The active protection systems (APS) market comprises land, naval, and aircraft-based APS. These systems detect incoming fixed or multiple rounds projectiles, rockets, and anti-tank guided missiles and responds with various types of projectiles and hard-kill interceptors to intercept them before reaching their target. APS are gaining popularity as they neutralize threats without any collateral damage. Mounting security threats across the globe due to increasing instances of cross-border conflicts and insurgencies have raised the demand for advanced protection systems for armored vehicles. This is projected to drive the growth of the active protection systems market during the forecast period.

Key Takeaways

Key players operating in the active protection systems market are Airbus SAS, Artis LLC, Aselsan AS, Israel Military Industries, KBM, Rafael Advanced Defense System Ltd., Raytheon Technologies Corporation, Rheinmetall AG, SAAB AB, Safran, IMI Systems, Krauss Maffei Wegmann, and General Dynamics. rising military expenditures across countries and increasing demand for armored vehicles from defense forces are fueling the market growth. Additionally, ongoing technological advancements such as integration of soft-kill and hard-kill interceptors, lightning countermeasures, electrical scanning, and high-precision digital radars are further augmenting the demand for active protection systems.

Growing security threats from cross-border conflicts and rising instances of insurgencies and terror attacks have increased the defense spending by countries worldwide. According to the Stockholm International Peace Research Institute (SIPRI), the global military expenditure rose to $2.1 trillion in 2021. This has led to high demand for up-gradation and procurement of advanced Active Protection Systems Market Size systems.

Key players are continuously focusing on developing advanced technological solutions to counter new and advanced threats. For instance, Artis introduced its Multi-Threaded Incident Detection and Resolution (MIDR) technology for countering multiple incoming threats simultaneously. Similarly, Rafael unveiled Iron Fist Light Protected System, which uses a soft-kill system and active protection to defeat various ATGMs and RPGs.

Market Trends

- Integration of advanced technologies: Players are integrating technologies such as artificial intelligence, Internet of Things, and cloud computing with active protection systems to offer enhanced functionalities such as threat detection, tracking, and neutralization.

- Development of open architecture systems: Demand is growing for modular and scalable active protection systems with open architecture to facilitate integration with different types of platforms. This allows flexibility and reduced lifecycle costs.

Market Opportunities

- Procurement by naval and air forces: Growing procurement of fighter jets and warships by defense forces worldwide will boost demand for aircraft and naval-based active protection systems.

- Upgrades of existing fleets: Opportunities exist for upgrade and retrofitting of existing armored vehicles and military platforms with advanced active protection solutions. This will drive aftermarket revenues.

Active Protection Systems Market Impact of COVID-19

The COVID-19 pandemic has impacted the growth of the active protection systems market. During the initial months of the pandemic in 2020, manufacturing units and supply chains were disrupted due to lockdowns imposed across various countries. This led to delays in projects and hampered the production and delivery of active protection systems. The demand from the defense sector also witnessed a decline during this period as military budgets were diverted to fight the pandemic.

As restrictions started easing from mid-2020, the production of active protection systems gradually resumed. However, supply chain issues persisted and cost pressures increased owing to high freight charges and raw material costs. The demand slightly improved in 2021 but was still below the pre-pandemic levels. The pandemic also accelerated the pace of digitization in the defense sector. Many projects shifted focus to developing active protection systems integrated with advanced technologies like AI, IoT, Big Data analytics etc.

To sustain growth in the long-run, manufacturers need to strengthen global supply chains, use near-shoring/on-shoring strategies and explore partnerships. Addressing challenges related to high costs also needs attention. Investing in technologies facilitating remote monitoring and predictive maintenance can help improve productivity. Collaborating with system integrators and focusing on exporting integrated solutions can further aid recovery.

Geographical Regions with Highest Value for Active Protection Systems Market

North America constitutes the largest regional market for active protection systems in terms of value, where the United States accounts for the major share. This is due to high defense spending by the US government and presence of leading players. The demand is driven by ongoing upgrade programs of battle tanks, armored vehicles and naval ships with latest active protection technologies.

Europe is the second largest regional market led by countries such as Germany, UK and France. Significant ongoing and planned procurement of active protection systems by European nations for their land and airborne fleets is supporting the regional market growth. Asia Pacific is identified as the fastest growing regional market for active protection systems driven by defense modernization programs in China, India, Japan and South Korea.

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