Air Defense Systems Cost Database: Acquisition, Interceptor, and Lifecycle Costs

The most comprehensive open-source reference for Western air defense system costs. Updated quarterly with new procurement data, contract announcements, and cost estimates.

Last updated: January 2026
Data sources: Government procurement announcements, defense ministry budgets, manufacturer disclosures, Congressional/Parliamentary reports, credible defense publications
Currency note: All figures converted to USD at time of contract/announcement. EUR and NOK figures provided where relevant for European readers.


Quick Reference: Cost at a Glance

For readers seeking immediate answers, this summary table provides ballpark figures. Detailed breakdowns follow in system-specific sections.

Battery/System Acquisition Costs

SystemTypeCost per Battery (USD)Cost per Battery (EUR)Notes
THAADUpper-tier BMD$1.5-2.0 billion€1.4-1.8 billionIncludes AN/TPY-2 radar
Arrow-3Exo-atmospheric BMD$500M-700M€450-630MIsraeli domestic cost; export pricing higher
Patriot PAC-3 MSELong-range$1.0-1.2 billion€900M-1.1BFull configuration with radar
SAMP/T NGLong-range$800M-1.0 billion€700-900MWith Ground Fire 300 radar
David’s SlingLong-range$500-700M€450-630MWith MMR radar
NASAMS 3Medium-range$250-400M€225-360MConfiguration-dependent
IRIS-T SLMMedium-range$180-250M€160-220MStandard 3-launcher battery
Sky SabreMedium-range$300-350M€270-315MUK costs; export may vary
Iron DomeC-RAM/SHORAD$50-100M€45-90MPer battery; radar shared

Interceptor/Missile Costs

InterceptorSystemCost per Missile (USD)Trend
THAAD missileTHAAD$12-15 millionStable
SM-3 Block IIAAegis BMD$28-36 millionIncreasing
SM-3 Block IBAegis BMD$12-15 millionStable
Arrow-3Arrow system$2-3 millionEstimated
Arrow-2Arrow system$3 millionEstimated
PAC-3 MSEPatriot$4-5.5 millionIncreasing
PAC-3Patriot$3-4 millionStable
PAC-2 GEM-TPatriot$1-2 millionDecreasing (legacy)
Aster 30 B1NTSAMP/T NG$2.5-3.5 millionNew variant
Aster 30 B1SAMP/T$2-3 millionStable
StunnerDavid’s Sling$1-1.5 millionDecreasing
SkyCeptorDavid’s Sling$500K-1 millionNew low-cost variant
AMRAAM-ERNASAMS$1.5-2.5 millionNew variant
AIM-120C AMRAAMNASAMS$1-1.5 millionStable
IRIS-T SLIRIS-T SLM$430-500KStable
CAMMSky Sabre$1-1.5 millionStable
CAMM-ERVarious$1.5-2 millionNew variant
TamirIron Dome$40-50KStable

Understanding Air Defense Costs

Before examining specific systems, readers should understand the cost categories that comprise total air defense expenditure.

Cost Categories Explained

1. Acquisition Cost (Capital Expenditure)
The upfront purchase price, typically including:

  • Launchers and fire control equipment
  • Radar systems (often the most expensive component)
  • Command and control systems
  • Initial interceptor inventory
  • Training and technical documentation
  • Initial spare parts package

2. Interceptor Cost (Recurring)
The per-missile cost for engagement. This becomes the dominant cost driver over system lifetime, particularly in high-threat environments. A single night of intense combat can consume $100M+ in interceptors.

