The global advanced missile defense system market was valued at $21.82 billion in 2021, which is expected to grow with a CAGR of 2.18% during the forecast period 2022-2032 and reach $27.05 billion by 2032. The growth in the global advanced missile defense system market is expected to be driven by increasing defense budgets of countries across the globe. According to the Stockholm International Peace Research Institute (SIPRI) report, in 2021, total global military expenditure rose to $2,113 billion, an increase of 0.7% in real terms from 2020. In 2021, the U.S. military expenditure reached an estimated $767.8 billion and accounted for 36.3% of total global military expenditure. With an increase in military spending, the defense spending on missile defense systems is expected to rise.

Read Report Overview: Advanced Missile Defense System Market

A missile defense system is also used against the attack of combat aircraft, helicopters, bombers, UAVs, and stand-off weapons. Missile defense systems are designed to counter the aerial threat for varied distances from short, extended, medium, to long-range threats. As the situation of global tension and instability rises, many emerging countries could increase their defense spending on implementing missile defense systems. Consequently, this situation would provide an opportunity for defense companies to supply air defense capabilities to these nations.

The major driving forces behind the growth of the missile defense systems market are the modernization of missile defense systems, expansion of surveillance radar coverage, and development of modern missile defense systems, including directed energy weapons, counter hypersonic, electromagnetic railguns, and so on. Moreover, the upgradation and development programs of missile defense systems are largely attributed to the increase in demand for missile defense systems and associated investments.

The advanced missile defense system market is observing rising investment across hypersonic missile capabilities, and this is driving the investments across comparable defensive capabilities. Missile defense spending is on the rise, with advanced missile defense systems gaining prominence globally. Increasing demand for directed energy weapons that are gradually considered economic weapons to deal with other low-altitude threats is propelling market demand for sensing components. With new missiles with supersonic and hypersonic capabilities evolving consequently, the need for advanced sensing components for missile defense systems is also on the rise.

The rise in the number of upgradation and development programs due to an increase in defense budget spending is supporting the enhancement of the engagement component. Increasing threats of intermediate-range missile launches and asymmetric warfare are proliferating the enhancement of the engagement component.

Recent Developments in the Global Advanced Missile Defense System Market

• In April 2022, Hyundai Heavy Industries and Israel Aerospace Industries (IAI) Ltd. entered an agreement to supply the Philippine Navy with radar systems for its new Corvette ships. Under the agreement, IAI will deliver its ALPHA 3D Radar for the Corvette fleet. The radar is a derivative of the earlier MF-STAR and offers 3D long-range air surveillance and tracking of targets up to 400 km. IAI and Hyundai will be involved in the integration of the radar into the Corvettes’ combat management system that Hanwha defense manufactures.
• In March 2022, Raytheon Missiles & Defense completed a Series A investment in Firehawk Aerospace. The two companies would now collaborate on research and development projects that enable the integration of Firehawk's propulsion technology into future missile systems. Raytheon will identify key projects that evolve Firehawk’s technology for use in defense applications.
• In March 2022, Lockheed Martin selected Raytheon Technologies to provide the second mission payload aboard its Next-Generation Overhead Persistent Infrared (OPIR) Geosynchronous Earth Orbit missile warning satellite. As part of its contract with the U.S. Space Force (U.S.S.F.) Space Systems Command (SSC), Lockheed will deliver three satellites for early missile warning and hypersonic threats with the launch to GEO orbit by 2025. Raytheon and Northrop Grumman were subcontracted to develop the mission payload designs, and Raytheon was selected again for the second payload aboard the satellites.
• In February 2022, Northrop Grumman Corporation was awarded a contract by the Space Development Agency (SDA) to manufacture satellites for its Tranche 1 Transport Layer (T1TL) mesh network. The contract, estimated to be $692 million, outlines the delivery of 42 low Earth orbit (LEO) satellites which will constitute a constellation for the T1TL network. The T1TL is being developed by the SDA with the objective of providing low-latency, high-volume data transport to support the U.S. military’s global operations. The satellites will be a part of the JADC2 network, supporting ground and sea-based warfighters with battle management, missile tracking, and target custody.
• In January 2022, Hanwha Defense signed a $3.5 billion contract with the U.A.E.-based Tawazun for missile defense weapons systems. The company will manufacture Cheongung II KM-SAM for the country’s air missile defense. Hanwha will also provide the missile’s vertical launchers and ammunition resupply vehicles.

Key Market Players and Competition Synopsis

The companies that are profiled have been selected based on inputs gathered from primary experts and analysis of the company’s coverage, product portfolio, and market penetration.

Request For Sample: https://bisresearch.com/requestsample?id=1349&type=download

In 2021, the top segment players leading the market included established players providing advanced missile defense systems, which constituted 90% of the presence in the market. Emerging market participants included start-up entities that accounted for approximately 10% of the presence in the market.