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The global active protection system market size was USD 2.81 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with active protection systems witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 8.0% in 2020. The market is projected to grow from USD 2.67 billion in 2021 to USD 4.61 billion in 2028 at a CAGR of 8.14% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
APS are majorly used to deliver high-performance protection against anti-tank threats. These systems can be easily installed in armored fighting vehicles, infantry fighting vehicles, and heavier configuration of main battle tanks. This system is used to detect hostile fire threats during battlefield operations. The APS sensor system can identify various hostile anti-tank threats. Modular design, independent sensing techniques, minimal integration constraints, miss-to-kill technology, and 360° coverage for sight surveillance & situational awareness are APS's main features.
Disruption in Supply Chain Management of APS amid COVID-19 to Restrain Active Protection System Market Growth
The COVID-19 pandemic is reflecting a negative impact on the defense industry. A novel strain of virus SARS-CoV-2 caused the disease in December 2019 from Wuhan city (China). The manufacturing facilities of the aerospace & defense industry could be affected due to the lockdown implemented in European and South Asian Countries. The global economy was affected by the disruption of the supply chain and reduced demand in the global market. The reduction in demand for active type of protection system and delayed deliveries of APS has changed the dynamic of this industry.
The Republic of Korea Armed Forces planned to reduce the USD 245 million defense budget during the financial year of 2019-2020. In the year 2019-2020, demand for defense equipment and APS-related services were affected due to the decreasing defense budget of the European Union. The decreasing defense spending and the APS production halt due to national lockdown created massive defense sector challenges. However, the company located in North America, such as Artis, LLC and Raytheon Technologies Corporation are investing in the compact active protection system. This type of system is used to provide better-defending capacity for combat vehicles. This will be reflected as positive growth of the market from the year 2022 to 2027.
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Advent of Technologically Advanced Modular Countermeasure Kit and Missile Countermeasure Device (MCD) is a Prominent Trend
Giat Industries SA (France) has developed a technologically advanced countermeasure kit that is majorly used for armored fighting vehicles. The system is equipped with a laser warning system and missile launch detection system, and electro-optical IR jammer. The jammer is used to restrict the attack of a missile. The missile Countermeasure Device (MCD) is used in the battlefield operation to detect and warn about an imminent attack. The MCD system emits Infrared radiation (IR) signals to disrupt the tracking loop of Missiles. The MCD device is integrated with an advanced M6 countermeasure device that releases smoke and flares to divert the enemy's attention. The rising use of countermeasure kits and missile countermeasure devices by several armed forces across the globe is projected to propel market growth.
Growing Usage of TROPHY Active Defense System from the U.S. Armed Force to Drive Market Growth
The Trophy active defense system (ADS) is designed by Rafael Advanced Defense Systems Ltd., Israel Military Industries, and Israel Aircraft Industries Electronics. TROPHY ADS is providing a combined hostile fire detection capacity. TROPHY ADS is a protective shield system with several features such as threat detection, tracking & launching functionality, and intercept activity. The threat detection system consists of missile detecting sensors and advanced flat-panel radars to provide hemispherical coverage for the battle tank. TROPHY ADS systems are easily installed in the lighter main battle tanks and light-protected vehicles.
The U.S. Army has been adopting the ADS system for the past ten years to protect the battle tank. In January 2021, Leonardo and Rafael Advanced Defense Systems Ltd. had delivered a Trophy ADS for the U.S. Army. These systems are majorly installed on Abrams main battle tanks. The U.S. Army has adopted this technology to protect Abrams main battle tanks against rockets and missiles. Therefore, the increasing use of the TROPHY ADS system from the U.S. Armed Force is expected to foster market growth
Increasing Procurement of New Generation Main Battle Tank (MBT) Will Aid Market Growth
Nowadays, emerging economies such as China and India are expanding their armed forces owing to geopolitical conflicts and illegal cross-border activity of terrorists. Increasing defense expenditure and procurement of new generation main battle tanks drive the market growth. In February 2021, India's defense ministry and the Ordnance Factory Board (OFB) had signed a contract to provide 118 Arjun Mk-1A tanks for the Indian Army. These tanks are equipped with APS and countermeasure systems.
For instance, In November 2019, The Indian Ministry of Defense (MoD) and Ordnance Factory Board (OFB) had signed a contract with a valuation of USD 2800 million to provide 464 additional T-90S main battle tanks (MBTs) for the Indian Army. The T-90S main battle tanks are also equipped with this type of protection system. Therefore, the increasing procurement of MBT across the South Asian Countries will aid market growth.
Overbearing Cost of Acquisition and Installation of Active Protection System Restrict the Market Growth
Overbearing cost is associated with replacing the conventional active protection system. This system comprises flat-panel radars, threat detection sensors, and a short-range grenade launcher. The high-ended maintenance cost is required to upgrade the APS to improve the main battle tank's defending capacity, light-protected vehicles, and amphibious armored vehicles. Therefore, the necessity to upgrade APS is hindering the market growth.
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Land-Based Segment to Lead APS Market by Need for an Advanced Combat vehicle
Based on the platform the active protection market is segregated as land-based, airborne, and marine. The land-based segment is classified as a main battle tank (MBT), light protected vehicles (LPV), amphibious armored vehicles (AAV), mine-resistant ambush-protected (MRAP), infantry fighting vehicles (IFV), armored personnel carrier (APC), and others. The Land-Based segment held a dominant share of the market in 2020. The dominance is owing to the increased funding from the private firms to procure defense equipment and combat vehicles for the U.S. government. In November 2019, Leonardo DRS and the U.S. Army had signed a contract to procure an APS and its components for the Abrams main battle tanks.