3. Operations and Maintenance (O&M)
Annual costs for:

  • Personnel (often the largest O&M component)
  • Training and exercises
  • Consumables and spare parts
  • Software updates and licensing
  • Facility costs

4. Lifecycle Cost
Total cost over the system’s operational life (typically 25-40 years), including:

  • Acquisition
  • Cumulative O&M
  • Mid-life upgrades
  • Interceptor replenishment
  • Eventual disposal

Why Cost Estimates Vary

Published cost figures for the same system often differ by 30-50%. Key reasons include:

FactorImpact on Reported Cost
ConfigurationBasic vs. full capability can differ 2x
QuantityLarger orders reduce per-unit cost 20-40%
FMS vs. Direct CommercialUS Foreign Military Sales adds ~15-20% overhead
Currency fluctuationEUR/USD swings affect European system comparisons
Included scopeWith/without radar, C2, training, spares
Contract typeFixed-price vs. cost-plus
Domestic vs. exportExport versions often 20-50% more expensive
Offset requirementsIndustrial participation adds hidden costs

This database attempts to normalize these factors where possible, but readers should treat all figures as estimates subject to significant variation.


Upper-Tier Ballistic Missile Defense Systems

These systems represent the highest capability—and highest cost—tier of air defense, designed to intercept ballistic missiles at extreme altitudes and ranges.

THAAD (Terminal High Altitude Area Defense)

Manufacturer: Lockheed Martin (USA)
Primary operators: USA, UAE, Saudi Arabia, South Korea
In service since: 2008

Acquisition Costs

ComponentCost (USD)Notes
Complete battery$1.5-2.0 billion6 launchers, 48 interceptors, radar, C2
AN/TPY-2 radar$400-500 millionOften the largest single component cost
Launcher (1x)$30-40 million8 missiles per launcher
Fire control & C2$150-200 millionTHAAD-specific systems
Training package$50-100 millionVaries by buyer sophistication

Interceptor Costs

VariantCost per MissileTrendNotes
THAAD missile$12-15 millionStableSingle-stage hit-to-kill

Known Procurements

BuyerYearQuantityValuePer-Battery Cost
UAE20122 batteries$3.49 billion$1.75 billion
Saudi Arabia20177 batteries (planned)$15 billion (total package)~$2 billion
South Korea20171 battery~$1.5 billion$1.5 billion

Cost Drivers

THAAD’s high cost reflects:

  • Exo-atmospheric intercept capability requiring specialized kill vehicle
  • AN/TPY-2 radar’s extreme performance (1,000+ km detection range)
  • Limited production volume (fewer than 10 batteries sold)
  • Extensive US government testing and certification requirements
  • Hit-to-kill technology with zero margin for error

Arrow-3

Manufacturer: Israel Aerospace Industries / Boeing
Primary operators: Israel, Germany (on order)
In service since: 2017

Acquisition Costs

ComponentCost (USD)Notes
System (Israeli domestic)$500-700 millionIntegrated with Arrow-2
System (export)$700M-1 billion+Germany deal suggests higher export pricing
Super Green Pine radar$150-250 millionIntegrated with Arrow system

Germany Arrow-3 Procurement

Germany’s 2023 Arrow-3 purchase provides the clearest export pricing data:

ElementValueNotes
Total contract€4.3 billion (~$4.7B)Initial announcement
ScopeArrow-3 systems + integrationFor ESSI framework
Delivery2025-2028Accelerated timeline
Interceptor inventoryClassifiedSubstantial stockpile reported

The Germany deal suggests export pricing of €1+ billion per operational capability, though this includes extensive integration, infrastructure, and support not typical of Israeli domestic costs.

Interceptor Costs

VariantCost per MissileNotes
Arrow-3$2-3 million (estimated)Exo-atmospheric kill vehicle
Arrow-2$3 million (estimated)Endo-atmospheric intercept

Arrow interceptor costs are notably lower than THAAD or SM-3, reflecting Israeli industrial efficiencies and different design philosophy.


SM-3 (Standard Missile-3) / Aegis BMD

Manufacturer: Raytheon
Primary operators: USA, Japan, Spain, South Korea, Romania (Aegis Ashore), Poland (Aegis Ashore)
In service since: 2004 (Block IA)

System Costs

SM-3 is primarily ship-based (Aegis cruisers and destroyers), making “per battery” comparisons difficult. Land-based Aegis Ashore provides reference points:

InstallationCostNotes
Aegis Ashore Romania$800 millionDeveselu site, operational 2016
Aegis Ashore Poland$6 billion+ (total program)Redzikowo site, complex delays
Per-ship Aegis BMD upgrade$100-300 millionVaries by ship class and scope

Interceptor Costs

VariantCost per MissileTrendNotes
SM-3 Block IIA$28-36 millionIncreasingUS-Japan co-development; most capable
SM-3 Block IB$12-15 millionStableWorkhorse variant
SM-3 Block IA$10-12 millionLegacyLimited production

SM-3 Block IIA’s extreme cost reflects its exo-atmospheric intercept capability with very large kinetic warhead for midcourse ICBM/IRBM engagement.


Long-Range Air and Missile Defense Systems

The “backbone” tier for national and theater air defense, these systems engage aircraft, cruise missiles, and tactical ballistic missiles at operationally significant ranges.

Patriot PAC-3 MSE

Manufacturer: Raytheon (prime), Lockheed Martin (PAC-3 missile)
Primary operators: USA, Germany, Netherlands, Japan, Saudi Arabia, UAE, Kuwait, Qatar, South Korea, Poland, Romania, Sweden, and others
In service since: 1984 (Patriot); 2015 (PAC-3 MSE)

Acquisition Costs

ConfigurationCost (USD)Cost (EUR)Notes
Full battery (6 launchers)$1.0-1.2 billion€900M-1.1BWith AN/MPQ-65A, full C2
Battery (4 launchers)$800-950 million€720-850MReduced configuration
AN/MPQ-65A radar$125-150 million€112-135MUpgraded version
Engagement Control Station$40-50 million€36-45MPer ECS
Launcher (M903)$10-15 million€9-13.5M16 PAC-3 MSE or 4 GEM-T

Interceptor Costs

VariantCost per Missile (USD)TrendRole
PAC-3 MSE$4-5.5 millionIncreasingPrimary TBM/cruise missile
PAC-3$3-4 millionStableTBM/cruise missile
PAC-2 GEM-T$1-2 millionDecreasingAircraft, large targets

Recent Procurements

BuyerYearValueContents
Poland2018-2023$10.5 billion6 batteries, Wisła Phase I
Romania2017-2020$4.0 billion4 batteries + missiles
Sweden2018$3.2 billion4 batteries (modified config)
Switzerland2021CHF 2.1B (~$2.3B)5 batteries (rejected by referendum)
Germany2023+€1.3 billionAdditional PAC-3 MSE missiles

Norway Patriot Consideration

Norway formally requested Patriot pricing from the United States in December 2024. While no contract has been announced, Norwegian defense planning documents suggest:

ScenarioEstimated Cost (NOK)Estimated Cost (USD)
2 batteries15-20 billion$1.4-1.8 billion
4 batteries28-35 billion$2.5-3.2 billion

These estimates include launchers, interceptors, radar, C2, training, initial spares, and facilities but exclude ongoing O&M.

Lifecycle Cost Considerations

A 2019 US Government Accountability Office report estimated Patriot lifecycle costs at approximately $3.9 billion per battery over 30 years, including:

  • Acquisition: ~30% of lifecycle cost
  • O&M: ~55% of lifecycle cost
  • Upgrades: ~15% of lifecycle cost

SAMP/T (Aster 30)

Manufacturer: Eurosam (MBDA/Thales joint venture)
Primary operators: France, Italy, Singapore
In service since: 2011 (France), 2013 (Italy)

Acquisition Costs

ConfigurationCost (EUR)Cost (USD)Notes
SAMP/T battery (standard)€500-700 million$550-770MWith Arabel radar
SAMP/T NG battery€700-900 million$770M-1BWith Ground Fire 300 radar
Ground Fire 300 radar€150-200 million$165-220MNew AESA radar for NG
Arabel radar€80-120 million$88-130MOriginal radar
Launcher (8 cells)€25-35 million$27-38MVertical launch

Interceptor Costs

VariantCost per Missile (EUR)Cost (USD)Notes
Aster 30 B1NT€2.5-3.5 million$2.8-3.8MEnhanced TBM capability
Aster 30 B1€2-2.5 million$2.2-2.8MStandard long-range
Aster 30€1.5-2 million$1.7-2.2MOriginal version
Aster 15€1-1.5 million$1.1-1.7MNaval/short-range

Known Procurements

BuyerYearValueContents
Singapore2020~$1.1 billionSAMP/T systems (quantity unclear)
France/Italy (upgrade)2023€700 million+SAMP/T NG conversion

SAMP/T vs. Patriot Cost Comparison

FactorSAMP/T NGPatriot PAC-3 MSE
Battery acquisition€700-900M€900M-1.1B
Interceptor (primary)€2.5-3.5M€4-5M
European industrial content100%~10-15%
Offset potentialHighLimited
CompetitionSingle sourceSingle source

SAMP/T offers lower per-unit costs, but Patriot’s larger production base may provide better long-term availability and upgrade paths.


David’s Sling

Manufacturer: Rafael Advanced Defense Systems (Israel) / Raytheon (USA)
Primary operators: Israel, Finland (on order)
In service since: 2017

Acquisition Costs

ComponentCost (USD)Notes
Battery$500-700 millionWith MMR radar
MMR radar$100-150 millionMulti-mission radar
Launcher$30-40 million12 missiles per launcher

Interceptor Costs

VariantCost per MissileNotes
Stunner$1-1.5 millionPrimary interceptor
SkyCeptor$500K-1 millionCost-reduced variant for export

David’s Sling’s interceptor cost advantage is significant: Stunner costs roughly 75% less than PAC-3 MSE while addressing similar threat classes (cruise missiles, large rockets, short-range ballistic missiles).

Finland Procurement

Finland’s 2023 David’s Sling selection provides recent export pricing data:

ElementValueNotes
Contract value~$400-500 million (estimated)Finnish sources
Scope1 battery + interceptorsInitial capability
Delivery2026-2028Projected

Medium-Range Air Defense Systems

The volume tier of air defense, these systems provide cost-effective coverage against aircraft, cruise missiles, and drones without the acquisition and sustainment burden of long-range systems.

NASAMS

Manufacturer: Kongsberg Defence & Aerospace (Norway) / Raytheon (USA)
Primary operators: Norway, USA, Finland, Netherlands, Spain, Lithuania, Chile, Indonesia, Qatar, Ukraine, and others
In service since: 1994 (NASAMS I); 2019 (NASAMS 3)

Acquisition Costs

ConfigurationCost (USD)Cost (NOK)Notes
NASAMS 3 battery (standard)$250-350 million2.7-3.8 billion3-4 launchers, radar, C2
NASAMS 2 battery$150-250 million1.6-2.7 billionPrevious generation
Fire Distribution Center$30-50 million325-540 millionC2 node
Launcher (6 cells)$15-25 million160-270 millionCanister-based
Sentinel radar$25-40 million270-430 million3D surveillance

Interceptor Costs

VariantCost per MissileNotes
AMRAAM-ER$1.5-2.5 millionExtended range (40+ km)
AIM-120C AMRAAM$1-1.5 millionStandard variant
AIM-9X Sidewinder$500K-800KShort-range option

Recent Procurements

BuyerYearValueContents
Norway2024NOK 6.5 billion (~$600M)Up to 4 batteries, NASAMS upgrade
Ukraine2022-2024$1.2 billion+8+ systems donated/purchased
Australia2021AUD 900M (~$600M)NASAMS 3 for short-range air defense
Hungary2020$1 billionNASAMS + radar integration

Norway’s NASAMS Investment

As the co-developer and anchor customer, Norway’s NASAMS costs provide baseline reference:

Investment PhaseValue (NOK)Value (USD)Scope
2024 contract6.5 billion~$600 millionUp to 4 batteries equipment
Cumulative (est.)15+ billion~$1.4 billionTotal Norwegian NASAMS investment

