Comprehensive Market Size Evaluation of Missile Defense Systems

1
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
(2021-2026)
257 Pages Report The Global Missile Defense
System Market size is projected to grow from USD
23.82 billion in 2021 to USD 28.96 billion by
2026, at a CAGR of 3.9 from 2021 to 2026. The
Missile Defense System Industry is expected
to witness growth due toa consistent increase in
defense budget across the globe and the need for
an advanced missile defense system to counter the
modern combat around the countrys border.
Furthermore, increasing investments in missile
defense programs by the governments of several
countries, such as India, the US, and
China, Saudi Arabia, among others are also
expected to offer growth opportunities for
the market player.
To know about the assumptions considered for the
study, Request for Free Sample
Report
2
COVID-19 Impact on the Missile DefenseSystem
Market
The COVID-19 outbreak has led to multiple
challenges for the defense industry. Though the
industry was not severely affectedbut still has
faced many economic problems post the COVID-19
outbreak. Since the beginning of the outbreak,
the defense industry has been hit globally.
The drying up of private financing, reduction of
defense expenditure in 2020 across the globe, and
postponement of scheduled contracts have somewhat
impacted the defense industry. Hence, the
research and development-related activities to
missile defense system have been delayed, due to
which the testing of some missile
defense technology has been delayed. Moreover,
with the slowdown of the supply chain of
the missile defense system due to COVID-19, many
companies are expected to face slack in
production. Thus, impacting the market growth.
Missile Defense System Market Dynamics
Drivers Increasing defense programs of nations
to protect against various threats
The performance of the USs weapon systems is
unmatched, ensuring a tactical combat advantage
for the US military over any adversary. The
Fiscal Year (FY) 2020 acquisition (Procurement
and Research, Development, Test, and
Evaluation (RDTE)) funding requested by the US
Department of Defense (DoD) totals USD 247.3
billion, which includes funding in the Base
budget and the Overseas Contingency Operations
(OCO) fund, totaling USD 143.1 billion for
Procurement and USD 104.3 billion for RDTE. The
funding in the budget request represents
a balanced portfolio approach to implement the
military force objective established by the
National Defense Strategy. Of the USD 247.3
billion in the request, USD 83.9 billion finances
Major Defense Acquisition Programs (MDAPs), which
are acquisition programs that exceed a cost
threshold established by the Under Secretary of
Defense for Acquisition and Sustainment.
According to the Missile Defense Agency, there
has been an increase of over 1,200 additional
ballistic missiles over the last 5 years. The
3
number of ballistic missiles outside the US, the
North Atlantic Treaty Organization, Russia, and
China has risen to over 5,900. Hundreds of
launchers and missiles are currently within the
range of US defense.
Increasing use of early warning systems for
potential air and missile attacks
Air and missile defense systems are used to
monitor various enemy airborne units, such as
aircraft, UAVs, and ballistic and cruise
missiles. These systems generally use long-range
L-band radars and satellites for surveillance.
These systems provide early warning and tracking
capabilities to command and control systems.
Countries such as the US, Russia, China, India,
and North Korea have developed intercontinental ba
llistic missiles, and are working on missiles
with hypersonic capabilities. Early warning
systems are required to successfully defend
against airborne threats. Hence, various
countries are investing heavily in the
development of such systems. In March 2019,
Northrop Grumman Corporation secured a contract
worth USD 350 million from the Polish government
to develop two battle management systems to
assist Polish military authorities in dealing
with uncertain information concerning potential
air and missile attacks.
RestraintsHigh cost of missile defense systems
The cost has been one of the key factors
galvanizing the missile defense program. It is
often the anvil upon which the success or failure
of a missile defense system is forged. Cost is
never the sole reason why a system is deployed or
scuttled, nor should it be. The US Army
successfully developed and then deployed the
Safeguard Anti- ballistic Missile (ABM) system in
North Dakota at a cost of USD 23 billion in
2000, excluding the cost of developing and
building the nuclear warheads. The Safeguard ABM
systems mission is to protect an
Intercontinental Ballistic Missile (ICBM)
field from Soviet attackin the form of a
retaliatorystrike. The system was fully
consistent with the consensus strategic concept
of the day and even with the ABM Treaty. And yet
it survived only four months before the US
Department of Defense shut it down because it was
too expensive to operate, given what became to be
perceived as its marginal contribution to US
security.
