Active Protection System Market Size, Share, Growth Analysis, By Type of System(Soft kill systems and hard kill systems), By End Use Industry(Defense organizations (military forces, homeland security), government agencies, or commercial entities (private security firms)), By Region - Industry Forecast 2024-2031

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). 

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.  'Rheinmetall AG (Germany)', 'Raytheon Technologies Corporation (US)', 'Rafael Advanced Defense Systems Ltd. (Israel)', 'Saab AB (Sweden)', 'Leonardo S.p.A. (Italy)', 'Israel Aerospace Industries Ltd. (Israel)', 'KBM (Kolomna) (Russia)', 'ASELSAN A.Ş. (Turkey)', 'General Dynamics Corporation (US)', 'Elbit Systems Ltd. (Israel)', 'Northrop Grumman Corporation (US)', 'Lockheed Martin Corporation (US)', 'BAE Systems plc (UK)', 'L3Harris Technologies, Inc. (US)', 'Thales Group (France)', 'Hanwha Corporation (South Korea)', 'CMI Group (Belgium)', 'ZALA AERO Group (Russia)', 'Denel Land Systems (South Africa)', 'Artis, LLC (US)'

Active protection systems require continuous updates, observation, and maintenance, more so if the systems deployed are advanced in nature and include AI and machine learning. Since the maintenance requires special people and infrastructure for the systems to continue performing their functions, this continuous complexity of operation may present problems for military organizations. The requirement for continuous maintenance and improvement in under-resourced environments might escalate operational costs and prevent widespread application. 

Soft-Kill System Implementation: Soft-kill systems, including such items as electronic warfare (EW), jamming, and laser-based technologies, are increasingly being integrated into active protection system. These systems offer non-destructive means of destroying incoming threats such as UAVs and missiles. Soft-kill systems have become more popular because of their greater emphasis on limiting damage and enhancing defense without causing bodily injury. 

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.