Air Defense Systems Market is Estimated to Witness High Growth Owing to Opportunity in Missile Defense
Air defense systems are deployed to detect and intercept hostile aircraft, missiles and other projectiles. They are capable of countering threats posed by airplanes, helicopters, UAVs, missiles, and rockets. They include radars, surface-to-air missiles, missile launchers and air defense command and control systems. With rising political tensions and transnational threats, demand for air defense systems is growing.
The global Air Defense Systems Market is estimated to be valued at US$ 16.94 billion in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Countries are actively pursuing advanced missile shield capabilities to defend against ballistic and cruise missiles. With nations developing hypersonic and long-range missiles, demand for strong missile defense capabilities is surging. Development of integrated air and missile defense systems with capabilities like theater missile defense, is opening growth opportunities. Investment in technologies like directed energy weapons and lasers for missile intercept is expanding the opportunity. Integration of domains including space and cyber for enhanced missile tracking and destruction is a focus area attracting deals and innovations.
Porter’s Analysis
Threat of new entrants: The Global Air Defense Systems Market Size requires high R&D investments and stringent government regulations which make it difficult for new players to enter the market. However, technological advancements are lowering the entry barriers to some extent.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established players in the market providing differentiated products. However, the needs of defense forces carry significant weight in purchase decisions.
Bargaining power of suppliers: A few large players dominate the supply of key components like missiles, radar systems etc. This gives them substantial bargaining power over OEMs in the industry.
Threat of new substitutes: There are limited substitutes for air defense systems. However, countries are increasingly focusing on developing their own indigenous systems which poses a competitive threat.
Competitive rivalry: The market has the presence of many global players offering varied product portfolios. This leads to intense competition with respect to pricing, capability, support services etc.
SWOT Analysis
Strengths: Established players have strong global presence, robust R&D capabilities and expertise in weapon systems.
Weaknesses: Huge capital requirements and lengthy procurement cycles. Significant dependencies on government contracts and budgets.
Opportunities: Growing defense budgets globally due to geopolitical risks. Countries upgrading their existing fleets to integrate latest technologies.
Threats: Stringent export regulations affecting cross-border deals. Growing indigenization pushes of customers to develop own systems.
Key Takeaways
The global Air Defense Systems market is expected to witness high growth over the forecast period supported by increasing spends on defense capabilities by major countries. According to estimates, the market was valued at US$ 16.94 billion in 2023 and is projected to reach over US$ 30 billion by 2030, reflecting a CAGR of around 10%.
Regional analysis: North America dominated the global market in 2023 with a share of around 35%, led by substantial U.S. defense budgets. Europe and the Asia Pacific are also significant markets driven by upgrade programs in countries like India, Japan and South Korea. The Middle East is expected to be the fastest growing region between 2023-2030 as countries upgrade their capabilities to counter missile and air threats.
Key players operating in the air defense systems market are BASF, Syngenta, Bayer CropScience (formerly Monsanto), DowDuPont (now Corteva), FMC Corporation, ADAMA, Agricultural Solutions. These players are engaged in new product launches, collaborations and mergers & acquisitions to strengthen their market positions. For instance, in 2022 Raytheon collaborated with Kongsberg Defense & Aerospace to expand its National Advanced Surface to Air Missile System capabilities.
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