USD 3.56 Billion
Report ID:
SQMIG20A2093 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|Tables:
62
|Figures:
75
Active Protection System Market size was valued at USD 3.56 Billion in 2023 and is poised to grow from USD 3.87 Billion in 2024 to USD 6.99 Billion by 2031, at a CAGR of 8.80% during the forecast period (2024-2031).
The global active protection system market is driven by rising defense expenditure, technical advancements, and an increased need for advanced protective systems. It is a cutting-edge technology, which provides critical protection for military vehicles and personnel, by detecting and eliminating the approaching threats, which are in the form of missiles, rockets, or other projectiles. This technology has attracted much interest from defense organizations across the world because of the demonstrated ability to enhance survival capability of military assets in dangerous situations. Moreover, the rising need for protected military vehicles is the prime driver behind the active protection system market growth. As countries strive to build up their defense capabilities, increased military expenditure is attributed to rising geopolitical tensions and the changing nature of war. There is now more emphasis on creating and deploying military vehicles with cutting-edge protective systems to combat new threats due to the growth in defense funding. Technical developments in APS, including enhanced sensor systems, artificial intelligence, and countermeasure technologies, further drive market expansion. The need for APS integrated into various platforms, such as tanks, armored vehicles, and unmanned systems, is expected to grow as military forces continue to seek new ways to protect their assets. This will help the market grow rapidly over the next few years.
Global Market Size
USD 3.56 Billion
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
8.80% CAGR
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Global Active Protection System Market is segmented on the basis of type of system, application, and region. By type of system, the market is segmented into soft kill systems and hard kill systems. By end-use industry, the market is segmented into defense organizations (military forces, homeland security), government agencies, or commercial entities (private security firms). By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Platform
Based on the 2023 active protection system market analysis, the land-based category dominated the active protection system market and is expected to grow significantly. The main reason for this growth is the strong requirement for active protection system on land-based systems such as military vehicles, tanks, and armored personnel carriers. Land-based active protection system is further being developed in their capabilities by the emergence of new technologies on soft-kill weapons such as smoke dispensers and electronic and laser-based jamming devices. As a result, the use of active protection system on land-based systems increases to gain better protection against threats as these improve threat identification and neutralization.
However, the marine segment is expected to grow between 2024 and 2031, after accounting for the second-highest share. This growth is mainly due to the need for sophisticated countermeasures in maritime environments, especially against the new threats such as infrared detection, laser ranging, visual surveillance, UAV swarm attacks, and laser weaponry. Naval forces are modernizing their fleets, leading to the growing demand for next-generation active protection system that can protect against these new threats. As military agencies focus on the protection of maritime assets, the employment of active protection system in naval platforms, including ships and submarines, is expected to increase.
Analysis By Solution
As per the 2023 active protection system market forecast, the hardware category dominated the market, and it is expected to grow substantially. Higher investments in the research, development, testing, and evaluation (RDT&E) of hardware components needed for active protection system, along with the growing demand for active protection system technology, are the main drivers of this rise. For instance, Leonardo UK concluded the ICARUS Technology Demonstrator Programme in July 2020. It had a goal to deploy autonomous agile active protection system on armored combat vehicle platforms, existing and future. The result of this development is that it will increase the demand for active protection system gear. The military systems will then be resilient to several attacks.
Contrarily, the software category is expected to have the highest growth rate over the projection period. This is primarily due to growing applications of software suites for self-protection systems, which are essential supporting hardware systems. Among others is the USD 50 million export contract BAE Systems Australia won in May 2022 to supply hardware and software sub-assemblies of missile subsystems for the NATO Evolved Sea Sparrow Missile program. The software segment is, therefore, expected to explode concomitantly with developments of the hardware in active protection system technology given the increasing demand for more comprehensive integrated solutions.
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With a significant market share, North America currently leads in the active protection system industry. The underlying force behind this leadership by North America is the massive defense spending of the United States. North America leads partly because of its robust military structure, technical development, and increasing use of advanced protective systems, including active protection system. There is a strong need for active protection system technology since the U.S. military directs its efforts towards improving the survivability of military troops and vehicles, as well as continues research and development expenses. Moreover, market leadership in North America is further bolstered by growing defense organizations' interest in other countries, including Canada.
Asia-Pacific will dominate the market over the forecast period because the region is expected to have the highest growth rate due to increased defense expenditure and higher focus on modernizing the military power in countries, including China, India, and Japan. With regard to geopolitical issues and security issues in the region, countries are spending a huge amount of money in high-technology defense systems such as active protection system to safeguard their military assets. There is also a growing need for next-generation defensive systems that will be able to fend off new threats, such as laser weapons, UAVs, and missiles. Thus, the Asia-Pacific market is expected to grow fast both in terms of government spending and military modernization.
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Active Protection System Market Drivers
Growing Geopolitical Concerns
The increased regional conflicts and global instability are the reason why nations are modernizing and upgrading their defense capabilities. With an increased range of new threats to military assets, such as drones, anti-tank guided missiles, and other projectiles, nations are investing in sophisticated defense systems like active protection system. The demand in the market is based on the need for effective protection in unstable regions.
Increasing Demand for Upgrading the Military
To retain strategic superiority, countries are focusing more and more on upgrading their military forces. This upgrading includes equipping military vehicles, naval platforms, and aircraft with advanced protection systems, including active protection system. The demand for active protection systems is increasing in developed and emerging countries. Armed forces are striving to enhance survivability and stay ahead of adversaries by incorporating these systems.
Active Protection System Market Restraints
Barriers to Regulation and Compliance
The deployment of active protection system often faces severe legal and compliance challenges, especially in countries with complex defense procurement procedures. Limitations on the use of these technologies might include governmental rules, export restrictions, and testing and certification requirements that take time to fulfill. Such problems may be particularly troublesome for international defense and sales partnerships.
System Maintenance Complexity
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There are significant players in the global active protection system market; some of these are Leonardo, Rheinmetall, and Raytheon. It points to a competitive market. Businesses focus on constant innovations that help create innovative active protection systems with enhanced features such as multilayered protection, AI integration, and soft kill systems. Key competitive strategies entail the extension of military contracts, establishment of strategic alliances, and technologies. Small and emerging companies are entering this market with specialized APSs since the demand is growing.
Active Protection System Market Top Player’s Company Profiles
Active Protection System Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, with a huge leap due to factors, including rising geopolitical tensions, technical breakthroughs, and a growing defense expenditure, the global active protection system market is bound to increase significantly. In view of countries' emphasis on enhanced survivability of their military assets in land, sea, and air, advanced protection systems are on demand. Moreover, innovation in hardware and software solutions, such as soft-kill systems and autonomous integrations, is expected to overcome the present challenges that limit their adoption-high costs, complicated integration, and maintenance requirements. There is also competition within the market from established and emerging business activities driving innovation. The market is expected to grow in several regions, especially in North America and Asia-Pacific, where defense modernization is picking up pace. This offers great potential prospects.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 3.56 Billion |
Market size value in 2031 | USD 6.99 Billion |
Growth Rate | 8.80% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Active Protection System Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Active Protection System Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Active Protection System Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Active Protection System Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG20A2093
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