Market Trends of Surveillance Radar Industry
Military Segment Expected to Register The Highest CAGR during the Forecast Period
Increasing military expenditure of various countries worldwide, driven by global geopolitical tensions, is propelling the demand for developing and deploying surveillance radars for law enforcement and military applications. This trend is expected to drive the market of the military segment forward due to the critical nature of surveillance in defense operations. For instance, in November 2022, Indra Sistemas S.A. was awarded a contract worth USD 120 million for the upgradation and replacement of Germany's air surveillance radars with new technology.
With 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 March 2023, the Indian Ministry of Defence signed two contracts with Bharat Electronics Limited (BEL) for USD 37 million to enhance the operational capabilities of the Indian Air Force. The contract pertains to Arudhra Medium Power Radars (MPR) supply for the Indian Air Force. The radar is also equipped with high-resolution radar imaging for detecting and tracking aerial targets.
Asia-Pacific is Expected to Generate Highest Demand During the Forecast Period
Asia Pacific is anticipated to show remarkable growth during the forecast period. The growth is due to increasing defense expenditures and the rising procurement of next-generation military radars from China, India, and South Korea.
Increasing cross-border conflicts, political disputes among neighboring countries, and growing terrorism lead to rising spending on enhancing defense capabilities. Moreover, the Asia Pacific region is witnessing rapid industrialization and urbanization, necessitating the requirement for advanced surveillance and security systems to safeguard critical infrastructure. These position the Asia Pacific region as a lucrative market for surveillance radar OEMs and suppliers.
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 developing and procuring indigenous radar systems to achieve these improved surveillance capabilities. With the recent tensions between nations and North Korea's missile tests in the region, countries like South Korea and Japan have also increased their surveillance capabilities.
