Air Defense System Market to Reach $44.62 Billion by 2029 with 6.2% CAGR

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The Business Research Company’s Air Defense System Global Market Report 2025 - Market Size, Trends, And Global Forecast 2025-2034

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What Is The Air Defense System Market Size And Growth?
In recent times, the air defense system market has experienced substantial growth. The market, projected to escalate from $33.05 billion in 2024 to $35.06 billion in 2025, is anticipated to register a compound annual growth rate (CAGR) of 6.1%. The previous growth in this market can be traced back to factors such as military expansion during the cold war era, the advancement of missile defense systems, the risk of aerial warfare, the transition from traditional to asymmetric warfare, and imperatives of national security.

In the following years, the air defense system market is projected to witness robust expansion. Forecasts predict it will reach a valuation of $44.62 billion in 2029, with a compound annual growth rate (CAGR) of 6.2%. The anticipated growth during the projection period can be credited to factors such as increased defense spending, the rising threat posed by unmanned systems, geopolitical turbulence, the need for multi-layered defense, and a shift towards directed energy weapons. The forecast period is also expected to see significant trends like improvements in missile technology, the surge in asymmetric warfare, the spread of drones and UAVs, the integration of air defense networks, and a reinforced emphasis on cybersecurity.

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What Are The Current Leading Growth Drivers For Air Defense System Market?
The escalation in global confrontations is predicted to fuel the expansion of the air defense system market. Such confrontations encompass an array of geopolitical and military oppositions, which have led nations to pour substantial investments into air defense capabilities. These systems are crucial in war and conflict situations as they secure airspace while also protecting against aerial dangers like missiles, drones, and aircraft. As per the Armed Conflict Location & Event Data Project (ACLED), a non-governmental organization based in the US, there were 174 instances of violent crisis documented worldwide in 2022. The full-scale invasion of Ukraine by Russia exacerbated the war to an extent that overshadowed all other conflicts in terms of both scale and casualty rates. Hence, the surge in demand triggered by global confrontations is propelling the expansion of the air defense system market.

Which Companies Are Currently Leading In The Air Defense System Market?
Major players in the Air Defense System Global Market Report 2025 include:
• Lockheed Martin Corporation
• BAE Systems plc
• Rheinmetall AG
• Thales Group
• Northrop Grumman Corporation
• Hanwha Corporation
• Leonardo SPA
• L3Harris Technologies Inc.
• Saab AB
• Israel Aerospace Industries Ltd.

What Are The Main Trends, Positively Impacting The Growth Of Air Defense System Market?
The emphasis on creating cutting-edge weapon systems is a trending development in the air defense systems market. The major players in this market are striving to create unique products to reinforce their market standings. As an illustration, MBDA, a missile systems manufacturer from France, launched the VL MICA NG air defense system, a new generation anti-aircraft missile, in October 2022. The new system, VL MICA NG, has improved abilities to handle non-traditional targets and upcoming threats with diminishingly detectable infrared and radio frequency fingerprints. The existing VL MICA system's conventional targets like airplanes, helicopters, cruise missiles, and anti-ship missiles will also have increased interception ranges.

How Is The Air Defense System Market Segmented?
The air defense system market covered in this report is segmented –

1) By Type: Missile Defense System, Anti-Aircraft System, Counter Rocket, Artillery And Mortar (C-RAM) System
2) By Component: Weapon System, Fire Control System, Command And Control System, Other Components
3) By Range: Short Range Air Defense System, Medium Range Air Defense System, Long Range Air Defense System
4) By Application: Land, Naval, Airborne

Subsegments:
1) By Missile Defense System: Ballistic Missile Defense, Cruise Missile Defense, Terminal High Altitude Area Defense (THAAD), Aegis Ballistic Missile Defense
2) By Anti-Aircraft System: Short-Range Air Defense (SHORAD), Medium-Range Air Defense (MRAD), Long-Range Air Defense (LRAD), Surface-To-Air Missile (SAM) Systems
3) By Counter Rocket, Ground-Based Interception Systems, Airborne Interception Systems, Early Warning And Detection Systems, Integrated Command And Control Systems
4) By Artillery And Mortar (C-RAM) System: Ground-Based C-RAM Solutions, Integrated C-RAM Systems, Mobile C-RAM Platforms, Sensor And Detection Systems, Command And Control Systems

View the full air defense system market report:
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Which Is The Dominating Region For The Air Defense System Market?
For the year specified in the Air Defense System Global Market Report 2025, North America held the forefront as the substantial region. The projection indicates the swiftest expansion happening in the Asia-Pacific region. The report maintains a comprehensive coverage of regions — Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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