Anti-aircraft Warfare Market Surges USD 24.46 Bn in 2025 at 7% CAGR

Anti-aircraft Warfare Market 2025 Shows Strong Growth with North America Leading and Asia Pacific Rising

According to market projections, the anti-aircraft warfare industry is expected to grow from USD 22.80 billion in 2024 to USD 46.92 billion by 2034, reflecting a CAGR of 7.5%. North America led the anti-aircraft warfare market in revenue, while Asia Pacific is set to grow significantly. Weapon systems dominated by type, with radar systems expected to rise. Medium-range led by range, with long-range showing strong growth.

The anti-aircraft warfare market is anticipated to grow from USD 24.46 billion in 2025 to USD 46.92 billion by 2034, with a compound annual growth rate (CAGR) of 7.5% during the forecast period from 2025 to 2034. The growing demand for stealth guided-missile technology coupled with rapid investment by aerospace brands on developing advanced air defense systems has boosted the market expansion.

Additionally, numerous government initiatives aimed at strengthening the defense sector along with ongoing development in next-generation radar tracking technologies is playing a vital role in shaping the industrial landscape. The integration of AI in defense systems for countering drones is expected to create ample growth opportunities for the market players in the upcoming days.

Anti-aircraft Warfare Market Growth and Trends

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Introduction

The anti-aircraft warfare market is a crucial sector of the aerospace industry. This industry deals in development and distribution of air defense systems around the world. There are different types of systems developed in this sector consisting of weapon systems, radar systems, electronic warfare systems, command and control systems, and some others. These systems are capable of numerous activities including support, protection, attack and some others. It is designed for operating in various ranges such as short range, medium range and long range. This market is expected to rise significantly with the growth of the defense sector in different parts of the globe.

Highlights of the Anti-aircraft Warfare Market

  • North America generated highest revenue of the anti-aircraft warfare market.
  • Asia Pacific is expected to rise with a significant CAGR during the forecast period.
  • By systems, the weapon systems segment led the market.
  • By systems, the radar systems segment is expected to grow with a considerable CAGR during the forecast period.
  • By range, the medium range (20 – 100 km) segment dominated the market.
  • By range, the long range (>100 km) segment is expected to rise with a notable CAGR during the forecast period.

Key Metrics and Overview

Metric Details
Market Size in 2025 USD 24.46 Billion
Projected Market Size in 2034 USD 46.92 Billion
CAGR (2025 - 2034) 7.5%
Leading Region North America
Market Segmentation By Capability, By Systems, By Range, By Platform and By Region
Top Key Players General Dynamics Corporation, Hanwha Defense, Israel Aerospace Industries

The major trends in this market consists of partnerships, business expansions and rising military expenditure.

Partnerships

  • Numerous market players are partnering with defense organizations to develop a wide range of defense systems.

Business Expansions

  • Various defense companies are engaged in constructing new manufacturing plants to enhance the production of aerial defense systems.

Rising Military Expenditure

  • Government of several countries such as the U.S., China, Russia, Germany and some others are investing heavily for strengthening the defense sector.

Systems Insights

Why did the Weapon Systems Segment Led the Anti-aircraft Warfare Market in 2025?

The weapon systems segment dominated the market. The growing use of anti-aircraft guns for providing defense against aerial threats such as helicopters, airplanes, drones and some others has boosted the market expansion. Additionally, the increasing application of anti-aircraft missile in warfare zones for providing additional defense against ballistic missiles is playing a vital role in shaping the industrial landscape. Moreover, partnerships among market players and government for deploying high-quality weapon systems is expected to drive the growth of the anti-aircraft warfare market.

The radar systems segment is expected to rise with a considerable CAGR during the forecast period. The rising use of radar systems in defense sector to detect, track, and classify aerial threats such as aircraft, missiles, and drones has driven the market growth. Additionally, rapid investment by government of several countries for deploying high-quality radar systems in their military bases is playing a vital role in shaping the industry in a positive direction. Moreover, the growing demand for high-data-rate samplers enabled radar systems to capture and process large amounts of information is expected to boost the growth of the anti-aircraft warfare market.

Range Insights

What Made the Medium Range (20 – 100 km) Segment to Lead the Anti-aircraft Warfare Market in 2025?

The medium range (20 – 100 km) segment held the largest share of the market. The growing demand for medium-ranged defense systems to detect aerial threats has boosted the market expansion. Additionally, the deployment of unmanned aerial vehicles (UAVS) in the defense sector to improve nearby security is playing a vital role in shaping the industrial landscape. Moreover, the rising application of these warfare systems to protect against various aerial systems such cruise missiles, tactical ballistic missiles, aircrafts and some others is expected to drive the growth of the anti-aircraft warfare market.

The long range (>100 km) segment is expected to expand with a notable CAGR during the forecast period. The rising demand for long-range defense systems to provide enhanced protection against threats that are deployed in far distance has boosted the market expansion. Additionally, increasing focus of defense organizations on deploying long-range air defense solutions to combat enemies is playing a vital role in shaping the industry in a positive direction. Moreover, the integration of these systems for enhancing national security, protecting critical infrastructure, providing strategic defense capabilities and some others is expected to foster the growth of the anti-aircraft warfare market.

