Active Protection System Market Size, Share & COVID-19 and War Impact Analysis, By Platform (Land-based, Airborne, and Marine), By Land-based (Main Battle Tank, Light Protected Vehicles, Amphibious Armored Vehicles, Mine-Resistant Ambush-Protected, Infantry Fighting Vehicles, Armored Personnel Carriers), By Airborne (Fighter Aircraft, Helicopters, Special Mission Aircraft), By Marine (Submarine, Frigates, Destroyers, Aircraft Carriers), By Kill System Type (Soft Kill System, Hard Kill System, and Reactive Armor), By Solution (Hardware and Software), and Regional Forecasts, 2022-2029

The global active protection system market size was valued at USD 3.01 billion in 2021. The market is projected to grow from USD 3.23 billion in 2022 to USD 5.69 billion by 2029, exhibiting a CAGR of 8.41% during the forecast period. North America dominated the active protection system market with a market share of 33.89% in 2021. Moreover, the active protection system market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 2,034.5 million by 2032, driven by the surging advancement in electronic warfare countermeasures and missile-based hard kill systems to bolster market size & growth.

The global COVID-19 pandemic has been unprecedented and staggering, with active protection system experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global active protection system market exhibited a growth of 7.22% in 2020 as compared to 2019.

According to the Congressional Research Service (CRS) Report, Department of Defense (DOD) Directed Energy Weapons (DEW), directed energy weapons can destroy a vast array of electronic systems, which may include both commercial and military systems. They can disable, incapacitate, or destroy any electronic system that falls under their electromagnetic cone. This factor is expected to drive market growth owing to the demand for weapon systems based on high-energy lasers and high particle beams on naval, airborne, and land platforms.

COVID-19 IMPACT

Rising Global Conflicts Owing to Interrupted Peace Negotiations and Deployment Reduction of Forces Boosted the Market During the Pandemic

New security alliances by countries were formed during the pandemic. For instance, Australia, the U.K., and the U.S. announced a new tri-lateral security partnership, AUKUS, for the Indo-Pacific region. They will work together to produce hypersonic missiles. To consider another example, France reorganized its strategic involvement in Sahel in Africa and focused on the Takuba counter-terrorism mission.

The pandemic interrupted peace negotiations and reduced the footprint of international forces. However, the market for Active Protection System (APS) was not much affected since countries did not decrease their defense spending. Further, with the second and third waves of the pandemic and continued regional disturbances, most nations resorted to modernization programs for their militaries. In the defense industry, a significant impact was felt from the inability to procure critical components due to the disrupted supply chains.

RUSSIA-UKRAINE WAR IMPACT

Operational Implications and Losses Incurred to Surge the Demand for Deployment of APS on Future Military Platforms

The Russia-Ukraine war has renewed the debate regarding the deployment of APSs by armed forces on their military platforms for armored vehicles. The war initiated a domino effect in the increase in defense spending worldwide, especially by the European continent. The conflict has severely impacted military budgets and also changed the procurement priorities of the European Armed Forces.

In the war, Ukrainian troops challenged the Russian armored vehicles and destroyed several tanks with javelins and Next Generation Light Armored Vehicles (NLAW). Several tanks had old APS and could not counter modern guided missile systems. Due to this, several countries renewed their modernization programs for their infantry fighting vehicles. The lack of DIRCM (Directional Infrared Countermeasures) installation on helicopters served as a lesson for NATO and other European Non-NATO Armed Forces. The development has increased the demand for APS and its subsystems in the NATO region.

For instance, in July 2022, General Dynamics Land Systems was awarded an Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract worth USD 280.1 by the U.S. army. The move was intended to provide Trophy Modular Ready Kits as a self-protection system for the U.S. army M1A2 SEPv2 & SEPv3 Abram main battle tanks.

LATEST TRENDS

Growing Adoption of Next-generation Modular Countermeasure Kits and Missile Countermeasure Devices to Bolster Demand

The base modular kits combine sensors and countermeasures in an open, common framework to detect, follow, organize, and defeat emerging and existing threats surge rocket-propelled projectiles and anti-tank guided munitions.

The scalable and open MAPS base kit is prepared to succeed with existing combat vehicles and sustain the capabilities of next-generation armored vehicle protection systems. The open-architecture controller features open standard interfaces and readily incorporates sensors and countermeasures compliant with the integrated MAPS architecture framework. It provides fast and secure processing power to drive multiple applications and future vehicle protection system capabilities. Further, Modular Active Protection Systems (MAPS) protect armored vehicles and crews from rockets and missiles, which is a major factor impelling industry growth.

