The global market for active protection systems in 2020 was USD 2.81 billion. The negative after-effects due to the pandemic led to a sharp decline in the defense budget globally which translated to reduced defense procurement. The global APS systems market faced a plummet in demand for the year 2020. The market is projected to grow to USD 3.40 billion in 2026, with a CAGR of 8%.
APS is primarily used to provide high-performance protection against anti-tank threats. These systems can be easily installed in armored fighting vehicles, infantry fighting vehicles, and heavier tanks. The system detects enemy fire threats during battlefield operations. The main features of APS are modular design, independent sensor technology, minimal integration limits, mist kill technology, and 360-degree coverage for visual monitoring and situational awareness.
Emerging countries are procuring and manufacturing new generation armored vehicles due to geopolitical conflicts and illegal cross-border terrorist activity. The army is expanding and there is an increase in defense spending. For instance, the Indian Ministry of Defense and the Ordnance Factory Board (OFB) signed an agreement to deliver 118 Arjun Mk1A tanks to the Indian Army. These tanks are equipped with APS and counter-measure systems.
Additionally, In November 2019, the Indian Ministry of Defense (MoD) and the Indian Ordnance Factory Board (OFB) signed an agreement worth USD 2.8 billion to deliver 464 additional T90S main battle tanks to the Indian Army. The T90S main battle tank is also equipped with an active protection system. Therefore, increased procurement in South Asian countries will support market growth.
Excessive acquisition and installation costs: High costs are associated with the replacement of traditional active protection systems. The system consists of a flat panel radar, a threat detection sensor, and a short-range grenade launcher. Enhanced APS to improve the defense capabilities of main battle tanks and amphibious armored vehicles will require increased maintenance costs. Therefore, the need to upgrade APS hinders market growth.
The advent of technologically advanced modular countermeasure kits and missile defense devices (MCDs) is a prominent trend. GiatIndustries SA (France) has developed a technically advanced counter-measure kit used primarily for armored fighting vehicles. The system is equipped with a laser warning system, a rocket launch detection system, and an electro-optic jammer. These Jammers are used to limit missile attacks.
Missile Countermeasures (MCDs) are used in battlefield operations to detect and warn of imminent attacks. The MCD system sends an infrared signal to break the missile’s tracking loop. The MCD device is integrated with an advanced M6 counter-measure device that emits smoke and flares to distract the enemy. Increasing use of counter-measure kits and missile defense equipment by multiple troops is expected to drive market growth.
At present, Israel Military Industries Maintains Market Leadership. Israel Military Industries is focused on developing advanced technologies to provide extreme APS performance in harsh conditions. Some of the key technologies manufactured by the Israeli military include the next-generation Trophy Active Protection System, Iron Fist Light Configuration Active Protection System, and ADM141TALD. Recently, the United States Army and the Israeli military industry have signed a contract between Trophy APS and the Iron Fist Light Configuration System to improve military operational efficiency.