Rockets and missiles Industry are both vehicles that are designed to travel through the air and space, but they differ in their intended use and design. Rockets are vehicles that use the principle of action and reaction to propel themselves forward. They are typically powered by a rocket engine that expels a high-speed exhaust gas to produce thrust. Rockets can be used for a variety of purposes, such as launching spacecraft into orbit, delivering payloads to space, and conducting scientific experiments in microgravity environments.
Missiles, on the other hand, are primarily designed for military purposes. They are guided vehicles that are typically equipped with an explosive warhead and are designed to be launched from a ground-based launcher, aircraft, or ship. Missiles can be used for a variety of purposes, such as attacking enemy targets, defending against incoming threats, and gathering intelligence.
According to the report, the market value was at USD 52.54 billion in 2019. Its other highlights include:
- In-depth analysis of the key factors driving and restraining the market growth;
- Comprehensive study of all segments of the market;
- Identification of upcoming market opportunities; and
- Detailed evaluation of the impact of the changes in the regional and competitive dynamics on the market.
Supply Chain Disruptions Caused by the COVID-19 Outbreak to Stall Market Growth
The rocket and missile market growth is likely to get hampered throughout 2020 by the outbreak of the COVID-19 contagion. The pandemic has led to unforeseen shocks to supply chains worldwide, crippling defense manufacturing activities around the globe. For instance, the Italian shipbuilding company, Fincantieri, was forced to halt its operations in March 2020 as the coronavirus spread like wildfire around the world. Accentuating these disruptions is the suspension of business development activities in the defense sector. For example, planned expos such as the EUROSATORY 2020, where procurement contracts are finalized, now face an uncertain future, further affecting this industry. Moreover, major players in rockets and missiles domain are also witnessing a sharp fall in their stock prices. For instance, between February and March, stock value of the Thales Group fell by 33%, while Leonardo’s declined by 55%. The cascading effect of the coronavirus pandemic is, therefore, expected to negative on this growth in the immediate future.
List of Companies Profiled in the Rocket and Missile Market Report:
- Thales Group (France)
- ROKETSAN A.S. (Turkey)
- Rafael Advanced Defense Systems Ltd. (Israel)
- MESKO (Poland)
- Lockheed Martin Corporation (The U.S.)
- General Dynamics Corporation (The U.S.)
- Saab AB (Sweden)
- Raytheon Technologies Corporation (The U.S.)
- Nammo AS (Norway)
- MBDA (France)
- KONGSBERG (Norway)
- Denel Dynamics (South Africa)
High Military Expenditure to Favor Market Growth in North America
One of the prominent factors supporting the growth of this market in North America is the consistently high levels of military spending in the US. This coupled with rapid adoption of advanced military technologies in the US and Canada will aid the region command the rocket and missile market share in the foreseeable future. In 2019, the region’s market size was at USD 15.03 billion.
Asia Pacific is expected to exhibit notable growth in the market owing to rising uptake of multiple independent re-entry vehicles (MIRV) by the Chinese army. On the other hand, in Europe, the market is set to experience promising growth on account of increasing investment by private defense companies in ballistic missiles to cater to the military needs of European countries.
Close Collaborations between Governments and the Private Sector to Characterize the Market
The competitive landscape of this market is highly charged up as a result of the increasing number of collaborations between private defense contractors and government defense agencies. This is represented through frequent awarding of contracts and other deals to top market players by the US Armed Forces.
- March 2020: Raytheon Company secured a USD 1 billion-worth agreement to buy propulsion systems for their standard missile products from Aerojet Rocketdyne. The agreement will span five years and is focused on optimizing supply chain dynamics between the two companies.
- April 2020: The US Army awarded a contract of estimated value of $6.07 billion to Lockheed Martin to produce and deliver Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement interceptors over three years till 2023. This will bolster US’s position as a major supplier of missile interceptors among other leading world economies.