by Active protection systems (APS) are life-saving technologies that utilize sensors, countermeasures and alerting mechanisms to detect, track, and neutralize incoming threats like rocket-propelled grenades and anti-tank missiles before they make impact. APS use active protection methods such as hard-kill systems that destroy incoming projectiles or soft-kill systems that employ smoke screens or deceptive sensors to divert threats from their targets. With advancements in artificial intelligence and multi-spectral sensing capabilities, APS provide unprecedented levels of protection for armored fighting vehicles and support platforms against a growing range of evolving threats. The global need for upgraded defense platforms has fueled increased demand for active protection technology across military vehicles of all weight classes.
The global active protection systems market is estimated to be valued at US$6.31 billion in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period from 2024 to 2031.
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. As the threats to armored assets grow exponentially, there is increasing pressure on defense organizations worldwide to procur passive protection measures for their fleets. As a result, the Global Active Protection Systems Market Demand is anticipated to grow steadily driven by military modernization plans of countries across North America, Europe, Middle East, and Asia Pacific. Furthermore, ongoing partnerships between prime contractors and tier 1 suppliers will help expand the geographic footprint and diversity of active protection solutions worldwide.
Market key players like Airbus SAS, Rafael Advanced Defense System Ltd. and Rheinmetall AG are focused on upgrading capabilities of existing APS through artificial intelligence, multi-spectral sensors and hard-kill countermeasures to engage incoming threats from all aspects. Growing demand for lightweight, diesel-engine based active protection systems suitable for tactical and auxiliary vehicles is opening new revenue opportunities for tier 2 players. Additionally, collaborative R&D on next generation APS technologies involving both military and academic institutions has potential to further accelerate the market growth beyond traditional defense primes over the forecast period.
Market Key Trends
One of the key trends driving growth of the active protection systems market is the increasing usage of artificial intelligence capabilities for advanced threat detection and neutralization. APS manufacturers are developing new-generation systems equipped with deep learning algorithms, computer vision techniques and multi-sensor data fusion to detect hard-to-spot threats like rockets, artillery and missiles with higher accuracy even in complex electromagnetic environments. This enhances reliability of active protection measures and promotes increased procurement particularly for strategic platforms.
Porter’s Analysis
Threat of new entrants: With rising requirements for protection technologies stringent regulatory demands pose challenges.
Bargaining power of buyers: Defense organizations can negotiate on pricing by creating competition between manufacturers.
Bargaining power of suppliers: Large suppliers for key components have negotiating power over manufacturers in prices and delivery schedules.
Threat of new substitutes: Alternate protection systems cannot match real-time detection and response capabilities posing limited threat.
Competitive rivalry: Intense competition exists with differentiated products and technologies vying for budgets and upgrade tenders.
North America accounted for the major share of the global active protection systems market in 2024 owing to significant defense budgets. Countries like the US and Canada have been early adopters and are engaged in upgrading fleets. Europe was the second largest market led by countries such as Germany, the UK, France, Russia, and Israel. Massive allocation for defense modernization and intensifying geopolitical tensions have augmented spending on protection technologies. Asia Pacific is anticipated to be the fastest growing region during the forecast period 2024-2031. Rising conflicts, increasing indigenous defense production, and burgeoning defense budgets especially in India and China are supporting regional growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
