The battlefield has changed. Not in theory. In footage. In fragments. In intercepted missiles and drones that never reached their targets. From Tel Aviv to Taipei, the lesson is clear. If you don’t have a dome, you’re naked.
Israel’s Iron Dome intercepted over 90% of incoming rockets during the latest Gaza barrage. That’s not marketing. That’s radar-locked, Tamir-fired, real-time defense. The system has been upgraded with AI-guided intercepts and multi-layered tracking. It’s not alone. David’s Sling and Arrow 3 now form a vertical shield over Israeli airspace. The U.S. helped fund it. Now it wants its own.
The United States is expanding THAAD deployments. Terminal High Altitude Area Defense isn’t just for rogue-state deterrence anymore. Guam, South Korea, and Poland are all getting new batteries. The AN/TPY-2 radar can track threats from 1,000 kilometers out. The interceptors hit at Mach 8. The Pentagon’s 2025 budget includes $17.2 billion for missile defense. That’s a 12% jump from last year.
Russia’s S-400 Triumph is still the long-range king. It can track 36 targets at once and engage them at 400 kilometers. India bought five units. Turkey took delivery despite NATO objections. China reverse-engineered parts of it. The S-500 is already in testing. Moscow says it can intercept hypersonic weapons. No Western system can claim that yet.
Europe is scrambling. Germany just signed a $4.3 billion deal for Arrow 3. France is upgrading its SAMP/T systems. The UK is expanding Sky Sabre coverage. NATO’s new Integrated Air and Missile Defence roadmap calls for $25 billion in joint procurement by 2028. That’s not a plan. That’s a shopping list.
The market is moving. The global air defense sector was worth $46.5 billion in 2024. It’s projected to hit $81.9 billion by 2035. That’s a 5.27% compound annual growth rate. The spike isn’t driven by war. It’s driven by fear of the next one.
Investors are watching. Rafael Advanced Defense Systems, Lockheed Martin, Raytheon, and Northrop Grumman are all positioned to ride the wave. South Korea’s LIG Nex1 and India’s Bharat Dynamics are climbing too. These aren’t defense contractors anymore. They’re insurance providers for sovereign airspace.
The next war won’t be won by tanks. It’ll be blocked by interceptors. And the countries that can’t afford them will rent them. The skies are for sale. The price is rising.
Sources:
https://www.ssbcrack.com/2025/06/top-air-defense-systems.html
https://www.sphericalinsights.com/our-insights/top-10-air-defence-systems