4
Despite the compelling need to protect US forces
against an existing theater ballistic missile
threat, a series of test failures led to cuts,
delaying the Theater High Altitude Area Defense
(THAAD) program by several years. The program got
healthy by hitting two of its targets. Budgets
rose and the testing program was quickly ended.
Opportunities Development of new-generation air
and missile defense systems
The development of new-generation missiles with
high-end technologies is a major threat to
strategic locations and platforms, such as
military airbases and ships. Some of these new
developments include nuclear-capable ballistic
missiles and high-speed cruise missiles. Various
countries are developing such advanced weapons
capable of defeating high-end air defense
systems, such as the Medium Extended Air
Defense System (MEADS), the Patriot Advanced
Capability-3 (PAC-3), and the S-400. Countries
like India, China, and Russia have developed
hypersonic missiles that are difficult to
intercept for missile shields. India and Russia
have jointly developed the BrahMos missile, which
is difficult to intercept by older missile
defense shields. These developments have led to
the requirement for new-generation high-speed air
defense electronic warfare systems. Governments
worldwide are focusing on the development of
stealth aircraft. At the same time, they are also
investing heavily in advanced surveillance
systems to counter stealth technology.
Challenges Inability of missile defense systems
to intercept threats on any part of the trajectory
Currently, missile defense systems are only
developed and designed to carry out
an interception at the mid-course (middle) or
terminal (final) stage of a missiles
trajectory, even though a missile is slowest
during its boost (beginning) phase. The 2019
US Missile Defense Review and Congress have both
called for further study of boost- phase
intercept capabilities, proposing the
controversial development of interceptors in
space or other emerging capabilities, such as
drones or lasers. Left of launch capabilities
have also been proposed, which would aim to
counter a missile threat before it is even
launched.
5
The weapon system technology segmentaccounted for
the largest share of the missile defense system
market in 2020.
By technology, the weapon system segment
accounted for the largest share (43.9) of the
missile defense system market in 2020. Weapon
systems include interceptors, gun/turret systems,
and missile launchers that are used to destroy
incoming threats, including ballistic missiles.
Missile launchers are designed to launch all
kinds of surface-to-air missiles (SAMs) from the
ground to destroy incoming enemy missiles. A
missile launcher is not only capable of launching
missiles but can also be integrated with
command-and-control stations of missile defense
systems. This enables commanders and crew of
missile defense systems to improve the execution
of their air and missile defense operations by
properly evaluating the threat and
taking required command decisions for missile
defense fire.
The short range segment is expected to lead the
missile defense system during the forecast period
Based on range, the missile defense system market
has been segmented into short (up to 1,000 km),
medium (1,000-3,000 km), long (gt3,000 km).
Increasing threats of intermediate-range missile
launches and asymmetric warfare are some of the
factors fueling the growth of the missile defense
system market. The short range segment
is expected to lead the market from USD 13,092
million in 2021 and is projected to reach USD
15,939 million by 2026, at a CAGR of 4.01 from
2021 to 2026. An increasing threat from
intercontinental ballistic attacks across the
world is fueling the growth of the
intermediate-range missile defense system segment.
The hypersonic missiles threat type segmentis
projected to grow at the highest CAGR rate for
the missile defense system market during the
forecast period.
Based on threat type, the missile defense system
market has been segmented into subsonic missile,
supersonic missile, and hypersonic missile. The
missile defense system market, by threat type, is
estimated to be USD 23,914 million in 2021 and
is projected to reach USD 29,703 million by 2026,
at a CAGR of 4.43 from 2021 to 2026.The
hypersonic missile segment is projected to grow
at highest CAGR of 7.78
6
from 2021 to 2026. Technological advancements,
continuous RDs, as well as the need for advanced
missile defense systems across the globe are some
of the major factors driving the growth of the
threat type segment of the missile defense
system market.
