Air Based Defense Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Fighter Aircrafts, Military Helicopters, Military Gliders and Drones), By Operation (Autonomous Air Based Defense Equipment, Manual), By Component (Weapon System, Fire Control System, Command And Control System), By Region & Competition, 2020-2030F

Market Overview

The Global Air Based Defense Equipment Market will grow from USD 68.90 Billion in 2024 to USD 91.35 Billion by 2030 at a 4.81% CAGR. The global air-based defense equipment market encompasses aircraft, weapon systems, and associated technologies designed for aerial combat, surveillance, and defensive operations. Market growth is primarily driven by escalating geopolitical tensions, necessitating modern air force capabilities, and increased national defense budgets across various regions. According to the Aerospace, Security and Defence Industries Association of Europe (ASD), in 2023, the European defense aerospace sector generated €64.8 billion in revenue.

A significant challenge impeding market expansion involves the complexity and increasing cost of research and development for advanced systems, coupled with persistent global supply chain disruptions impacting production timelines and material availability.

Key Market Drivers

Rising global geopolitical tensions are a primary catalyst for demand in the air-based defense equipment market, compelling nations to enhance aerial deterrence and response capabilities. The escalation of regional conflicts and strategic rivalries necessitates continuous investment in modern military aircraft, missile defense systems, and surveillance platforms. According to the Stockholm International Peace Research Institute (SIPRI), in its April 2025 report 'Global military spending soars to new high', Israel's military spending surged by 65 percent to $46.5 billion in 2024, driven by intensified combat in Gaza and southern Lebanon. Concurrently, increasing defense budgets worldwide directly fuel market expansion, providing the financial resources for procurement and modernization initiatives. Governments globally are allocating substantial funds to upgrade existing fleets and acquire advanced aerial systems. According to the Stockholm International Peace Research Institute (SIPRI), in its April 2025 report 'Global military spending soars to new high', global military expenditure increased by 9.4 percent in real terms in 2024, with all 32 NATO members raising their military spending, underscoring a collective commitment to bolstering defense postures.

These fundamental drivers significantly propel the global air-based defense equipment market, influencing product development and international trade. The sustained need for superior aerial capabilities to ensure national security reinforces continuous innovation and production. For instance, according to Boeing, in its April 2025 news release 'All The Military Planes Boeing Delivered In The 1st Quarter Of 2025', the company delivered 26 military aircraft, including marine patrol jets, fighters, and helicopters, in the first quarter of 2025, reflecting robust procurement activities by defense agencies globally.

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Key Market Challenges

The increasing complexity and escalating costs associated with research and development (R&D) for advanced air-based defense systems present a considerable challenge to market expansion. Developing next-generation aircraft, sophisticated sensor suites, and integrated weapon platforms demands substantial financial investment and extended timelines. This prolonged development cycle and higher upfront costs strain national defense budgets, particularly for nations balancing multiple modernization priorities, which can lead to delays in procurement programs or reduced quantities of new equipment being ordered.

Such financial pressures directly affect the industrial base responsible for innovation. According to the Aerospace Industries Association (AIA), in January 2024, some small and medium-sized businesses within the aerospace and defense supply chain reported laying off up to 40% of their workforce due to changes in R&D expense amortization. This impact on human capital and investment capacity directly hampers the ability of manufacturers to innovate and produce advanced systems, ultimately moderating the pace of new equipment adoption and thus market growth for air-based defense equipment.

Key Market Trends

The increased integration of Artificial Intelligence and autonomous systems is a key trend transforming air-based defense equipment, enabling advanced decision-making and reducing continuous human oversight. AI facilitates rapid data analysis from sensors, enhancing situational awareness, threat detection, and target engagement for platforms such as fighter jets and surveillance drones. Autonomous systems increasingly perform complex tasks, from reconnaissance to coordinated strikes, improving mission effectiveness and reducing human exposure. According to a BAE Systems' Digital Intelligence business report published in September 2025, 82% of defense and aerospace decision-makers and engineers prioritized artificial intelligence in their digital strategies. This focus highlights an industry shift toward self-governing platforms and AI-powered support for operational superiority.

The adoption of advanced manufacturing technologies, particularly additive manufacturing, significantly influences the global air-based defense equipment market by enabling lighter, stronger, and more complex component production. This technology permits design optimization, part consolidation, and intricate geometries, leading to improved aerodynamic performance and fuel efficiency in military aircraft. Additive manufacturing also supports rapid prototyping and on-demand spare parts production, enhancing supply chain resilience and accelerating maintenance. For instance, GE Aerospace announced in March 2025 its plan to invest nearly $1 billion in its U.S. manufacturing and supply chain, with over $100 million specifically dedicated to scaling the production of parts using new materials and processes, including 3D printing. This investment underscores the industry’s commitment to leveraging additive manufacturing for performance gains.

