Anti-Aircraft Warfare Market Size, Share & Growth

^{_{Update: 11/22/2024}}

The Global Anti-Aircraft Warfare Market Size was valued at USD 20.9 billion in 2023 and is estimated to reach USD 28.6 billion by 2028, growing at a CAGR of 6.5% during the forecast period. The market is driven by factors such as a rising focus on the development of hypersonic missile systems and huge demand for air defense systems.

Anti-aircraft Warfare Market Forecast to 2028

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Anti-aircraft warfare market Dynamics:

Drivers: Increasing development of indigenous air defense systems to drive market

As air-based threats have become more sophisticated and dangerous, there has been an increased demand for air defense systems that can effectively counter them. This has led to increased investment in research and development of new air defense technologies. The development of new technologies, such as radar, missiles, and computers, has led to the development of more capable and effective air defense systems. These new technologies have made it possible to detect and track air targets at longer ranges, and to engage them with more accurate and powerful weapons.

Several countries are investing heavily in their indigenous missile defense systems. For instance, in 2021, Russia developed an S-500 system, which is expected to have a detection range of more than 600 kilometers. India developed its own indigenous air defense system. Also in according to a Global Times report on November 2022, China unveiled several of its latest air defense missile and laser systems at the Airshow China 2022 held in Zhuhai. The defence systems includes HQ-9B surface-to-air missile weapon system, the HQ-16FE mid- to long-range air defense missile weapon system and HQ-II universal terminal defense system.

Restraints: Stringent regulations for arms transfer

Government-run defense contractors are required to adhere to various federal and legislative regulations, including import-export control measures and exchange controls. In numerous nations, munition manufacturers are barred from exporting their wares, limiting their ability to serve foreign clients and hindering their access to global markets.
For Instance, the US government approval is needed to sell arms to another country. The law defining that is the Arms Export Control Act (AECA), which was passed in 1976. The AECA gives the US President the authority to control the export of defense articles and defense services, which are defined as items that can be used for military purposes.s

The UK's equivalent of the AECA is the Export Control Act (ECA). The ECA gives the UK government the authority to control the export of arms and other sensitive goods and technologies. And the EU has a common set of export control regulations called the Common Position on Arms. The Common Position prohibits the export of arms to countries that are involved in armed conflict or that have a poor human rights record.

Opportunities: Development of directed energy-based air defence system

Directed Energy Weapons (DEW) are weapons that use electromagnetic energy, such as lasers or microwaves, to damage or destroy targets. They have the potential to be very effective weapons, as they can be used to target a wide range of targets, including aircraft, missiles, and UAVs. Some of the key areas of research and development in DEWs include:

• Power: DEWs require a lot of power to operate, so one of the main challenges is developing power sources that are compact and lightweight enough to be used on a weapon system.
• Beam quality: The beam quality of a DEW is important for its accuracy and range. Researchers are working to develop ways to improve the beam quality of DEWs.
• Targeting: DEWs need to be able to accurately target their targets. Researchers are developing ways to improve the targeting capabilities of DEWs.

The development of directed energy weapons (DEWs) has been ongoing for many years, but it has accelerated in recent years due to advances in technology. For instance according to a US Government Accountability Office’s (GAO) published report on April 2023,  the office stated “US Department of Defense (DOD) spends USD 1.00 billion annually on developing directed energy—concentrated electromagnetic energy—weapons. For example, DOD has developed high-energy lasers that have successfully shot down drones in demonstrations.”

Challenges: Technical Challenges Of Counter-Unmanned Aerial Vehicles (C-UAV)

Counter-UAV systems face several technical challenges due to the evolving nature of UAV’s and their capabilities. These challenges include:

• Detection and Tracking: Small and low-flying UAV’s can be challenging to detect using traditional radar systems. Developing effective detection methods for these UAV’s is crucial.
• UAV Swarms: Handling multiple UAV’s operating in coordinated swarms is a complex technical challenge. Traditional counter- UAV systems may struggle to address this threat effectively.
• Integration: Integrating counter-UAV systems with existing naval warships, such as destroyers, corvettes etc. can be complex.
• Distinguishing between friendly or foe UAV’s: There is no easy way to distinguish between friendly and hostile drones, especially if they are both flying in the same area. This can make it difficult to know which drones to target.
• Cost and Scalability: Developing and deploying effective counter-UAV systems can be costly. Ensuring affordability and scalability for widespread use is a challenge.

