Anti-aircraft Warfare Market size was over USD 21 Billion in 2023 and is projected to reach USD 36 Billion by the end of 2036, witnessing around 7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of anti-aircraft warfare is assessed at USD 22.5 Billion.
The proliferation of sophisticated aerial threats, such as drones and stealthy aircraft, is driving the demand for advanced anti-aircraft warfare systems to counter these emerging threats. In 2021, 89.2 million people were displaced due to armed conflict and violence, highlighting the need for anti-aircraft and similar technological equipment to counter such violence.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7% |
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Base Year Market Size (2023) |
USD 21 Billion |
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Forecast Year Market Size (2036) |
USD 36 Billion |
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Regional Scope |
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Platform (Land, Naval, Airborne)
By the end of 2036, naval segment is expected to account for more than 43% anti-aircraft warfare market share. The segment growth can be attributed to the advanced forms of weaponry and counterattack tactics that are versatile on land, in water, and in air. It is estimated to reach USD 19.4 billion by 2028 alone. The naval sub-segment encompasses a range of platforms such as submarines, surface ships, helicopter, maritime patrol aircraft, and unmanned systems, highlighting the diverse strategies employed to defend naval assets against aerial threats. Additionally, the market analysis emphasizes the significance of the naval sub-segment within the broader anti-aircraft warfare industry, reflecting its critical role in safeguarding maritime territories and assets against airborne threats.
There are continual new development in this sub-segment, one of them being the static automatic transfer switch (SABT). To ensure uninterrupted power for critical systems like radar, weapons, and communications, naval vessels traditionally rely on uninterruptible power supplies (UPS). However, these systems are vulnerable to component failures and maintenance needs. This is where SABT comes in. This automatic switch seamlessly transfers critical loads between power sources, enhancing the reliability of onboard power delivery for naval operations.
Component (Radar Systems, Weapon Systems, Electronic Warfare Systems, Command and Control Systems)
In anti-aircraft warfare market, weapon segment is expected to capture around 39% revenue share by the end of 2036. The segment growth is driven by the increasing demand for advanced and capable weapons to counter evolving aerial threats such as drones, missiles, and increasingly adaptable aircrafts globally. Within this market, the global automatic weapons market is growing at a CAGR of 9.5%. Governments are looking to counter evolving aerial threats, and that means investing in cutting-edge weaponry. This sub-segment encompasses a range of technologies, from surface-to-air missiles to advanced radar and targeting systems. These advancements are crucial for robust defense capabilities against airborne adversaries, whether on land, at sea, or in the air.
Range (Short Range, Medium Range, Long Range)
The medium range segment is set to hold over 42% anti-aircraft warfare market share by the end of 2036. This growth is attributed to the rising demand for medium-range anti-aircraft weapon systems. These systems play a crucial role in safeguarding strategic infrastructure by providing a critical tier of defense. The availability of long-range, medium-range, and short-range anti-aircraft systems fosters a flexible air defense posture. This allows military forces to tailor their deployments based on specific operational needs, ultimately optimizing overall air defense readiness and effectiveness.
Our in-depth analysis of the anti-aircraft warfare market includes the following segments:
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Platform |
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Component |
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Range |
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Capability |
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APAC Market Statistics
Asia Pacific region in anti-aircraft warfare market is poised to hold over 36% revenue share by the end of 2036. The market growth in the region is also expected on account of several factors. Increased defense expenditures by nations such as China, India, and South Korea are driven by a focus on mitigating regional security threats and resolving territorial disputes. The market in China is expected to grow at a CAGR of almost 8% and be valued at an estimated USD 7 billion by 2034. These countries are prioritizing the enhancement of their air defense capabilities to address these potential challenges.
Furthermore, advancements in anti-aircraft warfare technology by regional actors are serving to further stimulate market growth within the Asia-Pacific domain. Consequently, this region is not only the current leader in the market but is also expected to experience the most significant growth trajectory in the foreseeable future. For instance, India announced the acquisition of Igla-S man-portable air defense systems from Russia. This procurement signifies India's ongoing efforts to enhance the combat effectiveness of its armed forces.
North America Market Analysis
The North American region will also encounter significant growth for the anti-aircraft warfare market during the forecast period and will hold the second position owing to several reasons. Firstly, growing geopolitical tensions and concerns about potential aerial threats from rogue nations or terrorist organizations are prompting increased defense spending. This translates to investments in upgrading and developing advanced AAW systems. Secondly, the presence of major defense contractors like Lockheed Martin and Raytheon Technologies in North America fosters a robust ecosystem for research, development, and production of cutting-edge AAW technology. This domestic expertise allows for quicker innovation and easier integration of these advancements into existing defense systems. Finally, North America's role in fostering international alliances also contributes to market growth. By offering advanced AAW systems to allies, North American companies not only expand their market reach but also strengthen global security partnerships. These combined factors position North America as a key driver and leading shareholder in the AAW market for the foreseeable future.
The U.S. Marine Corps is undergoing a major modernization effort (Force Design 2030) to adapt to a shifting security landscape, particularly in the Indo-Pacific region. This includes the development of the Medium-Range Intercept Capability (MRIC), a new missile system designed to fill a critical air defense gap against various threats, as highlighted by Lt. Col. Matthew Beck. MRIC's rapid development signifies the Corps' focus on enhancing its organic capabilities for independent operations in contested maritime environments.
Companies Dominating the Anti-aircraft Warfare Landscape
The following companies are leading the global anti-aircraft warfare market through their strong product portfolios, technological advancements, global presence, and strategic partnerships and collaborations:
The following companies are leading the global anti-aircraft warfare market through their strong product portfolios, technological advancements, global presence, and strategic partnerships and collaborations:
Lockheed Martin Corporation - Lockheed Martin recently delivered a significant upgrade to the US missile defense system. The Long Range Discrimination Radar (LRDR) in Alaska has been handed over to the Missile Defense Agency. This powerful radar can continuously track and identify objects, including ballistic missiles, at very long ranges. LRDR's key strength is differentiating real threats from decoys, allowing for more efficient use of defensive interceptors. This new radar system enhances America's ability to protect itself from missile attacks.
Thales Group - The Dutch military procurement organization, COMMIT, has signed an agreement to acquire seven additional Thales Ground Master 200 Multi-Mission Compact radars (GM200 MM/C), with an option for two more. This follows a previous order of nine GM 200 MM/C radars in 2019. The GM200 MM/C is a highly versatile radar system designed for modern multi-mission warfare, offering radar operators more time-on-target to gather information on incoming threats. Featuring advanced 4D Active Electronically Scanned Array (AESA) technology and unique 'dual-axis multi-beam' capabilities, the GM200 MM/C provides unrestricted flexibility in elevation and bearing, delivering excellent theatre protection capabilities to the Dutch military.
Author Credits: Dhruv Bhatia
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