Global missile and missile defense systems market, valued at US$33.1 billion in 2018, is projected to grow at a CAGR of 2.32% over 2018-2028, to reach US$41.6 billion by 2028. The market consists of seven categories: missile defense systems, surface-to-surface missiles, surface-to-air missiles, air-to-surface missiles, air-to-air missiles, anti-tank missiles and anti-ship missiles.

The market will be dominated by the missile defense systems segment, which is expected to account for 50.2% of the market over the forecast period, followed by surface-to-surface, surface-to-air, air-to-surface with shares of 12.8%, 12.6%, and 10.7% respectively. Air-to-air, anti-ship and anti-tank missiles comprise shares of 6.9%, 4.3% and 2.5% respectively. 

Asia Pacific is expected to account for the largest share of the total global expenditure on missiles and missile defense systems, with a 48.2% share in the forecast period. High demand in the region is primarily driven by the expenditure by China, India, and South Korea.

India and China are followed in terms of investment by South Korea which has been spending significantly on air and missile defense systems in light of North Korea’s aggressive stance on developing nuclear weapons. Sustained spending by other countries such as Japan, Australia, Philippines, and Taiwan is expected to drive the market in the Asia Pacific region.