Radar Simulators Market - Growth, Trends, and Forecasts (2022 - 2027)

The radar simulators market is poised to register a CAGR of over 3% during the forecast period, 2022-2027. A radar simulator emulates various radar profiles to provide users with an apt environment for training or to perform functional tests on a system. The system comprises both hardware and software components.

The impact of COVID-19 on the demand for new Radar simulators was negligible. The emergence of modern warfare systems, such as electronic warfare (EW) and network-centric warfare (NCW), has bolstered the use of radars in military operations, thereby driving the demand for radar simulators for training military personnel.

Different types of radar simulators are being configured with multiple technologies to address emerging threats. This has fostered the integration of modular architecture design for radar simulators.

Key Market Trends

Growth in Air Passenger Traffic Bolstering Requirement for Trained ATC Personnel

In 2021, the air passenger traffic had grown gradually in several parts of the world, mainly due to the robust vaccine programs in several regions, which helped the governments ease the air travel regulations. With the increase in the total number of air passengers, airlines and airports will continue to invest in various airport infrastructure items to enhance airport operations and passenger experience. According to IATA, the total number of air passengers is expected to almost double over the next two decades, which will generate huge opportunities for airports and thus increase need for aircraft, resulting in demand generation for ATC operators and radar handlers, therefore driving the market for Radar simulators in the commercial sector. A milestone of 50% of 2019 levels was accomplished in terms of overall traveler numbers in 2021. The International Air Transport Association (IATA) projects that there will be an increase of 83 % travelers worldwide in 2022, 94 % in 2023, 103 % more in 2024, and 111 % more in 2025.

The number of international travelers was fallen to 27% in 2021 compared to levels in 2019. It is anticipated that by 2022, 82%, 82% in 2023, 92% in 2024, and 101% in 2025 are projected increases from pre-covid levels. Overall traveler numbers were 47% of 2019 levels in 2021. It is anticipated that by 2022, 93 %, 103% in 2023, 111% in 2024 and 118% in 2025 are projected increases from pre-covid levels.

The rebound in air passenger traffic is likely to bolster demand for aircraft. The additional aircraft traffic needs to be efficiently managed at the airports. Hence, proper scheduling and aircraft redirecting are required for managing airport operations. The growth in the number of takeoffs and landings at an airport requires trained air traffic control (ATC) personnel, who are acquainted with diverse radar hardware and software used globally. Training of such personnel is expected to drive the demand for radar simulators. Furthermore, with the proliferation of new air-routes and radar technologies, several radar systems are being installed globally at new airports, thereby driving the demand for trained ATC controllers and indirectly driving the radar simulators market.

Rapid Growth of the Aerospace Industry in Asia-Pacific

The robust economic growth, coupled with favorable population and demographic profiles of the populace in developing countries, especially in the Asia-Pacific region, is driving the air passenger traffic in the region. Thus, Asia-Pacific is expected to generate the highest demand for radar systems during the forecast period. The demand is mainly due to the increasing orders and deliveries of new aircraft, propelled by the ever-growing passenger traffic in the region. As of August 2022, there were over 300 commercial aircraft delivered to this region by various aircraft OEMs. By 2030, China and India, are forecasted to become the world's largest aviation market in terms of air traffic, while other countries, such as Indonesia and Thailand, are forecasted to enter the top 10 global markets.

Furthermore, the regional military powerhouses, such as China, India, and Japan, are investing significant resources in the development of their aerial capabilities, including the up-gradation of their existing radar technologies. In June 2019, China reportedly developed an over-the-horizon maritime early warning radar system capable of detecting a stealth aircraft beyond visual range. The operation of such sophisticated technology requires proper training that can be facilitated using radar simulators since they can be set up to match the exact working characteristics of real systems. Such favorable trends are anticipated to drive the demand for radar simulators in the region.

Competitive Landscape

The radar simulators market is characterized by the presence of a limited number of dominant vendors operating at a global level. The market is highly competitive, with players competing to gain the largest market share. Constraints associated with the modularity of the design, due to the integration of several radar features into a single platform, impede the growth of the market. It is crucial for vendors to provide advanced radar simulators to end users to survive in an intensely competitive market environment. The dominant market players include Mercury Systems Inc., L3Harris Technologies Inc., Buffalo Computer Graphics, Raytheon Technologies Corporation, ARI Simulation, and Ultra Electronics. These players mainly compete based on their in-house manufacturing capabilities, global footprint networks, product offerings, R&D investments, and strong client bases. The competitive environment in the market is likely to intensify further due to an increase in product/service extensions and technological innovations.

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