Europe Missiles & Missile Defense Systems Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.79 Billion |
| Market Size (2029) | USD 4.83 Billion |
| CAGR (2024 - 2029) | 4.94 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Missiles & Missile Defense Systems Market Analysis
The Europe Missiles And Missile Defense Systems Market size is estimated at USD 3.79 billion in 2024, and is expected to reach USD 4.83 billion by 2029, growing at a CAGR of 4.94% during the forecast period (2024-2029).
- The Russia-Ukraine conflict altered the European defense landscape. Thus, European Union (EU) and North Atlantic Treaty Organization (NATO) member states acted collaboratively and aggressively to defend political and defense interests. A progressive and strategic increase in the European defense budget and the launch of infantry support projects are expected to create demand for sophisticated new-generation missiles with advanced capabilities, thereby driving the market in focus during the forecast period.
- However, the supply chain disruptions have deleteriously affected the sourcing of critical components and materials for the design, development, and manufacturing of sophisticated missiles and missile defense systems. Furthermore, the market is also affected by the long R&D cycle and cost-intensive nature of the defense industry, which exposes market players to economic fluctuations.
Europe Missiles & Missile Defense Systems Market Trends
Short Range Missiles to Dominate the Market Share During the Forecast Period
- Europe's geopolitical landscape includes neighboring regions with potential security threats. Short-range missiles are well-suited for defense against immediate and nearby threats, making them strategically vital. Short-range missiles are anticipated to hold the largest market share during the forecast period. A ballistic missile with a range of 1,000 km (620 mi) or less is referred to as a short-range ballistic missile (SRBM). They are primarily used as a strategic deterrent in local conflicts due to their relatively low cost and ease of configuration.
- Due to tumultuous military scenarios in the region, such as Russia's invasion of Ukraine, cross-border conflicts, and rising terrorism, European nations have significantly increased their annual defense spending and associated military budget. For instance, in February 2022, the German government allocated an additional USD 112.7 billion to its armed forces, including provisions for investments and weaponry programs for German military forces. In addition, the French Armed Forces proposed a USD 42.9 billion military budget for 2023, marking a USD 3.0 billion increase over the previous year.
- Moreover, Europe faces a diverse range of threats, including drones, cruise missiles, and ballistic missiles. Short-range missile defense systems are versatile and can counter various threats effectively. Furthermore, the increasing acquisition of modern defense systems fuels market expansion throughout Europe. For instance, in December 2022, Rafael Advanced Defense Systems was awarded a contract worth USD 236 million to supply short- and long-range missiles to the Finnish military.
Russia to Exhibit the Highest Growth Rate
- The ongoing conflict with Ukraine and border disputes with North Atlantic Treaty Organization (NATO) countries have boosted the demand for weapons and defense supplies. The ongoing conflict in Ukraine has led to an exceptionally high demand for artillery ammunition. Both Russia and Ukraine have been rapidly consuming artillery rounds. This situation creates opportunities for Russia's defense industry to replenish and expand its production capabilities. Russia was the third largest defense in the world and the highest spender in Europe, with a defense budget of USD 86.4 billion in 2022.
- The defense expenditure rose by 9.2% from the previous year. In light of the Russian invasion of Ukraine in February 2022, the government stated its intention to increase military spending further in the coming years. The Russian government has remade its economy to focus on defense production, reallocating a significant portion—nearly a third—of its commercial economy toward arms production. This economic shift and revenue from high energy prices enable Russia's security services and Ministry of Defense to invest in military production despite economic challenges. Its defense modernization efforts and arms race with the United States, China, and other European countries are propelling the growth of the missile and missile defense systems market in Russia.
- In March 2023, Russia's Ministry of Defense announced that it would complete the modernization of missile defense systems. They will also be deploying new units: one air defense division, one air defense brigade, one regiment equipped with S-350 medium-range air defense systems, the space monitoring radar station Razvyazka, and one special operations brigade for air and missile defense. Thus, growing defense expenditure and rising procurement of advanced missile defense systems are expected to drive the demand from Russia during the forecast period.
Europe Missiles & Missile Defense Systems Industry Overview
The European missile and missile defense systems market is semi-consolidated and dominated by MBDA, Saab AB, Lockheed Martin Corporation, THALES, and RTX Corporation. The market is witnessing a significant investment in research and development, and many missile manufacturers are collaborating and forming joint ventures to share technologies and expertise. Key players are generating revenue by selling missiles and missile defense systems to national and foreign governments. For instance, Saab AB signed a framework agreement with the government of a Western country and received orders within the agreement for several defense systems. The total order value is approximately USD 800 million, with deliveries planned for 2023–2026. Similarly, in February 2023, MBDA and THALES (Franco-Italian consortium Eurosam) were awarded a contract for the production of 700 ASTER medium-range surface-to-air anti-aircraft missiles for France and Italy. As per the contract, Italy and France will get the Aster 15, Aster 30B1, and the latest version of Aster 30 B1NT missiles.