Geographical Insights

Why North America Dominated the Anti-aircraft Warfare Market in 2025?

North America generated led the anti-aircraft warfare market. The growing adoption of advanced aerial defense systems in the U.S. and Canada has boosted the market expansion. Additionally, rapid investment by government for deploying high-quality missile destroyers coupled with rising emphasis of defense companies to open up new production facilities is contributing to the industry in a positive manner. Moreover, the presence of various market players such as Lockheed Martin Corporation, Northrop Grumman, L3Harris Technologies, Inc. and some others is expected to propel the growth of the anti-aircraft warfare market in this region.

  • In July 2025, L3Harris launched wolf-series light cruise missiles. These missiles are designed for enhancing the capabilities of U.S. military.

Asia Pacific is expected to expand with a significant CAGR during the forecast period. The increasing demand for advanced air defense systems in several countries such as India, China, Japan, South Korea and some others has driven the market growth. Additionally, the rising focus of government to strengthen the defense and military sector coupled with rise in number of defense startups is contributing to the industry in a positive manner. Moreover, the presence of several market players such as LIG Nex1, Hanwha Corporation, Bharat Dynamics Limited, Paras Defence and Space Technologies, and some others is expected to foster the growth of the anti-aircraft warfare market in this region.

  • In July 2025, LIG Nex1 launched an air defense system. This air defense system is designed for the Korean Army.

Industry Leader Announcement

  • In April 2025, Carl-Johan Bergholm, the head of Saab’s business area surveillance made an announcement stating that, “UTAAS is a versatile sight and fire control system for tanks and combat vehicles. It provides high hit probability against all ground targets, as well as helicopters and high-speed aircraft. This is a much-desired capability by armed forces worldwide.”

Competitive Landscape

The anti-aircraft warfare market is a highly fragmented industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Kongsberg Gruppen ASA, L3Harris Technologies, Inc., Aselsan A.S., BAE Systems PLC, Diehl Stiftung & Co. KG, Elbit Systems, General Dynamics Corporation, Hanwha Defense, Israel Aerospace Industries, Leonardo S.p.A., Lockheed Martin Corporation, MBDA, Northrop Grumman, Rheinmetall AG, Saab AB, Thales Group, the Boeing Company and some others. These companies are constantly engaged in developing anti-aircraft systems and adopting numerous strategies such as joint ventures, collaborations, business expansions, launches, acquisitions, partnerships and some others to maintain their dominance in this industry.

  • In January 2025, RTX Raytheon announced to invest around US$ 333.3 million. This investment is done for developing air-defense missiles for the U.S. Navy.

Leonardo Revenue in Million Euros (2023-24)

  • According to the annual report of Leonardo, the revenue of the company in 2023 was 15291 million euros that increased to 17763 million euros in 2024.

Recent Developments

  • In July 2025, Rheimetall launched Skyshield system. Skyshield is an anti-aircraft system designed for the Indian armed forces.
  • In June 2025, Elbit Systems Ltd launched PAWS-2 High Resolution (HR) Missile Warning System (MWS). This system is designed for enhancing the survivability and operational effectiveness of modern fighter aircrafts.
  • In March 2025, General Dynamic Land Systems launched Pandur 6x6 vehicle. This vehicle is designed for providing short-range air defense to the Austrian army.

Top Anti-aircraft Warfare Market Players

Anti-Aircraft Warfare Market Top Key Players

Anti-aircraft Warfare Market Segments

By Capability

  • Support
  • Protection
  • Attack

By Systems

  • Weapon systems
  • Anti-aircraft gun
  • Anti-aircraft missile
  • Others
  • Radar systems
  • Electronic warfare system
  • Command and control systems
  • Others

By Range

  • Short range (20 km)
  • Medium range (20 – 100 km)
  • Long range (>100 km)

By Platform

  • Airborne
  • Combat aircraft
  • Military helicopters
  • Unmanned aerial vehicles (UAVS)
  • Land
  • Military vehicular
  • Dismounted soldier
  • Fixed stations
  • Naval
  • Naval ships
  • Unmanned surface vehicles (USVS)

By Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • The Middle East and Africa
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  • Insight Code: 1373
  • No. of Pages: 150+
  • Format: PDF/PPT/Excel
  • Last Updated: 04 August 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Ajit Bansod is a skilled and research-driven analyst at Towards Automotive, with over 3 years of experience specializing in the intersection of automotive innovation and intelligent communication technologies.

Learn more about Ajit Bansod

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

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FAQ's

The market is primarily driven by rising geopolitical tensions, increased government military spending, and the rapid development of stealth guided-missile technologies. Investments in next-generation radar, AI-powered defense systems, and international collaborations are accelerating global adoption of advanced air defense solutions.

The market is projected to grow from USD 24.46 billion in 2025 to USD 46.92 billion by 2034, registering a strong CAGR of 7.5%. This reflects growing global prioritization of national defense capabilities and technological modernization of air defense systems.

