The quest for precision strike missile capabilities and the modernization of air defense systems have emerged as the key factors driving the demand for missiles and missile defense systems (MMDS). The ongoing Russia-Ukraine conflict and the heavy usage of missiles and rockets by both countries have prompted other European countries, such as Poland, Germany, and France to enhance missile and missile defense capabilities. Against this backdrop, the global market for missiles and missile defense systems is forecast to grow from $45.3 billion in 2023 to $67.9 billion by 2033, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, “The Global Missiles & Missile Defense Systems Market 2023-2033,” reveals that the market will grow at a compound annual growth rate of 4.2% between 2023 and 2033. With Poland, Germany, and France prioritizing the procurement of short-range and medium-range air defense systems along with man-portable systems like Mistral, Piorun and RBS-70 NG, Europe is anticipated to dominate the global MMDS market over the next decade with a share of 31.1%.

Harsh Deshmukh, Aerospace and Defense Analyst at GlobalData, comments: “The increased focus on self-reliance and technological sovereignty has led several countries to invest heavily in developing their own missile defense capabilities. Countries such as the UK, India, and South Korea have partnered with other countries and initiated joint missile and missile defense systems programs to reduce development costs. These partnerships not only help the countries to share and reduce the research and development (R&D) costs, but they also allow them to pool their respective technical expertise to create advanced systems.”

For instance, the UK has been developing an anti-ship missile with France under the Future Cruise/Anti-Ship Weapon (FCASW) missile program. This FCASW missile will replace the existing Exocet and Harpoon missiles from the French and Royal Navy’s arsenal. Similarly, India and Russia, under the BrahMos collaboration, will be developing the hypersonic version of the already capable BrahMos supersonic missile.

Deshmukh adds: “The focus on the development and induction of advanced fifth-generation combat aircrafts, the proliferation of unmanned aerial vehicles (UAVs), and loitering munition capable of evading legacy air defenses are expected to be the major factors driving the procurement of more modern air and missile defense systems worldwide.”

Given the effectiveness of short-range and medium-range missile defense systems in recent conflicts, there will be a rapid increase in the procurement of these systems, especially in countries that face severe threats of aerial attacks.

Deshmukh concludes: “Major defense spenders like the US, Russia, China, India, Australia, the UK, and France are shifting their focus towards hypersonic missile development, which will significantly augment their military capabilities. These countries are investing heavily in the development of hypersonic missiles for improved long-range strike capabilities while evading enemy air defense interceptions.”