Segmental Insights

Within the Global Air Based Defense Equipment Market, the Military Drones segment is experiencing rapid growth. This expansion is primarily driven by continuous technological advancements, including enhanced sensor systems and advanced autonomous capabilities, which significantly improve intelligence, surveillance, and reconnaissance (ISR) missions and precision strike operations. Furthermore, increasing defense budgets worldwide, coupled with a strategic focus by governments on modernizing armed forces to reduce human risk in hazardous environments, fuels the demand for these versatile unmanned aerial vehicles. The inherent cost-effectiveness compared to traditional manned aircraft also contributes to their accelerated adoption across various defense applications.

Regional Insights

North America leads the global air-based defense equipment market due to substantial defense spending, advanced technological capabilities, and continuous modernization initiatives. The region's dominance is driven by significant investments from entities like the U.S. Department of Defense, prioritizing the development and procurement of sophisticated air defense systems and aircraft survivability equipment to counter evolving threats, including hypersonic weapons and unmanned aerial vehicles. Furthermore, the presence of major defense contractors and strategic initiatives such as the NORAD modernization efforts contribute to robust research and development, fostering innovation in areas like integrated air and missile defense frameworks. This comprehensive approach to national security ensures North America maintains a leading position in advanced air-based defense solutions.

Recent Developments

• In June 2025, Lockheed Martin completed the Technology Refresh 3 (TR-3) upgrade for its F-35 Lightning II multirole fighter, achieving a stable configuration that supports combat capabilities. As of this date, the company had delivered 200 F-35s equipped with the TR-3 configuration, which were designated for training missions. Deliveries of these upgraded aircraft had resumed in July 2024, following an earlier halt due to software instability issues. This upgrade is crucial for the F-35 program as it forms the basis for future Block 4 enhancements, which aim to increase the jet's weapon capacity, target identification, and electronic warfare capabilities, directly impacting the global air-based defense equipment market.

• In April 2025, the U.S. Army formally approved Raytheon's new Lower Tier Air and Missile Defense Sensor (LTAMDS) for low-rate production. This radar system is designed to replace the aging Patriot system, providing significantly enhanced air and missile defense capabilities. LTAMDS offers 360-degree coverage and is considered a major modernization element for the Army's Integrated Air and Missile Defense system. The Army plans to acquire approximately 10 radars in this initial production phase, with a total of 94 radars projected over the program's duration, contributing to advancements in the global air-based defense equipment market.

• In September 2024, Saab finalized the delivery of the fifth and ultimate GlobalEye Airborne Early Warning and Control (AEW&C) aircraft to the United Arab Emirates Air Force. This significant milestone concluded a delivery series that commenced in 2020. The GlobalEye system, a multi-domain platform, integrates both active and passive sensors onto a Bombardier Global 6000/6500 business jet, offering operational autonomy exceeding eleven hours. Its advanced Erieye ER radar and other sophisticated sensors provide enhanced detection and tracking capabilities even under jamming conditions, reinforcing Saab's position as a leading provider in the airborne early warning and control segment of the global air-based defense equipment market.

• In July 2024, BAE Systems, in collaboration with Leonardo of Italy and Mitsubishi Heavy Industries of Japan, unveiled a new concept model for their next-generation combat aircraft, known as Tempest in the UK. This collaborative effort forms the Global Combat Air Programme (GCAP), a significant development in the global air-based defense equipment market. Engineers from the participating organizations are utilizing innovative digital tools and virtual reality to advance the aircraft's design during its conceptual phase. The future combat aircraft is projected to enter service by 2035, featuring an intelligent weapon system, a software-driven cockpit, integrated sensors, and an advanced radar system capable of processing significantly more data than current systems.

Key Market Players

• Lockheed Martin
• Boeing
• Northrop Grumman
• BAE Systems
• Raytheon
• Airbus
• Leonardo
• Thales
• General Dynamics
• Saab

Report Scope:

In this report, the Global Air Based Defense Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Air Based Defense Equipment Market, By Type:

o   Fighter Aircrafts

o   Military Helicopters

o   Military Gliders

o   Drones

• Air Based Defense Equipment Market, By Operation:

o   Autonomous Air Based Defense Equipment

o   Manual

• Air Based Defense Equipment Market, By Component:

o   Weapon System

o   Fire Control System

o   Command andControl System

• Air Based Defense Equipment Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Air Based Defense Equipment Market.

Available Customizations:

Global Air Based Defense Equipment Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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