Market Trends of Asia-Pacific Missiles and Missile Defense Systems Industry
Intercontinental Missiles are Anticipated to Register the Highest CAGR During the Forecast Period
Based on segmentation by range, the intercontinental missiles segment is expected to register the highest growth during the forecast period. The manufacturing and procurement costs of intercontinental missiles are higher compared to others, as they need to travel farther distances and deliver more lethal warheads (like nuclear weapons) with high accuracy, compared to small, medium, and intermediate-range missiles. In Asia-Pacific, countries like China, India, Japan, North Korea, and South Korea, have been developing intercontinental missiles. Also, most of the countries in Asia- Pacific have been among the top 10 highest military spenders globally. Increasing defense expenditures is also a primary reason for the growth of the market in Asia-Pacific.
In addition to the existing intercontinental missiles, countries in the region are also focusing on developing submarine-launched ballistic missiles (SLBMs) that have intercontinental ranges. For instance, India is currently developing the K-6 missile, which is an intercontinental submarine-launched ballistic missile with an expected range of around 6,000 km. The Advanced Naval Systems Laboratory of the Defense Research and Development Organization is developing the K-6. In July 2022 it was announced that India may test the 10,000 km ICBM Agni-6 missile within the next three years. Such developments are expected to help the growth of the segment in the years to come. In addition, the advantages of intercontinental missiles compared to other types are expected to be a key factor in attracting more investments toward the development of intercontinental nuclear missiles in Asia-Pacific during the forecast period.
China is Expected to Lead the Market During the Forecast Period
The Asia-Pacific missiles and missile systems market is expected to be dominated by China during the forecast period. China is the second-largest defense spender in the world. The country has grown its missile strength over the years. China has one of the largest inventories of missiles in the world, placing it among the top 5 countries possessing the greatest number of missiles globally. The disputes over the South China Sea and with several other neighboring nations have propelled the country to build and deploy a sophisticated, lethal, and advanced missile arsenal. The country has a combination of ballistic and cruise missiles launched from air, land, and sea, further enhancing the country's missile strength. China is also testing advanced missile systems. For instance, in September 2022, China announced that it is developing an anti-ship missile that turns into a torpedo during its terminal phase and has the ability to combine flight and underwater capabilities in one weapon to increase the probability of a successful strike. In May 2021, The Xinjiang Military Command of China's People Liberation Army (PLA) received the country's latest field air defense missile system and self-propelled 122 mm multiple rocket launcher system. In addition, with the adversary countries also developing advanced missile systems, the threat of missile proliferation has resulted in the country developing advanced missile defense systems for homeland protection. All these factors are expected to help the country dominate the market in the years to come.
