Market Research Report
Naval Radar Systems Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||964519|
|Published||Content info||85 Pages
Delivery time: 2-3 business days
|Naval Radar Systems Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: August 1, 2020||Content info: 85 Pages||
The naval radar systems market is projected to grow with a CAGR of more than 5% during the forecast period.
Increasing Investments into Navy is Driving the Growth of the Market
Due to an increase in territorial disputes, the navies of various countries are procuring and integrating advanced radar systems onboard naval vessels to modernize their existing fleet. For instance, in June 2020, the US government awarded a USD 7.2 million cost-plus-incentive-fee contracts to L3Harris Technologies for the development, and delivery of AN/SPS-48G(V)1 radar data processor and radar display and control function software. The development is expected to be completed by 2022. Currently, the US Navy has been replacing AN/SPS-48E on various naval vessels with AN/SPS-48G since 2011, and this replacement is scheduled to be completed by 2028. Similarly, investments in the development and integration of advanced radar systems with enhanced detection capabilities are expected to propel the growth of the market during the forecast period.
Asia-Pacific Region is Expected to be the Fastest Growing Market During the Forecast Period
The escalating tensions between the various countries in this region due to the increasing dominance of China in the South China Sea have led to an increase in naval investments by the neighboring countries to procure and modernize their naval fleet. Countries, like South Korea, Australia, India, China, and Indonesia, are primarily investing in the development, and procurement of new naval vessels. China's navy is undergoing a huge naval fleet expansion, which is projected to help China surpass Russia, as the largest navy in the world in terms of frigates and submarines in the near future. China is continually emphasizing on increasing its anti-submarine warfare (ASW) capabilities from coastal defense to blue-water operations. Similarly, out of the total defense budget of India worth USD 65.9 billion for the fiscal year 2020-2021, the government plans to invest USD 4.56 billion towards the Indian Navy to strengthen naval capabilities with procurement of nuclear submarine and stealth frigates. Such increasing investments into the procurement of new generation naval vessels are expected to accelerate the growth of naval radars market during the forecast period.
The naval radar systems market is highly competitive with many major defense manufacturers catering to the requirement of radars to various naval programs. Some of the prominent players in the market of naval radar systems are Raytheon Technologies Corporation, L3Harris Technologies, Inc., Israel Aerospace Industries Ltd, Leonardo S.p.A., and BAE Systems plc. The companies are partnering for the various naval program, which is helping the companies increase their presence in various regions. Also, the radar manufacturers are collaborating with each other to develop new radar solutions. For instance, in December 2019, Indra and Lockheed Martin announced a collaboration to develop anti-air warfare (AAW) radar for the Spanish Navy for a period of 10-years. Such developments are anticipated to help the companies increase their share in the market as well as increase their cashflows in the coming years.