Active Protection Systems Market COVID-19 Impact Analysis, Growth Drivers and Future Outlook 2025

Global Active Protection Systems Market: Snapshot

Active protection systems are capable of shooting down and interrupting threats such as anti-tank missiles and rocket-propelled grenades. Moreover, they do it with a great degree of accuracy which minimizes collateral damage. Active protection system can also provide protection from these threats in various mission applications, such as fixed sites, ships, and combat vehicles, among others. Because of so many unique perceived benefits, active protection systems are seeing their demand rise.

Majorly fuelling the global active protection systems market is the strong demand for land based defense system and for ballistic missile defense system. Collective efforts by the governments of the U.S. and South Korea to build land based air and missile defense in South Korea is a macro-economic factor bolstering the active protection systems market. Likewise, India and China’s effort to bolster missile defense system is further slated to catalyze growth in the active protection system market.

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According to a report by Transparency Market Research, the global active protection systems market will likely reach a value of US$5.253 bn by 2025 from US$2.847 bn in 2016 by rising at a CAGR of 7.1% from 2017 to 2025.

active protection systems market

Radar Decoy System Leads Market

Depending upon the types of systems, the global active protection systems market can be divided into infrared decoy, radar decoy, directed energy, electro-optics jammers, light weapon defense, and rocket/missile based, among others. Of them, the radar decoy segment leads the market with maximum share and is trailed by infrared decoy segment. The others segment, consisting of DROZD active protection system, LEDS active protection system, iron curtain active protection system, iron fist active protection system, and ZASLON active protection system is also predicted to clock good growth in the years to come.

Rapid Modernization of Military Equipment Makes Asia Pacific Key Region

North America, at present, is a dominant market that accounts for maximum market share. In 2016, the market in the region held a share of 26.8%. Supplanting of old technology with new advanced technology and growing automation in defense are predicted to be the two major growth drivers in the North America in the next couple of years.

Europe, powered by the U.K., is another key market for active protection systems. The growth in the regions is also supported by Russia, Germany, and France. Rising allocation for defense, increasing terrorist attacks, and replacement of old defense equipment with new ones, are some of the factors pushing up demand in the market in the region.

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Asia Pacific, of all the regions, is expected to clock maximum growth in the global active protection systems market in the years to come. The factors serving to catalyze growth in the region are the rapid modernization of military equipment in different countries of China, India, South Korea, and Japan. India is expected to grow at the highest rate for the forecast period.

Saudi Arabia contributes the most to the Middle East and Africa active protection systems market. Rising geo-political tensions in the region is boosting the market for the active protection system. United Arab Emirates is expected to grow at the highest CAGR for the forecast period.

Some of the prominent participants operating in the global active protection systems market are SAAB AB, The Raytheon Company, Airbus Group, KONSTRUKTORSKOYE BYURO MASHYNOSTROYENIYA, Rafael Advanced Defense Systems Ltd., Rheinmetall AG, Safran Electronics & Defence, Aselsan A.S., Artis, LLC, and Israel Military Industries.

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Increased Spending on Defense Mechanisms to Boost Growth of Active Protection Systems Market between 2017 and 2025

The active protection systems market is estimated to observe substantial growth across the assessment period of 2017-2025. The escalating enhancements made in the deployment of new-generation anti-tank missiles have urged the governments of various countries to upgrade their defense mechanisms.

  • These protection systems are used for neutralization and identification of threat projectiles before the target reach. The growing demand for the development of a secured network against cyber-attacks will help in the creation of novel opportunities across the active protection systems market.
  • The heightening demand for land-based defense systems and ballistic missile defense systems may bring immense growth opportunities for the active protection systems market during the forecast period of 2017-2025. Technological advancements in the defense sector have increased to a great extent over the years. The ongoing research and development activities coupled with heavy investments from the government and non-government organizations may prove fruitful for the growth of the active protection systems market.
  • The phenomenal increase in military budgets of developing and developed nations is further adding extra stars of growth to the active protection systems market. Modernization of existing fleets in the naval and land platforms will invite promising growth for the active protection systems market during the tenure of 2017-2025.
  • The novel coronavirus outbreak wreaked havoc around the world with high transmission rates and a large number of fatalities. Many businesses and sectors have been negatively affected by the emergence of the deadly virus. The active protection systems market is no stranger to this loss. The severe lockdown impositions across the globe have dented the growth prospects of the active protection systems market to a certain extent. However, the resuming of operations at manufacturing facilities and production units has raised a ray of hope for the growth of the active protection systems market.

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