Naval Radar Systems - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The naval radar systems market size is expected to grow from USD 9.53 billion in 2025 to USD 9.98 billion in 2026 and is forecast to reach USD 12.57 billion by 2031 at 4.72% CAGR over 2026-2031. This report is Segmented by Radar Type (AESA, PESA, and More), Platform (Destroyers and Cruisers, Frigates, and More), Application (Surveillance and Early Warning, and More), Frequency Band (L/S Band, C Band, and More), Component (Transmitter/Power Amplifier, and More), Range (Short, Medium, and Long) and Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

Global Naval Radar Systems Market Trends and Insights

Escalating Multi-Domain Missile Threats

Shipborne radar requirements changed after sea-skimming, and hypersonic missiles showcased harsh lessons in the Red Sea and overwhelming legacy sensors during saturation raids. The US Navy accelerated SPY-6 back-fit packages beginning in 2026 with a USD 536 million budget to bolster detection windows. China’s push toward near-light-speed radar that reveals submarines hundreds of meters below the surface widens the technology gap and presses allies to field agile multi-function arrays. As a result, suppliers are designing software-defined waveforms that concurrently track ballistic, hypersonic, and sea-skimming profiles without mode-switch latency. These converging threats underpin a steady spending cadence inside the naval radar systems market.

Modernization Cycles of Aged 2-D Radars to AESA

Frigates and destroyers commissioned before 2005 are near obsolescence, triggering large-scale AESA retrofits such as Germany’s EUR 200 million (USD 232.42 million) F124 upgrade awarded to Hensoldt and IAI. The Netherlands followed with four air-defense frigates worth EUR 3.5 billion (USD 4.07 billion), embedding active-phased-array suites at the build stage rather than mid-life. South Korea’s Hanwha Systems prototype can concurrently track 4,000 targets, illustrating sovereign technology responses to export limits. Replacement programs increasingly value firmware-driven enhancements that avoid dry-dock structural changes. These dynamics lock in a predictable upgrade backlog supporting the naval radar systems market expansion through 2030.

Export-Control Limits on GaN MMICs

China controls 85% of the primary gallium supply, and recent export curbs elevate procurement risk for Western radars using GaN modules. US export listings further restrict 40-230 GHz devices, complicating co-development with allies. Washington and Brussels sponsor domestic gallium refineries, yet multi-year timelines keep dependency high, inserting delivery uncertainty into several naval radar systems market contracts.

Other drivers and restraints analyzed in the detailed report include:

• Indo-Pacific Naval Build-Up and Frigate Programs
• Mandatory Radar Cross-Section Management
• Cost Overruns Driving Radar De-Scoping

Segment Analysis

AESA systems held the largest 40.78% naval radar systems market share in 2025, thanks to robust multi-target tracking and jam-resistant digital beamforming. The naval radar systems market size for FMCW/MIMO radars is projected to expand at 6.55% CAGR through 2031, propelled by demand for software-defined multifunctionality that supports concurrent communications links. Traditional passive electronically scanned arrays (PESA) linger in cost-sensitive upgrades, while quantum and photonic concepts occupy the “Others” category as long-range R&D bets.

Lockheed Martin’s SPY-7 demonstrated persistent tracking for Spain’s F-110 frigate program, with delivery in 2026 and commissioning in 2028. Meanwhile, FMCW solutions migrating from automotive supply chains show favorable volume economics, compressing entry barriers for new vendors. Cross-domain algorithm sharing reduces development cycles, giving navies affordable pathways to plug-and-play waveform libraries that future-proof their fleet sensors.

Destroyers and cruisers accounted for 38.74% of the overall naval radar systems market size in 2025 because fleet air-defense doctrines still center on large combatants. However, unmanned surface and AUV platforms head the growth table with an 8.12% CAGR, reflecting distributed lethality strategies that call for low-signature scouts.