Europe Missiles & Missile Defense Systems Market Leaders
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Saab AB
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Lockheed Martin Corporation
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THALES
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MBDA
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RTX Corporation
*Disclaimer: Major Players sorted in no particular order
Europe Missiles & Missile Defense Systems Market News
- September 2023: Germany signed a USD 3.5 billion deal with Israel to buy a missile defense system. This purchase of the missile defense system is Germany's response to the Russian war of aggression in Ukraine.
- September 2022: Raytheon Missiles & Defense, a business unit of RTX Corporation, was awarded a USD 972 million contract to supply advanced medium-range air-to-air missiles (AMRAAMs) for the US Air Force and US Navy. The company has also won contracts to supply to the militaries of 19 other countries, including the UK, Italy, Australia, Saudi Arabia, and Japan.
Europe Missiles & Missile Defense Systems Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Missile Defense Systems
- 5.1.2 Air-to-Air missiles
- 5.1.3 Air-to-Surface missiles
- 5.1.4 Surface-to-Surface missiles
- 5.1.5 Surface-to-Air missiles
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5.2 Range
- 5.2.1 Short
- 5.2.2 Medium
- 5.2.3 Intermediate
- 5.2.4 Intercontinental
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5.3 Geography
- 5.3.1 United Kingdom
- 5.3.2 Germany
- 5.3.3 France
- 5.3.4 Russia
- 5.3.5 Italy
- 5.3.6 Spain
- 5.3.7 Sweden
- 5.3.8 Rest of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 MBDA
- 6.2.2 RTX Corporation
- 6.2.3 The Boeing Company
- 6.2.4 Lockheed Martin Corporation
- 6.2.5 THALES
- 6.2.6 Saab AB
- 6.2.7 BAE Systems plc
- 6.2.8 Kongsberg Gruppen ASA
- 6.2.9 Rheinmetall AG
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Missiles & Missile Defense Systems Industry Segmentation
The missiles are designed to deliver a large warhead over long distances with high precision. Modern cruise missiles can travel at high subsonic, supersonic, or hypersonic speeds. They are self-navigating and can fly on a non-ballistic, extremely low-altitude trajectory.
The European missiles and missile defense systems market is segmented by type, range, and country. By type, the market is segmented into missile defense systems, air-to-air missiles, air-to-surface missiles, surface-to-surface missiles, and surface-to-air missiles. By range, the market is segmented into short, medium, intermediate, and intercontinental. The report also offers the market size and forecasts for countries across the region (United Kingdom, Germany, France, Russia, Italy, Spain, Sweden, and Rest of Europe).
For each segment, the market sizing and forecasts have been done based on value (USD).
| Type | Missile Defense Systems |
| Air-to-Air missiles | |
| Air-to-Surface missiles | |
| Surface-to-Surface missiles | |
| Surface-to-Air missiles | |
| Range | Short |
| Medium | |
| Intermediate | |
| Intercontinental | |
| Geography | United Kingdom |
| Germany | |
| France | |
| Russia | |
| Italy | |
| Spain | |
| Sweden | |
| Rest of Europe |
Europe Missiles & Missile Defense Systems Market Research FAQs
How big is the Europe Missiles And Missile Defense Systems Market?
The Europe Missiles And Missile Defense Systems Market size is expected to reach USD 3.79 billion in 2024 and grow at a CAGR of 4.94% to reach USD 4.83 billion by 2029.
What is the current Europe Missiles And Missile Defense Systems Market size?
In 2024, the Europe Missiles And Missile Defense Systems Market size is expected to reach USD 3.79 billion.
Who are the key players in Europe Missiles And Missile Defense Systems Market?
Saab AB, Lockheed Martin Corporation, THALES, MBDA and RTX Corporation are the major companies operating in the Europe Missiles And Missile Defense Systems Market.
What years does this Europe Missiles And Missile Defense Systems Market cover, and what was the market size in 2023?
In 2023, the Europe Missiles And Missile Defense Systems Market size was estimated at USD 3.61 billion. The report covers the Europe Missiles And Missile Defense Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Missiles And Missile Defense Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Missiles and Missile Defense Systems Industry Report
Statistics for the 2024 Europe Missiles And Missile Defense Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Missiles And Missile Defense Systems analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
