Naval System Surveillance Radar Market Research Report and Outlook by 2028

The naval system surveillance radar market is anticipated to grow significantly, reaching an estimated US$ 6,465.89 million by 2028, up from US$ 4,249.75 million in 2022. This growth represents a compound annual growth rate (CAGR) of 7.2% from 2022 to 2028.

Radar technology is a critical component on naval vessels, providing essential safety measures for ships navigating both open seas and coastal areas. Vessels typically utilize S-band and X-band radar systems for navigation and to detect other ships or land obstacles, thereby preventing potential collisions. The market for naval system surveillance radar is categorized by type, application, and geographical region. In terms of type, the market is divided into X-band and Ku-band, L-band and S-band, among others. Applications of these radar systems include weapon guidance and surveillance. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South and Central America.

Radar systems are among the most crucial equipment on ships, designed to function effectively in challenging environments. They are capable of detecting and tracking targets over long distances. Proper radar operation and plotting are vital, especially in conditions of limited visibility, as they help avert collisions and enhance maritime safety. However, accidents can occur if the watchkeeping officer lacks familiarity with the radar's operation. For accurate interpretation, radar controls must be correctly calibrated. Furthermore, the requirements for naval radar applications include high operational efficiency, user-friendly advanced technologies, compatibility with various platforms, and a broad frequency range, all of which complicate the design process.

Despite the advancements, the growth of the market faces challenges due to inherent limitations in radar system design and performance. The operational environment for naval applications is often harsh, and any failure in equipment?such as on submarines or in navigation systems?can lead to severe consequences. Thus, design limitations and component failures due to environmental factors pose significant obstacles to the growth of the naval system surveillance radar market.

In 2021, North America held the largest share of the global naval system surveillance radar market. However, the Asia Pacific region is projected to experience the highest CAGR during the forecast period. The APAC market is further divided by country, including Australia, China, India, Japan, South Korea, and other nations in the region. This area has seen a notable increase in military spending, driven by government initiatives aimed at strengthening military capabilities. According to a report by SIPRI in 2021, military expenditure in the Asia Pacific reached US$ 586 billion, marking a 3% increase from 2020. This trend is expected to continue in the coming years, particularly as China and India ramp up their military budgets, which in turn boosts the production and procurement of naval vessels, radar systems, and surveillance technologies. Together, China and India accounted for nearly 70% of the total military spending in the Asia Pacific region as of 2021, further propelling the growth of the naval system surveillance radar market.

Impact of COVID-19 on the Naval System Surveillance Radar Market

The COVID-19 pandemic had a significant impact on various sectors, including the aerospace and defense industries. The procurement of naval system surveillance radar was adversely affected due to the temporary shutdown of production facilities related to naval equipment, ships, and ports. Lockdowns aimed at curbing the spread of SARS-CoV-2 disrupted supply chains and reduced the production of essential components. The global military ship and vessel manufacturing sectors also faced challenges. Additionally, international trade restrictions, border closures, and government regulations to ensure public health further complicated the situation.

The Asia Pacific region was particularly hard hit by the pandemic, with many countries experiencing declines in GDP, international trade, and overall economic activity. The naval industry in APAC faced significant disruptions in the first half of 2020, leading to a substantial drop in revenue for key players in the naval system surveillance radar market. The pandemic resulted in reduced naval operations and supply chain interruptions. Many emerging economies had to reallocate defense budgets to address healthcare needs, which further diminished military spending. Consequently, while some revenue was generated in 2020, it was notably lower than in 2019.

Key players in the global naval system surveillance radar market include Leonardo S.p.A., Raytheon Technologies Corporation, Northrop Grumman Corporation, Thales Group, and Ultra. These companies are recognized leaders in the naval system surveillance radar sector.

The overall size of the naval system surveillance radar market has been determined through a combination of primary and secondary research methods. Extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data regarding the market size. This process also aimed to provide a comprehensive overview and forecast of the naval system surveillance radar market across all segments. Additionally, numerous primary interviews were held with industry participants and experts to validate the findings and gain deeper insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and external consultants specializing in the naval system surveillance radar market.