Global Missile Decoy Systems Market Research Report: Forecast (2023-2028)

Market Definition

Missile Decoys are airborne projectiles used to counter enemy missiles to safeguard military assets such as aircraft, ships, Inter Continental Ballistic Missiles, etc. The missile decoys simulate electronic and infrared signatures to deceive the enemy missiles and effectively deviate their intended path to secure intended airborne, sea-borne, and land-based platforms.

Market Insights & Analysis: Global Missile Decoy Systems Market (2023-28):

The market size of Global Missile Decoy Systems is projected to grow at a CAGR of around 20.59% during the forecast period, i.e., 2023-28. The proliferation of advanced missile technology incorporating various sensor technologies like infrared, radar, and electronic signatures, is posing a challenge to missile defense systems in safeguarding military assets. To address this challenge, major global economies are deploying counter-evasive decoy missiles equipped with similar heat, radar, to divert incoming enemy projectiles and ensure the protection of high-value assets.

Additionally, the growing importance of precision-guided missiles and their ability to target critical infrastructure and military assets has heightened the need for advanced countermeasures. Therefore, in line with securing the airborne systems, many of the leading militaries across the globe have planned to integrate missile decoy systems to secure their assets in hostile environments. For instance,

• The US has been one of the significant procurers of the respective decoy systems with an intended increase of USD 41.96 million to USD 96.58 million between 2020 & 2024. This increase is designed to procure missile decoys on a large scale to protect a vast range of sea-based assets.
• According to BAE Systems, Naulka, a middle decoy system was solely deployed in over 150 Australian, Canadian, and US warships as of 2022.

Additionally, the missile decoy technology also offers an effective measure against enemy missiles on land-based targets. Therefore, to protect land-based defense equipment which are high-value targets in an enemy attack, the global economies are increasingly promoting the development of missile decoy systems in the forecast years i.e., 2023-2028.

Global Missile Decoy Systems Market Driver:

Increasing Military Focus Towards Anti-Aircraft Systems to Promote the Missile Decoy Integration – With the advancement of aircraft technology towards modern avionics, electronic warfare systems, radar absorbent materials, supercruise, etc., various countermeasures have also been devised by the countries which include effective, quick response, and highly mobile surface-to-air missiles. As militaries require operations in diverse threat environment securing a high-value, fighter jet has become a priority due to which many countries have focused on installing active missile decoys on board to deceive enemy missiles through the simulation of radar, heat, and electronic signatures of the aircrafts.

Additionally, with the large number of 4th generation and 5th generation aircraft at the disposal of air forces across the globe, the demand for installing missile decoys to cope with the new age anti-aircraft missiles has extensively grown. Therefore, integrating missile decoys has become a cost-effective solution for operating aircraft in both friendly and hostile airspaces, as upgrading and advancing onboard systems demand substantial investments to create a strong electronic warfare system.

Global Missile Decoy Systems Market Opportunity:

Growing Demand for Missile Decoy Systems to Counter Long-Range Threats- With the evolving landscape of modern warfare, long-range missile capabilities have become more accessible to both state and non-state actors, posing a significant threat to military assets and civilian populations. As these missiles often employ advanced guidance systems, evading traditional defense mechanisms has become challenging.

This is creating a demand for innovative solutions that can effectively counter these threats. Additionally, the enhanced advantages of cruise missile–based decoys to imitate the flight patterns and characteristics of actual missiles to divert enemy missiles from the actual target is further contributing inclination of global economies towards cruise missile decoys.

Further, the advantages of cruise missile decoys such as cost-effectiveness, adaptability, and versatility are some of the factors that would boost their adoption among global economies for enhanced security in the upcoming years.

Global Missile Decoy Systems Market Challenge:

Increasing International Sanctions due to Geopolitics & Cost Constraints to Impede the Market Growth – Increasing international sanctions driven by geopolitics and cost constraints, especially across Europe presently are impeding the demand for missile decoy systems. Limitations on the supply of defense equipment across the globe due to the imposition of trade sanctions in Russia, Ukraine, etc., have widely restricted access to advanced technologies and components, thereby hindering the development and procurement of sophisticated defense systems like missile decoys. Additionally, countries facing financial limitations due to sanctions or economic downturns opt for more cost-effective defense solutions or delay the acquisition of advanced technologies such as missile decoy systems. Thus, the combination of restricted access to technology and limited financial resources impedes the demand for missile decoy systems globally.

Global Missile Decoy Systems Market Trend:

Growing Fleet of Submarines & Ships to Promote the Demand for Missile Decoys

Sub-surface warfare has emerged as one of the key focus areas of the militaries across the globe. With the focus on developing an effective blue water navy, countries such as the US, France, the UK, China, etc., are extensively investing in building a robust submarine fleet. These submarines include both diesel-electric and nuclear submarines with different submergence endurance. However, with the rapid advancement in submarine hunting ships, aircraft, and standoff torpedoes the survivability of the respective submarines has been challenged. To cope with the challenges, the demand for submarine-fired decoys has emerged which are effective against different types of enemy projectiles with sonar-based deception. Many navies across the globe have initiated investments towards the acquisition of such systems to operate sea fleets in dynamic challenges. For instance,

• In 2023, French company Naval Group and the UAE signed a deal of USD 11 million for supplying CANTO Anti-torpedo decoys and MU90 torpedoes for the Navy.
• In 2022, Bharat Electronics Limited (BEL), signed a contract of USD 32 million for supplying Anti-ship warfare equipment to the Indian Navy. The respective systems include torpedoes, rockets, and decoy systems in case of an incoming threat.

