Global missiles and missile defense systems market to reach US$52.3bn by 2031

Global missiles and missile defense systems market to reach US$52.3bn by2031, driven by defense modernization initiatives and missile arms-race, says GlobalData

• Territorial disputes and armed standoffs among the regional countries to drive the Asia-Pacific market growth.
• Joint development of missiles through technology sharing among European allies to drive overall regional growth.
• The United States policy shift to drive the procurement of advanced missiles and missile defense systems across the globe over the next decade.The air defense modernization and advanced precision strike missile procurement programs by major countries such as the US, Russia, China, India, and the UK are expected to drive global spending on missiles and missile defense systems (MMDS) over the next decade, to reach US$52.3bn, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, ‘Global Missiles and Missile Defense Systems Market 2021-2031’, reveals that the need to replace outdated air defense systems with next-generation missile defense systems as a part of armed forces modernization initiatives will further drive the Missile Defense Systems segment to reach $22.7bn by 2031 at a compound annual growth rate (CAGR) of 3.27% between 2021 and 2031.

Asia-Pacific region is expected to garner the largest share (29%) in the overall MMDS market over 2021-2031, buoyed by territorial disputes and armed standoffs between regional military powers, which is encouraging the development and procurement of advanced missiles and missile defense systems to augment strike capabilities. However, investments in the European market will see countries partnering together for the joint production and development of missiles, aimed at bringing efficiencies in procurement costs through technology sharing.

Venkatesh Kandlikar, Defense Analyst at GlobalData, comments: “The key trends over the next decade that will contribute to the growth of the market include the development and procurement of missiles with a low infrared (IR) signature and radar cross-section, the development of hypersonic missiles capable of speeds of Mach5+, and the development and induction of precision-guided missiles. We should not forget that with the growing adoption and proliferation of unmanned aerial vehicles (UAVs) worldwide, countries are also focusing on developing advanced air defense systems to counter the growing threat of UAVs.”

In the Middle East, Israel, Saudi Arabia, Bahrain, and Qatar, are all increasing their defense spending as they upgrade and deploy multiple missile defense systems to counter the threat of Iranian missiles after the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA).

Venkatesh adds: “Over the next decade, it is expected that the technological advancements in the development of missiles, such as integration of missiles with anti-jamming seekers (AESA seekers) and an increased focus on the integration of long-range conventional land attack capabilities into modern military platforms, will all contribute to the MMDS market’s growth.”

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