Missiles and Missile Defense Systems Market Research Report Information By Type (Missile Defense Systems, Surface-To-Air Missiles, Air-To-Surface Missiles, Air-To-Air Missiles, and Anti-Ship Missiles), By Application (Military, Simulation Exercises, and Other), By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Global Missiles and Missile Defense Systems Market Overview

Missiles and Missile Defense Systems Market Size was valued at USD 24.2 Billion in 2022. The missiles and missile defense systems market industry is projected to grow from USD 25.28 Billion in 2023 to USD 35.963 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.50% during the forecast period (2023 - 2032).  The primary market drivers of the demand for missiles and missile defense systems (MMDS) have emerged as the pursuit of precision strike missile capabilities and the upgrade of air defense systems.

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Missiles and Missile Defense Systems Market Trends

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.

Missiles and Missile Defense Systems Market Segment Insights

Missiles and Missile Defense Systems Type Insights

The missiles and missile defense systems market segmentation, based on type includes Missile Defense Systems, Surface-To-Air Missiles, Air-To-Surface Missiles, Air-To-Air Missiles, and Anti-Ship Missiles. The missile defense systems segment dominated the market. The purpose of missile defense systems is to identify, track, and destroy enemy missiles that are approaching the earth. Nations all over the world are buying new missile defense systems in an effort to get ahead in the competition for military supremacy. One of the main factors propelling the market's expansion is the rising defense budget as well.

Missiles and Missile Defense Systems Application Insights

The missiles and missile defense systems market segmentation, based on application, includes Military, Simulation Exercises, and Other. The military category generated the most income. The military's procurement and modernization efforts to meet new threats are anticipated to be the main drivers of the missiles and missile defense systems market's growth. A parallel demand for countermeasures like interceptor missiles and missile defense systems is expected during the forecast period due to the numerous contracts currently in place for military aircraft, infantry fighting vehicles (IFVs), helicopters, and armored personnel carriers (APCs) mounted with launchers and warheads.

Figure 1: Missiles and Missile Defense Systems Market, by Application, 2022 & 2032 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Missiles and Missile Defense Systems Regional Insights

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, MRFR 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.

Missiles and Missile Defense Systems Key Market Players & Competitive Insights

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.

Key Companies in the missiles and missile defense systems market include

• 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


• BrahMos Aerospace

Missiles and Missile Defense Systems Industry Developments

For Instance, September 2023 Germany and Israel agreed to a USD 3.5 billion purchase of a missile defense system. Germany's response to Russia's aggressiveness in Ukraine is this purchase of the missile defense system.

For Instance, July 2022 The defense minister of Canada highlighted emerging technologies like hypersonic missiles and announced improvements to the Arctic air and missile defenses with the US. Over the following six years, the Canadian government proposed spending USD 3.8 billion on the armed forces.

Missiles and Missile Defense Systems Market Segmentation

Missiles and Missile Defense Systems Type Outlook

• Missile Defense Systems


• Surface-To-Air Missiles


• Air-To-Surface Missiles


• Air-To-Air Missiles


• Anti-Ship Missiles

Missiles and Missile Defense Systems Application Outlook

• Military


• Simulation Exercises


• Other

Missiles and Missile Defense Systems Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America