The global surveillance radar market attained a market value of USD 6.83 billion in 2020. The market is projected to reach USD 11.66 billion by 2026, with a CAGR of 8%. Surveillance radar refers to a system used primarily for commercial and military applications, including air traffic control at commercial airports, border surveillance, aircraft pilot support, unmanned aerial vehicles (UAV), and coastal surveillance. As per the Defense Security Cooperation Agency (DSCA), the US entered a contract worth USD 1.86 billion with the Government of India in February 2020. As part of the agreement, the Department of State will provide integrated air defense weapons systems, state-of-the-art AN/MPQ64FI sentry radar systems, and other surveillance radar systems. As a result of upgrading its missile and radar systems, India’s defense capabilities will be significantly enhanced. The overall Surveillance Radar market is segmented based on platform, application, and radar systems. Based on the platform there are Airborne, Ground, Naval, and Space). Based on the Application there are Commercial, Military, Homeland Security, Others). Based on Radar Type there are long-range surveillance radar Short Range Surveillance Radar, and Medium-Range Surveillance Radar.
The need for modernization of traditional military equipment is increasing. Modernization is needed to keep up with the technological advances of war. Therefore, the demand for upgrades is expected to drive market growth. Modernization also aims to improve technology and provide highly reliable and cost-effective solutions. There are various contracts between major defense companies and the United States government to upgrade military systems such as tactical radar systems, mobile tactics, light weapons, and advanced military antennas.
In addition, the use of advanced surveillance radar technology for the military is increasing. Therefore, the growth of the surveillance radar market is expected to continue during the forecast period. Many developing countries are focusing on strengthening the Wehrmacht. For instance, India planned to spend USD 130 billion over the next 57 years to modernize its army and improve its combat capabilities. The plan regulates the procurement of radar systems, air defense systems, drones, warships, submarines, missiles, etc., and should drive market growth.
Radar requirements for military applications include high operational efficiency, user-friendly advanced systems, compatibility that operates across different platforms, and wide frequency bandwidth. The demand for lightweight and compact radar systems is increasing. However, technology and basic theory limit the size and performance of radar systems. These design limitations are expected to impede market growth. Radar-equipped systems are used for military applications. They operate in extremely harsh environments, and equipment failures on the battlefield can cause catastrophic damage.
Increasing the use of surveillance radar systems integrated into the United States military UAVs is a notable trend. According to recent reports, there is an increase in investment in radar-based unmanned aerial vehicles (UAVs) for battlefield operations. The demand for detection and monitoring of enemy targets also drives market growth. There has been an increasing number of contracts between major defense companies and the United States government to upgrade military systems, such as tactical and strategic ground-based systems. The use of Advanced Automatic Dependent Surveillance (ADSB) for UAVs that operate via satellite navigation is on the rise.
The United States Department of Defense and Northrop (a major company) are focusing on automated surveillance radar systems that have the greatest impact on the long-range radar in regions such as the Asia Pacific and Europe. Likewise, several major companies are focused on expanding their capabilities through strategic acquisitions and partnerships. In addition, the surveillance radar market includes large OEMs that have signed long-term contracts with their customers and have strong partnerships to expand their presence around the world.