Active Protection System Market

An Active Protection System (APS) is an advanced technology designed to protect military vehicles from incoming threats, such as anti-tank missiles, rocket-propelled grenades, and other projectiles. The system is designed to detect, track, and engage incoming threats, thereby providing a critical layer of protection for military personnel and equipment.

The use of Active Protection Systems has become increasingly common in modern warfare; as traditional armor solutions have become less effective against modern weapons. The APS technology provides a proactive approach to defense, allowing for immediate detection and engagement of incoming threats, rather than relying on the vehicle's passive protection systems to absorb the impact.

The key components of an Active Protection System include sensors, a processing unit, and effectors. The sensors detect incoming threats, the processing unit analyzes the data, and the effectors engage the threat with a countermeasure, such as a blast or projectile. Some APS also have the ability to jam or disrupt the guidance systems of incoming missiles, causing them to miss their target.

One of the main benefits of an Active Protection System is the ability to significantly reduce the weight and size of the vehicle's armor, while still providing a high level of protection. This is particularly important in modern warfare, where maneuverability and speed are critical. By reducing the weight of the armor, military vehicles can move more quickly and have a greater range of movement, making them less vulnerable to attack.

The market for Active Protection Systems is growing rapidly, with increasing demand from military organizations around the world. The United States, Israel, and Russia are among the countries that have developed and deployed APS technology on their military vehicles. The systems are also being developed for use in other applications, such as protecting commercial aircraft from missile attacks.

In conclusion, Active Protection Systems are a critical technology for modern military vehicles, providing a proactive approach to defense against incoming threats. The technology allows for greater maneuverability and speed, while still providing a high level of protection. The market for APS is growing rapidly, with increasing demand from military organizations around the world, and the technology is expected to continue to evolve and improve in the years to come.

Active protection system Market Dynamics

Drivers in Active Protection System Market

The Active Protection System (APS) market is driven by the development of advanced combat systems, particularly in developing economies like China, India, Brazil, and South Africa. These countries are investing heavily in upgrading their defense capabilities and augmenting their legacy surveillance systems. With the increase in their GDP growth, their defense budgets have also gone up, resulting in significant investments in advanced combat systems to prepare themselves for potential conflicts.

Recently, the US Army awarded a contract to Unified Business Technologies (UBT) and Rheinmetall Protection Systems (Germany) for testing the StrikeShield Active Protection System at the Redstone Test Center in Huntsville, Alabama in January 2022. In April 2021, Raytheon Corporation (US) also demonstrated its Quick Kill 2.0 system, which utilizes a vertical launch countermeasure to defend against incoming threats in the armored vehicle display area.

APS is a next-generation system integrated into or installed on a combat vehicle, designed to defend against enemies automatically. The system consists of an integrated radar system, sensors, launchers, and countermeasure munitions, allowing the system to shoot down missile threats accurately while minimizing collateral damage. APS offers high-performance anti-tank protection for armored fighting vehicles (AFVs), primarily battle tanks, light tanks, armored infantry fighting vehicles, and wheeled armored vehicles. It can detect, track, intercept, and employ various forms of protection, activated at a safe distance from the defended vehicle to destroy, disrupt, or degrade an incoming missile or projectile, reducing or eliminating penetration capability while reducing the lethal effects and ensuring vehicle survival.

Active protection systems are primarily used in military vehicles to safeguard them from enemy fire, and they can be installed on various types of vehicles and systems. These systems include modular optoelectronic sensor systems, target acquisition systems, digital radar processors, and thermal imaging devices that offer optimized field surveillance and combat in all visibility conditions. As cross-border conflicts continue to rise, many countries are increasing their armored vehicle fleets, which has directly contributed to the growth of the active protection system industry.

Many armed forces, including the US Army and Israeli defense forces, have conducted practical analyses of multiple active protection systems developed by various companies, including Raytheon and Rafael Advanced Defense Systems of Israel and Artis LLC of the US. As an example, in January 2022, Rheinmetall AG of Germany was awarded a contract by the Hungarian government to install StrikeShield hard-kill active protection systems on 209 new Lynx infantry fighting vehicles. Similarly, in the same month, the US Army awarded a contract to Unified Business Technologies (UBT) and Rheinmetall Protection Systems to test the StrikeShield active protection system at the Redstone Test Center located in Huntsville, Alabama.

