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Market Trends of Active Protection Systems Industry
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.
Understand The Key Trends Shaping This Market
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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.
Active Protection Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)
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