Anti-Ship Missile Defense System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component Type (Missile Interceptor, Radar), By Application Type (Ballistic Missiles Defense, Conventional Missile Defense), By Launch Platform (Air, Surface, Submarine) , By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 83.33 Billion
CAGR (2026-2031)	4.95%
Fastest Growing Segment	Conventional Missile Defense
Largest Market	North America
Market Size (2031)	USD 111.35 Billion

Market Overview

The Global Anti-Ship Missile Defense System Market will grow from USD 83.33 Billion in 2025 to USD 111.35 Billion by 2031 at a 4.95% CAGR. The Global Anti-Ship Missile Defense System Market consists of an integrated network of kinetic interceptors and electronic warfare countermeasures designed to detect and neutralize hostile maritime threats. The primary drivers propelling this market include the escalating geopolitical tensions in key maritime regions and the rapid proliferation of advanced supersonic missile technologies that necessitate robust fleet protection upgrades. Naval modernization programs globally are increasingly prioritizing the procurement of automated interception capabilities to secure high value assets against these evolving aerial risks. According to the Stockholm International Peace Research Institute, in 2025, the aggregate arms revenues of the top 100 global manufacturing companies reached a record 679 billion dollars for the year 2024, a surge significantly attributed to the urgent demand for advanced air and missile defense capabilities.

Despite the strong growth trajectory, the market faces a substantial impediment regarding the exorbitant costs associated with developing and integrating these complex defense suites onto existing naval platforms. The financial burden of testing and maintaining next generation technologies restricts the ability of nations with constrained defense budgets to acquire comprehensive protection against modern anti ship threats. This economic barrier frequently delays procurement schedules and hinders the full deployment of comprehensive multi layered defense architectures required for modern naval warfare.

Key Market Drivers

The proliferation of advanced hypersonic and stealth anti-ship missile threats is a primary catalyst driving market momentum. State actors are aggressively developing high-speed, maneuverable projectiles that challenge legacy defensive architectures, compelling naval forces to accelerate the deployment of next-generation kinetic interceptors. This technical urgency drives substantial industrial activity as navies seek to close capability gaps against sophisticated aerial risks. For instance, according to RTX, in January 2025, the U.S. Navy awarded a 333 million dollar contract to produce Standard Missile-6 (SM-6) Block IA missiles, a critical asset for intercepting dynamic threats at extended ranges. To further fortify ship self-defense layers against close-in dangers, according to RTX, in September 2025, the company secured a 205 million dollar contract to provide upgrades and continued production for the Phalanx Close-In Weapon System, ensuring robust terminal defense for the fleet.

Increased government defense budgets allocating funds for naval survivability serve as the necessary financial foundation for these procurements. Recognizing the vulnerability of high-value maritime assets, defense ministries are prioritizing expenditures on multi-layered integrated defense networks that combine kinetic munitions with emerging technologies. This fiscal commitment allows nations to transition towards more cost-effective and deep-magazine solutions. According to the UK Ministry of Defence, in November 2025, the government awarded a 316 million pound contract to MBDA to supply DragonFire laser directed energy weapons to the Royal Navy, illustrating the strategic shift towards funding advanced survivability suites. These enhanced allocations enable manufacturers to scale production and support continuous research, ensuring that fleet protection capabilities remain effective against evolving asymmetric and conventional dangers.

Download Free Sample Report

Key Market Challenges

The Global Anti-Ship Missile Defense System Market faces a significant impediment regarding the substantial costs required to develop, test, and integrate multi-layered defensive architectures. The engineering necessary to create systems capable of intercepting high-speed supersonic and hypersonic threats necessitates immense capital investment, which translates into high unit costs for naval end-users. This financial burden forces nations with constrained defense budgets to limit their procurement volumes or extend acquisition timelines, thereby delaying the full modernization of their fleets and leaving high-value maritime assets exposed to evolving aerial risks.

These economic barriers effectively slow the adoption rate of advanced interception capabilities, as funding instability often disrupts long-term procurement strategies. According to the National Defense Industrial Association, in 2025, 61 percent of private sector respondents within the defense industrial base identified federal budget processes as a pressing operational challenge, underscoring how fiscal uncertainty and funding rigidities directly hamper the timely delivery of critical defense systems. Consequently, the high cost of implementation prevents the widespread deployment of comprehensive protection suites, restricting market growth despite the clear operational demand for enhanced fleet security.

Key Market Trends

The emergence of Networked Cooperative Engagement Capabilities is fundamentally altering defense strategies by shifting focus from platform-centric to network-centric warfare. This trend involves integrating disparate sensors and shooters into a unified fire control grid, allowing naval forces to engage hostile targets using data from remote assets rather than relying solely on onboard systems. By creating a single integrated air picture, navies can maximize the effective range of interceptors and ensure redundancy against saturation attacks from anti-ship missiles. Illustrating the demand for these integrated command structures, according to MilMag, May 2025, in the article 'Northrop Grumman Awarded New IBCS Support Contract for Polish Armed Forces', Northrop Grumman received two contracts totaling 1.4 billion dollars to produce additional Integrated Battle Command System components, reinforcing the global shift toward unified air and missile defense networks.

