by The active protection systems (APS) market has experienced transformational growth powered by new technological innovations and increasing defense budgets globally. APS aim to neutralize incoming threats like rocket-propelled grenades and anti-tank guided missiles through hardkill and softkill solutions. They utilize sensors to detect threats and interceptor munitions like missiles, explosives, or projectiles to destroy the incoming projectile before impact. Their ability to engage multiple threats with 360-degree coverage makes them superior to traditional armor plating. Growing conflicts and asymmetric warfare have increased demand for such lightweight, mobile countermeasures for armored vehicles and combat ships.
The global active protection systems market is estimated to be valued at US$ 4.30 billion in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period from 2024 to 2031.
Key players operating in the active protection systems market are Airbus SAS, Artis LLC, Aselsan AS, Israel Military Industries, KBM, Rafael Advanced Defense System Ltd., Raytheon Technologies Corporation, Rheinmetall AG, SAAB AB, Safran, IMI Systems, Krauss Maffei Wegmann, and General Dynamics.
Key Takeaways
– Key players like Rafael Advanced Defense System and Artis LLC are investing in new softkill and hardkill technologies like electric gun-launched interceptors and miniature missile interceptors
– Rising conflicts and asymmetric warfare are fueling demand for mobile Active Protection Systems Market Growth on armored vehicles and ships across Middle Eastern and European countries
– Major defense giants are expanding their APS product portfolio and regional presence through partnerships and mergers & acquisitions to tap growing global opportunities
Market Key Trends
The integration of artificial intelligence and autonomous capabilities is a major trend in the active protection systems market. AI and machine learning algorithms help APS detect, track, and intercept threats more accurately by filtering sensor data in real-time. This reduces the cognitive load on human operators and enables autonomous operation in some cases. Advanced AI-powered Active Protection Systems Market will play a bigger role in tomorrow’s automated battlefields.
Porter’s Analysis
Threat of new entrants: High investment requirement for research and testing acts as a barrier for new companies to enter
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternative providers of active protection solutions.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many component suppliers for active protection systems.
Threat of new substitutes: Threat of substitution is low as active protection systems provide unmatched safety and there are limited alternatives.
Competitive rivalry: Intense competition exists among existing players to gain contract wins for supplying active protection systems to defense forces globally.
The geographical region where the active protection systems market is concentrated in terms of value is North America. The region accounted for more than 35% revenue share in 2021 owing to high defense spending of countries like US and Canada for procuring protection systems.
The Asia Pacific region is expected to be the fastest growing geographical market for active protection systems between 2024-2031. Countries like India, China, and South Korea are significantly increasing their defense budgets for military modernization programmes which is promoting regional market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
