Air Defense Systems Market Boosted by Investments in Hypersonic Defense

The global air defense systems market size was estimated at USD 46.89 billion in 2023 and is expected to reach USD 67.93 billion by 2030, growing at a CAGR of 5.4% from 2024 to 2030. Market growth is driven by rising geopolitical tensions, the proliferation of unmanned aerial vehicles (UAVs), and the evolving nature of warfare, which have created strong demand for advanced defense capabilities. In addition, technological advancements in radar, sensors, and missile systems are enabling the development of more effective and efficient defense infrastructures, further supporting industry expansion.

The demand for air defense systems is also fueled by the need to safeguard critical infrastructure and the increase in defense budgets worldwide. For example, the U.S. Department of Defense’s Fiscal Year 2024 Defense Budget allocated USD 1.8 billion for AI and USD 1.4 billion for Joint All-Domain Command and Control (JADC2) initiatives.

Collaboration between defense contractors and military organizations is also shaping market growth. In January 2024, RTX Corporation partnered with Kongsberg Defense & Aerospace and the U.S. Air Force Research Laboratory’s Strategic Development Planning and Experimentation (SDPE) office to demonstrate the GhostEye MR sensor integrated into the National Advanced Surface-to-Air Missile System (NASAMS). The sensor’s integration with NASAMS’ Air Defense Console and the Battlespace Command and Control Center (BC3) highlights the growing role of innovation in strengthening air defense systems.

Key Market Highlights:

• North America accounted for the largest revenue share of around 41.0% in 2023.
• By component, the weapon system segment held the largest revenue share in 2023.
• By platform, the land segment accounted for over 69.0% of revenue in 2023.
• By type, the missile defense system segment dominated the market in 2023.
• By range, the medium-range segment recorded the highest revenue share in 2023.

Download a free sample PDF of the Air Defense Systems Market Intelligence Study from Grand View Research.

Market Performance:

• 2023 Market Size: USD 46.89 Billion
• 2030 Projected Market Size: USD 67.93 Billion
• CAGR (2024–2030): 5.4%
• North America: Largest market in 2023

Prominent Companies & Market Dynamics:

Key players in the global air defense systems market include Lockheed Martin Corporation, BAE Systems plc, Thales Group, Boeing, Northrop Grumman, Kongsberg Gruppen ASA, Elbit Systems Ltd., and RTX Corporation, among others.

• Lockheed Martin Corporation is a leading aerospace and defense company engaged in the research, design, and manufacturing of advanced technologies across business segments including aeronautics, missiles and fire control, rotary and mission systems, and space.
• BAE Systems plc provides advanced defense and aerospace solutions, producing military aircraft, submarines, surface ships, guided weapons, avionics, radar, and communication systems across divisions such as electronic systems, platforms & services, air, maritime, and cyber & intelligence.
• Thales Group focuses on digital and deep-tech innovations including Big Data, AI, cybersecurity, and quantum technologies, serving aerospace, defense, digital identity, and transportation sectors.
• Kongsberg Gruppen ASA delivers advanced defense and maritime solutions, including autonomous and remote systems designed to ensure safety, reliability, and performance in extreme conditions.
• Elbit Systems Ltd. operates across five core business areas, including aerospace, C4I & cyber, land, ISTAR & electronic warfare, and its U.S.-based subsidiary Elbit Systems of America (ESA).

Key Companies:

• RTX Corporation
• Northrop Grumman
• Boeing
• Aselsan A.S.
• Hanwha Corporation
• Elbit Systems Ltd.
• General Dynamics
• L3Harris Technologies Inc.

Explore Horizon Databook – the world’s most comprehensive market intelligence platform by Grand View Research.

Conclusion

The air defense systems market is set for steady growth, driven by rising geopolitical uncertainties, technological advancements, and increasing global defense budgets. With continuous investments in next-generation radar, missile, and sensor technologies, along with growing partnerships between defense providers and governments, the industry is well-positioned to expand and adapt to the evolving nature of modern warfare.