DRIVING FACTORS

Rising Deployment of Next-generation Countermeasures and Decoys to Drive Active Protection System Market Growth

Armed forces worldwide are moving toward a modular framework for their next-generation self-protection system requirements. The next-generation modular APS kits will enhance the capability to provide future solutions tailored to address a wide range of platforms and can be easily upgradeable. The forces emphasize on maximizing vehicle survivability by integrating advanced and next-generation multi-layered protection systems.

With increased prominence of APSs, market players and military operators are currently focusing on multiple, coordinated layers of active and passive sensors and countermeasures. APS has been the most-demanded technology to address modern situational awareness and survivability challenges. This is in light of threats from projectiles such as Rocket-propelled Grenades (RPGs), loitering munitions, and Anti-tank Guided Missiles (ATGMs).

For instance, in November 2021, Leidos Inc. announced plans to continue the development of an advanced active acoustic countermeasure to help defend the U.S. and allied submarine forces against modern acoustic-homing torpedoes. This countermeasure will lead to noise generation to mislead the sonar guidance systems of arriving torpedoes zeroing in on the sounds created by target submarines.

Surging Advancement in Electronic Warfare Countermeasures and Missile-based Hard Kill Systems to Bolster Market Growth

Electronic countermeasures are adopted on account of the escalated demand for threat detection, threat suppression, and threat neutralization on various military platforms such as land-based, airborne, and marine. Therefore, several regulatory bodies and industry players are launching a series of projects that are focused on product development.

For instance, the Precision Electronic Warfare (PREW) project by DARPA emphasizes the development of a low-cost EW countermeasures system with several airborne jamming pods synchronization to replicate AESA avoiding collateral jamming of non-targeted receivers.

To consider a few other instances:

• In April 2022, Cobham Advanced Electronic Solutions (CAES) signed a low rate initial production phase-1 contract with Lockheed Martin Corporation to provide Phased Array Antennas, which will support its Advanced Off-Board Electronic Warfare (AOEW) system.


• In March 2021, L3Harris announced plans to design a new electronic warfare suite for F-16s sold to international partners. The system provides a virtual electronic shield around the aircraft.

RESTRAINING FACTORS

High Complexity and Overbearing Cost for Implementation and Installation to Hamper the Market Growth

In the defense sector, the protection system is significant for protecting from air defense systems, situational radars, and platform detection. The high cost associated with implementing and installing an active protection system is a prime factor hampering the market growth. This active protection system consists of highly expensive systems owing to complex installation and integration with existing military assets

A high maintenance cost is required to upgrade the APS to improve the main battle tanks’ defending capacity, light-protected vehicles, and an amphibious armored vehicle. Therefore, the necessity to upgrade APS is hampering market growth during the forecast period.  

SEGMENTATION

By Platform Analysis

Land-based Systems to Record Surging Demand Due to Burgeoning Product Requirement on Armored Vehicles

By platform, the global active protection system market is divided into land-based, airborne, and marine.

The land-based segment held the largest share in 2021 and is expected to record appreciable expansion during the forecast period. The growth is attributed to the high demand for APS on land-based platforms and rising technological advancements in soft-kill systems. A few instances include electronic and laser-based jamming coupled with smoke dispensers.

The marine segment recorded the second-largest share in 2021 and is set to register commendable growth from 2022 to 2029. This is being driven by the growing need for advanced and next-generation countermeasures against infrared detection, laser ranging, visual observation, UAV swarm attacks, and laser weapons.

The airborne segment is estimated to be the fastest-growing segment during the forecast period. This can be credited to the high adoption rate of electronic warfare strategies and technologies to electronically jam the enemy situational awareness system and weaponry from detection and attack.

By Land-based Analysis

High Adoption of APS amid Increased Procurement and Modernization of Main Battle Tank (MBT) to Bolster the Segmental Market Growth

Based on land-based, the market is further segmented into 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. The MBT segment was estimated to be the largest segment by market share in 2021, owing to the high adoption rate of hard-kill and soft-kill APS amid the rise in the procurement and modernization of main battle tanks. For instance, in July 2022, the U.S. Armed Force was awarded General Dynamics Land Systems an Indefinite Delivery, Indefinite Quantity (IDIQ) contract worth USD 280 million to procure Trophy Active Protection System for its M1A2 SEPv2 and SEPv3 Abrams Tanks.

