Industry: Missiles, Defense Systems & Radars (Aerospace & Defense)
Source: https://www.mordorintelligence.com/industry-reports/missiles-and-missile-defense-systems-market
Scraped Date: 2026-09-17
| Market Metric | Details |
|---|---|
| Base Market Size | USD 17.45 billion |
| Projected Forecast (2031) | USD 17.45 billion |
| Growth Rate (CAGR) | 5.58 % |
| Largest Market Region | N/A |
| Fastest-Growing Region | N/A |
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Market Overview
Study Period | 2019 - 2031 |
Market Size (2026) | USD 17.45 Billion |
Market Size (2031) | USD 22.89 Billion |
Growth Rate (2026 - 2031) | 5.58 % |
Fastest Growing Market | Middle East and Africa |
Largest Market | North America |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order
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Missiles And Missile Defense Systems Market Analysis by Vijeron IntelligenceThe missiles and missile defense systems market size is expected to grow from USD 16.66 billion in 2025 to USD 17.45 billion in 2026 and is forecasted to reach USD 22.89 billion by 2031 at a 5.58% CAGR over 2026-2031. This growth is supported by the rising procurement of short-range interceptors for active conflict zones, expanding orders for intermediate-range platforms that deter stand-off strikes, and the rapid adoption of space-based sensor layers that enhance tracking fidelity. [1]Source: U.S. Department of Defense, “Fiscal Year 2025 Defense Budget Request,” DEFENSE.GOV Nations are transitioning from episodic purchases to multi-year framework agreements that ensure propellant and semiconductor supply, a shift that lowers unit costs but concentrates risk among a few tier-1 vendors. Hypersonic threat proliferation is steering research funding toward kinetic-kill vehicles capable of engaging Mach 15 targets, while artificial-intelligence guidance upgrades are making export-controlled systems more attractive to treaty allies. Competitive pressure is intensifying as vertically integrated Asian contractors bundle missiles with radar and command software, forcing Western primes to safeguard gallium-nitride supply through upstream investments.
Key Report Takeaways
Global Missiles And Missile Defense Systems Market Trends and InsightsDrivers Impact Analysis*
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
Escalating great-power tensions and sustained defense-budget growth | +1.2% | North America, Europe, Asia-Pacific | Long term (≥ 4 years) |
Global shift toward layered Integrated Air and Missile Defense procurements | +0.9% | North America, Europe, Middle East, Asia-Pacific | Medium term (2–4 years) |
Rapid emergence of hypersonic threats accelerating interceptor and sensor demand | +1.1% | North America, Russia, China, allied nations | Medium term (2–4 years) |
AI-enabled guidance, C2 and sensor-fusion boosting accuracy and exportability | +0.8% | North America, Europe, Israel | Short term (≤ 2 years) |
National strategic-stockpile programs securing long-term energetics offtake | +0.6% | North America, Europe, Asia-Pacific | Long term (≥ 4 years) |
Proliferated space-based tracking constellations lowering entry barriers | +0.7% | United States, Europe, emerging space powers | Medium term (2–4 years) |
Source: Vijeron Intelligence |
Competitive Landscape
The missiles and missile defense systems market shows moderate concentration. Western primes race to debut glide-phase interceptors, while Asian contractors bundle missiles with radars to undercut prices. Lockheed Martin and Northrop Grumman push Mach 15 interceptors despite fixed-price contract risks that penalize overruns.
Vertical integration is a clear theme. RTX acquired a stake in Wolfspeed to secure gallium-nitride wafer capacity, thereby shortening radar lead times. European players joined forces when MBDA and Thales formed a EUR 450 million (USD 525.11 million) venture to craft a continental hypersonic interceptor, diversifying away from US supply chains.
Disruptors emerge from Turkey and South Korea. Roketsan’s SOM cruise missile secured a USD 450 million export sale due to flexible end-use terms that bypassed strict ITAR clauses. Hanwha Aerospace co-produces Chunmoo launchers in Poland, expanding its industrial reach into Europe. Smaller specialists in modular launchers, such as Kongsberg, capture value with open-architecture designs that reduce integration costs for multinational fleets.
Missiles And Missile Defense Systems Industry Leaders* Lockheed Martin Corporation
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This market covers the value of military missiles and missile defense systems delivered through procurement programs, including interceptor missiles, air defense missiles, and the connected system elements needed to detect, track, and engage threats (such as launchers and fire control and sensor integration).
Scope exclusions: We exclude space launch vehicles and purely civilian rockets, along with unrelated ground support equipment that is not integral to missile or missile defense engagement.
The market stands at USD 17.45 billion in 2026 and is forecast to reach USD 22.89 billion by 2031.
Short-range systems hold 37.89% of 2025 revenue because armies need rapid-reaction interceptors for drones and cruise missiles.
Low-cost constellations such as the Tracking Layer cut per-satellite cost to about USD 15 million, giving middle-income states affordable access to global cueing data.
Programs like the Glide Phase Interceptor involve new materials and guidance packages, pushing unit prices near USD 45 million and total R&D above USD 18 billion.
The Middle East and Africa record the highest CAGR at 6.78% as Gulf states add THAAD and Patriot batteries to counter regional ballistic threats.
Tightening ITAR and EU dual-use regulations divert some buyers toward suppliers in Turkey, South Korea, and China that impose fewer end-use restrictions.