| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 4.49 Billion |
| Market Size (2030) | USD 6.02 Billion |
| CAGR (2025 - 2030) | 6.06 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Active Protection Systems Market Analysis
The Active Protection Systems Market size is estimated at USD 4.49 billion in 2025, and is expected to reach USD 6.02 billion by 2030, at a CAGR of 6.06% during the forecast period (2025-2030).
Growing instances of asymmetric warfare and the emphasis on developing advanced warfare systems are the main drivers of the market. The emphasis on increasing the autonomy of the weapon systems has given rise to unmanned weapon technologies such as RWS and CIWS that can effectively neutralize a target without human intervention. The new variants of APS feature advanced optronic that renders them exceptionally suitable for urban warfare and thus reduce the casualties during a war.
The increasing sophistication of missile systems and other anti-tank threats has heightened the demand for active protection systems. These technologies offer a proactive defense layer, countering emerging threats and significantly increasing the survivability of military platforms. Ongoing advancements in sensor technologies, artificial intelligence, and rapid response mechanisms have propelled the evolution of APS. Enhanced sensors enable quicker threat detection, while AI-driven algorithms optimize response times, making these systems highly effective in dynamic and complex combat scenarios.
During the last decade, many countries have developed and fielded their autonomous weapon systems to bolster their military capabilities and to strengthen their troops in several conflicts around the world. The proliferation of innovations in the field of sensor technologies, weapon firing systems, and other auxiliary systems are aimed at enhancing the accuracy and performance capabilities of the current generation of active protection systems. Technological advancements remain a driving force across all segments of the APS market. Continuous innovation in sensor technologies, artificial intelligence algorithms, and response mechanisms enhances the overall effectiveness of APS solutions.
However, the market is marred by frequent installation and operational challenges associated with autonomous weapon systems, such as the inherent vulnerability to magnetic fields, radio signals, and other electronic attacks. The design and operational issues regarding the use of automated weaponry such as remote weapon stations (RWS) and CIWS may challenge the industry in the short term.
Active Protection Systems Market Trends
The Terrestrial Segment Holds Highest Shares in the Market
The terrestrial segment market holds the highest shares. The growth is attributed to the extensive use of APS on ground-based military vehicles, including main battle tanks and armored personnel carriers. Main battle tanks, armored personnel carriers, and other terrestrial platforms benefit significantly from deploying APS, enhancing their survivability in hostile environments. The increasing prevalence of asymmetric threats and the need for rapid response capabilities contribute to the growing adoption of APS on terrestrial platforms. Ongoing technological advancements, such as modular and scalable APS solutions, further fuel the expansion of this segment.
As militaries globally prioritize the protection of ground forces, the terrestrial platform segment is poised to maintain its dominant market share. For instance, in September 2022, Kongsberg Defence & Aerospace (KDA) established a strategic partnership with Hyundai Rotem to develop unmanned turrets and drone protection systems for next-generation tanks and wheel-type armored vehicles.
Kongsberg products like digital integrated systems would be installed on Hyundai Rotem's K2 tanks and K808 wheeled armored personnel carriers. Similarly, in January 2023, The US Army completed rigorous testing on an active protection system that showed significantly improved results. The Iron Fist light decoupled active protection system achieved further improved performance in recent live-fire testing on the Bradley Infantry Fighting Vehicle. The Iron Fist system comprises radar, optical sensors, and lightweight explosive projectile interceptors that can counter-launch incoming airborne threats. Such developments will boost the market growth in the coming years.
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North America to Dominate the Market During the Forecast Period
The United States and Canada are avid users of APS in North America. They are currently focusing on upgrading their existing vehicle fleet and corresponding capabilities. The region's leadership is attributed to heightened geopolitical tensions, substantial defense budgets, and a relentless focus on modernizing defense capabilities.
With its significant investments in advanced military technologies, the US plays a pivotal role in driving the demand for APS. The emphasis on enhancing the defensive capabilities of military assets, coupled with the continuous development of cutting-edge APS technologies, positions North America as a thriving market.
Additionally, collaborations between government agencies and defense contractors further propel the growth of APS in the region. For instance, in February 2021, Lockheed Martin will supply up to 20 Modular Active Protection System (MAPS) base kits to US Army combat vehicles under a contract totaling up to USD 30 million. The kit includes a processor integrating sensors and countermeasures in an open, common framework to detect, track, classify, and defeat existing and emerging threats like rocket-propelled grenades and anti-tank-guided missiles.
Also, in July 2022, the US Army Contracting Command ordered additional TROPHY Active Protection Systems from General Dynamics Land Systems for the M1 ABRAMS Main Battle Tanks (MBTs) for about USD 280 million. TROPHY is developed by Rafael and marketed in the US in cooperation with Leonardo DRS. Similar procurement and upgrade programs are anticipated to drive market growth across the region.
