PUBLISHER: Orion Market Research | PRODUCT CODE: 1811871
PUBLISHER: Orion Market Research | PRODUCT CODE: 1811871
Naval Radar Systems Market Size, Share & Trends Analysis Report by Type (Naval Surveillance Radar, Naval Fire Control Radar, and Naval Navigation Radar), by Application (Naval Ships, Submarines, Unmanned Surface Vehicle, and Others), Forecast Period (2025-2035)
Industry Overview
Naval radar systems market was valued at $5.24 billion in 2024 and is projected to reach $8.97 billion by 2035, growing at a CAGR of 5.0% during the forecast period (2025-2035). The market is driven by increasing adoption of radar systems in defense & commercial aircraft, marine vessels, weather stations, airport surveillance, unmanned vehicles, satellites, and others. Also, rising demand for advanced surveillance and the global modernization of naval fleets are key drivers of the naval radar system market. With maritime security and national defense taking precedence, investing in advanced radar technology has become a strategic imperative. Additionally, rising disposable incomes and the increasing number of high-net-worth individuals globally are fueling robust sales of boats and luxury yachts-a trend anticipated to drive maritime radar device shipments over the forecast period.
Market Dynamics
Geopolitical Tensions and Naval Modernization
Rising naval tensions (South China Sea, Arctic shipping routes) and demand for maritime domain awareness are driving expenditures on advanced radar systems. Governments are arming fleets with multi-mission radars to counter stealth threats, drones, and hypersonic missiles. For instance, in January 2025, according to the U.S. Navy, the US Navy prioritizes integrated radar systems for next-gen destroyers. The first DDG(X) rendering, presented at SNA 2022, features a 5-inch Mark 45 Mod 4 main gun forward of the bow-mounted 32-cell Mark 41 VLS. It also features three AN/SLQ-32(V) arrays on the superstructure next to the two forward AN/SPY-6(V) radar arrays.
Supporting Policy and initiatives
Radars play a critical role in operations. For instance, in August 2024, as per the Federal Aviation Administration (FAA), the US President's FY 2025 FAA budget proposed calls for a dedicated capital investment of $8 billion over the next five years to replace aging facilities and modernize 377 critical radar systems that are an average of 36 years of age. The government also set a benchmark for radar modernization, in which modern radar systems to be funded through the Facility Replacement and Radar Modernization (FRRM) program, which will address the operational sustainment risk posed by the old, obsolete systems. All cooperative radars (up to 343) and 34 (of 230) non-cooperative radars will be modernized - this is 60% of the FAA's radar portfolio. Furthermore, the new systems will address shortfalls not met by the current systems' sustainment strategy. Modern systems provide a more cost-effective architecture by consolidating the five cooperative and three non-cooperative radar baselines into one version of each. This would reduce separate redundant maintenance, management, training, and supply support activities and personnel costs for the next 20+ years of operation.
Market Segmentation
Surveillance Segment Leads the Naval Radar Systems Market
The surveillance segment leads the naval radar systems market and will continue to lead during the forecast period. Surveillance radar is an essential component of providing all-around threat detection capability for airborne and surface threats. Naval forces are keen to use surveillance radar systems to boost their situational awareness and response capability in various maritime environments such as open seas, coastal areas, and congested waterways. Other significant areas of application include missile guidance systems, which increasingly contribute to shaping modern naval warfare environments.
The global naval radar systems market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
The major companies operating in the global naval radar systems market include Lockheed Martin Corp., HENSOLDT AG, Northrop Grumman Corp., RTX Corp., and THALES Group, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning. Introducing new naval radar systems flavors and exploring innovative applications to align with changing consumer tastes. Forming strategic partnerships to broaden distribution networks and strengthen product portfolios. Expanding into emerging markets, especially in Asia-Pacific and Latin America, to capitalize on the rising demand for naval radar systems.
Recent Developments