The ground domain segment is expected to dominate
the market during the forecast period
Based on domain, the missile defense system
market has been segmented into ground, air,
marine, and space. The need for advanced,
multi-domain integration capable missile defense
systems across the globe is one of the major
factors driving the growth of the domain segment
of the missile defense system market
The North American market is projected to
contribute the largest share from 2021 to 2026
North America is projected to be the largest
regional share of missile defense system market
during the forecast period. Major companies such
Northrop Grumman Corporation , Lockheed Martin,
Boeing, Raytheon Technologies, and
General Dynamics Corporation are based in the US.
These players continuously invest in the RD of
new and advanced technology used in missile
defense system.
To know about the assumptions considered for the
study, download the pdf
brochure
Missile Defense System Industry Companies Top
Key Market Players
The Missile Defense System Companies are
dominated by globally established players such as
Northrop Grumman Corporation (US), Lockheed
Martin (US), Boeing (US), Raytheon Technologies
(US), and General Dynamics Corporation (US).
7
Get online access to the report on the World's
First Market Intelligence Cloud

Easy to Download Historical Data Forecast
Numbers Company Analysis Dashboard for high
growth potential opportunities Research Analyst
Access for customization queries Competitor
Analysis with Interactive dashboard
Latest News, Updates Trend analysis
REQUEST SAMPLE
Click on image to enlarge
Scope of the Report
Report Metric
Details
Market size available for years
20172026 2020
Base year considered Forecast period Forecast
units
2021-2026 Value (USD Million)
By Technology, By Range, By Threat Type, By
Domain and By Region
Segments covered
8
North America, Europe, Asia Pacific, and Rest of
the World
Geographies covered Companies covered
Northrop Grumman Corporation (US), Lockheed
Martin (US),
Boeing
(US),
Raytheon
Technologies (US), and General Dynamics
Corporation (US).
The study categorizes the missile defense system
market based on technology, range, threat type,
domain, and Region.
By Technology
Fire Control System

Weapon System
Countermeasure System Command Control System
By Range
Short

Medium Long
By Threat Type
o Subsonic Missiles o Supersonic Missiles o
Hypersonic Missiles
By Domain
o Ground o Air
o Marine o Space
By Region
o North America o Europe
o Asia Pacific o Rest of the World
9
Recent Developments
o In 2021, the US Army Contracting Command issued
a USD 11.62 million FMS modification contract to
Northrop Grumman to install its Integrated Air
and Missile Defense Battle Command System (IBCS)
in Poland with an estimated completion date of 31
December 2025.
o In 2020, Boeings Huntsville operation was
awarded a USD 249 million contract modification
in support of the only operationally
deployed missile defense capable of shielding the
entire US against long-range ballistic missile
attacks.
o In 2019, Israel Aerospace Industries entered
into an agreement with the Indian Navy to provide
Naval Medium Range Surface-to-Air Missile systems
worth USD 93 million.
Frequently Asked Questions (FAQs) Addressed by
the Report
o What are your views on the growth prospect of
the Missile defense system market?
o Response The Missile defense system market is
expected to grow substantially owing to the
technological development in designing of
the technologically advanced missile defense
system.
o What are the key sustainability strategies
adopted by leading players operating Missile
defense system market?
o Response Key players have adopted various
organic and inorganic strategies to strengthen
their position in theMissile defense
system market. The major players includeNorthrop
Grumman Corporation (US), Lockheed Martin (US),
Boeing (US), Raytheon Technologies (US),
and General Dynamics Corporation (US). These
players have adopted various strategies, such as
new product development and agreements, to expand
their global presence in the market further.
o What are the new emerging technologies and use
cases disrupting Missile defense system?
o Response Some of the major emerging
technologies and use cases disrupting the market
include hypersonic threat type missiles, long
range missile defense system and development of
weapon system for space domain.
o Who are the key players and innovators in the
ecosystem of theaircraftMissile defense system
market?
10
o Response The key players in the Missile
defense system market include Northrop Grumman
Corporation (US), Lockheed Martin (US),
Boeing (US), Raytheon Technologies (US), and
General Dynamics Corporation (US)..
o Which region is expected to hold the highest
market share in the Missile defense system market?
o Response Missile defense system in North
America is projected to hold the highest market
share during the forecast period. . The key
factor responsible for North AmericaMissile
defense systemgrowth, owing to the rise in
defense expenditure and demand for
technologically advanced missile defense system.