Mine-resistant ambush-protected segment is estimated to be the fastest-growing segment during the forecast period. According to SIPRI publications and DefenseiQ Report, the armed forces worldwide are heavily investing into the procurement of mine-resistant ambush protected vehicles and modernizing their existing MRAPs. The increased procurement of MRAPs are driving the installation and procurement of APS on these platforms amid rising IED attacks on armored columns by enemy armed forces, terrorists or non-state actors.

By Airborne Analysis

Heightened Procurement of DIRCM and Chaff Technology Onboard Fighter Aircraft Worldwide by Air Forces to Propel the Market Growth

On the basis of airborne, this market is further classified into fighter aircraft, helicopters, special mission aircraft, and others. The fighter aircraft segment was evaluated to be the largest segment by market share in 2021. The growth is attributed to the rise in procurement of soft- and hard-kill APSs onboard this airborne platform, which is anticipated to bolster the segmental growth during the projection period. For instance, in April 2022, the Indian Air Force has tied up with India’s Defense Research Development Organization to induct CHAFF technology to protect fighter aircraft from enemy radar-guided missiles during war scenarios.

Special mission aircraft segment is estimated to be the fastest-growing segment during the projection period. The growth is due to the increased hard-kill APS such as Directed IR Countermeasures (DIRCM) and other hard-kill APSs on these platforms which are propelling the segmental market growth during the forecast period. For instance, in July 2022, Elbit Systems Ltd was awarded a contract worth USD 80 million by an undisclosed Asia Pacific Country to supply airborne EW (Electronic Warfare) systems and direct infrared countermeasures (DIRCM) for airborne platforms such as special mission aircraft.

By Marine Analysis

Modernization of Destroyers amid Rise in Naval Skirmishes and Anti-Piracy Operations to Drive the Adoption of APS in the Market

The market is further divided into submarine, frigates, destroyers, aircraft carriers, and others based on marine. Destroyers segment was evaluated to be the largest segment by market share in 2021. The growth is attributed to the growing market penetration of the key global players into Asia Pacific and North America markets amid the heightened adoption rate of APS by regional naval forces. For instance, in May 2022, Raytheon Missile & Defense, a subsidiary of Raytheon Technologies Corporation, was awarded a contract worth USD 423 million to produce SPY-6 radars for the U.S. Navy Vessels such as Destroyers and Aircraft Carriers.

Frigates segment is anticipated to be the fastest-growing segment during the projection period. Asian Naval Forces such as the Indian Navy, PLA Navy, Malaysia, the Philippines, Japan, and South Korea are heavily investing in the naval shipbuilding of Frigates owing to the operational requirements of their naval forces. This development will drive the segmental growth in the global market.

By Kill System Type Analysis

Soft Kill System Segment to Record Considerable Growth 

Based on kill system type, the market is classified into soft kill system, hard kill system, and reactive armor. The soft kill system segment held the largest share in 2021 and is estimated to record commendable growth during the projected period. The growth is attributed to the high demand for soft-kill self-protection systems owing to heightened investment in RDT&E of electronic warfare countermeasures and C-UAS (Counter-Unmanned Aerial System) systems.

Hard kill system segment held the second-largest share in 2021 and is poised to register appreciable expansion during the forecast period. The segmental growth is driven by the high demand and investment increment in developing the next-generation hard kill system. These include Directed Energy Weapons as Counter-Hypersonic Air Defense or Short Range Air Defense (SHORAD).

The reactive armor segment is anticipated to be the fastest-growing segment during the 2022-2029 period. This can be credited to the rising threats from anti-tank guided missiles, Molotov cocktails used in the Russia-Ukraine war, and loitering munitions.

By Solution Analysis

Modular APS Suites to Drive the Active Protection System Market Growth During the Forecast Period

By solution, the global market is classified into hardware and software. Hardware segment accounted for the largest segment share in 2021 and will record a substantial surge during the forecast period. The growth is attributed to the high demand for APS hardware and the increment in RDT&E investment in hardware required for APSs. For instance, in July 2020, Leonardo UK announced that it had completed the ICARUS Technology Demonstrator Programme (TDP) contract to field automatic agile APSs on its current and future armored fighting vehicle platform. The development will enhance their survivability from a wide range of incoming threats.

