The shipment of military radar equipment is set to grow at a compound annual growth rate of 5.4 percent over the next eight years, for a market value of $16 billion in 2022, according to new reports.
The emergence of new platforms, retrofitting existing platforms with new technologies as well as general maintenance of systems across land, air and naval domains will lead to an increase in military radar spending, according to new reports.
Despite budgetary constraints, the North American region, led by the US, will drive the bulk of expenditure accounting for over 48 percent of global military radar spend.
Asia-Pacific military radar spending will be driven by internal capability development as well as acquisition of platforms and radar systems to maintain competencies against both regional and international challenges.
"Military radar systems shipments will exceed 900 units by 2022 across land, airborne and ship-based systems," notes Eric Higham, North American Director for ADS, which has released several reports on military radars. "Demand from airborne platforms will dominate overall unit demand reflecting the overall trends of system demand from emerging platforms such as the F-35, as well as upgrading existing platforms with new radar capabilities."
"The associated market for electronic components will grow at a CAGR [compound annual growth rate] of over 13 percent, with the move towards active electronically scanned array (AESA) radar in particular underpinning next generation capabilities," predicts Asif Anwar, Director at Strategy Analytics. "This will continue the drive towards radar systems underpinned by semiconductor technologies such as gallium nitride (GaN) though tube-based solutions will continue to support legacy systems, as well as being used in those cases where the capabilities offered by AESA-based systems are either not required or prove too costly for the required mission."
According to a report released last year, the military radar systems market was worth $8.57 billion in 2013. The report released last year cautioned that the global military radar systems market was in a state of flux, primarily as a result of sweeping defence budget cuts in many established markets which have impacted heavily on procurement.
“While counteracting forces of spending increases in emerging markets and new technologies are undoubtedly present, they represent only a limited effect on the military radar systems market as a whole,” according to the Visiongain report entitled “Global Military Radar Systems Market 2013-2023.”
“The security picture over the next decade (involving increased access to ballistic missile technologies and increased tensions in East Asia and the Middle East) will continue to provide a pressing need for procurement and upgraded radar technology, although these demands will continue to be counterbalanced by economic reality,” the report said.
EADS Group, Israeli Aerospace Industries, Northrop Grumman Corporation, ThalesRaytheonSystems and Lockheed Martin Corporation are among the prominent participants in the global military radar systems arena.
The Visiongain author of the military radar systems report said that: “core markets [are] now the preserve of a dominant few players, while smaller and newer vendors seek to compete in the margins and in emerging areas. While defence cutbacks in many developed markets are ongoing, the combined effects of spending in developing markets and the increased proliferation of advanced weapons systems is expected to drive the market in the years to come. There will be restrictions on spending in certain areas, while others will avoid projected budget cuts entirely; the trick for investors and businesses will be in foreknowledge of these areas and active efforts to seize the opportunities which are present, both now and in the future.”
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