The Active Protection Systems market involves the integration of multiple sensors and countermeasure technologies that are capable of detecting, tracking, and engaging incoming threats. These protection systems are becoming increasingly important for military vehicles, armored vehicles, and combat ships where it provides critical protection from various threats such as anti-tank missiles, rockets, and incoming projectiles. The key advantages of active protection systems include improved survivability, precision hard-kill, and flexibility in dealing with modern and evolving threats. With the changing nature of warfare technologies and asymmetric scenarios, the need for vehicle protection systems has also increased significantly.
The Global Active Protection Systems Market is estimated to be valued at US$ 6.31 Bn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period from 2024 to 2031.
Key Takeaways
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. Major players are focusing on strengthening their product portfolio and expanding their business through strategic mergers and acquisitions. For instance, in 2021, RAFAEL Advanced Defense Systems acquired Aeronautics Ltd to expand its presence in unmanned systems.
The demand for Global Active Protection Systems Market Size is growing significantly owing to the rising defense budgets of major economies and increasing instances of threats from projectiles, anti-tank guided missiles, and rockets. The increasing incidences of asymmetric warfare and rising conflict areas across the world are also driving the demand for vehicular protection systems.
Geographically, North America dominated the active protection systems market in 2024 owing to significant investments in defense technologies by the US and Canada. However, the market in Asia Pacific is expected to grow at the fastest pace during the forecast period due to the increasing spending on defense technologies by China, India, and other East Asian countries. Ongoing border conflicts and political uncertainties are factors that are fueling military modernization programs in the region.
Market Drivers
The emergence of modern threats from advanced anti-tank missiles, explosives, projectiles, and other emerging threats is a key factor driving the demand for active protection systems. Conventional armor protection systems are not always effective against such threats, which makes active protection systems increasingly critical. In addition, ongoing territorial conflicts, changing character of warfare, and rising emphasis on infantry capabilities are compelling military organizations to strengthen their vehicle survivability solutions, thus propelling the active protection systems market. Furthermore, increasing defense budgets of major economies such as the US, China, and India will continue to provide opportunities for players in this market over the forecast period.
Geopolitical Impact on Active Protection Systems Market Growth
The current geopolitical instabilities across several regions are expected to positively influence the growth of the active protection systems market during the forecast period. The ongoing geopolitical tensions between major economies and the rising threats of asymmetric warfare are prompting defense forces to modernize their armored vehicles with advanced active protection capabilities. For instance, the Russia-Ukraine conflict has underscored the need to enhance survivability of combat vehicles against sophisticated anti-tank weapons. This is likely to drive demand for active defense solutions in the coming years. However, manufacturers must consider diversifying their supply chains and establishing local production facilities in allied nations to minimize risks from trade restrictions and geopolitical uncertainties. Co-development of advanced technologies with friendly countries can help widen business opportunities while ensuring uninterrupted supplies.
Regions with Concentrated Active Protection Systems Market Value
Europe currently accounts for the largest share of the global active protection systems market in terms value. This is mainly due to the modernization initiatives underway in the defense forces of major European economies such as Germany, UK and France. For example, Germany has installed Israeli-designed Trophy hardkill APS on over 100 tanks to strengthen NATO's eastern borders against potential threats. Similarly, the UK is upgrading its fleet of Challenger 2 tanks with Rafael's Trophy system. North America is another lucrative region driven by strong demand from the US which is actively procuring APS for Abrams and Stryker vehicles. Asia Pacific is also emerging as a high potential market led by initiatives in India, Israel and South Korea to enhance armored vehicle protection.
Fastest Growing Region in the Active Protection Systems Market
The active protection systems market in the Middle East and Africa region is anticipated to record the highest CAGR during the forecast period. This can be attributed to ongoing modernization programs and increasing defense budgets of GCC nations along with Israel. Considering the ongoing geopolitical conflicts and cross-border threats in the region, countries are aggressively pursuing protection solutions like active protection systems. For example, the UAE inked a major deal with Rafael to equip its fleet of MRAP and IFVs with Trophy APS. Similarly, Israel has emerged as a major exporter of these technologies to African and Western Asian countries. Overall demand from conflict-prone nations will continue fueling the market growth in the MEA region over the coming years.
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