by The global Air Defense Systems Market is estimated to be valued at US$ 14.9 Million In 2022 and is expected to exhibit a CAGR of 13.70% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Air defense systems refer to military systems used to defend a geographical area such as a country, from attacks by aircraft, missiles or other ballistic targets. Air defense systems include radars, surface-to-air missiles, anti-aircraft artillery, and fighter aircraft. They play a crucial role in defending and monitoring air space. Air defense systems allow countries to effectively intercept a variety of aerial threats to their national security from enemy bombers and missiles.
Market Key Trends:
One of the key trends in the air defense systems market is the growing integration of artificial intelligence and machine learning capabilities. Major players are focusing on integrating AI and machine learning technologies to enhance situational awareness, improve threat detection capabilities, and speed of response. For instance, in 2019, Hanwha Defense partnered with Anthropic to integrate AI capabilities into its air defense missile systems. This allows systems to automatically detect and intercept previously unseen threats without human intervention. Another key trend is the increasing demand for mobile and transportable air defense systems for tactical and battlefield use. Lightweight and highly transportable air defense systems offer greater mobility and flexibility compared to stationary systems.
Porter’s Analysis
Threat of new entrants: The air defense systems market requires massive R&D investments and costs for setting up manufacturing facilities, acting as a barrier to entry for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are a few large defense organizations that procure these systems.
Bargaining power of suppliers: A few major players dominate the supply landscape for key components like missiles and radars, giving them significant bargaining power.
Threat of new substitutes: There are no close substitutes for air defense systems, limiting the threat from substitutes.
Competitive rivalry: The market sees intense competition among the major global players due to their capabilities to deliver integrated air defense solutions.
Key Takeaways
The global Air Defense Systems Market is expected to witness high growth, exhibiting CAGR of 13.70% over the forecast period 2023 to 2030, due to increasing geopolitical tensions and asymmetric warfare threats. Regionally, North America dominates currently due to large defense modernization programs in the US. However, Asia Pacific is expected to see the fastest growth due to rising defense spending of China and India.
Key players operating in the air defense systems market are Hanwha Defense, Raytheon Company, Aselsan AS, Israel Aerospace Industries Ltd., The Boeing Company, Rheinmetall AG, Northrop Grumman Corporation, Thales Group, Kongsberg Gruppen, Lockheed Martin Corporation, Leonardo SpA, and SAAB AB. These players are focusing on developing and delivering integrated air defense weapon systems with advanced technologies like machine learning and AI for improved detection and interception capabilities.
The US air defense systems market accounted for the largest share currently owing to heavy investments in national missile defense programs. Ongoing modernization of Patriot systems and development of new programs like THAAD and the Ballistic Missile Defense System have been driving spends. However, Asia Pacific region is projected to witness the fastest CAGR growth led by military upgrade plans in China and India. Both nations are heavily investing in procuring S-400 Triumf systems from Russia along with developing indigenous capabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
