The global Radar industry that accounted for $ 32.56 billion in 2019 is estimated to reach $ 44.35 billion by 2028, observes Allied Market Research.
The report Global Opportunity Analysis and Industry Forecast, 2021–2028 - radar market by offering, product type, platform, application and end users including automotive, aviation, industrial, weather monitoring, military & defence, states that the market will grow at a CAGR of 4.7% between 2021 to 2028.
According to the research agency, the full-service market research and business-consulting wing of Allied Analytics based in Portland, Oregon, the rise in demand for radar systems in automotive and defence industries, the surge in territorial battles, and advancements in radar technology drive the growth of the global radar market. However, the high cost of the radar system hinders market growth. On the contrary, increased investment from the developed countries in the military sector is expected to create lucrative opportunities for the market players in the future.
Major market players in this segment include Northrop Grumman Corporation, SAAB AB, Lockheed Martin, Thales Group, Rockwell Collins, Honeywell International, General Dynamics, Dassault Aviation, BAE Systems and L-3 Communications.
Influence by COVID-19
The COVID-19 outbreak severely affected the production process of several industries, including the automotive and industrial sectors. The large-scale manufacturing interruptions across Europe and disruptions in Chinese exports hampered the global radar market, the report stated.
By application, the air traffic control segment held the largest share in 2019, accounting for more than one-fourth of the global radar market, due to the rise in the number of airports and air travel in developing countries and the need for an efficient airspace management system. However, the ground traffic control segment is estimated to register the highest CAGR of 5.8% during the forecast period due to growing opportunities for the airports to integrate advanced taxing guidance systems based on the existing international standards and integrated technologies.
By end-user, the military and defence segment held the largest share in 2019, contributing to around two-fifths of the global radar market, due to the rise in electronic warfare systems and UAVs and advancement in radar technologies and adaptabilities of new missions, platforms, and surroundings.
However, the automotive segment is projected to manifest the highest CAGR of 6.7% during the forecast period, owing to a surge in demand for safety features in automobiles and a rise in demand for comfortable driving.
By region, the North American market held the largest share in 2019, accounting for nearly one-third of the market, due to soaring road victims, rapidly increasing urbanisation, changing consumer lifestyles, and stimulating demand for radar in a luxury vehicle.
However, the global radar market across Asia-Pacific is expected to portray the highest CAGR of 6.4% during the forecast period. According to Allied Market Research, this is due to an increase in the defence budget of India and China, along with increasing demand for radar systems.
Courtesy: Allied Market Research. Photos are representational; courtesy: SAAB