Miniaturized GaN power amplifiers and conformal antennas now satisfy the size, weight, and power (SWaP) envelopes of unmanned hulls, unlocking new procurement layers. Submarine mast radars also advance, enabling periscope-depth situational awareness with minimal exposure. Modular “payload bay” concepts allow common sensor cores to slide between unmanned and manned vessels, lowering integration costs and stoking cross-platform fleet standardization.

Complete Report Scope:

• By Radar Type
  • AESA
  • PESA
  • FMCW/MIMO
  • Others
• By Platform
  • Destroyers and Cruisers
  • Frigates
  • Corvettes and OPVs
  • Aircraft Carriers and Amphibious Ships
  • Submarines (mast-mounted)
  • Unmanned Surface/AUV Platforms
• By Application
  • Surveillance and Early Warning
  • Missile Guidance/Fire Control
  • Navigation and Collision-Avoidance
  • Surface Search and Target Tracking
  • Weather and Environmental Monitoring
  • Electronic Warfare Support
• By Frequency Band
  • L/S Band
  • C Band
  • X Band
  • Ku/Ka Band
• By Component
  • Transmitter/Power Amplifier
  • Receiver/Down-converter
  • Antenna/Array Panels
  • Other Components
• By Range
  • Short (Less than 50 km)
  • Medium (50-200 km)
  • Long (Greater than 200 km)
• Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • United Kingdom
    • Germany
    • France
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Taiwan
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Rest of South America
  • Middle East and Africa
    • Middle East
      • Turkey
      • Saudi Arabia
      • Rest of Middle East
    • Africa
      • South Africa
      • Rest of Africa

Geography Analysis

North America led with 37.21% of the naval radar systems market share in 2025, underpinned by the US Navy’s plan to install SPY-6 on 65 surface combatants and to field Enterprise Air Surveillance Radar aboard future carriers. Canada’s selection of SPY-7 for River-class destroyers adds cross-border industrial synergy, while Mexico’s incremental coastal surveillance upgrades leave room for follow-on orders. Robust defense budgets exceeding USD 800 billion provided multiyear funding visibility, enabling OEMs to lock in scale pricing for GaN devices.

Asia-Pacific represents the fastest-growing cluster, expanding at 8.31% CAGR to 2031 as China’s submarine-tracking radar tests accelerate regional procurement urgency. Japan’s USD 41 million indigenous long-range radar program and South Korea’s KDX-II destroyer refits, worth USD 300 million, evidence a strategic tilt toward sovereign sensor ecosystems. Australia’s AUD 50 billion (USD 32.47 billion) fleet expansion and the Philippines’ PHP 5.5 billion (USD 96.76 million) radar import package underscore the region’s broad spending front, cushioning suppliers against order volatility elsewhere.

Europe posts steady gains as NATO cohesion intensifies. Germany’s EUR 200 million (USD 232.42 million) (F124 upgrade and the Netherlands’ EUR 3.5 billion (USD 4.07 billion) frigate build ensure a rolling backlog. Spain integrates SPY-7 into F-110 hulls, while the Franco-Italian Horizon mid-life overhaul, worth EUR 1.5 billion (USD 1.74 billion), pushes common standards across multiple navies. Eastern Mediterranean tensions nudge Greece toward new air-defense frigates, and Norway eyes enhanced coastal sensors, suggesting a secure medium-term growth lane despite fiscal scrutiny.

List of Companies Covered in this Report:

• RTX Corporation
• Lockheed Martin Corporation
• THALES Group
• Northrop Grumman Corporation
• Leonardo S.p.A
• Saab AB
• HENSOLDT AG
• BAE Systems plc
• L3Harris Technologies, Inc.
• Terma A/S
• Israel Aerospace Industries Ltd.
• Bharat Electronics Limited
• Indra Sistemas S.A.
• Elbit Systems Ltd.
• Kongsberg Gruppen ASA
• Hanwha Systems Co., Ltd.
• Aselsan A.Ş.
• Mitsubishi Electric Corporation
• Rosoboronexport
• Reutech Radar Systems (Reutech Pty (Ltd.))

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support