Americas Air Defense Systems Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| Forecast Data Period | 2024 - 2028 |
| CAGR | > 6.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Americas Air Defense Systems Market Analysis
The Americas Air Defense Systems Market is anticipated to register a CAGR of over 6% during the forecast period.
- The nature of warfare has changed in recent years with the advent of more lethal, agile, and untraceable air-based threats having autonomous capabilities. The potential adversaries of the US are developing advanced aerial weapons, which is propelling the country to safeguard its territory from these challenging threats at any cost, due to which the emphasis on enhancing the air defense capabilities increased in recent years.
- Apart from the US, countries in the region are prone to various air-based threats and lack advanced air defense systems to protect their huge territories and military assets. This underlying demand is expected to generate opportunities for air-defense systems manufacturers in the region in the years to come.
Americas Air Defense Systems Market Trends
This section covers the major market trends shaping the Americas Air Defense Systems Market according to our research experts:
Air-based Segment is Expected to Grow with the Highest CAGR during the Forecast Period
In segmentation by Platform, the Air-based segment is expected to grow with the highest CAGR during the forecast period. There is a growing procurement of aerial threat detection radars and air-to-air missiles to achieve air dominance and battlefield advantage in aerial dogfights. Fighter jets and attack helicopters are being equipped with advanced sensors and weapon systems, primarily to detect and intercept aerial threats. For instance, in June 2019, the European company MBDA announced that it has won a USD 225 million contract to supply 100 Meteor air-to-air missiles to be equipped on Brazilian Gripen NG fighters.
The missile offers a multi-shot capability against long-range maneuvering targets, jets, UAVs, and cruise missiles in a heavy electronic countermeasures (ECM) environment, with a range exceeding 100 km (62 miles). The aircraft equipped with these systems are expected to be commissioned by the Brazilian Air Force in 2021 or 2022. Similarly, several countries are developing or ordering advanced air-launched missiles and aerial radars to detect and neutralize aerial threats, many of which are scheduled to enter service during the forecast period. Such developments are expected to drive the air-based segment of the market during the forecast period.
North America is Expected to Dominate the Market During the Forecast Period
During the forecast period, North America is projected to dominate the market by growing with the highest CAGR. The region also accounted for the highest market share in 2019. The US is the prime demand generating market for air defense systems in North America. The enhancement in the capabilities of the potential adversaries of the US is forcing the country to increase its investment in technologically advanced air defense systems. Other factors, such as the growing geopolitical tensions and terrorism and the engagement of the US in various global conflicts, significantly contributed toward the growth of the procurement of air defense systems by the US armed forces. In February 2020, the current US president proposed an FY 2021 budget of USD 740.5 billion for national security, of which USD 705.4 billion is allocated for the Department of Defense (DoD). With a high military spending and the potential adversaries fielding an increasingly diverse, expansive, and modern range of regional offensive weapon systems that can threaten the US forces, its allies, and partners, the US DoD is actively expanding and modernizing the US regional air defenses. In April 2020, the US Missile Defense Agency (MDA) disclosed its plans to modernize and sustain the currently deployed missile defense systems that have been specifically designed to neutralize incoming ICBM threats. Developed by Boeing under a USD 6.6 billion contract spanning till 2023, the Ground-based Midcourse Defense System (GMD) comprises more than 44 ground-based interceptors buried in silos in the ground along with ground control stations, detection and fire control systems, and other support infrastructure. Likewise, the US is adding several aerial threat detection and countermeasure systems into its arsenal, which are expected to bolster the market prospects in North America during the forecast period.
Americas Air Defense Systems Industry Overview
Some of the prominent players in Americas Air Defense Systems Market are Raytheon Technologies Corporation, Northrop Grumman Corporation, The Boeing Company, Lockheed Martin Corporation, Israel Aerospace Industries, among others. The market is witnessing a significant investment in research and development of advanced air-defense systems. To cater to the increasing demand for interceptor missiles and air defense systems, defense contractors are forming strategic partnerships to enhance their technical capabilities. For instance, in March 2020, Lockheed Martin awarded a contract to BAE Systems to design and manufacture a next-generation seeker for the Terminal High Altitude Area Defense (THAAD) weapon system, fielded by the US Army. Such collaborations will help the players in attracting new customers and increase their market presence and share in the region during the forecast period.
Americas Air Defense Systems Market Leaders
Raytheon Technologies Corporation
Northrop Grumman Corporation
The Boeing Company
Lockheed Martin Corporation
Israel Aerospace Industries
*Disclaimer: Major Players sorted in no particular order
Americas Air Defense Systems Market Report - Table of Contents
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1. INTRODUCTION
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1.1 Study Assumptions
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1.2 Scope of the Study
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2. RESEARCH METHODOLOGY
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3. EXECUTIVE SUMMARY
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4. MARKET DYNAMICS
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4.1 Market Overview
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4.2 Market Drivers
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4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
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4.4.1 Threat of New Entrants
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4.4.2 Bargaining Power of Buyers/Consumers
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4.4.3 Bargaining Power of Suppliers
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4.4.4 Threat of Substitute Products and Services
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4.4.5 Degree of Competition
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5. MARKET SEGMENTATION
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5.1 Platform
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5.1.1 Air-based
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5.1.2 Sea-based
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5.1.3 Land-based
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5.2 Geography
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5.2.1 North America
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5.2.1.1 United States
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5.2.1.2 Canada
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5.2.2 Latin America
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5.2.2.1 Mexico
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5.2.2.2 Brazil
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5.2.2.3 Rest of Latin America
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6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
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6.1.1 Raytheon Technologies Corporation
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6.1.2 Israel Aerospace Industries
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6.1.3 Lockheed Martin Corporation
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6.1.4 Northrop Grumman Corporation
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6.1.5 The Boeing Company
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6.1.6 Rafael Advanced Defense Systems Ltd.
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6.1.7 Thales Group
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6.1.8 Saab AB
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6.1.9 Leonardo SpA
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6.1.10 Kongsberg Gruppen ASA
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6.1.11 BAE Systems plc
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7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Americas Air Defense Systems Industry Segmentation
The scope of the study includes all the radars and interceptors used by air, land, and sea platforms, to detect and destroy incoming threats of missiles (ballistic and cruise), aircraft, UAVs, rockets, artillery, and mortars. MANPADs, pedestal mounted MANPADs, and remote weapon stations that can defend against incoming airborne threats automatically tracking, targeting, and firing are also included in the study.
| Platform | |
| Air-based | |
| Sea-based | |
| Land-based |
| Geography | |||||
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Americas Air Defense Systems Market Research FAQs
What is the current Americas Air Defense Systems Market size?
The Americas Air Defense Systems Market is projected to register a CAGR of greater than 6% during the forecast period (2023-2028).
Who are the key players in Americas Air Defense Systems Market?
Raytheon Technologies Corporation, Northrop Grumman Corporation, The Boeing Company, Lockheed Martin Corporation and Israel Aerospace Industries are the major companies operating in the Americas Air Defense Systems Market.
Which is the fastest growing region in Americas Air Defense Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Americas Air Defense Systems Market?
In 2023, the North America accounts for the largest market share in the Americas Air Defense Systems Market.
Americas Air Defense Systems Industry Report
Statistics for the 2023 Americas Air Defense Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Americas Air Defense Systems analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
