According to Fortune Business Insights™, the global military radar market size was valued at USD 35.58 billion in 2023 and is projected to grow from USD 46.07 billion in 2024 to USD 211.12 billion by 2032, exhibiting a robust CAGR of 20.96% during the forecast period. In 2023, North America dominated the market with a share of 38.28%, largely due to strong defense investments and continuous radar system upgrades across the U.S. and Canada.
The report, titled "Military Radar Market Size, Share, Russia-Ukraine War Impact, By Component (Transmitter, Antenna, Receiver, Duplexer, and Others), By Frequency (C-Band, S-Band, X-Band, L-Band, UHF/VHF, and Ku/K/Ka-Band), By Range (Long, Medium, Short, and Very Short), By Platform (Airborne Radar, Land Radar, and Naval Radar), By Application (Weapon Guidance, Airspace Monitoring & Traffic Management, Airborne Mapping, Ground Surveillance & Intruder Detection, Navigation, and Others), and Regional Forecast, 2024–2032," highlights that sustained increases in defense spending by leading economies will remain the primary growth driver for this market.
According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached USD 1,917 billion in 2019, a 3.6% increase from 2018. The U.S., China, India, Russia, and Saudi Arabia were the top five spenders, accounting for 62% of the total. This trend signals growing demand for advanced defense technologies, especially military radar systems, which are critical for surveillance, target tracking, and threat detection.
List of Key Companies Profiled in the Military Radar Market Report:
- Honeywell International (The U.S.)
- Airbus SAS (Netherlands)
- Israel Aerospace Industries (Israel)
- Thales Group (France)
- Northrop Grumman Corporation (The U.S.)
- Lockheed Martin Corporation (The U.S.)
- General Dynamics (The U.S.)
- Leonardo S.p.A. (Italy)
- BAE Systems (The U.K.)
- Saab AB (Sweden)
- Raytheon Technologies Corporation (The U.S.)
Source:
https://www.fortunebusinessinsights.com/industry-reports/military-radar-market-101777
Market Restraint
Shifting Spending Priorities amid COVID-19 to Hinder Market Growth
The military radar market growth is expected to be hit by the COVID-19 pandemic as economic downturn in most parts of the world has forced countries to prioritize their spending. For example, in April 2020, the Indian Finance Ministry indicated cuts in defense budget that can go as high as 40%, slashing the USD 73.65 billion allocation earmarked by the government for 2020-21 by a substantial margin. According to the International Institute of Strategic Studies (IISS), even NATO member states will struggle to meet their target of expending 2% of GDP for defense, with spending in real terms falling even more steeply. Reduced military expenditures will lead to delays in projects and even cancellation of military modernization programs planned, halting the adoption of advanced technologies such as military radars. However, the silver lining is that defense spending by the US and China is expected to remain stable, which may offset some of the losses predicted by companies.
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Regional Insights
Liberal Defense Spending to Bolster Market Growth in North America
North America, with its market size standing at USD 9.74 billion in 2019, is expected to dominate the military radar market share during the forecast period owing to consistent expansion of the defense budget by the US. Moreover, the region has a strong presence of some of the largest players in the defense sector such as Raytheon and Boeing, who are constantly developing cutting-edge military technologies.
Asia Pacific is anticipated to generate several opportunities for the market on account of modernization of defense arsenal by China and India, intensification of border disputes, and brokering of defense deals with the US and other developed nations. In Europe, the market will be mainly driven by the development of advanced military technologies by Germany, France, Italy, and the UK as well as replacement of obsolete systems with modern ones.
Competitive Landscape
Key Players to Compete for Securing Defense Contracts
The competitive landscape of the military radar market is being shaped by the cutthroat race for defense contracts that the key players in this market are engaged in. These companies are aiming to enlarge their footprint and strengthen their network globally by providing next-gen military technologies to burgeoning economies.
Industry Developments:
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July 2023 – BAE Systems and Leonardo U.K. were awarded a five-year contract valued at approximately USD 958.9 million to enhance the radar capabilities of the RAF Typhoon fighter jet. The upgrade will include the integration of the European Common Radar System (ECRS) Mk2, one of the most advanced radar systems globally.
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May 2023 – Lockheed Martin Corporation received a contract from the U.S. Army Contracting Command worth approximately USD 2.3 billion to modify the Phased Array Tracking Radar Intercept on Target (PATRIOT) system, enhancing its performance and capabilities.
