active protection system market is anticipated to grow at a considerable CAGR of 6.1% during the forecast period. Nowadays, emerging economies, such as China and India are expanding their armed forces owing to geopolitical conflicts and illegal cross-border activity of terrorists. Increasing defense expenditure and procurement of new generation main battle tanks drive the market growth. For instance, in February 2021, India's defense ministry and the Ordnance Factory Board (OFB) had signed a contract to provide 118 Arjun Mk-1A tanks for the Indian army. These tanks are equipped with active protection system and countermeasure systems.

An active protection system is a close-in weapon system (CIWS) that acts as the last line of defense and is deployed to prevent the incoming projectile from having a direct impact on the target. The phenomenal increase in military budgets of developing and developed nations is further supporting the growth of the active protection system market. Modernization of existing fleets in the naval and land platforms will invite promising growth for the active protection system industry. However, the high-ended maintenance cost is required to upgrade the active protection system to improve the main battle tank's defending capacity, light-protected vehicles, and amphibious armored vehicles. Therefore, the necessity to upgrade active protection system is hindering industry growth opportunities.

The COVID-19 pandemic is reflecting a negative impact on the defense industry. The manufacturing facilities of the aerospace and defense industry got affected due to the lockdown implemented in European and Asia-Pacific countries. The global economy was affected by the disruption of the supply chain and reduced global demand. The reduction in demand for an active type of protection system and delayed deliveries of active protection system has changed the dynamic of this industry.

Segmental Outlook 

The global active protection system market is segmented based on the platform and kill system type. Based on the platform type, the market is segmented as land, naval, and airbourne. The land segment is estimated to register the highest growth in the coming years. The growing demand for active protection systems can be attributed to factors, such as increasing emphasis on close combat systems, up-gradation of prevalent armored platforms, need for connected warfare systems, and safety of soldiers in any warmongering situation, among others. Based on the kill system type, the market is segmented as soft kill system, hard-kill system, and reactive armor. Currently, the soft-kill system segment is imposing on the market. Nevertheless, the hard-kill system segment is expected to witness the highest growth during the forecast period. This unprecedented high growth is owing to the rising demand for advanced systems armed with enhanced competence to engage and knockout imminent threats. 

Regional Outlooks

The global active protection system market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  The market can also be analyzed for a particular region or country level as per the requirement. 

Global Active Protection System Market Growth by Region, 2022-2028

The North American Region Holds the Major Share in the Global Active protection system market

The North American region holds the major share in the global active protection system market. The companies located in North America, such as Artis, LLC and Raytheon Technologies Corp. are investing in the compact active protection system. This type of system is used to provide better-defending capacity for combat vehicles. Moreover, European Union is expected to increase its defense budget due to the ongoing war between Russia and Ukraine which will increase the demand for active protection system from the European Union’s armed forces. This will be reflected as growth in the global market. 

Market Players Outlook

The major companies serving the global active protection system market include BAE Systems plc, General Dynamics Corp., Israel Military Industries Ltd., Leonardo S.p.A., Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corp., Rostec State Corp., and Safran Group, among others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, Lockheed Martin had made a deal February 2021 to supply up to 20 Modular Active Protection System (MAPS) base kits to US Army combat vehicles for $30 million. This kit includes a processor which integrates sensors and countermeasures in an “open, common framework to detect, track, classify and defeat existing and emerging threats like rocket-propelled grenades and anti-tank guided missiles.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global active protection system market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.