Active Protection System (APS) Market Ecosystem

The active protection system market is comprised of various key stakeholders, including companies that offer platforms and soldier systems. Other significant influencers in this market are investors, funders, academic researchers, integrators, service providers, and licensing agencies. The defense segment currently holds the largest market share in terms of value in the active protection system market.

The military relies heavily on active protection systems to provide safety to armored fighting vehicles from enemy fire. These systems can be installed on various types of military vehicles and other systems, including tracked or wheeled armored fighting or logistics vehicles, combat helicopters, and naval warfare ships. They typically consist of modular optoelectronic sensor systems, target acquisition systems, digital radar processors for target detection, and thermal imaging devices that provide optimized field surveillance and combat capabilities, day or night, and under poor visibility conditions.

The increase in cross-border conflicts has led to several countries, such as the United States and Israel, focusing on expanding their armored vehicle fleets. This, in turn, has driven the growth of the active protection system industry. Various armed forces have conducted practical analyses of active protection systems developed by companies like Raytheon (US), Artis LLC (US), Israel Military Industries (Israel), and Rafael Advanced Defense Systems (Israel) to equip and install active protection systems on their armored vehicles.

During the forecast period, the ground segment is expected to exhibit the highest CAGR growth. Militaries worldwide are focused on countering improvised explosive devices (IEDs), and technologies such as double V-hulls, IED jammers, and other protection technologies can be integrated with active protection systems to provide complete security to the platform. Land combat platforms are expected to benefit significantly from these systems, as they can be equipped with various sensors, radars, decoys, chaffs, and weapon mountings, making them scalable, reliable, and flexible.

Europe led the active protection system market in terms of value. Major European economies like France, Germany, and the UK are investing in modernizing and upgrading their military capabilities to prepare for asymmetric warfare. As a result, the market for active protection systems in Europe is projected to witness significant growth during the forecast period. Rheinmetall Defense, Aselsan Inc., SAAB Group, Safran Electronics and Defense, Airbus Group, Thales Group, and Israel Military Industries are the leading manufacturers of active protection systems in the region.

One major factor hindering the growth of the active protection systems market is the high cost of developing radar systems. Radar systems are crucial components of active protection systems that help to detect, engage, and track incoming threats. As such, they need to be highly accurate, durable, energy-efficient, and have a wide detection range. Significant investments are required at different stages of the value chain of radar systems, such as research & development, manufacturing, system integration, and assembly, which can increase the cost of development.

Moreover, the COVID-19 pandemic has had a significant impact on the defense industry, disrupting the aerospace & defense supply chain and causing delays in equipment manufacturing and delivery. Many countries have prioritized their health budgets, reducing their defense budget and affecting demand for defense equipment, including active protection systems. The Republic of Korea Armed Forces, for instance, planned to cut $240 million from their defense budget during 2019-2020. The decrease in defense spending and slow production of Active Protection Systems (APS) have hindered the market growth. However, the defense sector is expected to recover quickly post-pandemic and drive the growth of the active protection system market, which is an evolving sector. Key market players have made significant investments in infrastructure and research & development to maintain a technological leadership position and develop highly functional and efficient radar systems.

Opportunities in Active Protection System Market

Market players have a significant opportunity to develop secure networks against cyber-attacks, particularly in the defense industry where the number of such attacks has increased in recent years. The Center for Strategic and International Studies reports that there were over 65 cyber-attacks on various government agencies worldwide between January and June 2022 alone. These attacks pose a threat to national security as any loss of sensitive data can have serious implications. Cyber-attacks take many forms, including malware injection, phishing, social engineering, DDoS, and brute-force attack. They are becoming more destructive, resulting in significant financial and data losses for defense forces. Additionally, security departments are frequently targeted by hackers for information on defense projects and systems. To counter these threats, market players must offer secure networks that can protect active protection systems.

There is also a rising demand for advanced combat systems in military and defense. Several countries have developed autonomous weapon systems to enhance military capabilities and troops in various conflicts worldwide. Innovations in sensor technologies, weapon firing systems, and other auxiliary systems are aimed at improving the accuracy and performance capabilities of the current generation of Active Protection System (APS). Furthermore, the emphasis on increasing the autonomy of weapon systems has led to the development of unmanned weapon technologies that can effectively neutralize a target without human intervention. For example, Hungary recently ordered 209 new Lynx infantry fighting vehicles from Rheinmetall AG of Germany, worth more than $165 million, which will be equipped with strike shield hard-kill Active Protection System (APS) of Rheinmetall. As a result, the demand for advanced combat systems is expected to drive the growth of the active protection system market.

