Radar System Market Report 2025

This Radar System report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The radar system market size has grown rapidly in recent years. It will grow from $34.27 billion in 2024 to $37.7 billion in 2025 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to military modernization, rise in demand for surveillance and border security, growth in weather forecasting, rise in air traffic, growth in smart cities.

The radar system market size is expected to see strong growth in the next few years. It will grow to $52.66 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to geopolitical tensions, need for maritime surveillance, rising autonomous vehicles, rise in defense budgets, emerging markets. Major trends in the forecast period include cognitive radar, miniaturization, frequency modulated continuous wave (fmcw) radar, digital beamforming, synthetic aperture radar (sar).

The growth of the radar system market is expected to be propelled by the increasing utilization of radar systems for weather monitoring. These systems, utilizing electromagnetic signals, play a crucial role in detecting and locating objects. In weather monitoring, radar systems provide essential data for understanding weather patterns, improving forecasts, issuing flood warnings, supporting hydrological applications, and contributing to climate research. For instance, the India Meteorological Department (IMD) initiated operations for four new Doppler weather radars equipped with drone-based observation technology in January 2022. These radars enhance weather forecasting by offering improved rainfall monitoring and hydrometeor classification through dual-polarization technology, distinguishing between snow, rain, and hail. Consequently, the rise in the use of radar systems for weather monitoring significantly drives the radar system market's growth.

The rise in military expenditure is anticipated to drive the growth of the radar system market in the coming years. Military expenditure refers to the funds allocated for maintaining armed forces and other defense-related activities, typically outlined in a military expenditure plan and included in a country’s defense budget. This increase in military spending is contributing to the radar system market due to a growing demand for lightweight radars, heightened concerns about enhancing defense capabilities, technological advancements, and government initiatives and investments. For instance, in April 2024, a report published by the Peter G. Peterson Foundation, a private organization based in the US, indicated that U.S. defense spending increased by $55 billion between 2022 and 2023. Thus, rising military expenditure is significantly driving the growth of the radar system market.

4D imaging radars are transforming the radar systems market, with many companies in the sector developing innovative solutions to meet customer demands. For example, in December 2022, Ambarella Inc., a US-based semiconductor company, introduced a centralized 4D imaging radar architecture. This radar system, equipped with Oculii™ technology, enhances perception for autonomous systems by integrating raw radar data with inputs from other sensors. It offers high-resolution detection, adaptability to various environments, and an operational range of over 500 meters, making it a flexible solution for future radar designs.

Major players in the radar system market are driving innovation by developing advanced products, such as high-performance radar sensing, incorporating features like automated emergency braking and blind-spot detection. High-performance radar sensing involves advanced radar technology that enhances resolution, accuracy, and detection capabilities. For instance, NXP Semiconductors, a Dutch semiconductor designer and manufacturer, unveiled a 28nm RFCMOS radar one-chip for safety-critical Advanced Driver Assistance Systems (ADAS) applications in January 2023. This SAF85xx one-chip family integrates NXP’s high-performance radar sensing and processing technologies, offering flexibility to address short, medium, and long-range radar applications.

In October 2022, Renesas Electronics Corporation, a semiconductor manufacturing company based in Japan, acquired Steradian Semiconductors Private Limited for an undisclosed amount. Renesas aims to utilize Steradian’s radar technology to enhance its automotive radar portfolio, addressing the increasing demand for sensor solutions while simplifying design processes for engineers. Steradian Semiconductors Private Limited is an India-based semiconductor manufacturer that specializes in 4D imaging radar solutions.

Major companies operating in the radar system market include BAE Systems Inc., Leonardo S.p.A., Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Ltd., Saab AB, Thales Group, Honeywell International Inc., General Dynamics Corporation, Israel Aerospace Industries Ltd., Reutech Radar Systems Ltd., Elcome Integrated Systems Pvt. Ltd., L3Harris Technologies Inc., NXP Semiconductors N.V., Infineon Technologies AG, Hensoldt Corp., Indra Sistemas SA, Rheinmetall AG, Safran SA, Terma A/S, Serco Group Plc, FLIR LLC, Aselsan AS, SRC Inc., ELTA Systems Ltd., Mercury Ltd., RADA Electronic Industries Ltd., International Foodstuffs Co., Cobham Inc., Telephonics Corporation.

North America was the largest region in the radar systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the radar systems market share during the forecast period. The regions covered in radar system market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the radar system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The radar system uses electromagnetic signals to detect and locate objects such as ships, vehicles, aircraft, and others. Radar systems operate by emitting electromagnetic energy into space and by analyzing an echo that results from the radiated energy getting reflected by an object.

Key components of the radar system encompass the transmitter, receiver, antenna, and various other elements. The transmitter, an electronic device employed in telecommunications, is integral to the radar setup. Diverse technologies, such as continuous wave (CW) radar and pulsed radar operating within frequency bands like X-band, S-band, and C-band, find application in air traffic control, remote sensing, ground traffic control, space navigation and control, and various other scenarios. The end users of these technologies span aviation, maritime applications, automotive industries, as well as military and defense sectors.

The radar system market research report is one of a series of new reports that provides radar system market statistics, including radar system industry global market size, regional shares, competitors with a radar system market share, detailed radar system market segments, radar system market trends and opportunities, and any further data you may need to thrive in the radar system industry. This radar system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The radar system market consists of sales of technology such as continuous wave radar and pulsed radar. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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