Concurrently, the Advancement of Solid-State Radar Technologies is critical for detecting smaller, faster stealth threats in high-clutter maritime environments. The market is aggressively transitioning from mechanical arrays to Active Electronically Scanned Array (AESA) systems utilizing Gallium Nitride (GaN) technology, which offers superior power density and sensitivity. These next-generation radars provide simultaneous multi-mission capabilities, including volume search, tracking, and missile guidance, significantly reducing reaction times against supersonic and hypersonic projectiles. Highlighting this technical evolution, according to Naval Technology, June 2025, in the report 'Raytheon secures $536m SPY-6 radar contract', the U.S. Navy awarded Raytheon a 536 million dollar contract to enhance fleet capabilities with the SPY-6 family of radars, confirming the operational prioritization of high-sensitivity detection systems.

Segmental Insights

The Conventional Missile Defense segment is projected to register the fastest growth within the Global Anti-Ship Missile Defense System Market. This accelerated expansion is primarily driven by the escalating proliferation of anti-ship cruise missiles and unmanned aerial systems among diverse naval forces and non-state actors globally. Unlike specialized ballistic threats, these conventional hazards are ubiquitous, compelling navies to universally upgrade protection across all vessel classes. Consequently, defense procurement strategies are increasingly prioritizing kinetic interceptors and close-in weapon systems to effectively counter these frequent, high-volume saturation attacks.

Regional Insights

North America maintains a leading position in the global anti-ship missile defense system market, driven largely by significant defense budget allocations within the United States. The region benefits from extensive naval modernization initiatives mandated by the U.S. Department of Defense, which prioritizes the procurement of systems capable of countering evolving maritime threats. Additionally, the presence of major defense manufacturers facilitates strong collaboration with government agencies, ensuring steady investment in research and development. This strategic focus on strengthening naval fleet security consolidates North America as the primary contributor to global market expansion.

Recent Developments

• In September 2025, the Raytheon division of RTX was awarded a $205 million contract by the U.S. Navy to continue the production of the Phalanx Close-In Weapon System (CIWS). This computer-controlled, radar-guided rapid-fire cannon serves as a critical last line of defense for ships against incoming anti-ship missiles and other close-range threats. The agreement ensured the continued manufacturing and support of the system, which is deployed on all classes of U.S. Navy surface combatants and utilized by numerous allied navies. The work associated with this contract was anticipated to continue until 2029.
• In May 2025, Saab received a contract from the Swedish Defence Materiel Administration to equip five Visby-class corvettes with the Sea Ceptor air defense system. This integration involved the installation of the MBDA-manufactured Common Anti-air Modular Missile (CAMM), which provides protection against a wide range of threats, including supersonic anti-ship missiles. The upgrade, valued at approximately SEK 1.6 billion, aimed to significantly enhance the naval air defense capabilities of the Swedish Navy. The system enabled the engagement of targets at longer ranges and provided coverage for a larger area compared to the previous onboard systems.
• In October 2024, Northrop Grumman Corporation secured a modification contract valued at $43.2 million from the U.S. Navy to support the Surface Electronic Warfare Improvement Program (SEWIP) Block 3. This system is designed to enhance the electronic warfare capabilities of surface ships, providing non-kinetic defense against anti-ship missiles through early detection, signal analysis, and jamming. The contract covered the provision of spare parts and engineering change kits required for the production of these advanced hemisphere systems. The work was scheduled to be performed at various locations, including Baltimore, Maryland, with completion expected by February 2027.
• In January 2024, the UK Ministry of Defence successfully conducted a high-power firing of the DragonFire laser directed energy weapon against aerial targets at the Hebrides Range. The system, developed by a consortium involving MBDA, Leonardo, and QinetiQ, achieved a significant milestone by engaging and destroying incoming drones with extreme precision. This trial demonstrated the laser's potential as a cost-effective alternative to traditional missile interceptors for maritime defense. The technology is intended to be deployed on Royal Navy warships to counter evolving threats, including anti-ship missiles. The test highlighted the maturity of the directed energy capabilities within the UK's sovereign defense industry.

Key Market Players

• BAE Systems plc
• Lockheed Martin Corporation
• Rafael Advanced Defense Systems Ltd.
• Raytheon Technologies Corporation
• Saab AB
• MBDA Inc.
• Northrop Grumman Corporation
• Thales Group
• Leonardo S.p.A.
• Elbit Systems Ltd.

By Component Type	By Application Type	By Launch Platform	By Region
Missile Interceptor Radar	Ballistic Missiles Defense Conventional Missile Defense	Air Surface Submarine	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Anti-Ship Missile Defense System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Anti-Ship Missile Defense System Market, By Component Type:

• Missile Interceptor
• Radar

• Anti-Ship Missile Defense System Market, By Application Type:

• Ballistic Missiles Defense
• Conventional Missile Defense

• Anti-Ship Missile Defense System Market, By Launch Platform:

• Air
• Surface
• Submarine

• Anti-Ship Missile Defense System Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE