In response to recent high-stakes combat scenarios in Israel, the Red Sea, and Ukraine, the successful use of ballistic missile defense systems has sparked increased global interest and investment in these technologies. Experts predict that this trend will intensify missile arms races worldwide.

During an attack by Iran involving up to 120 intermediate-range ballistic missiles on April 13, U.S. SM-3 and Israeli Arrow interceptors successfully neutralized nearly all of them, demonstrating the effectiveness of these defensive systems. Similar interceptions occurred in previous months, including the defense against Houthi anti-ship ballistic missiles and advanced Russian missiles in Ukraine.

Six experts interviewed by Reuters highlighted the likelihood of more countries investing in ballistic missile defense systems, representing a potential windfall for companies such as Lockheed Martin and Raytheon, who are major manufacturers in this field.

Already, European countries like the Netherlands, Germany, Sweden, and Poland operate Raytheon's Patriot batteries. Saudi Arabia and the United Arab Emirates have long utilized Patriot and THAAD systems from Lockheed Martin to defend against threats from Houthi attacks. Other nations in the Middle East, including Kuwait, Qatar, Bahrain, and Oman, are also either operating or expressing interest in similar defense systems.

The United States is heavily invested in this area as well, with Lockheed Martin securing a substantial contract in April for a next-generation interceptor under the Ground-Based Midcourse Defense program.

Asia, particularly the Indo-Pacific region, is expected to witness a surge in demand for missile defense due to China's significant investments in conventionally armed ballistic missiles. The presence of these missiles poses a direct threat to U.S. and allied bases in the region, prompting countries like Japan, Australia, and South Korea to enhance their defense capabilities.

In response to the escalating missile threat, Japan's defense ministry emphasized the urgent need to reinforce its defense capabilities, including investing in advanced missile defense systems. South Korea similarly increased funding for its Korea Air and Missile Defense System.

Australia recently announced a significant contract with Lockheed Martin to bolster its defense capabilities against airborne and missile threats.

Despite the high costs associated with missile defense systems, countries like Japan recognize the critical importance of protecting key infrastructure and command centers at any cost, highlighting the strategic value of these investments in safeguarding national security.

China's expanding arsenal of conventionally armed ballistic missiles, including those capable of targeting ships at sea, is closely monitored by experts. The increasing effectiveness of missile defense systems against such threats is expected to influence China's military strategy.

Ultimately, the growing political and practical imperatives to invest in missile defense are likely to drive further demand for these technologies, as countries prioritize national defense in response to evolving security threats.