The airborne segment is classified as fighter aircraft, transport aircraft, and trainer aircraft. The Airborne segment is projected to register a higher CAGR by 2027. This growth is attributed to the increasing demand for the fifth generation of fighter jets from Japan and India. In January 2021, the Indian air force and Hindustan Aeronautics Limited had signed a contract with a valuation of USD 6500 million to develop APS-build Tejas fighter jets. The marine segment is classified as a submarine, frigates, destroyers, aircraft carriers, and others. The marine segment is expected to grow at a significant rate. This growth is attributed to the growing defense budget of the U.S. and China to adopt APS to build naval vessels to improve the maritime strength.
Hard Kill System to Rise at a Higher CAGR
According to the kill system type analysis, the market is clubbed as a soft kill system, reactive armor, and hard-kill system. The soft kill system is classified as an electro-optic jammer, radar decoy, infrared decoy, and others. The soft kill system is used to divert the inbound projectile of an opponent with the use of munitions, signature reduction measures, jammers, and decoys. The soft kill system segment held the largest share of the market during the forecast period. This growth is owing to the increasing adoption of laser warning receiver systems from the U.S. armed forces.
The hard-kill system is classified as rocket/missile-based, light weapon defense, directed energy, and others. The hard-kill system is used to engage and destroy enemy missiles before they impact their projected target. It is a close-in system of anti-missile defense that creates an active fire zone of protection at a safe distance around the combat vehicle. The hard-kill system is expected to register a higher CAGR during the forecast period. This growth is attributed to the growing demand for light weapon defense technology from several armed forces worldwide. Reactive armor is an advanced vehicle armor that detects a projectile threat to reduce the damage of the vehicle. Reactive armor is proved as an operative threat detector against the hardened kinetic energy (K.E) penetrators.
Rising Demand for Land Electronic Defense Systems (LEDS) Anticipated to Boost Market Growth
Based on the solution analysis, the market is segmented as hardware and software. The hardware segment held the largest share of the market during the forecast period. The hardware system can be easily installed in the main battle tank with minimum complexity. The demand for countermeasure systems is rising primarily from the aerospace & defense industry. Land Electronic Defense Systems (LEDS) is a cost-effective protection system that consists of laser warning sensors, infrared detection sensors, the effector control segment, and the human-machine interface. The LEDS is primarily used in amphibious armored vehicles and combat battle tanks.
The software segment is projected to register a higher CAGR during the forecast period. Key companies of the APS market are providing electro-optical, laser-guided software solutions to users. SAAB AB had developed a LEDS-50 MK2 system. This system is designed to provide situational awareness to the main battle tank by operating laser emissions associated with anti-armor threats and to permit a rapid countermeasure response. OEMs are offering both hardware and software products to the end-users. The growing use of Electronic Defense Systems and LEDS-50 MK2 systems worldwide is expected to propel market growth.
North America Active Protection System Market Size, 2020 (USD Billion)
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The global active protection system market size in North America was USD 0.95 billion in 2020. The growth is expected to the presence of several key players and the presence of major manufacturers in the region. Key players such as Artis, LLC and Raytheon Technologies Corporation are propelling market growth in the U.S.
Europe registers a remarkable growth in the near future. The increasing demand for this system from the European Union's armed forces is expected to support market growth. In October 2019, BAE Systems had launched the RAVEN Countermeasure system for combat vehicles. The RAVEN Countermeasure system is a protective shield of its integrated vehicle protection system suite of APS products. The RAVEN Countermeasure system is an advanced laser-based countermeasure (LCM) system. For instance, the RAVEN Countermeasure system is capable of defeating a guided missile threat.
The market in Asia Pacific is estimated to capture the fastest growth during the forecast period. This growth is attributed to the increasing procurement of the APS in China. Moreover, the increasing demand for the main battle tank, armored personnel carrier, infantry fighting vehicles, and amphibious armored vehicles from the emerging economy such as China and India is expected to provide several opportunities to the market. The rest of the world is projected to experience lucrative opportunities for this market. This high growth is due to the increasing spending on cost-effective APS technology to improve the light-protected vehicle's operational performance from the private firm of Africa and Latin America.
Israel Military Industries to Hold Leading Position in the Market
Israel Military Industries concentrates on developing advanced technologies to provide an extreme performance of the APS for harsh conditions. The company produces the next generation of Trophy Active Protection System, Iron Fist Light Configuration active protection system, and ADM-141 TALD. The U.S. Army and the Israel Military Industries had signed a contract for the trophy APS and iron fist light configuration system to improve the army's operational efficiency.
An Infographic Representation of Active Protection System Market
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The global active protection system market research report is providing an in-depth analysis of the market and majorly focusing on key aspects such as analysis of the market by platform, by kill system type, and by solution along with the factors contributing to the growth of the market in the defense vertical. The report also exhibits the COVID-19 impact on the defense industry and the research ideology of the APS product. Besides this, the report offers the latest market trends and highlights key industry developments. Moreover, the report provides several other relevant factors that will contribute to the market's growth.
Value (USD Billion)
By Kill System Type
Fortune Business Insights says that the global market size was USD 2.81 billion in 2020 and is projected to reach USD 4.61 billion by 2028.
In 2020, the North American market stood at USD 0.95 billion.
Growing at a CAGR of 8.14%, the market will exhibit steady growth in the forecast period (2021-2028).
The land-based segment is expected to be the leading segment in this market during the forecast period.
Increasing procurement of new generation main battle tank will aid market growth
Rafael Advanced Defense Systems Ltd., Raytheon Company, and Rheinmetall AG are major players globally.
China is the fastest growing market and will exhibit steady growth during the forecast period (2021-2028).
North America dominated the market share in 2020.
France is the fastest-growing country in the European market and is estimated to exhibit steady growth in the forecast period (2021-2028).
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