Frost & Sullivan‘s new study projects that developers of surface-to-air missile systems will see an increased demand for modernization, due to expected growth in the SAM market through 2023.
The SAM market is growing because of several factors, including the frequent missile attacks in the Middle East, North Korea's long-range missiles tests and China's expansion in the South China Sea, the market research company said Wednesday.
With an estimated capital annual growth rate of 5.3 percent, in five years the SAM market could reach $3.88 billion.
John Hernandez, senior industry analyst for defense at Frost & Sullivan, said newer technologies like advanced fighter aircraft, hypersonic weapons and drones require more advanced and precise missiles that can be launched from longer distances.
Frost & Sullivan believes the SAM industry will particularly see more growth in the long-range SAM segment through 2023, with 90 percent of market spending going toward the Patriot system.
The modernization of the Terminal High Altitude Area Defense system, countries with less-developed military strength acquiring legacy SAM systems and U.S. allies leveraging tactical capabilities will also help drive SAM industry growth.