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Active Protection Systems Industry Overview
The active protection systems market is consolidated in nature due to presence of few players holding significant shares in the market. Some of the key players in the market are RTX Corporation, Leonardo S.p.A., BAE Systems plc, Rheinmetall AG, and Rafael Advanced Defense Systems Ltd. The growing demand for APS is fostering R&D for new optronics and sensor subsystems. Meanwhile, companies are trying to expand their geographical presence in emerging markets such as Asia-Pacific. Collaborations, strategic partnerships, and continuous innovation are key strategies employed by market players to maintain and expand their market share.
Furthermore, the focus on enhancing product performance, reliability, and cost-effectiveness remains crucial in shaping competitive dynamics. For instance, in September 2022, Rafael Advanced Defense Systems Ltd. completed the acquisition of Pearson Engineering Ltd. (UK). The acquisition includes Pearson’s metalworks subsidiary company Responsive Engineering Ltd. Pearson and Responsive manufacture tank turret structure and is supported by Rafael for the UK MOD Challenger 3 program. Post acquisition, Pearson would be able to locally manufacture and integrate the TROPHY active protection system, providing the highest level of protection to the crew.
Active Protection Systems Market Leaders
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Leonardo S.p.A.
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BAE Systems plc
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Rheinmetall AG
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RTX Corporation
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Rafael Advanced Defense Systems Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Active Protection Systems Market News
- September 2023: Israel Defense Ministry signed a USD 3.5 billion agreement with Germany to supply German Forces with the Arrow 3 air defense system. As per the agreement, the initial operational capability for the system will be ready by 2025. The Arrow 3 was developed by IAI as the top tier of Israel’s multi-layered air defence system, designed to confront atmospheric threats. The US government also approved the Arrow defence systems purchase in August 2023.
- June 2023: Krauss-Maffei Wegmann (KMW) and the Norwegian Defence Materiel Agency (NDMA) agreed to align the specifications of the 54 new Leopard 2 MBTs. Norwegian Leopard 2 MBTs will share all the characteristics of the redefined 2A8 variant and will be known as Leopard 2 A8 NOR. Leopard 2 A8 NOR will be equipped with Trophy active protection systems.
Active Protection Systems Industry Segmentation
An active protection system (APS) is a close-in weapon system (CIWS) that acts as the last line of defense and is deployed to prevent the incoming projectile from having a direct impact on the target. The report includes both hard-kill and soft-kill systems installed onboard military assets, such as main battle tanks (MBTs), and naval assets, such as frigates and destroyers. The hard-kill systems include rocket/missile-based, gun-based, and reactive armour-based weaponry that physically counterattacks an incoming threat thereby destroying/altering its payload/warhead in such a way that the intended effect on the target is severely impeded. The soft kill systems include electronic countermeasures, such as electro-optic jammer, radar decoy, and infrared decoy, that alter the electromagnetic, acoustic, or other signature of the target thereby altering the tracking and sensing behaviour of an incoming threat.
The active protection systems market is segmented by type, platform, and geography. By type, the market is segmented into hard-kill systems and soft-kill systems. By platform, the market is segmented into terrestrial and naval. The report also covers the market sizes and forecasts in 11 countries across major regions. For each segment, the market sizing has been done in terms of value (USD).
| Type | Hard-Kill Systems | ||
| Soft-Kill Systems | |||
| Platform | Terrestrial | ||
| Naval | |||
| Geography | North America | United States | |
| Canada | |||
| Europe | United Kingdom | ||
| France | |||
| Germany | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Latin America | Brazil | ||
| Mexico | |||
| Rest of Latin America | |||
| Middle East and Africa | United Arab Emirates | ||
| Saudi Arabia | |||
| Israel | |||
| South Africa | |||
| Rest of Middle East and Africa | |||
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Active Protection Systems Market Research Faqs
How big is the Active Protection Systems Market?
The Active Protection Systems Market size is expected to reach USD 4.49 billion in 2025 and grow at a CAGR of 6.06% to reach USD 6.02 billion by 2030.
What is the current Active Protection Systems Market size?
In 2025, the Active Protection Systems Market size is expected to reach USD 4.49 billion.
Who are the key players in Active Protection Systems Market?
Leonardo S.p.A., BAE Systems plc, Rheinmetall AG, RTX Corporation and Rafael Advanced Defense Systems Ltd. are the major companies operating in the Active Protection Systems Market.
Which is the fastest growing region in Active Protection Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Active Protection Systems Market?
In 2025, the North America accounts for the largest market share in Active Protection Systems Market.
What years does this Active Protection Systems Market cover, and what was the market size in 2024?
In 2024, the Active Protection Systems Market size was estimated at USD 4.22 billion. The report covers the Active Protection Systems Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Active Protection Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Active Protection Systems Industry Report
Statistics for the 2025 Active Protection Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Active Protection Systems analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
