Short-Range Air Defense System Market to Grow at a CAGR of Around 6% During 2025-30

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The Global Short-Range Air Defense (SHORAD) System Market size was valued at around USD18 billion in 2024 and is projected to reach USD26 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 6% during the forecast period 2025-30, cites MarkNtel Advisors in the recent research report. Several reasons are responsible for the growth of the market, including the rise in the use of drones and low-altitude aerial threats in modern warfare, demanding advanced defense methods, increasing geopolitical tensions, and rising defense spending, particularly in regions like North America and Europe, which are propelling demand for these systems.  The adoption of mobile and modularity-based air defense systems is also a major factor, as these can be deployed rapidly and easily in varied terrains.

Furthermore, technological innovation in the market is moving toward advanced directed-energy weapons, electromagnetic systems, and integrated targeting systems. Multi-layered air defense with medium and long-range SHORAD gives rise to a comprehensive network-based defense. In addition, the application of artificial intelligence and automation in detection and response mechanisms improves system efficacy tremendously. Besides, these emerging economies developed in the Asia-Pacific and the Middle East are offering great opportunities because they will be investing heavily to upgrade their defense systems. Other new opportunities are arising from the advent of asymmetric warfare and transnational security issues that underscore the significance of countermeasures for dealing with a variety of threats. Advancements in affordable and lightweight systems designed for smaller units also create new market opportunities.

However, several challenges are also restricting market growth. The rapid pace of technological improvement and countermeasures like electronic warfare and next-generation missile systems is one of the most serious challenges because it reduces the operational effectiveness of these systems. The interlinking of SHORAD systems with existing defensive infrastructure is itself a complex process in terms of required investments in modernization and training.

The building and operational costs of these systems, especially in a low defense funding situation, pose a severe impediment to many countries. The integration of complex components such as radars and missile guidance systems tends to introduce additional issues in technical aspects, translating into long schedules for the design phase. Moreover, the dynamic developments in air threats, such as hypersonic and stealth technologies, require continuous management updates and advancements in these systems. Therefore, producers and defense authorities have to address these technical, budgetary, and operational challenges to make SHORAD systems efficiently deployable, further states the research report “Global Short-Range Air Defense System Market Analysis, 2025.”

Global Short-Range Air Defense (SHORAD) System Market Segmentation Analysis

Weapon System is the Most Preferred Component Type in the Market

Based on component type, the market is further bifurcated into Weapon System, Fire Control System, Command & Control System, and Other Components. Out of them, Weapon system leads the global market with a market share of around 43%. Weapon systems are crucial in thwarting contemporary aerial threats such as drones, cruise missiles, and low-flying aircraft.

Weapon systems, which include sophisticated missiles, firearms, and laser-based solutions, hold the largest market share since they are the main means of destroying threats instantly. The incorporation of advanced technologies like precision-guided munitions and integrated targeting systems helps accelerate the trend. For Instance, Systems such as the Iron Dome and Patriot PAC-3 have set performance standards by providing exceptional capabilities in intercepting complex threats. Defense forces all over the world prioritize their investments in these components because they are necessary for both standalone and integrated air defense systems.

North America Leads the Short-Range Air Defense System Industry

North America leads the Global Short-Range Air Defense System Market. It holds around 30% market share. Factors such as high investment in research and development, advanced defense technologies, and a high military budget boost the dominance of North America. Such leadership can be attributed to a higher investment in technologies like laser and electromagnetic systems, besides having a higher concern for aerial threats such as drones and low-flying missiles. By developing high-tech systems such as integrated command and control systems and directed energy weapons, companies like Lockheed Martin and Raytheon, leaders in Short-Range Air Defense System technologies, further cement their market.

The US leads the investments in the SHORAD system in North America. Around 98% of the region’s spending is done alone by the US. The country’s defense forces are stationed across the globe, which requires best-in-class technology weapons. So, the country’s total defense budget over the past five years exceeded USD 2.5 trillion. In 2026, the country’s budget is expected to exceed USD 1 trillion. Out of the total annual budget, the government spends around 35% on new weapon procurement every year. In comparison, around 16% is spent on R&D. So, these staggering initiatives towards military modernization and prolonging global military dominance are also set to boost investments in SHORAD systems.   

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Israel Aerospace Industries, Saab AB, BAE Systems plc, Lockheed Martin Corporation, Thales Group, RTX Corporation, Rheinmetall AG, MBDA Inc., Leonardo S.p.A., Elbit Systems Ltd., Northrop Grumman Corporation, L3Harris Technologies Inc., Boeing Company, General Dynamics Corporation, Rafael Advanced Defense Systems Ltd., Almaz Antey Corporation, Nexter Systems, Bharat Electronics Limited, Kongsberg Gruppen, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report                                  

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?