Global Interceptor Missile Market 2024-2030

INTERCEPTOR MISSILE MARKET

 

KEY FINDINGS

• LOCKHEED MARTIN is awarded $932.8 Million contract to develop THAAD (Terminal High Altitude Area Defense) interceptor ballistic missiles.
• US MDA (Missile Defense Agency) have awarded contract to BOEING, RAYTHEON and LOCKHEED MARTIN worth nearly $169 Million (combined) to work on technology risk reduction on MOKV (Multiple Object Kill Vehicle).
• US Government issued a $506 Million contract to LOCKHEED MARTIN to upgrade PAC-3 (Patriot Advance Capability-3) missiles.
• LOCKHEED MARTIN to build PAC-3 (Patriot Advance Capability-3) missiles for 12 US allied countries worth $77.1 Million.
• BAE Systems is awarded contract worth $139 Million for the development of next generation seeker used in THAAD interceptor missiles.

 

INTRODUCTION

A missile interceptor is an anti-ballistic missile (under missile defense system), which have explosive as warheads or nuke-enabled warheads. It is used in intercepting intermediate range ballistic missiles launched from a country and intercontinental ballistic missile. It can intercept missiles in different range starting from 20 km to several hundred kilometers and destroys them.

 

These interceptors can have different MACH speed depending on the build and requirement. It intercepts missiles at high altitudes to minimize the impact of ballistic missiles after crash.

 

INTERCEPTOR MISSILE MARKET DYNAMICS

 

SI No	Timeline	Developments
1	Q3-2021	Russia completed the development of S-500 Prometheus ground-based air and missile defence system and also successfully completed the testing and evaluation.The S-500 is designed for intercepting and destroying medium-range and intercontinental ballistic missiles in the terminal phase of flight.
2	Q1-2021	The US Missile Defense Agency(MDA) selected two teams for the development of the Next Generation Intercept(NGI) to protect the US against ballistic missiles in the 2030s. The two teams are Northrop Grumman teamed with Raytheon Technologies and Lockheed Martin is partnered by Aerojet.

 

INTERCEPTOR MISSILE MARKET SEGMENTATION

 

It can be classified on various basis such as-

 

ON THE BASIS OF OPERATING/ LAUNCH MODE

• Surface to air
• Water to air

 

ON THE BASIS OF INTERCEPTING RANGE

• Short range: Intercepting range of defense system is less than 125km.
• Medium range: Intercepting range of defense system is between 125km to 200km
• Long range: Intercepting range of defense system is more than 200km

 

 

ON THE BASIS OF TYPE

• Endo-atmospheric:  when intercepting is done in earth’s atmosphere (up to 100km) then it is termed as endo-atmospheric.
• Exo-atmospheric:  when intercepting is done outside earth’s atmosphere (above 100km) then it is termed as Exo-atmospheric.

 

ON THE BASIS OF COMPONENTS USED

• Global Positioning system (GPS)
• Infrared
• Navigation system
• Electro Optical sensors
• Radars
• Semi-Active lasers

 

INTERCEPTOR MISSILE MARKET POINTS TO KNOW

1. By the ABM (Anti-Ballistic Missiles) treaty in 1972 and a 1974 revision, each country was allowed to deploy a mere 100 ABMs to protect a single, small area.
2. In 2002, USA and in 2006, Russia withdrawn their names from this treaty.
3. After the introduction of MIRVs (Multiple Independently Targetable Reentry Vehicle), which are capable of throwing several warheads at a time, ABM systems needed to be modified to intercept such projectiles.
4. Only four system in the world is capable of ICBMs (Inter Continental Ballistic Missiles) interception-

• Russian A-135 anti-ballistic missile system
• U.S. Ground-Based Midcourse Defense System (GMD)
• Israeli Arrow 3system
• Indian Prithvi Defense Vehicle Mark-II

 

INTERCEPTOR MISSILE MARKET ABM SYSTEM FROM DIFFERENT COUNTRIES

S.No.	NAME OF ABM	RANGE(KM)	ORIGIN COUNTRY	SPEED(MACH)
1	A-135	350-900	RUSSIA	7
2	GMD		USA
3	THAAD	>200	USA	8
4	S-300VM	200	RUSSIA
5	S-400	400	RUSSIA	>5
6	ARROW 3	>2000	ISRAEL	>5
7	PAD	300-2000	INDIA	>5
8	AAD	150-200	INDIA	4.5

 

 

INTERCEPTOR MISSILE MARKET INDIA’S MISSILE INTERCEPTOR DEFENSE SYSTEMS

• Outermost BMD (Ballistic Missile Defense) layer at endo- and exo-atmospheric altitudes (15-25 km, and 80-100 km) for 2000 km ranges
• S-400 layer at ranges of 120, 200, 250, & 380 km
• Barak-8 layer at ranges of 70-100 km
• Akash layer at ranges of 25 km
• Surface to air missiles and gun systems as the inner-most ring of defense

 

INTERCEPTOR MISSILE  RECENT TRENDS

 

SI No	Timeline	Company	Developments
1	Q4-2021	DRDO – India	The Defense Research and Development Organisation(DRDO) of India successfully completed the maiden flight test for the Pralay quasi ballistic surface to surface missile designed to defeat interceptor missiles.
2	Q3-2021	Russia	Russia plans to sell its S-400 Triumf air defense system to Belarus, the S-400 is a medium and long range missile defense system and S-400 is the anti ballistic missile complex in the world capable of hitting targets located beyond the horizon.
3	Q1-2021	Israel Aerospace Industries	The Israel Aerospace Industries successfully tested its Barak Extended Range (ER) interceptor missile, The 150km range Barak ER  interceptor includes a dual-pulse rocket motor booster, and advanced radar homing seeker.

