Missiles Missile Defense Systems Market

Growing defense spending worldwide is driving the market growth

During the projected period, the market for missiles and missile defense systems is anticipated to rise at a rapid pace due to the increase in defense spending worldwide. The increase in defense spending makes it easier to deploy costly but essential technologies for missile defense systems. Governments now need to build defense systems in order to fend off attacks from other nations due to the improvements in weaponry and attacking capabilities. For instance, the Stockholm International Peace Research Institute (SIPRI) reports that overall military spending worldwide grew to $1,981 billion in 2020, a 2.6% rise from 2019.

As the biggest military spender in the world, the United States spent 39% of all military spending in 2020. As a result, the market for missiles and missile defense systems grew as a result of the increase in defense spending.

There has been a marked increase in conflicts practically everywhere in the world over the last ten years. As a result of growing tensions between a number of nations, including China-Taiwan, China-Japan, Israel, India-China, India-Pakistan, and numerous Arab countries, missile defense systems have been developed and purchased. For instance, Russia started supplying the S-400 missile defense systems that India purchased in 2018 for over US$5.5 billion in November 2021.

In addition, in February 2020, Russia finished delivering the second regimental set of its S-400 Triumf long-range interceptor-based air defense systems, which were intended for the Chinese People's Liberation Army Air Force (PLAAF). Thus, throughout the projected period, the worldwide missiles and missile defense system market is anticipated to grow as a result of an increase in conflicts between various nations over control of the commercial and defense domains.

In the market for missiles and missile defense systems, one important trend that is becoming more and more popular is the advancement and application of artificial intelligence. Artificial intelligence is the intelligence exhibited by a computer or machine to help carry out easy tasks more quickly or ones that are impossible for a human to complete. The discoveries that aid in the creation of products utilizing machine learning or artificial intelligence are known as advancements in the field.

To construct a fifth-generation weapon system, Rafael Advanced Defense Systems, an Israeli corporation, released a new sea breaker maritime and land-based long-range missile in 2021. The missile combines artificial intelligence and decision-making algorithms. From the standoff location up to 300 kilometers away, the sea breaker aids in providing precise hits. Thus, driving the missiles and missile defense systems market revenue.

An increase in defense budgets across various nations significantly influences the Global Missiles and Missile Defense Systems Market Industry. Countries are allocating more resources to enhance their military capabilities, particularly in missile defense. For instance, NATO member states have committed to increasing their defense spending to meet the alliance's target of 2 percent of GDP. This trend is likely to bolster the market, as nations prioritize investments in missile defense systems to ensure national security. The anticipated compound annual growth rate of 4.5% from 2025 to 2035 further underscores the potential for sustained growth in this sector.

The Global Missiles and Missile Defense Systems Market Industry is poised for substantial growth, with projections indicating a market value of 26.4 USD Billion in 2024 and an anticipated increase to 42.9 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 4.5% from 2025 to 2035, driven by factors such as rising defense budgets, technological advancements, and increasing geopolitical tensions. The market's expansion is indicative of the global demand for advanced missile defense systems, as nations prioritize national security and invest in cutting-edge technologies to counter evolving threats.

The Global Missiles and Missile Defense Systems Market Industry is driven by escalating geopolitical tensions among nations. Countries are investing heavily in missile defense systems to counter perceived threats, particularly in regions like Eastern Europe and the Asia-Pacific. For instance, nations such as Japan and South Korea are enhancing their defense capabilities in response to North Korea's missile tests. This trend is expected to contribute to the market's growth, with projections indicating a market value of 26.4 USD Billion in 2024, reflecting a robust demand for advanced missile defense technologies.

The Global Missiles and Missile Defense Systems Market Industry is increasingly influenced by the emergence of threats from non-state actors. Terrorist organizations and rogue states are developing missile capabilities that pose significant risks to national security. In response, countries are enhancing their missile defense systems to counter these unconventional threats. For example, the proliferation of short-range ballistic missiles by non-state actors has prompted nations to invest in advanced interception technologies. This evolving threat landscape is likely to drive market growth, as governments seek to protect their territories from diverse missile threats.

