Having been conceived in an era distinctive of wars and terrorist attacks, interceptor missiles market falls among the verticals that stand to gain massive benefits through the production of defense equipment and weapons. Consistently faced with luminous threats from enemy countries, myriad nations across the globe have been making investments to stock themselves with these missiles, to arm themselves suitably in the face of an invasion or unexpected enemy assault. The role of the government in this regard is particularly important, given the issue of national security. Indeed, regional governments, since long, have been involved in consolidating the administration with regards to securing their respective economies, the impact of which has been depicted in the ongoing interceptor missiles industry trends. Not to mention, renowned participants in interceptor missiles market are leaving no stone unturned in order to bring forth a renewed portfolio of products for the defense fraternity. Interceptor missiles industry is also ablaze with authorized agencies partnering with leading players to arm their nation’s defense sector with the required equipment. One of the most recent validating the aforementioned statement is that of The Missile Defense Agency (MDA) awarding a contract to one of the foremost contenders in interceptor missiles market - Lockheed Martin. Worth USD 459 million, this contract entails the development and delivery of interceptors for the THAAD (Terminal High Altitude Area Defense) weapon system. In addition to the funding provided earlier, the contract’s total worth as of now is around USD 1.28 billion. Incidentally, these interceptors support the U.S. Army THAAD units and their operational requirements.
U.S. Interceptor Missiles Market, By Surface, 2016 & 2024, (Units)
A quick insight elaborating on the role of national governments in interceptor missiles market growth
Riding high on the hallmark of national defense and security, the revenue graph of interceptor missiles industry thrives exceptionally on the support of the regional governments. In a bid to remain impregnable and prepared in the face of an attack, governmental bodies have been providing substantial grants for upgrading defense equipment and purchasing the latest missiles to safeguard the nation against terrorist attacks. A gist of how various countries have been upping their fortification and how this has been impacting interceptor missiles market share has been outlined below:
It is rather overt that the defense departments of national governments have been going the whole hog to protect the nation’s security against threats. Indeed, this will prove to be one of the most perpetually strong driving forces for interceptor missiles market size in the ensuing years.
Interceptor missiles industry is inherently infamous for the fact that new entrants find it remarkably difficult to penetrate this business space. One of the principal factors responsible for this adverse predicament is the exorbitant missile manufacturing cost. According to a 2012 survey, development expenditure is well in excess of USD 400 million, while the actual missile purchase cost amounts to around USD 70 million. Combined with repair and maintenance costs, the price extends to around USD 90 million per ballistic missile. Novices overtly find it difficult to even establish their place in interceptor missiles market, especially when competing with the strongly stabilized league. Another essential drawback that interceptor missiles industry is remnant of is the fact that these missiles, more often than not, turn obsolete. This in consequence, prompts periodic technological advancements, further adding to the already soaring costs of these products. Nonetheless, generous defense grants by regional governments and the efforts put in companies with respect to R&D programs to reduce manufacturing costs are likely to marginally combat these challenges faced by interceptor missiles market players in the future. Despite the ongoing flood of restraints, interceptor missiles industry size has been forecast to cross 3,000 units by 2024, in terms of volume.