 

INTERCEPTOR MISSILE MARKET RECENT DEVELOPMENT 

Successful Ballistic Missile Interception in MDA Test Flight Test Aegis Weapon System 31 Event 1a (FTM-31 E1a), which was carried out successfully by the U.S. Missile Defence Agency in collaboration with the U.S. Navy.

 

The test showed that an Aegis ship equipped with ballistic missile defense (BMD) technology is capable of detecting, tracking, engaging, and intercepting a medium-range ballistic missile (MRBM) target in its terminal phase of flight with a salvo of two Standard Missile-6 (SM-6) Dual II with Software Upgrade (SWUP) interceptors.

 

FTM-31 E1a was the first Aegis Baseline 9.C2.0 (BMD 5.1) intercept of an MRBM target with the SM-6 Dual II SWUP missile and the third successful flight test of an Aegis BMD-equipped vessel utilizing the SM-6 Dual II missile.FTM-31 E1a highlights changes made in response to FTM-31 E1, which was conducted in May but did not fully achieve its goals.

 

The completion of this operation successfully demonstrates that the enhanced SM-6 Dual II SWUP capability is now available for use by the warfighter to defend and protect their deployed forces and allies around the world.This test demonstrated their capabilities in an operationally realistic environment, which is a crucial step in improving capability to keep up with growing threats.

 

It was an extraordinary accomplishment and significant milestone for the Sea-based defense programme. They extend their compliments to all members of the test team, especially their sailors and their business associates, who assisted them in reaching this goal.The target was fired from the Kauai, Hawaii-based Pacific Missile Range Facility. The USS DANIEL INOUYE (DDG 118) served as the fire ship for this test, launching two SM-6 Dual II missiles that successfully engaged the MRBM.

 

INTERCEPTOR MISSILE COMPETITIVE LANDSCAPE

SI No	Timeline	Company	Developments
1	Q4-2021	Lockheed Martin	Lockheed Martin is the prime contractor for Saudi Arabia to supply Terminal High Altitude Area Defense(THAAD) systems and support services. Lockheed Martin received a new foreign military services contract from Saudi Arabia worth about $286.47 million to supply an anti ballistic missile defense system under the THAAD programme.
2	Q4-2021	Raytheon Technologies, Northrop Grumman, and Lockheed Martin	The US military selected American defense contractors Raytheon Technologies, Northrop Grumman, and Lockheed Martin to design and manufacture the Glide Phase Interceptor (GPI) to defeat advanced hypersonic missiles with an investment of $60 million.
3	Q2-2021	Raytheon Technologies	Raytheon Technologies Corp to build AN/TPY-2, is a high performance radar system for the modern Terminal High Altitude Area Defense (THAAD) ballistic missile defense battery for the US Missile Defense Agency under a contract of $243 million. Q2

 

INTERCEPTOR MISSILE MARKET GEOGRAPHY OVERVIEW

 

North America 

The North American market, particularly the USA, will be one of the prime markets for    Interceptor Missile Market    due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive. 

 

Europe 

The European market, particularly Western Europe, is another prime market for Interceptor Missile Market    due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for    Interceptor Missile Market    are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period. 

  

Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe. 

  

There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of    Interceptor Missile Market    in the region. 

 

Asia 

Asia will continue to be the global manufacturing hub for   Interceptor Missile Market    over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.    

 

There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon. 

 

Africa 

Africa is expected to see the largest growth in   Interceptor Missile Market  over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape. 

 

RoW 

Latin America and the Oceania region will showcase growth over the forecast period in   Interceptor Missile Market    aIn Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region. 

 

INTERCEPTOR MISSILE MARKET MARGIN COMPARISON

 

Margin Comparison (Highest to lowest)	Region	Remarks
1	Europe	The supply chain demands and the purchasing power in the region enable suppliers to extradite a larger margin from this region than other regions. This is for both locally manufactured as well as imported goods and services in the region.
2	North America	Due to the high spending power in this region, the margins are higher compared to the rest of the world, but they are lower than Europe as there is higher competition in this region. All the suppliers of goods and services target USA as a main market thereby decreasing their margins compared to Europe
3	Asia	Lower purchasing power, coupled with higher accessibility of services in this regions doesn’t enable suppliers to charge a high margin making it lower than Europe and North America. The quality of goods and services are also affected due to this aspect in the region
4	Africa and ROW	The margins are the lowest in this region, except for Australia and New Zealand as the countries in this region don’t have much spending power and a large portion of the products and services from this area is exported to other parts of the world

 

 

INNOVATION INVESTMENTS BY REGION

 

USA – $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region. 

 

Europe – EIC is investing €1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments. 

 

Asia – There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia.

 

Africa – Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing. 

 

Latin America – The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region. 

 

Rest of the World – The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand. 

 

INTERCEPTOR MISSILE MARKET KEY PLAYERS

• BAE SYSTEMS
• RAYTHEON
• L3HARRIS
• LOCKHEED MARTIN
• BEML TATRA