Addressing these technical challenges requires ongoing research and development efforts, collaboration between government agencies and industry, and a deep understanding of UAV technology and its vulnerabilities.

Anti-Aircraft Warfare Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of anti-aircraft defense systems with a global presence. They have been operating in the market for several years and have a diversified product portfolio, state-of-the-art technologies, and robust global sales and marketing networks. Prominent companies include Lockheed Martin Corporation (US), Raytheon Technologies Corporation (US), BAE Systems (UK), and Thales Group (France).

Private and small enterprises have a comparatively limited product portfolio, financial strength, and specialization in specific systems and subsystems. Some companies could enter strategic partnerships and joint ventures with prominent companies to gain a strong foothold in the anti-aircraft warfare market. Currently, private and small enterprises are looking at funding and investments to develop technologically advanced rockets & missiles and enter them into service.

The weapon system segment is projected to register the highest CAGR of 7.1% during the forecast period.

Based on system, the anti-aircraft warfare market has been segmented into weapon system, radar system, electronic warfare system, command and control system and others. The weapon segment will secure leading market position in 2023. It is expected to have a market size of USD 9.19 billion in 2023 and grow at a CAGR of 7.1% to reach USD 12.93 billion in 2028. This is due to the increasing demand for advanced and sophisticated weapons from militaries around the world.

The naval segment is projected to have largest market share for the Anti-aircraft warfare market in 2023.

The anti-aircraft warfare (AAW) market is divided into three segments based on platform: airborne, land, and naval. The naval segment is expected to hold the largest share of the market in 2023, accounting for 55% of the total. This is due to the increasing demand for air defense systems on naval platforms, driven by the development and procurement of new AAW systems for naval ships and unmanned surface vehicles.

The medium range segment is estimated to account for the largest share of the Anti-aircraft warfare market in 2023.

The anti-aircraft warfare (AAW) market is divided into three segments based on range: short range (less than 20 kilometers), medium range (20 to 100 kilometers), and long range (more than 100 kilometers). The medium range segment is expected to hold the largest share of the market in 2023, accounting for 53.3% of the total. This is due to the increasing procurement of medium range anti-aircraft weapon systems and their spare parts, which serve as a vital layer of defense for the protection of strategic infrastructure.

The North American market is projected to contribute the largest share from 2023 to 2028

North America is projected to be the largest regional share of anti-aircraft warfare market during the forecast period. Major companies such as Northrop Grumman Corporation, Lockheed Martin, Raytheon Technologies, and General Dynamics Corporation are based in the US. These players continuously invest in the R&D of new and advanced technology used in air and missile defense system.

Anti-aircraft Warfare Market by Region

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Key Market Players

The Anti-aircraft warfare companies is dominated by a few globally established players such as Lockheed Martin Corporation (US), Raytheon Technologies Corporation (US), BAE Systems (UK), and Thales Group (France).

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Scope of the Report

Anti-aircraft Warfare Market Highlights

This research report categorizes anti-aircraft warfare market based on capability, system, platform, range, and region.

Recent Developments

• In April 2023, Lockheed Martin, Grand Prairie, Texas, was awarded a USD 2.45 billion modification to contract for Phased Array Tracking Radar Intercept on Target (PATRIOT) Advanced Capability-3 missile production.
• In June 2023, Raytheon integrated air defense systems with radars, command and control systems and interceptors to form a multi-layered shield for air base defense.
• In July 2023, The Swedish Defence Materiel Administration and Thales Group signed an agreement for the delivery and installation of SMART-L Multi Mission Fixed (MM/F) long-range radars.
• In August 2022, The Defense Advanced Research Projects Agency (DARPA) awarded BAE Systems plc a USD 14.0 million contract to develop technology aimed at enabling the deployment of advanced signal processing (sensing, imaging, and communications) and computation on a new smaller category of military platforms.

Key Questions Addressed by the Report:

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