Global missiles and missile defence market to reach $67.5bn by 2033

Witness the dynamic demonstration of the Patriot surface-to-air missile system in action. Image credit: Mircea Moira/Shutterstock.

The worldwide market for missiles and missile defence systems (MDS) is expected to see significant expansion in the next ten years, with an estimated worth of $67.5bn by 2033.

Based on GlobalData's report titled "The Forecast for the Market of Missiles & Missile Defense Systems 2023-2033," it is anticipated that the market will experience a growth rate of 4.1% on an annual basis. The report emphasizes the strong presence of platform-centered MDS segment and the geographical distribution of market dominance, with Europe at the forefront.

Predicted Market Domination By Platform-based MDS Segment

There are many reasons behind this perspective, such as a rise in military expenditure and the ever-changing nature of threats. GlobalData's in-depth analysis of the market, titled "The Forecast for the Global Market of Missiles & Missile Defense Systems from 2023 to 2033," supplies valuable knowledge on the market's expansion prospects and significant patterns.

James Marques, an expert in aerospace, defence, and security at GlobalData, stated: "The employment of extended-range cruise missiles, specifically by both factions involved in the conflict in Ukraine, in various scenarios, highlights the immense significance of possessing long-range capabilities for precise and effective strikes."

"It is crucial for every significant military undertaking. In conjunction with Ukraine, the vast geographic spans within the South China Sea region, coupled with the mounting tensions prevalent in that particular area, also render missiles indispensable in that context."

Based on the report, it is expected that the market will experience a Compound Annual Growth Rate (CAGR) of 4.1%, increasing from $45.2 billion in 2023 to $67.5 billion in 2033. Throughout the predicted timeframe, the total amount spent on missiles and missile defense systems in the market is estimated to reach $655.2 billion.

The market consists of nine different categories, which include strategic land-attack missiles, conventional land-attack missiles, guided missiles for targeting tanks (ATGM), missiles for targeting ships (AShM), missiles for targeting radar systems (anti-radiation), missiles for targeting aircraft (anti-air), MDS systems based on platforms, MANPAD systems, and close-in weapon systems (CIWS) based on missiles.

Out of these groups, it is projected that the platform based MDS section will have the highest market dominance, making up 39.6% of the total share. The anti-air missiles category comes in second place with a 24.6% share.

In terms of geography, Europe is expected to be the main leader in this sector, capturing a significant portion of the market at 30.8%. The Asia-Pacific region and North America are also anticipated to have important contributions, accounting for 28.9% and 25.8% of the market respectively.

Examining the primary sectors in different nations, the United States excels in North America by possessing superior categories like anti-air missiles, strategic land-attack missiles, and conventional land-attack missiles.

There have been some significant contracts from the United States recently. For instance, Raytheon was granted a generous sum of $1.15 billion by the US and its allies for the latest AMRAAM missiles. Another noteworthy deal is the US government's authorization to sell 48 Patriot batteries to Poland, amounting to a staggering $15 billion.

Nations Boosting Missile Defenses

China is ahead in the Asia-Pacific area when it comes to platform-centric MDS, strategic land-attack missiles, and anti-radiation missiles. India also keeps up with platform-centric MDS, strategic land-attack missiles, and conventional land-attack missiles. South Korea shows its superiority by highlighting platform-centric MDS, anti-air missiles, and AShM.

On May 30th, South Korea successfully conducted a trial of its advanced long-range surface-to-air missile (L-SAM) interceptor. This interceptor has an intercept altitude that is nearly twice as high as the US Patriot missile.

Additional important nations making significant contributions to the market consist of Russia, Europe's largest economy, Poland, the largest country in Central Europe, Brazil, the largest country in South America, Saudi Arabia, the leading nation in the Middle East, and Israel, a key player in the region. Each of these countries has its dominant sectors based on their market worth. Just recently, Germany procured the Arrow 3 Exoatmospheric Hypersonic Anti-ballistic Missile from Israel Aerospace Industries, paying a substantial sum of €4.3bn.

The article also presents valuable knowledge about the upcoming divisions within the market and the countries that are predicted to contribute to its growth. According to the predictions, the missile segment is estimated to show a yearly growth rate of 4.2%, while the missile defense section is anticipated to expand at a rate of 3.9%. As a result, the total investment in both divisions is expected to reach $67.5 billion by the year 2033.

Nations are enhancing their ability to defend against missiles as they navigate a complicated global political environment. The segment focusing on MDS systems is at the forefront, with Europe leading the way in the market. This presents favorable prospects for industry participants to take advantage of the ongoing upward trend.