Défense System Market size is projected to reach a CAGR of 12.7% from 2023-2030.
Missile defense is a system, weapon, or technology involved in the detection, tracking, interception, and destruction of attacking missiles. Conceived as a defense against nuclear-armed intercontinental ballistic missiles (ICBMs), its application has broadened to include shorter-range non-nuclear tactical and theatre missiles.
The increasing defense budget to modernize the army, navy, and air force will drive the growth and development of the missile defense system market. The changing geopolitical dynamics, which highlight the critical nature of having robust surveillance and defensive infrastructure and systems to protect countries from untoward aggression, will increase investments in developing new army, naval, and air missile defense systems. Collaborative efforts between governments and private market players will also provide lucrative opportunities for the growth of the missile defense system market. The growing trend of defense indigenization will propel the growth of the missile defense system market. The rise of extremist groups and organizations leading to cross-border terrorism, targeted attacks, and killings have pressured governments to improve their security measures to protect national interests, defense assets, civilian infrastructure, and the lives of their citizens. Integrating advanced weaponry to combat enemy actions has garnered the attention of governments, who are now producing high-end missile defense systems that are strategically placed to intercept and destroy incoming threats.
On the other hand, the most prominent aspects that might hinder the growth of the Global Missile Defense System Market include the increasing costs of developing missile Defense systems, coupled with the international strategies to transport these systems & weapons across different nations.
The rapid spread of COVID-19 had a significant impact on the global missile defense system market in 2020, owing to the implementation of strict lockdown measures across the world. The COVID-19 pandemic led to several challenges for the missile defense system industry such as disruption in the supply chain of raw materials, logistics challenges, and others. On the other hand, the missile defense system manufacturers had to reduce expansion and R&D investments to withstand the decline in revenue and operating performance of the defense industry. The delay in purchase orders and slow production rate were some of the challenges observed in the missile defense system market throughout the year, and are expected to continue for a few years.
The growing demand to defend against missile threats posed by state and non-state actors, the increasing frequency of missile tests, and the proliferation of missile technology have made missile Defense a critical component of national Defense strategies around the world. Governments around the world are investing in missile Defense systems to enhance their national security along with encouraging leading companies to focus on developing advanced sensor technology, command and control systems, and interceptors. Further, geopolitical tensions continue to rise and cause international tensions & threats of conflicts between nations are constantly evolving in today’s world scenario which led to increased market growth of the Missile Defense system in the next coming years.
North America to Dominate the Market