[Report Description]
The missiles and missile defense systems market is estimated to register a CAGR of over 10% during the forecast period (2020-2025).
- The growing conflicts between various countries and the increasing number of investments on missile defense systems being made by various countries worldwide are the major factors driving the market.
- Technological advancements, in terms of missiles and missile defense systems, may lead to various countries procuring advanced missile defense systems, which may propel the growth in the near future.
- Additionally, fight against terrorism is also expected to support the growth of the missiles and missile defense systems, worldwide.
Key Market Trends
Intercontinental Missiles is Anticipated to Register the Highest CAGR During the Forecast Period
Currently, the intercontinental missiles segment, which has an inherent range of over 5,500 km, dominate the market. Most advanced intercontinental missiles have a range exceeding 12,000 km. Intercontinental missiles can be launched from submarines and can be monitored and controlled using GPS guidance systems. Military powerhouses, such as the United States, the United Kingdom, China, and India, have been focused on augmenting their military firepower and defensive capabilities. To ensure combat readiness of existing defense systems, several weapon modernization programs are currently underway to effectively upgrade the capabilities of the regional armed forces for effectively responding to security threats and accomplish urgent, critical, and dangerous strategic missions. The range and warhead carrying capacity of the intercontinental missiles is driving the potential investments toward the development of advanced ballistic missiles. Besides the development of new weaponry, several new procurement contracts are also underway. Such developments are bolstering the demand for missiles and associated missile defense systems and encouraging missile manufacturers to ramp up production capacity in anticipation of future orders.
North America is Expected to Continue to Lead the Missiles and Missile Defense Systems Market
In the missiles and missile defense systems market, North America is generating the highest revenue at present. North America is the biggest defense spender, globally. North America is witnessing an increase in the number of developments related to missile and missile defense systems. The FY2020 budget entails USD 13.6 billion for missiles and missile defense systems, Also, in May 2019, the US DoD requested USD100 million for the FY2020 budget to develop three new missile systems that would exceed the range limits of the 1987 Intermediate-Range Nuclear Forces (INF) Treaty. The US Defense Forces is procuring advanced weaponry to achieve military dominance in the region, besides ensuring internal peace and security. Recently, the United States successfully carried out testing of a key missile defense system, which has the capability to knock down incoming intermediate-range missiles. The Aegis Ashore system, which was used in the latest test carried out, was fitted with a Standard Missile 3 Block IIA (SM-3 IIA) interceptor being developed in a joint venture between Raytheon Co and Japan’s Mitsubishi Heavy Industries Ltd. The successful test has also led to the US military exploring various options of adding another layer of missile defenses to the already placed defense systems for intercepting incoming missiles. The US government has also announced its plans to develop a new strategy for an aggressive space-based missile defense system, as well as counter advanced cruise missiles, such as the ones currently being developed by China and Russia. Thus, various ongoing developments may lead to the growth of the missiles and missile defense systems market in the North American region during the forecast period.
Competitive Landscape
The emerging security environment, fueled by the growing geopolitical unrest in several countries, is resulting in the growing demand for advanced weapons. In order to gain long-term contracts and expand global presence, players are investing significantly toward the procurement of new missiles and missile defense systems. Furthermore, continuous R&D has been fostering the advancements of accuracy and efficiency of integrated weapon technologies and associated products and solutions of the missiles and missile defense systems. The market is fragmented, with many global players present in the market. Some of the prominent players in the market studied include the Boeing Company, Lockheed Martin Corporation, the Raytheon Company, Northrop Grumman Corporation, and Israel Aerospace Industries, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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