The Asia-Pacific ballistic missile market is projected to grow with a CAGR of more than 5 % during the forecast period.
- Owing to the factors such as global tensions between the major economies of the world and increasing territorial disputes in the region along with the increasing spending by the economies such as India and China on enhancing the military power and mordenization initiatives to increase the strength and defense system of the country, the APAC Ballistic Missile Market is expected to witness high growth during the forecast period.
- China which is the world's second largest spender on militiry and defence is estimated to have spent around USD 261 billion for its military programs in the year 2019 which is 5 % more than the 2018 spendings. India's military spending incread by around 7 % to USD 71 billions in the year 2019.
- However, because of the ongoing pandemic situation, COVID-19 may affect the national spending on defense sector in the region but the market is expected to grow after the situation comes to normalcy which is expectedd during the second half of the year 2021.
Key Market Trends
Intercontinental Segment to Witness Highest Growth
During the forecast period, it is expected that by range segment, the intercontinental ballistic missiles will register the highest growth rate. Owing to the factors such as high accuracy over other small, medium and intermediate range missiles, the intercontinental range missiles are being researched and developed by the countries in the region, which will give higher growth as compared to other missiles during the forecast period.
For instance, in December 2018, India test-fired the long-range intercontinental ballistic missile (ICBM), Agni-V, from the eastern coastal state of Odisha successfully and it has been reported that India is working on development of Agni VI which will be more advanced and powerful. North Korea is testing its missiles on a regular basis and more tests are expected to be conducted by the country during the forecast period as the country is spending heavily in enhancing the military power.
China Remains the Leader in 2019
In the year 2019, China fired more than 100 missiles during the testing and exercise, which is more than any other country in the world, one key type of missile is the DF-26 intermediate-range ballistic missile with a range of 4000 kms and DF-21D medium-range anti-ship ballistic missiles. It establishes the fact that China is enhancing its missile strength at a very rapid pace. In October 2019, during the 70th anniversary parade China showcased inter-ballistic missile Dong Feng-41 (DF-41) which has a range of around 15,000 km and is capable of reaching United States in 30 minutes, it also showcased JL-2, a submarine-launched ballistic missile.
According to the Stockholm International Peace Research Institute in 2018, China spent an estimated USD 250 bn on its military. China is also spending heavily in development of latest technology for missile launch vehicles. The development of latest DF-17 is considered to be the major technological accomplishment by Country.
The major players in the APAC Ballistic Missile Market are DRDO, Lockheed Martin Corporation, Northrop Grumann Corporation, General Dynamics Corporation and BAE Systems PLC. The major players are investing heavily in research and development of new and advanced missile technologies to gain market share. For instance, in February 2020, DRDO announced that they are developing a 200 Kms range tactical surface to surface ballistic missile named Pranash for India.
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