Software segment is estimated to be the fastest-growing segment during the projected period owing to the high adoption rate of self-protection system software suite to support its hardware systems. For instance, in May 2022, BAE Systems Australia was awarded an export contract worth USD 50 million to provide software and hardware sub-assemblies for the NATO Evolved Sea Sparrow Missile (ESSM) program.

REGIONAL INSIGHTS

Based on region, the global market is segmented into North America, Europe, Asia Pacific, the Middle East, and the rest of the world. North America dominated the global market with a valuation of USD 1.02 billion in 2021. The rising threat of anti-tank guided missiles and loitering munitions has driven the U.S. Armed Forces to develop platform self-protection systems such as MAPS, Quick Kill, Iron Curtain, and Directed Energy Weapons to safeguard its platforms, personnel, and heighten its situational awareness from existing and emerging threats. 

Europe accounted for the second-largest share in 2021 and is poised to register commendable growth during the forecast period. European Union members have increased their investment in next-generation self-protection systems for their armed forces platforms owing to their traditional procurement programs and the ongoing Russia-Ukraine war. The rest of Europe, especially Eastern European countries, is anticipated to adopt self-protection systems for their armed forces and homeland security forces during the forecast period. This development is expected to positively influence the market growth of the meteorological device market in the region during 2022-2029.

Several countries in the Asia Pacific increased investment in the armed forces platforms such as airborne, naval, and land. The regional growth is fueled by the burgeoning demand for hard kill systems such as directed energy weapons in the region.

KEY INDUSTRY PLAYERS

The active protection system market is highly fragmented among various regional players. The top five players in the market are SAAB AB, Rheinmetall AG, Raytheon Technologies Corporation, Rafael Advanced Defense Systems Ltd., and Hensoldt AG, which comprise 54.2% of the total market.

LIST OF KEY COMPANIES PROFILED:

• 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)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 – Elbit Systems Limited secured a contract worth USD 80 million to supply airborne EW (Electronic Warfare) systems and DIRCM (Direct Infrared Counter Measures) to an Asia Pacific country.


• May 2022 – Turkey announced plans to begin the serial mass production of its battle tank. The 65-ton main battle tanks (MBTs) would be equipped with Aselsan APS and provide protection from top-attack anti-tank guided munitions such as Javelin.


• May 2022 – Raytheon Missiles & Defense signed a contract with the U.S. Navy valued at USD 423 million to continue with the production of SPY-6 radars. The radars can provide protection against surface ships, cruise missiles, hostile aircraft, and ballistic missiles simultaneously. 


• November 2021 – General Dynamics European Land Systems (GDELS), Rafael Advanced Defense Systems (Rafael), and Krauss-Maffei Wegmann (KMW) announced that they had inked an agreement for the formation of a joint venture company called EuroTrophy. The new German-based firm will offer potential sales, production, and marketing opportunities of the Trophy APS to European markets and consumers.


• February 2021 – Lockheed Martin signed a contract with U.S. Army to supply 20 Modular Active Protection System (MAPS) base kits to U.S. Army combat vehicles. The agreement was valued at USD 30 million. The kit included a processor which integrated sensors and countermeasures.

REPORT COVERAGE

The market research report provides a detailed analysis of various aspects such as key players, their product offerings, and end-users of active protection systems. Moreover, the report offers insights on market trends, competitive landscape, market competition, product pricing, and the market status and highlights key industry developments. In addition to the aspects mentioned above, it encompasses several direct and indirect factors that have contributed to the sizing of the global market in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD Billion)
Segmentation	By Platform, Land-based, Airborne, Marine, Kill System Type, Solution, and Region
By Platform	Land-based Airborne 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) Others
By Airborne	Fighter Aircraft Helicopters Special Mission Aircraft Others
By Marine	Submarine Frigates Destroyers Aircraft Carriers Others
By Kill System Type	Soft Kill System Hard Kill System Reactive Armor
By Solution	Hardware Software
By Region	North America (By Platform, By Kill System Type, By Solution, and By Country) U.S. Canada Europe (By Platform, By Kill System Type, By Solution, and By Country) U.K. Germany France Russia Rest of Europe Asia Pacific (By Platform, By Kill System Type, By Solution, and By Country) Japan China India Australia South Kora Rest of Asia Pacific Middle East (By Platform, By Kill System Type, By Solution, and By Country) Turkey Saudi Arabia Israel Rest of Middle East Rest of the World (By Platform, By Kill System Type, By Solution, and By Sub-Region) Latin America Africa