Surveillance Radars Market Size, Share & COVID-19 Impact Analysis, By Platform (Airborne, Ground, Naval, and Space), By Application (Commercial, Military, Homeland Security, Others), By Radar Type (Short Range Surveillance Radar, Medium-Range Surveillance Radar, and Long Range Surveillance Radar), and Regional Forecast, 2020-2027

The global surveillance radars market size was USD 7.33 billion in 2019 and is anticipated to reach USD 11.78 billion by 2027, exhibiting a CAGR of 8.21% during the forecast period.

The surveillance radar is a type of radar system majorly adopted for commercial and military applications such as air traffic controls at commercial airports, border surveillance, aircraft pilot assistance, unmanned aerial vehicles (UAVs), coastal surveillance, and others.

According to the Defense Security Cooperation Agency (DSCA), in February 2020, the U.S. had a key contract worth USD 1.86 billion with the Government of India. In this deal, the U.S. Department of State will provide integrated air defense weapon systems, highly advanced AN/MPQ-64FI Sentinel radar systems, and other surveillance radars systems. It will significantly strengthen India's defense capabilities by modernizing its missiles and radar-based systems.

Cancellation or Rescheduling of Defense Contracts due to COVID-19 to Severely Affect Growth

The COVID-19 pandemic has shattered the aerospace and defense industry across the globe due to the disruption in major defense companies' supply chain ecosystem. The government restrictions and decreased demand for new defense agreements have led to a huge revenue drop.

Key players such as BAE Systems, Raytheon Technologies Corporation, Lockheed Martin Corporation, and Israel Aerospace Industries have postponed the defense deals with their respective suppliers. For instance, BAE Systems postponed the multipurpose combat vehicle programs worth USD 15 billion until the end of 2020.

LATEST TRENDS

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Rising Deployment of Surveillance Radars System Integrated with UAVs in U.S. Armed Forces is a Prominent Trend  

The growing investment by the U.S. in deploying radar-based unmanned aerial vehicles (UAVs) for battlefield operations is set to augment growth. Also, the demand for detection and surveillance of enemy targets would propel the growth of the market.

In the last few years, there has been a rise in the number of contracts between key defense companies and the U.S. government for upgrading the military systems such as tactical and strategic level ground-based systems. Besides, there has been a rise in the advanced automatic dependent surveillance-broadcast (ADS-B) in UAVs operated through satellite navigation. This is expected to fuel the growth of the market.

DRIVING FACTORS

Growing Procurement of Next-generation Combat Aircraft to Surge Demand for Radar-based Systems

The demand for next-generation combat aircraft from countries such as the U.S., China, and India has increased owing to its ability to provide high tactical capabilities during warfare. The issues related to border and coastal security has further facilitated the demand for UAVs equipped with surveillance radars.

Moreover, the rising demand for military aircraft fleet modernization programs has led to an increase in the new aircraft orders, which is also expected to propel the growth of the market. Similarly, the surging military spending for the procurement of fighter jets integrated with advanced radar technology to strengthen the defense capabilities is anticipated to fuel the growth of the surveillance radar market during the forecast period.

Modernization of Conventional Military Equipment to Favor Growth

Owing to a change in warfare and battlefield management, the need for modernization of conventional military equipment has increased. Modernization is necessary to keep pace with technological progress during warfare. Thus, the demand for up-gradation is expected to drive the growth of the market. Modernization also aims to enhance technology, provide high reliability, and cost-effective solutions.

There has been a rise in the number of contracts between key defense companies and the U.S. government for upgrading their military systems such as tactical radar systems, movable tactics, light weapons, advanced military antennas, and others. Moreover, there has been a rise in the usage of advanced surveillance radars technology for armed forces. Thus, the surveillance radars market growth is expected to propel during the forecast period.

Many developing countries are focusing on upgrading their defense forces. For instance, in 2019, India planned to spend USD 130 billion in the next 5-7 years to modernize its armed forces and enhance its combat capabilities. The plan involves the procurement of radar systems, air defense systems, drones, warships, submarines, missiles, and others, which is predicted to boost the market growth.

RESTRAINING FACTORS

Design Constraints and Component Failure Due to Environment Conditions May Hinder Growth

Radar requirements for military applications include high operational efficiency, user-friendly advanced systems, compatibility to operate under various platforms, and a wide frequency band, which increases the complexity of the design. There is a rise in the demand for lightweight and compact radar systems. However, techniques and fundamental theories limit the radar system sizes and performances. These constraints in the design and development of surveillance radar systems are anticipated to hamper the growth of the market. Systems equipped with radars are used for military applications. They are operated in very harsh environments and failure of any equipment on the battlefield may cause catastrophic damage.