Thus, with the growing requirement for enhanced security for the blue water navy, the deployment of naval decoy systems is a key trend to augment the market growth.  

Global Missile Decoy Systems Market (2023-28): Segmentation Analysis

Based on Function:

• Infrared Decoy Systems
• Radar Decoy Systems
• Laser Decoy Systems
• Electronic Warfare Decoy Systems
• Other Decoy Systems (Acoustic, Visual, etc.)

Among all, Radar Decoy Systems are expected to exhibit a sizeable share in the Global Missile Decoy Systems Market. With the growing advancements of radars such as PESA (Passive Electronically Scanned Array) and AESA (Active Electronically Scanned Array), the usage of multiple radio frequencies for effectively engaging enemy aircraft has extensively grown. As radar offers a long stand-off range to the strike missiles, a large number of aerial threats are equipped with radar-based sensors for targeting & detection. Some of the radar decoy systems that are deployed in global military fleets include, AN/ALE-50, Nulka, etc., that are fitted in F-16, F/A-18E/F, and B-1B aircraft among others. Additionally, the increasing deployment of radar decoy systems in naval platforms due to advantages such as enhanced survivability, countermeasure against radar-guided threats, and reduced vulnerability to electronic warfare is further supporting the revenue growth from this segment. For instance,

• In 2022, the Independence-class Littoral Combat Ship (LCS), deployed with radar decoy systems was laid down at the Austal USA shipyard in Mobile, Alabama

Based on Platform:

• Airborne Decoy Systems
• Naval Decoy Systems
• Ground-based Decoy Systems

Airborne platforms are gaining notable momentum in the Global Missile Decoy Systems Market. With the emergence of 4.5 and 5th-generation aircraft with improved avionics and low radar signature, enhanced survivability is at the center of focus. Apart from the on-board electronic countermeasure systems to deflect enemy missiles, aircraft manufacturers are also focusing on deploying missile decoys as an additional layer of protection. Owing to this, a large number of aircraft such as F35, Eurofighter Typhoon, Rafael, etc., are actively using active missile decoys to ensure survivability in the increased threat scenarios.

Further, as the global military security threat continues to grow from regional allies, the demand for advanced military fighter jets and other equipment is rising substantially, as airborne threats, such as enemy aircraft, drones, and cruise missiles, can easily approach targets from long distances. This is anticipated to further boost the demand for enhanced missile decoy systems from airborne platforms globally. For instance,

• In 2023, Canada announced to procurement of 88 F-35 fighter jets from the US company Lockheed Martin with a total cost of USD14.2 billion. The aircraft is equipped with towed missile decoys ALE-70 which is a part of the comprehensive package.

Global Missile Decoy Systems Market (2023-28): Regional Projections

Geographically, the Global Missile Decoy Systems Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

North America is anticipated to hold a major market share in the Global Missile Decoy Systems Market, with the surging deployment of military hardware and burgeoning investment to integrate missile decoys to safeguard their military assets. Missile decoy manufacturers such as Raytheon, BAE Systems, and Leonardo, are working in coordination with North American economies to integrate advanced missile decoy systems in their air, land, and naval military systems in past years. These include Miniature Air Launched Decoy, dual-band Fiber-Optic Towed Decoy (FOTD), Nulka, & ALE-55 fiber optic towed decoy, among others.

Across North America, the US holds a dominant position in the market. This is because the U.S. has been involved in military interventions and conflicts in different parts of the world. These actions, while often driven by strategic interests and security concerns, can generate opposition and potential threats from affected parties or ideological opponents. Additionally, the U.S. & Canada are a part of several military alliances, including NATO, which obligates member countries to come to each other's defense in case of an attack on a member country. While these alliances enhance collective security, they also mean that an attack on any member could potentially trigger a broader response. As a result, the constant requirement to equip US & Canadian military with advanced counter technologies is anticipated to continue to support the demand for missile decoys in the country. Thus, leading to the overall growth of the North American’s share in the Global Missile Decoy Systems Market. For instance,

• In 2023, the Government of Canada in Fiscal 2023, announced a budget of over USD38.6 billion over 20 years to invest in the defense of North America and the modernization of the North American Aerospace Defense Command (NORAD).

Global Missile Decoy Systems Industry Recent Development:

• In 2023, Rafael announced the development of its new C-GEM and Wizard decoys adequate for the saturation anti-ship missiles.
•  In 2023, the Philippines Navy test-fired its new ‘Bullfighter’ a 130mm missile decoy. The system is targeted at protecting naval vessels up to the size of frigates.

Gain a Competitive Edge with Our Global Missile Decoy Systems Market Report:

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