The surveillance radar market is anticipated to register a CAGR of more than 4% during the forecast period.
- The investments in airport surveillance infrastructure, by the government and airport operators, for complications, like drone intrusion into the airspace, are expected to propel the demand for surveillance radar market during the forecast period.
- The need to strengthen border security and the growing threat of missiles are generating the need for advanced radar systems.
- The principal manufactures are heavily investing in radar technology to improve the operating range and detection capabilities. The advancement in radar technology is anticipated to bolster the sales of surveillance radars in the coming future.
Key Market Trends
Military Segment Expected to Register Highest CAGR during the Forecast Period
Increasing military expenditure of various countries around the world, driven by the global geopolitical tensions, is propelling the demand for development and deployment of surveillance radars for law enforcement and military applications. Recently, in March 2020, The Armament Inspectorate of the Polish MoD signed an agreement worth USD 9.18 million to procure 93 PGSR-3i Beagle radars with an option of additional 11 radars. The delivery of the radars is anticipated to be completed by the end of 2022. The steady investment of countries into strengthening their defense systems, the companies are developing and delivering new and advanced solutions to maximize their profits from the growing demand. For instance, in February 2020, Dynamite Global Strategies launched DSR-3X Drone Surveillance Radar, a new series of drone surveillance radar sensors that can detect Class 1 and Class 2 drones in low-altitude airspace. The radar is also equipped with high-resolution radar imaging for the detection of swarms of drones. The procurement, as well as developments, are bolstering the growth of the military segment during the forecast period.
Asia-Pacific Region Expected to Generate Highest Demand during the Forecast Period
The on-going territorial issues, along with the transformation of countries, like China and India, into significant aviation hubs in the region, are anticipated to boost the procurements of new surveillance radars. Currently, China and India plan to construct more than 300 airports, cumulatively, by 2035. Such construction and modernization plans for airports in the region are expected to generate a demand for new airport surveillance radars during the forecast period. Also, the escalating territorial issues in the region are creating the need for enhanced surveillance systems across land and sea borders. Countries are investing in the development and procurement of indigenous radar systems to achieve these improved surveillance capabilities. For instance, in 2019, China developed an advanced compact size maritime surveillance radar with extended range. The new radar will allow surveillance and monitoring over the entire country’s maritime territory, which the traditional radars cover only 20%, thereby enhancing its information-gathering capabilities in the South China Sea, Indian Ocean, and the Pacific Ocean. Similarly, South Korea indigenously developed and deployed a new type of ground-based radar system for maritime surveillance in September 2019. The country plans to deploy an additional 10 units by 2025 in phases. For the reasons above, the market for surveillance radars in the Asia-Pacific region is expected to grow with the highest CAGR during the forecast period.
Some of the prominent players in the surveillance radar market are Lockheed Martin Corporation, Thales Group, Leonardo SpA, Raytheon Company, and HENSOLDT Holding Germany GmbH. Among these, companies, like Raytheon Company, Thales Group, and HENSOLDT Holding Germany GmbH, support commercial as well as military applications, whereas Rosoboronexport, ASELSAN AS, and BAE Systems PLC and others support military applications only. Similarly, for commercial applications, Airbus provides Air Surveillance Radar Systems. The presence of various manufacturers in the market for multiple applications and platforms, makes the market fragmented. Currently, the companies are investing in R&D for the development of advanced radar systems and making plans for expansion into new regions. For instance, in 2019, HENSOLDT delivered four airborne multi-mission surveillance radar PrecISR 1000 to QinetiQ, which will install these systems on a Pilatus PC-12 special operations aircraft.
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