SEGMENTATION

By Platform Analysis

Rising Demand for Combat Vehicles from Asian Countries to Propel Growth of Ground Segment

Based on the platform, the market is divided into airborne, ground, naval, and space. The ground segment was estimated to be the largest segment in 2019 owing to the increased deliveries of surveillance radar-based combat vehicles in Asian countries, such as India, Japan, and Australia.

The airborne segment is anticipated to grow at a higher CAGR during the forecast period due to the development of advanced next-generation combat aircraft.

By Application Analysis

High Demand for Long-range Surveillance Radars for Border Security to Drive Military Segment

The market is classified into commercial, military, homeland security, and others based on the radar applications. The military segment was projected to be the largest segment in 2019 due to the rising demand for long-range surveillance radars for border security.

The commercial segment is anticipated to be the fastest-growing segment through the forecast period, owing to the increased demand for the replacement of conventional air traffic control units with technologically advanced radar-based air traffic control units.

By Radar Type Analysis

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Long-range Surveillance Radar Segment to Show Highest CAGR Share Owing to High Demand for OTH Radars

Based on radar type, the surveillance radar market includes short-range, medium-range, and long-range surveillance radars. The short-range segment held the highest market share in 2019 as it is most commonly used in commercial and military ground-based applications.

The long-range segment is anticipated to grow with the highest CAGR during the forecast period due to the rising demand for over-the-horizon (OTH) radars that are used to detect targets from a distance of thousands of kilometers.

REGIONAL INSIGHTS

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The global market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The market in North America stood at USD 3.62 billion in 2019. It is anticipated to dominate the market during the forecast period due to the presence of key military players such as Raytheon Technologies, Northrop Grumman Corporation, and Lockheed Martin Corporation in the region. Moreover, leading military aircraft manufacturers such as the Boeing Company and Bombardier Inc. is one of the key reasons for the growth of the market in the region.

Asia-Pacific is expected to be the fastest-growing region due to the increasing defense spending on military land and naval-based systems. Moreover, the rising passenger traffic from emerging economies such as China and India is anticipated to boost the market growth, as surveillance radars has key implications in air traffic controls.

The Middle East & Africa is expected to show significant growth throughout the forecast period owing to the increasing number of orders for new aircraft by airlines in the U.A.E. and Saudi Arabia. Additionally, Israel and Saudi Arabia have major dominance in the field of radar-based advanced systems. This will propel the growth of the market in the region. In the case of South America, the rise in military spending on modernizing its ground-based radar equipment by the government of countries such as Brazil and Argentina has propelled the growth of the market.

KEY INDUSTRY PLAYERS

Northrop Grumman Corporation to Focus on Strategic Partnerships & Acquisitions for Gaining Competitive Edge

With its investment in research & development of radar systems manufacturing process, Northrop Grumman Corporation is expected to succeed in the market. The U.S. Department of Defense and Northrop are focusing on automated surveillance radar systems having the largest implications for long-range radars in regions such as Asia-Pacific and Europe. Moreover, through strategic acquisitions and partnerships, the company is focusing on growing its capabilities.

Moreover, the surveillance radars market includes major OEMs involved in a strong partnership to establish long contracts with the clients and expand its presence across the globe.

LIST OF KEY COMPANIES PROFILED:

• Elbit Systems Ltd. (Israel)


• FLIR Systems Ltd. (The U.S.)


• Israel Aerospace Industries Ltd. (Israel)


• Leonardo S.P.A (Italy)


• Lockheed Martin Corporation (The U.S.)


• Raytheon Technologies (The U.S.)


• Saab AB (Sweden)


• Thales Group (France)


• Honeywell International Inc. (The U.S.)


• BAE Systems (The U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2020– Indra received a contract from Hellenic Civil Aviation Authority (HCAA) to install an air traffic surveillance system and radars at Athens International Airport in Greece.


• In July 2020, Raytheon Technologies Inc. received a contract worth USD 125.9 million for providing air surveillance radars for the U.S. Navy’s amphibious ships, carriers, and frigates. This is considered to be one of the major contracts with the U.S. Navy during the COVID-19 pandemic.

REPORT COVERAGE

An Infographic Representation of Surveillance Radars Market

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 The surveillance radars market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types of radar systems, and leading applications. Moreover, it offers insights into market trends and highlights key industry developments. In addition to the factors mentioned above, it encompasses several direct and indirect factors and opinions of industry experts that have been covered in the analysis of the market over recent years.

Report Scope & Segmentation