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Latest research on Air Defense System Market With top key players: Saab, Israel Aerospace Industries Ltd., Lockheed Martin, Leonardo S.P.A., BAE Systems, Rheinmetall, Thales Group, Kongsberg Gruppen, Raytheon, MBDA, Northrop Grumman, The Boeing Company, A

04-09-2020 10:29 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: DecResearch.com

/ PR Agency: Air Defense System Market
Latest research on Air Defense System Market With top key

Global air defense system market outlook will be driven by rise in territorial disputes among nations along with vulnerability to air-based threats. Countries across the globe are increasing their defense budget to safeguard their countries with the deployment of advanced air defense systems. In this regard, increasing cross-border conflicts among APAC countries is a key factor fueling industry growth.

Major defense companies are investing in R&D activities to provide advanced air defense systems. Continuous introduction of technologically advanced air defense systems, such as counter UAVs, automatic fire control systems, and hyper sonics missiles will change air defense system market trends over the coming years. Air defense system market is forecast to cross the USD 35 billion mark by 2026.

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Increasing focus on tacking cyber security threats has led defense companies to develop next-gen technologies. Citing an instance, Elbit Systems bagged a four-year, USD 73 million contract from Diehl Defense to deliver J-Music DIRCM (Directed Infrared Counter Measure) system which will be assembled into German Air Force A400M airplanes.

The Major Key Players in the Air Defense System Market are as Follows:
Saab AB, Israel Aerospace Industries Ltd., Lockheed Martin, Leonardo S.P.A., BAE Systems, Rheinmetall AG, Thales Group, Kongsberg Gruppen, Raytheon, MBDA, Northrop Grumman, The Boeing Company, Aselsan A.S., JSC Concern Vko

However, multiple treaties and defense system regulations enforced by governing organizations like NATO, UN, UNESCO, and the EU may impact air defense system market growth. These regulations intend to limit conflicting countries from having excessive defense equipment after a point. Reportedly, the Key Arms Control Treaty, signed by major North American and European countries, restricted the development of missile systems including nuclear weapons. However, in 2019, the United States backed out from the treaty, forcing other countries to improve their air defense systems.

Growing need to upgrade existing defense system and a rising inclination towards adopting new technologies have massively contributed to the growth of air defense system market. Advent of more efficient technologies such as artificial intelligence in drones and implementation of lasers to destroy inbound projectiles would improve systems offering. Reportedly, in 2018, Russia displayed its concept of nuclear-powered cruise missile. As per experts, this missile would be powered by a small nuclear reactor which would allow it to demonstrate an infinite target range at low altitude with cruising speed.

The average investment by major defense companies in R&D activities is more than 10% of their total revenue. Limited contract opportunities and a smaller limited client base is likely to turn the market more competitive. For instance, R&D expenditure of BAE System's has risen from USD 2.02 billion in 2016 to USD 2.18 billion in 2017 and to USD 2.26 billion in 2018. Also, the R&D expenditure of Raytheon increased by 20% in 2018 as compared to its expenditure in 2017.

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Major players in the air defense system market are striving to provide advanced and tailored-made solutions & systems as per specific requirement of government agencies across the globe. The manufacturers are investing heavily in R&D activities in order to develop new technologies and integrate them in defense systems. Invention of hypersonic missiles & utilization of AI & drones for defense applications well exemplifies this.

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