The air defense system market is expected to grow significantly by 2027 due to the advent of novel and enhanced technologies in air defense systems worldwide.
Air defense systems provide tracking, monitoring, surveillance, weapons delivery, and command and control mechanisms that are used to shield a nation's security. Escalating government investments to promote the upgradation and development of advanced air defense systems across key regions has augmented market uptake in recent years.
Moreover, industry participants have been implementing profitable strategies to gain a competitive edge in the rapidly evolving marketplace, thereby strengthening the global business scenario. For instance, in December 2021, Raytheon Technologies Corporation, a U.S.-based aerospace and defense company, launched its Advanced Medium Range Air to Air Missile (AMRAAM). The novel AMRAAM F3R missile has been equipped with improved software and guidance circuitry to address evolving threats.
The air defense system market has been segregated based on application, component, range, system, and region. From the component perspective, the market has further been divided into command & control system, weapon system, and fire control system. The weapon system sub-segment is projected to exhibit solid growth over the analysis period. Increasing government expenditure to safeguard national interest is likely to fuel product demand over the following years.
In terms of system, the air defense system market has been bifurcated into counter rocket, artillery & mortar (C-RAM) system, missile defense system, and anti-aircraft system. The missile defense system sub-segment is speculated to grow at more than 8% CAGR through the review timeline owing to the rise in geopolitical threats, along with advancements in missile technology in the Asia Pacific region.
Based on range, the market has been categorized into long range air defense system, medium range air defense system, and short range air defense system. In 2020, the short range air defense system sub-segment accounted for a market share of nearly 20% in North America and is slated to witness steady growth over the study timeframe. This growth is attributed to the ability of these systems to provide protection against low-altitude air threats.
With respect to application, the market has been segmented into airborne, land, and naval. The air defense system market share from the airborne sub-segment is anticipated to witness notable expansion over 2021-2027 due to rapid technological advancements in airborne applications.
On the regional spectrum, the LATAM air defense system market is poised to reach a substantial valuation by 2027, expanding at a robust CAGR through the forecast period. Growing need to upgrade existing air defense systems is set to boost market growth in Brazil and Mexico.