Active Protection System (APS) Market Analysis North America,Europe,APAC,Middle East and Africa,South America - US,Canada,China,UK,Germany - Size and Forecast 2024-2028

Active Protection System (APS) Market Forecast 2024-2028 

The active protection system (APS) market size is estimated to grow by USD 1.76 billion at a CAGR of 8.64% between 2023 and 2028. The growth of the market for night vision cameras is dependent on several key factors. The development of advanced combat systems, which often incorporate night vision technology for improved situational awareness, is driving market growth. Additionally, the development of tactical radars for active protection systems (APS), which can work in conjunction with night vision cameras, is also contributing to market expansion. Furthermore, the fast-paced development of anti-tank missiles, which rely on advanced targeting systems, including night vision capabilities, is fueling market growth. These factors combined create a favorable environment for the growth of the night vision camera market.

What will be the Size of the Market During the Forecast Period?

Market Forecast 2024-2028

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Market Segmentation

The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Type, which comprises soft-kill and hard-kill. Additionally, it categorizes Platform into land-based, marine, and airborne, and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments. 

By Type 

The market share growth by the soft-skill segment will be significant during the forecast period. The growth of the soft-kill segment is attributed to the high demand for soft-kill self-protection systems owing to heightened investment in research, development, testing, and evaluation approaches of electronic warfare countermeasures and counter-unmanned aerial systems (C-UAS).

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The soft-skill segment was the largest and was valued at  USD 1.33 billion in 2018. Soft-kill systems are designed to eliminate guided weapons by disguising the protected vehicle from them (e.g., with a smoke screen) or by altering their guidance with radiation (e.g., with a dazzler). Some systems, such as the Type 99 tanks JD-3, employ laser dazzlers to distract the operator or sensors of semi-automatic command to line of sight (SACLOS) anti-tank guided missiles (ATGMs). Others employ strong infrared emitters to conceal the IR tracking flare found on various SACLOS ATGMs, like the Shtora-1. Hence, such factors show that the soft-kill segment in the market is expected to grow during the forecast period.

By Platform

Based on the platform, the market has been segmented into land-based, marine, and airborne. The land-based segment will account for the largest share of this segment. The growth of the land-based segment is attributed to the rising demand for an active protection system market on land-based platforms and rising technological advancement in soft-kill systems, which include electronic and laser-based jamming coupled with smoke dispensers. In addition, several countries are making investments in these platforms for defence purposes. For instance, in February 2021, Bharat Forge announced that it had received an order from the Defense Ministry of the Government of India under emergency procurement worth USD 1.17 billion to supply its Kalyani M4 mine protection vehicles to the Army. The deal was for 27 vehicles, according to Indian Army sources. The Indian Army has since placed further orders for these vehicles. Hence, such factors are expected to drive the growth of the land-based segment in the market during the forecast period.

By Region

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Europe is estimated to contribute 35% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. The US has an extensive military infrastructure and owns the largest fleet of platforms like battle tanks, aircraft carriers, and helicopters. It also owns the largest military bases. The country, through its cooperative defence policies with allies, deploys its troops in the larger geography for missions concerning counterterrorism and peacekeeping. The US ground troops are currently deployed in 177 countries, which include Afghanistan, Iraq, Kuwait, Syria, and Ukraine. The country also supports Baltic nations to counter the growing dominance of Russia.

Moreover, the rising threat from antitank-guided missiles and loitering munitions has driven the US armed forces to develop self-defence protection systems such as MAPS, Quick Kill, Iron Curtain, and directed energy weapons to safeguard its territory from enemies, which may increase the significance of the active protection system market in the region. Hence, such factors are expected to fuel the demand for APS in North America during the forecast period.

Market Dynamics and Customer Landscape

The market is crucial for military applications, especially in protecting armored fighting vehicles (AFVs) from threats. Systems like StrikeShield hard-kill active protection systems are essential for countering anti-tank threats. Companies like Raytheon and Unified Business Technologies (UBT) are at the forefront of developing APS solutions. These systems, integrated into vehicles like the Lynx infantry fighting vehicles, are vital in modern warfare scenarios, including asymmetric warfare and urban warfare, where rapid response mechanisms are critical.  APS also includes defensive measures like Trophy Modular Ready Kits and acoustic countermeasures to enhance vehicle survivability on the battlefield. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

Key Market Driver- Development of tactical radars for APS

The effectiveness of an Active Protection System (APS) relies heavily on the accuracy of its integrated radar, which is crucial for early threat detection. Ongoing radar technology advancements are set to drive the adoption of Active Protection Systems (APS), increasing their demand. RADAs Compact Hemispheric Radar (CHR) can be integrated with laser jammers or smoke grenade launchers to provide a soft-kill APS defense against ATGMs like the RSK-51 system. Integrating RADA CHR with Israel's Iron Fist APS enhances its capabilities against various threats, spurring market expansion. These developments align with modern warfare trends, including the use of Lynx infantry fighting vehicles, advanced warfare systems, and unmanned weapon technologies, crucial for countering asymmetric threats, especially in urban warfare scenarios. One recent advancement is RADAs Compact Hemispheric Radar (CHR), designed to detect, track, and classify threats like anti-tank guided missiles (ATGM), rocket-propelled grenades (RPGs), and tank rounds aimed at combat vehicles. CHR comprises three to four radars connected as a system, providing 360-degree coverage to armored fighting vehicles (AFVs).  These developments are anticipated to fuel market growth in the coming years.