Weapon systems dominate due to rising use of anti-aircraft guns and missiles. Medium-range systems (20–100 km) are the most deployed, while radar systems and long-range platforms are expected to grow rapidly owing to their strategic importance and technological upgrades.

AI integration is transforming anti-aircraft systems by enhancing real-time threat detection, decision-making, and drone interception. Radar systems with high-data-rate samplers and AI-driven command platforms are reshaping battlefield readiness and operational efficiency.

With stable government funding, rising cross-border tensions, and increasing demand for integrated air defense systems, the market offers solid ROI potential. Recent deals such as RTX Raytheon’s $333 million missile development investment highlight strong institutional commitment to long-term growth.

Government initiatives especially in the U.S., China, and Europe are pivotal, with rising defense budgets supporting air defense R&D, procurement, and deployment. Regulatory backing and military modernization programs are creating steady demand and fostering innovation.

Key players include Lockheed Martin, BAE Systems, Rheinmetall, Raytheon Technologies, Elbit Systems, and Israel Aerospace Industries. These firms dominate through a combination of technological leadership, global supply chains, and large defense contracts.

The outlook remains robust, with consistent growth expected through 2034 driven by tech innovation, rising aerial threats (e.g., UAVs and hypersonic missiles), and sustained global military preparedness. The market will likely see increased integration of AI, multi-layered defense, and cross-border partnerships.

The market is primarily driven by rising geopolitical tensions, increased government military spending, and the rapid development of stealth guided-missile technologies. Investments in next-generation radar, AI-powered defense systems, and international collaborations are accelerating global adoption of advanced air defense solutions.

The market is projected to grow from USD 24.46 billion in 2025 to USD 46.92 billion by 2034, registering a strong CAGR of 7.5%. This reflects growing global prioritization of national defense capabilities and technological modernization of air defense systems.

Weapon systems dominate due to rising use of anti-aircraft guns and missiles. Medium-range systems (20–100 km) are the most deployed, while radar systems and long-range platforms are expected to grow rapidly owing to their strategic importance and technological upgrades.

AI integration is transforming anti-aircraft systems by enhancing real-time threat detection, decision-making, and drone interception. Radar systems with high-data-rate samplers and AI-driven command platforms are reshaping battlefield readiness and operational efficiency.

With stable government funding, rising cross-border tensions, and increasing demand for integrated air defense systems, the market offers solid ROI potential. Recent deals such as RTX Raytheon’s $333 million missile development investment highlight strong institutional commitment to long-term growth.

Government initiatives especially in the U.S., China, and Europe are pivotal, with rising defense budgets supporting air defense R&D, procurement, and deployment. Regulatory backing and military modernization programs are creating steady demand and fostering innovation.

Key players include Lockheed Martin, BAE Systems, Rheinmetall, Raytheon Technologies, Elbit Systems, and Israel Aerospace Industries. These firms dominate through a combination of technological leadership, global supply chains, and large defense contracts.

The outlook remains robust, with consistent growth expected through 2034 driven by tech innovation, rising aerial threats (e.g., UAVs and hypersonic missiles), and sustained global military preparedness. The market will likely see increased integration of AI, multi-layered defense, and cross-border partnerships.

The market is primarily driven by rising geopolitical tensions, increased government military spending, and the rapid development of stealth guided-missile technologies. Investments in next-generation radar, AI-powered defense systems, and international collaborations are accelerating global adoption of advanced air defense solutions.

The market is projected to grow from USD 24.46 billion in 2025 to USD 46.92 billion by 2034, registering a strong CAGR of 7.5%. This reflects growing global prioritization of national defense capabilities and technological modernization of air defense systems.

Weapon systems dominate due to rising use of anti-aircraft guns and missiles. Medium-range systems (20–100 km) are the most deployed, while radar systems and long-range platforms are expected to grow rapidly owing to their strategic importance and technological upgrades.

AI integration is transforming anti-aircraft systems by enhancing real-time threat detection, decision-making, and drone interception. Radar systems with high-data-rate samplers and AI-driven command platforms are reshaping battlefield readiness and operational efficiency.

With stable government funding, rising cross-border tensions, and increasing demand for integrated air defense systems, the market offers solid ROI potential. Recent deals such as RTX Raytheon’s $333 million missile development investment highlight strong institutional commitment to long-term growth.

Government initiatives especially in the U.S., China, and Europe are pivotal, with rising defense budgets supporting air defense R&D, procurement, and deployment. Regulatory backing and military modernization programs are creating steady demand and fostering innovation.

Key players include Lockheed Martin, BAE Systems, Rheinmetall, Raytheon Technologies, Elbit Systems, and Israel Aerospace Industries. These firms dominate through a combination of technological leadership, global supply chains, and large defense contracts.

The outlook remains robust, with consistent growth expected through 2034 driven by tech innovation, rising aerial threats (e.g., UAVs and hypersonic missiles), and sustained global military preparedness. The market will likely see increased integration of AI, multi-layered defense, and cross-border partnerships.

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