The Europe Cruise Missile Market is anticipated to register a CAGR of over 13% during the forecast period.
Key Highlights
- The increased defense spending on missile and missile defense systems by European countries is driving the growth of the market. Countries like Poland, Finland, etc have increased the budget for the procurement of missile defense systems from foreign countries.
- On the other hand, countries like France, the United Kingdom, Germany, etc. are spending a lot of money on the research and development of supersonic and hypersonic cruise missiles which is expected to propel the missile market growth in Europe during the forecast period.
- The market is also witnessing collaborations between various countries in Europe for the development of new and technologically advanced missile systems. This is also expected to help the market growth during the forecast period.
Key Market Trends
Sea Segment is Expected to Grow with the Highest CAGR During the Forecast Period
In segmentation by Launch Platform, the Sea segment is expected to have the highest share in the market during the forecast period. The rise in naval spending by countries such as France, the United Kingdom, Germany, etc. is propelling the market growth for the cruise missiles launched from the surface combatants and submarines. Countries in Europe have been investing a significant amount toward indigenous development of naval platforms or procurements from foreign players. The increasing fleet of the naval forces in the region is also demanding robust air defense capabilities with guided and interceptor missiles, which is driving the growth of the segment in the region. Several navies are developing and procuring sea-launched missiles for their naval fleets. In July 2019, the UK Royal Navy successfully tested its new missile called Martlet, also known as the Lightweight Multi-role Missile, to defeat incoming boats and ships on the sea. Similar missiles are being developed especially for the new generation surface combatants and submarines, which are scheduled to enter service during the forecast period. This would drive the Sea segment of the market during the forecast period.
Russia Held the Largest Market Share in 2019
Russia is one of the top five defense spenders in the world. In late 2019, the government announced a federal military budget of about USD 154.1 billion for the period 2020-2022. In 2020, the country plans to spend USD 47.55 billion on defense and further increase it to USD 50 billion in 2021 and USD 51.3 billion in 2022. The country’s massive investments in the defense sector are propelling the indigenous missile development programs. For instance, the country developed Zircon hypersonic anti-ship cruise missiles, with the capability to travel at a speed of Mach 8, and they have a higher survival rate against modern air defenses. The testing of the missile from a submarine and a frigate is expected to be completed in 2020. The country is expected to modernize its Soviet-era surface ships and submarines, along with the procurement of newly built vessels and submarines. All the future attack submarines of the country are expected to have Zircon missiles carrying capabilities. The completion of the testing of Zircon cruise missiles may enable them to be fitted to the new growing fleet of Russia in the future, thereby, generating an increasing demand for cruise missiles. Additionally, the government announced the development of a new nuclear cruise missile called 9M730 Burevestnik (Petrel) in March 2018. The missile is being developed as an intercontinental range cruise missile with stealth capabilities. These missiles are anticipated to enter service by 2025. Thus, the development of such advanced cruise missiles and their induction into the missile arsenal of the country is expected to increase the market for the cruise missiles in Russia during the forecast period.
Competitive Landscape
Some of the prominent players in Europe Cruise Missile Market are Raytheon Technologies Corporation, MBDA Inc., Rafael Advanced Defense Systems Ltd, JSC Tactical Missiles Corporation, Kongsberg Gruppen ASA, among others. The market is witnessing a significant investment in research and development of advanced missiles, like hypersonic cruise missiles. Several missile manufacturers are collaborating, forming joint ventures for sharing of technology and expertise which will help them develop sophisticated cruise missile systems in the future, which, in turn, will help them in attracting new customers and increase their market presence and share.
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