Significant Market Trends- Rising deployment of next-generation countermeasures and decoys

Armed forces worldwide are moving toward a modular architecture for their next-generation self-protection system requirements. The next-generation modular APS kits will improve the potential to deliver future solutions adapted to a wide range of platforms and will be easily upgradeable. The forces place a premium on maximizing vehicle survivability by incorporating modern and next-generation multi-layered protective systems. With the rising significance of APSs, commercial companies, and military operators are now focused on numerous coordinated layers of active and passive sensors and countermeasures. APS has been the most requested technology to handle current situational awareness and survivability concerns. This is due to the threat posed by projectiles such as RPGs, loitering bombs, and anti-tank guided missiles (ATGMs).

For instance, in November 2021, Leidos Inc. announced its plans to continue the development of an advanced active acoustic countermeasure to help defend the US 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 which can have a positive impact on market growth. Hence, such factors are expected to fuel the growth of the market during the forecast period.

Major Market Challenge- High development and maintenance cost of APS

The high cost of developing radar systems is one of the primary reasons impeding the growth of the radar systems industry. This can negatively affect the active protection system market growth. Radar is one of the most important components of active protection systems. It helps monitor, engage, and identify approaching threats and provides signals to the receptor to act against them. As a result, large expenditures are required at several stages of the radar system value chain, such as research and development, production, system integration, and assembly. Radar systems are primarily used in military applications. 

However, to maintain technological leadership and develop highly functional and efficient radar systems in the current competitive environment. Key market companies have invested significantly in weapon testing fields and infrastructure and collaborated with universities, research institutes, and other companies for research and development. Hence, such factors may hinder the growth of the market during the forecast period.

Who are the Major Active Protection System (APS) Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ASELSAN AS  - The company offers an active protection system with energy transmission enabling deceptive and noise jamming techniques in a dynamic threat environment.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including ASELSAN AS, DornerWorks Ltd., Elbit Systems Ltd., General Dynamics Corp., Hanwha Corp., Israel Aerospace Industries Ltd., KNDS N.V., L3Harris Technologies Inc., Leonardo Spa, Lockheed Martin Corp., Plasan Sasa Ltd., Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corp., Rheinmetall AG, Saab AB, Safran SA, Technology Service Corp., Thales Group, Transvaro Electron Instruments, and HENSOLDT AG

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook
  • Soft-kill
  • Hard-kill

• Platform Outlook 
  • Land-based
  • Marine
  • Airborne

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by the rising demand for advanced defense technologies such as autonomous weapon systems and next-generation tanks. APS provides rapid response capabilities against threats like anti-tank guided munitions and hypersonic missiles in hostile environments. Systems like Iron Fist and Modular APS Suites offer lightweight explosive projectile interceptors and drone protection systems, enhancing vehicle protection. Companies like General Dynamics Land Systems and Raytheon Missile & Defense are pioneering the development of APS, integrating high-energy lasers and particle beams for effective defense. APS's integration into main battle tanks and armored personnel carriers underscores its importance in modern military capabilities.

The market is experiencing rapid growth, fueled by advancements in artificial intelligence and sensor technologies. APS, like the Iron Fist light decoupled active protection system, offers casualty reduction and enhances vehicle survivability against threats such as rocket-propelled projectiles and missile systems. These systems integrate digital integrated systems and electronic warfare suites to counter electronic attacks and provide optical sensors for threat detection. Companies like Redstone Test Center are conducting tests to address operational challenges and installation challenges of APS in wheel-type armored vehicles and light protected vehicles. APS's deployment in amphibious armored vehicles underscores its adaptability to various defense scenarios.

Market Scope
Report Coverage	Details
Page number	177
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 8.64%
Market Growth 2024-2028	USD 1.76 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	7.96
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	Europe at 35%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ASELSAN AS, DornerWorks Ltd., Elbit Systems Ltd., General Dynamics Corp., Hanwha Corp., Israel Aerospace Industries Ltd., KNDS N.V., L3Harris Technologies Inc., Leonardo Spa, Lockheed Martin Corp., Plasan Sasa Ltd., Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corp., Rheinmetall AG, Saab AB, Safran SA, Technology Service Corp., Thales Group, Transvaro Electron Instruments, and HENSOLDT AG
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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