Active protection systems (APS) are vehicle self-protection systems that detect and counter inbound threats like anti-tank missiles and rocket-propelled grenades. They provide enhanced survivability for light and heavy armored vehicles including main battle tanks against multiple threats. APS utilizes sensors to detect an incoming projectile or kinetic energy threat before deployment of countermeasures like interceptor missiles or kinetic energy bullets to destroy or deflect the incoming threat.
The Global Active Protection Systems Market is estimated to be valued at US$ 4.30 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. The major players are highly focused on developing innovative and advanced APS to meet the evolving security challenges for military vehicles. For instance, Artis developed Iron Curtain to provide all-around protection for light-Armored vehicles against RPGs and ATGMs.
The rising instances of asymmetric warfare and increasing attacks on military vehicles using man-portable anti-tank weapons have boosted the demand for active protection systems. The development of sophisticated anti-tank missiles and rockets by insurgent groups underscores the need for enhanced survivability solutions. The production of lightweight and durable APS solutions suitable for logistic and troop transportation vehicles will further encourage their adoption.
The growing defense modernization programs and up-gradation of existing vehicle fleets across nations are fueling the regional expansion of Active Protection Systems Market Growth manufacturers. Majorcountries are proactively procuring APS to gain technological advantage over adversaries. For example, in 2023, Rafael signed a $235 million deal with an Asia-Pacific country to supply its Trophy APS for new combat vehicle acquisitions.
Market Drivers
The increasing instances of asymmetric warfare pose serious threats to conventional military vehicles from inexpensive anti-tank weapons. This is a major factor driving the need for active protection systems among armed forces globally. The lightweight nature of man-portable anti-tank missiles and rockets allows non-state actors to target military vehicles effectively. This necessitates advanced self-protection solutions for enhanced survivability of armored vehicles. Moreover, the development of multi-functional threats like tandem charges is further boosting the demand for APS.
How current geopolitical situation is impacting on the growth of the Active Protection Systems Market, and future strategies need to consider
The current geopolitical instability across many regions is positively impacting the growth of the active protection systems market. With ongoing geo-political tensions and threats of regional conflicts or wars, many countries are actively investing in expanding and modernizing their defense capabilities. This is generating significant demand for active protection systems that can provide vital protection to armored vehicles from incoming missiles and projectiles. For instance, the Russia-Ukraine conflict has led both nations to prioritize developing advanced active protection capabilities. Additionally, the rising China-Taiwan tensions and China's increased assertiveness in the South China Sea region is motivating other Asian countries like Japan, India and Australia to procure active protection systems to strengthen their defense against potential aggression.
Looking ahead, origin equipment manufacturers and integrators in this market need to closely monitor the evolving geopolitical scenarios and assess potential future demand centers. They must explore opportunities to partner with or set up local manufacturing facilities in high growth regions to gain preferential access. Additionally, continued investment in R&D will be crucial to develop the next generation of active protection systems with advanced capabilities like improved modular designs for easy upgradeability, multi-mission capabilities, and increased protection coverage including overhead and underbody threats. Integrating active protection suites on a wider variety of armored vehicle types as well as naval assets will also help expand the market potential.
Geographical regions where market in terms of value is concentrated
Europe currently represents the largest regional market for active protection systems in terms of value, driven by significant procurement and modernization programs underway in countries like Germany, Britain, France and others. Major European OEMs have also been at the forefront of developing active protection technologies. North America is another major revenue contributor due to large US defense budgets and demand from upgrading fleet of armored vehicles in the US Army. The Asia Pacific region is estimated to be the fastest growing market over the forecast period led by substantial procurements by China, Japan, South Korea, India as they aim to incorporate active protection capabilities on a wide range of armored vehicle platforms. Israel also constitutes an important market for active protection systems because of the country's expertise and technology leadership in this domain.
Fastest growing region for Active Protection Systems Market
The Asia Pacific region is poised to be the fastest growing regional market for active protection systems during the forecast period from 2024 to 2031. This is attributable to the rising defense expenditures of major Asian nations on modernizing their military land capabilities. China and India currently represent the largest potential markets due to their ongoing military modernization programs. Other South Asian countries like Japan, South Korea and Taiwan are also expanding their procurement of active protection systems. The growth momentum will also be facilitated by the increasing indigenous production capabilities of regional players. For instance, South Korea has developed its own Hard Kill active protection system. Similarly, China's domestic defense industry is actively focusing on this technology. Overall, the demand escalation from Asia combined with local manufacturing is expected to make Asia Pacific the fastest growing regional market for active protection systems globally.
Get more insights on Active Protection Systems Market
Comments