Technological innovations play a crucial role in shaping the Global Missiles and Missile Defense Systems Market Industry. The development of advanced radar systems, interception technologies, and artificial intelligence integration enhances the effectiveness of missile defense systems. For example, the United States has been investing in the Aegis Ballistic Missile Defense System, which utilizes cutting-edge technology to detect and intercept incoming threats. As these technologies evolve, they are likely to drive market growth, with expectations of reaching 42.9 USD Billion by 2035, indicating a strong demand for sophisticated defense solutions.

International collaboration and defense partnerships are pivotal in shaping the Global Missiles and Missile Defense Systems Market Industry. Countries are increasingly engaging in joint defense initiatives to enhance their missile defense capabilities. For instance, the collaboration between the United States and Israel on the Iron Dome system exemplifies how nations can pool resources and expertise to develop effective missile defense solutions. Such partnerships not only improve technological capabilities but also foster interoperability among allied forces. This trend is expected to contribute to market growth, as nations seek to strengthen their collective defense against missile threats.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American missiles and missile defense systems market area will dominate this market. The main factor of this is that the US spends more on the military than any other country. The nation is making significant investments in the development and acquisition of new missile defense and launch systems. The FY2022 budget allocates USD 20.3 billion and USD 10.9 billion, respectively, for initiatives related to missile defense and weapons and missiles, respectively.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MISSILES AND MISSILE DEFENSE SYSTEMS MARKET SHARE BY REGION 2022 (USD Billion)

Source Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe missiles and missile defense systems market accounts for the second-largest market share. Numerous missile manufacturers are working together and forming joint ventures in order to share technology and knowledge, and the market is seeing a substantial investment in R&D. Major players are making money by selling governments both domestically and internationally weapons and missile defense systems. Further, the German missiles and missile defense systems market held the largest market share, and the UK missiles and missile defense systems market was the fastest growing market in the European region

The Asia-Pacific Missiles and Missile Defense Systems Market is expected to grow at the fastest CAGR from 2023 to 2032. This increase is explained by the necessity for more sophisticated defense capabilities, contemporary military forces, and rising regional tensions. The market is defined by a competitive environment where major competitors invest in R&D to create cutting-edge technical systems. Moreover, China’s missiles and missile defense systems market held the largest market share, and the Indian missiles and missile defense systems market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the missiles and missile defense systems market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, missiles and missile defense systems industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the missiles and missile defense systems industry to benefit clients and increase the market sector. In recent years, the missiles and missile defense systems industry has offered some of the most significant advantages to medicine.

Major players in the missiles and missile defense systems market are attempting to increase market demand by investing in research and development operations includes Raytheon, MBDA, Lockheed Martin Corporation, Boeing, Rafael Advanced Defense Systems, Thales, Bharat Dynamics, Mectron, Sagem, Makeyev Design Bureau, Tactical Missiles, Kongsberg Defense Systems, Denel Dynamics, Saab, BAE Systems, Alliant Techsystems, Rheinmetall Defense, Northrop Grumman, Aerojet Rocketdyne, and BrahMos Aerospace.

It has been successful for Lockheed Martin to provide its customers with affordable, tested, and operational missiles and missile systems. Lockheed Martin systems' precision attack weapons offer longer standoff ranges to protect pilots and aircraft.

They also include fire support mobile artillery, guided munitions to control the battlefield, and smart submunitions for optimum flexibility for the warfighter.  Additional Lockheed Martin systems include hit-to-kill air defense systems that protect soldiers from ballistic missiles, cruise missiles, and enemy aircraft; anti-armor missiles fired from helicopters to destroy enemy tanks and other armored vehicles; man-portable short-range anti-armor and assault weapons; and kinetic energy hyper-velocity missiles to defeat all current and future armored threats.

Boeing developed and provided support for the nation's air and missile defense systems, which have protected warfighters, friends, and foreign partners from threats like hostile aircraft and intercontinental ballistic missiles.  As a result, Boeing's proven portfolio of precise air and missile defense systems continues to set the industry standard for performance and affordability. They have supplied swift, dependable capabilities in support of preparedness across the globe. Aegis Ballistic Missile Defense, Avenger, PAC-3 Missile Seeker, Directed Energy, and Ground-based Midcourse Defense are some of its systems and products.