IRIS-T SLM

Manufacturer: Diehl Defence (Germany)
Primary operators: Germany, Egypt, Ukraine, Slovenia, Estonia (on order), and others
In service since: 2022 (SLM variant)

Acquisition Costs

ConfigurationCost (EUR)Cost (USD)Notes
IRIS-T SLM battery€150-200 million$165-220M3 launchers, radar, C2
TRML-4D radar€40-60 million$44-66MMulti-function AESA
Launcher (8 cells)€20-30 million$22-33MVertical launch

Interceptor Costs

VariantCost per Missile (EUR)Cost (USD)Notes
IRIS-T SL€380-450K$420-500K40 km range
IRIS-T SLS€250-350K$275-385K12 km range (SHORAD)

IRIS-T’s interceptor cost is the lowest among medium-range Western systems—roughly 60-70% less than AMRAAM—making it economically attractive for high-volume engagements.

Recent Procurements

BuyerYearValueContents
Germany (domestic)2022-2025€4+ billionMultiple batteries + stockpile
Ukraine2022-2024€1.5+ billion4+ systems (donated/funded)
Egypt2021€800+ millionMultiple batteries
Estonia2023€300+ millionBattery with integration
Slovenia2024€300+ millionIRIS-T SLM battery

Sky Sabre / CAMM

Manufacturer: MBDA
Primary operators: UK, Sweden (as RBS 98), Poland (on order)
In service since: 2021

Acquisition Costs

ConfigurationCost (GBP)Cost (USD)Notes
Sky Sabre battery£200-280 million$250-350MUK configuration
Giraffe AMB radar£40-60 million$50-75MSaab radar
Launcher (8 cells)£15-25 million$19-31MSoft-launch

Interceptor Costs

VariantCost (GBP)Cost (USD)Notes
CAMM£800K-1.2M$1-1.5M25+ km range
CAMM-ER£1.2-1.8M$1.5-2.3M45+ km range

Poland CAMM Procurement

Poland’s Narew (short-range) program selected CAMM:

ElementValueNotes
Total program$2-3 billion (estimated)Multiple phases
Phase I~$800 millionInitial batteries
IntegrationSignificantWith Polish radars

Short-Range and Counter-Drone Systems

The fastest-growing segment of air defense investment, driven by drone proliferation and the economics of engaging low-cost threats.

Iron Dome

Manufacturer: Rafael Advanced Defense Systems (Israel)
Primary operators: Israel, USA (Marine Corps)
In service since: 2011

Acquisition Costs

ComponentCost (USD)Notes
Battery$50-100 million3-4 launchers, radar shared
EL/M-2084 radar$50 million+Shared across multiple batteries
Launcher (20 cells)$5-10 millionRapid reload capable

Interceptor Costs

VariantCost per MissileNotes
Tamir$40-50KPrimary interceptor
Tamir NG$50-60K (estimated)Enhanced seeker

Tamir’s low cost enables engagement of threats that would be economically prohibitive for other systems. However, even at $40K, engaging a $500 drone creates 80:1 cost disadvantage.

US Iron Dome

The US procurement provides export pricing data:

ElementValueNotes
Initial batteries$373 million2 batteries for Marine Corps
Per-battery cost~$186 millionHigher than Israeli domestic
Integration costsSignificantUS C2 integration

Directed Energy / Laser Systems

Laser systems promise near-zero marginal cost per engagement, fundamentally changing air defense economics.

SystemDeveloperEstimated CostCost per ShotStatus
Iron BeamRafael$50-100M per system~$2Development
HELWSRaytheon$15-25M per system~$1Limited fielding
DragonfireUK consortium£100M+ programTBDTesting
Rheinmetall HELGermany€30-50M per system~$1Development

The economic case: A laser system costing $50 million that can engage 1,000 drones at $2 each ($2,000 total) vs. a missile system where 1,000 engagements would cost $40-50 million (using Tamir) fundamentally changes procurement calculus.


