Market Trends of Ground-based Aircraft And Missile Defense Systems Industry
Missile Defense Systems is Projected to Show Highest Growth During the Forecast Period
- Missile defense systems will showcase remarkable growth during the forecast period. Due to the increased military spending by developed and developing economies worldwide, missile technology is witnessing rapid growth. Therefore, it becomes necessary for nations to safeguard their ground assets, such as classified military bases, etc., from an incoming missile threat.
- For instance, in August 2022, the Missile Defense Agency signed a contract worth more than USD 3 billion with Northrop Grumman to integrate and manage weapon systems within the Ground-based Midcourse Defense system. The system is designed to defend the US from intercontinental ballistic missiles from North Korea and Iran.
- Under the contract, the company will provide design, development, deployment, and sustainment support for new capabilities for the GMD weapon system program. Furthermore, European nations, such as Germany and France, are indigenously developing their missile defense systems to reduce their dependency on NATO and the US.
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North America to Dominate the Market During the Forecast Period
- North America is projected to show remarkable growth during the forecast period. The growth is attributed to the increasing defense expenditure and rising procurement of next-generation missile defense systems from the US and Canada. According to the Stockholm International Peace Research Institute (SIPRI), the US is the largest defense spender in the world, with a defense budget of USD 801 billion.
- With potential adversaries, such as Israel, Russia, and China, fielding an increasingly diverse, expansive, and modern range of regional offensive missile systems that can threaten the US forces, its allies, and partners, the US Department of Defense (DoD) is actively expanding and modernizing the United States regional missile defense. The US has been testing improved variants of the Aegis SM-3 and SM-6 missiles and fielding a new sensor to increase Aegis missile defense capabilities significantly.
- The US DoD also plans to improve the capability and reliability of the Ground-based Midcourse Defense (GMD) system. The upgrades include equipping the recently deployed GBIs with an advanced booster and a more capable Exo-atmospheric Kill Vehicle (EKV). Such developments are envisioned to drive the market's growth prospects during the forecast period.
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