Challenges in Active Protection System Market

One of the significant challenges facing the integration of active protection systems is weapon integration. Smart weapon manufacturers in North America adhere to specific US standards and policies, while several countries source defense systems from other countries, mainly Russia, France, and Germany, or use their indigenous ones. Integrating US standard weapons into these non-US defense systems requires massive alterations and modernization, which can be difficult and costly. For example, countries such as China, India, France, Germany, and Angola have different fighter aircraft in their inventory and will require heavy alterations and upgrades to configure western smart weapon systems. Upgraded munition control units, precision strike packages, and related training and simulation of weapons and their incorporated systems can be difficult to integrate and implement cost-effectively, posing a challenge to the integration of active protection systems.

The market growth of active protection systems is driven by the rise of cyber warfare that affects the performance of technologically advanced defense platforms. The increase in the development cost of radar systems and research and development activities in the market are also driving factors. Furthermore, the increase in the development of secure networks against cyber-attacks and the demand from emerging economies create new opportunities for active protection system manufacturers during the forecast period.

Europe dominates the active protection system market due to increased spending on advanced airborne targeting systems by countries such as the UK, France, and Russia, and upgrades and procurement of targeting pod-based aircraft in the region. The Asia-Pacific region is expected to grow significantly in terms of the active protection system market, primarily due to the rising cost of radar systems in this region.

Top Key Market in Active Protection System Market

• RHEINMETALL AG
• RAYTHEON TECHNOLOGIES
• AIRBUS
• SAAB AB
• ASELSAN A.S.
• RAFAEL ADVANCED DEFENSE SYSTEMS LTD.
• ARTIS, LLC
• KBM
• ISRAEL MILITARY INDUSTRIES
• LOCKHEED MARTIN CORPORATION
• BAE SYSTEMS PLC
• NORTHROP GRUMMAN CORPORATION
• TERMA AS
• LEONARDO S.P.A.
• ELBIT SYSTEMS
• SAFRAN ELECTRONICS & DEFENSE

Recent Developments in Active Protection System Market

In recent years, the Active Protection System (APS) market has seen significant developments and advancements. These systems are designed to protect armored vehicles from various threats, including rockets, missiles, and other projectiles. Here are some recent developments in the APS market:

Integration of AI and Machine Learning: There has been an increasing trend towards integrating artificial intelligence (AI) and machine learning (ML) technologies into APS systems. These technologies help to improve the accuracy and efficiency of the system in detecting and neutralizing incoming threats.

Advancements in Sensors: One of the key components of an APS system is its sensors, which detect incoming threats and trigger the system to respond. Recent advancements in sensor technology have led to the development of more accurate and reliable sensors, which can detect threats from longer ranges and in more challenging environments.

Integration with Unmanned Systems: The use of unmanned systems in military operations has been increasing in recent years, and APS systems are no exception. APS systems can now be integrated with unmanned vehicles, such as drones, to provide protection to troops on the ground.

Modular and Scalable Systems: Modular and scalable APS systems are becoming increasingly popular, as they offer flexibility in terms of configuration and can be easily adapted to different vehicle types and mission requirements.

Cybersecurity: With the increasing threat of cyberattacks on military systems, there has been a growing focus on cybersecurity in the APS market. APS systems are being designed to be more secure and resilient to cyber threats, with features such as encryption and secure communication protocols.

The Active Protection System (APS) market has seen several recent developments in various countries. In March 2022, Raytheon and Lockheed Martin jointly manufactured the Patriot air defense system, which is capable of dealing with a wide range of air threats. In October 2021, Rheinmetall presented its HX3 Tactical Truck, which has improved driving comfort, mobility, crew protection, and digital interface architecture. Rheinmetall Defence Australia also announced plans to build the Lynx infantry fighting vehicle's test chassis for the US. Additionally, in May 2021, ASELSAN and REHÝS Sector Presidencies began developing the KAMA active protection system, which results in low environmental damage and is effective at close range. Lastly, in May 2021, the French defense procurement agency awarded Saab a contract to deliver its Barracuda multispectral camouflage systems to France. These developments showcase the ongoing efforts to advance and modernize the APS market worldwide.