Active Protection System Market to Record CAGR of 6.9% Over 2025-2032; Elbit Systems Bagged Contract Worth USD 127 Million to Deliver Iron Fist APS to GD-OTS

The global active protection system market size was valued at USD 3.53 billion in 2024 and is predicted to reach USD 3.64 billion in 2025. The market is anticipated to touch USD 5.80 billion by 2032, recording a CAGR of 6.9% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report titled “Active Protection System Market Size, Share & Industry Analysis, By Platform (Land-based, Airborne, and Marine), By Land-based (Main Battle Tank (MBT), Light Protected Vehicles (LPV), Amphibious Armored Vehicles (AAV), Mine-Resistant Ambush-Protected (MRAP), Infantry Fighting Vehicles (IFV), Armored Personnel Carriers (APC), and Others), By Airborne (Fighter Aircraft, Helicopters, Special Mission Aircraft, and Others), By Marine (Submarine, Frigates, Destroyers, Aircraft Carriers, and Others), By Kill System Type (Soft Kill System, Hard Kill System, and Reactive Armor), By Solution (Hardware and Software), and Regional Forecast, 2025-2032”.

As stated in a report by the Congressional Research Service, Directed Energy Weapons (DEW) have the potential to incapacitate or annihilate different electronic systems, whether they are civilian or military, within their electromagnetic spectrum. This ability is anticipated to propel the expansion of the market for high-energy laser and particle beam weapon systems across naval, airborne, and ground platforms. All these factors are fueling the adoption of Active Protection Systems (APS).

During the COVID-19 pandemic, new security coalitions formed, such as AUKUS among Australia, the U.K., and the U.S., aimed at developing hypersonic missiles for the Indo-Pacific region. France also concentrated its strategic resources on the Sahel through the Takuba counter-terrorism initiative. Although the pandemic obstructed peace talks and diminished the presence of international forces, defense expenditures remained consistent, ensuring the Active Protection Systems (APS) market remained stable. Moreover, countries continued to pursue military modernization despite ongoing disruptions in supply chains impacting the defense sector.

Inability to Counter Modern Guided Missile Systems Increased Demand for APS During War

The Russia-Ukraine war has a positive effect on the global market. The presence of old APS in numerous tanks led to the inability to counter modern guided missile systems. This resulted in renewed modernization programs for their infantry fighting vehicles, thus contributing to the growing demand for APS and its subsystems in the NATO region.

Elbit Systems Bagged Contract Worth USD 127 Million to Deliver Iron Fist APS to GD-OTS

In November 2024, Elbit Systems bagged a significant contract of approximately USD 127 million for the supply of Iron Fist Active Protection Systems (APS) to General Dynamics Ordnance and Tactical Systems (GD-OTS) for upgrading the U.S. Army's Bradley M2A4E1 Infantry Fighting Vehicles (IFVs). The contract is anticipated to be finalized in just over 34 months.

Increased Adoption of Electronic Countermeasures and Introduction of New Products to Spur Market Growth

The use of electronic countermeasures has grown a lot because of the high demand for detecting, reducing, and neutralizing threats in military operations on land, in the air, and at sea. Regulatory agencies and companies are focusing more on developing new products and starting new projects. For instance, DARPA is working on a project called Precision Electronic Warfare (PREW), which aims to develop a cost-effective electronic warfare system. This system is intended to link multiple airborne jamming pods to simulate AESA technology, thereby minimizing interference with non-targeted receivers.

However, substantial expenses related to the implementation and installation of the product are a major factor hindering the active protection system market growth.

Top Companies Focus on APS Enhancements to Boost Market Revenue

The active protection system market is characterized by high fragmentation, with several regional players involved. The companies, including Rheinmetall AG, SAAB AB, Raytheon Technologies Corporation, Hensoldt AG, and Rafael Advanced Defense Systems Ltd., are among the top five, commanding 54.2% of the global market. Top companies focus on defense technology innovations. RTX creates cutting-edge APS solutions that use sensors, tracking systems, and countermeasures.

Notable Industry Development:

• December 2024: EuroTrophy obtained a major contract from KNDS Deutschland for the delivery of 123 Trophy Active Protection Systems intended for the German Army’s Leopard 2 A8 main battle tank fleet. 

List of the Companies Profiled in the Report:

• Artis LLC (U.S.)
• Aselsan A.S. (Turkey)
• Hensoldt AG (Germany)
• JSC Konstruktorskoye Byuro Mashinostroyeniya (Russia)
• Krauss-Maffei Wegmann GmbH & Co. KG (Germany)
• Lockheed Martin Corporation (U.S.)
• Rafael Advanced Defense Systems Ltd. (Israel)
• Raytheon Technologies Corporation (U.S.)
• Rheinmetall AG (Germany)
• SAAB AB (Sweden)
• Israel Military Industries Ltd. (Israel)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/active-protection-system-market-104049

Further Report Findings

• The North American region secured the leading position in the global market, valued at USD 1.21 billion in 2024. This growth can be attributed to the increasing threat of anti-tank guided missiles and loitering munitions, which have compelled the U.S. Armed Forces to develop enhanced self-protection systems.
• The European market obtained the second-highest share and is projected to witness significant growth in the upcoming years. The region’s substantial investments in advanced and innovative self-protection systems for armed forces, primarily due to the ongoing Russia-Ukraine war.
• On the basis of land-based, MBT accounted for the dominant active protection system market share in 2024. This dominance is a result of the rising adoption of both hard-kill and soft-kill active protection systems, fueled by advances in battle tank technology and their deployment.

Table of Segmentation