Cost Trend Analysis

Interceptor Cost Trajectories (2015-2025)

System2015 Cost2025 CostChangeDriver
PAC-3 MSE$3.5M$5M++43%Inflation, supply chain
SM-3 Block IIA$24M$33M+38%Limited production
AMRAAM$800K$1.3M+63%Demand surge
IRIS-T SL€350K€430K+23%Modest increase
Tamir$35K$50K+43%Production scaling

Key trends:

  • US-origin interceptors show highest inflation (40-60%)
  • European interceptors more price-stable
  • Demand from Ukraine has accelerated price increases across all systems
  • Production capacity, not technology, is the primary cost driver

Production Capacity Constraints

Current production rates vs. wartime consumption estimates:

InterceptorAnnual ProductionDays of High-Intensity Combat
PAC-3 MSE500-650 missiles10-15 days
IRIS-T SL300-400 missiles8-12 days
Tamir1,000+ missiles2-3 days

This production/consumption mismatch explains why interceptor costs are increasing despite economies of scale: production cannot keep pace with demand, eliminating competitive pricing pressure.


Total Cost of Ownership: 20-Year Scenarios

For strategic planners, these scenarios estimate total cost of ownership for representative national architectures.

Scenario A: Small Nation (Norway-scale)

ComponentUnitsAcquisition20-Year O&M20-Year InterceptorsTotal
Patriot PAC-3 MSE2 batteries$2.2B$1.5B$500M$4.2B
NASAMS 34 batteries$1.2B$600M$200M$2.0B
SHORADTBD$300M$150M$50M$500M
Total$3.7B$2.25B$750M$6.7B

Scenario B: Medium Nation (Poland-scale)

ComponentUnitsAcquisition20-Year O&M20-Year InterceptorsTotal
Patriot PAC-3 MSE6 batteries$6.5B$4B$1.5B$12B
NASAMS/Medium8 batteries$2.5B$1.2B$500M$4.2B
SHORADMultiple$800M$400M$200M$1.4B
Total$9.8B$5.6B$2.2B$17.6B

Scenario C: Major European Power (Germany-scale)

ComponentUnitsAcquisition20-Year O&M20-Year InterceptorsTotal
Arrow-32-3 batteries$5B$2B$500M$7.5B
Patriot PAC-3 MSE12 batteries$12B$7B$3B$22B
IRIS-T SLM12 batteries$2.5B$1.2B$600M$4.3B
SHORAD/C-UASExtensive$2B$1B$300M$3.3B
Total$21.5B$11.2B$4.4B$37.1B

Data Sources and Methodology

Primary Sources

Government Sources:

  • US Defense Security Cooperation Agency (DSCA) FMS notifications
  • Congressional Budget Office reports
  • European Defence Agency publications
  • National defense budget documents (Norway, Germany, Poland, UK, France)

Manufacturer Disclosures:

  • Annual reports (Raytheon RTX, Lockheed Martin, MBDA, Kongsberg, Diehl)
  • Investor presentations
  • Contract announcements

Research Institutions:

  • CSIS Missile Defense Project
  • IISS Military Balance
  • SIPRI Arms Transfers Database
  • RAND Corporation studies

Limitations

This database should be used with the following caveats:

  1. All figures are estimates. Actual contract values often remain classified or commercially sensitive.
  2. Configuration matters enormously. A “battery” can mean different things across systems and buyers.
  3. FMS overhead. US Foreign Military Sales adds 15-20% to base costs; our figures attempt to normalize this but cannot always succeed.
  4. Currency volatility. EUR/USD fluctuations of 10-15% can significantly affect comparisons.
  5. Offset distortions. Industrial offset requirements can add 10-30% to apparent costs while providing domestic economic benefits.
  6. Time value. Contracts span multiple years; we use announcement-year values.

Revision History

DateChanges
January 2026Initial publication; comprehensive database structure
Planned Q2 2026Update with Norway Patriot decision data (if available)
Planned Q3 2026Annual interceptor cost refresh

This database is maintained as a public resource. Corrections, additional data points, and sourced updates are welcome.


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