Surveillance Radar Market size was over USD 37.3 billion in 2024 and is estimated to reach USD 66.9 billion by the end of 2037, expanding at a CAGR of 5% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of the surveillance radar is estimated at USD 39.1 billion.
The growth is driven by rising geopolitical tension, a growing defense budget, and increasing security concerns. Furthermore, the growing need for counter-drone, disaster management solutions, and space-based surveillance contributes to the market expansion significantly.
Moreover, the market is witnessing a significant number of developmental activities. For instance, in March 2023, DeTect, Inc. developed its largest and longest-range radar the HARRIER BAR300, with an extended range for aircraft detection of 30+ nautical miles. In November 2024, Sirius Insight announced a partnership with Cambridge Pixel to develop an AI-powered maritime surveillance and situational awareness solution, by integrating Cambridge Pixel’s radar tracking software. Furthermore, rising investments in smart city infrastructure, the growing focus on cybersecurity to protect critical assets, and the modernization of defense systems are the prominent factors driving the market growth further.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5% |
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Base Year Market Size (2024) |
USD 37.3 billion |
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Forecast Year Market Size (2037) |
USD 66.9 billion |
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Regional Scope |
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Component (Hardware, Software)
Hardware segment is anticipated to account for surveillance radar market share of more than 59.5% by the end of 2037. The segment growth is driven by the essential role of physical components such as antennas, transmitters, and receivers in radar systems. Advancements in hardware technologies, including phased-array antennas and compact, energy-efficient designs, are enhancing radar performance across military, aviation, and infrastructure applications. The growing demand for specialized hardware in counter-drone systems, space surveillance, and coastal monitoring further solidifies its leadership within the component segment. In May 2023, Indra announced the development of the new V2i version of the S3TSR radar, a civil and military radar, incorporating transmission elements (TX) up to quadruple its current power.
Platform (Land, Air, Naval, Space)
Based on platform, the land segment is anticipated to register a considerable share in the surveillance radar market during the forecast period. The segment growth is fueled by increasing demand for ground-based radar systems for border security, air defense, and infrastructure protection. The scalability of these systems in diverse terrains further strengthens their dominance in the market. In January 2021, HENSOLDT UK launched SPEXER 600 multi-mission, X-Band ground-based surveillance radar, designed to detect multiple threats in the modern battlefield or security environment. Rising developments to meet the increasing demand for security purposes is hence expected to boost the segment’s growth further.
Our in-depth analysis of the market includes the following segments:
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Component |
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Platform |
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Radar Range Type |
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Application |
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APAC Market Statistics
APAC surveillance radar market is growing rapidly, driven by increasing geopolitical tensions, defense modernization programs, and rising demand for advanced surveillance solutions. Increasing investments in smart city projects, and the rising need for civil infrastructure protection are major drivers of the region’s market. Furthermore, rising instances of natural disasters and climate-related challenges, in addition to civilian applications such as traffic monitoring have spurred demand for radar systems in disaster management and weather monitoring in Asia Pacific.
India market is projected to register considerable growth in the coming years. Domestic manufacturing under the Make in India program is boosting the region’s market, in addition to increasing the budget for defense, and cross-border security concerns. The military spending of India in 2023 was estimated at USD 83.6 billion, according to Statista 2024. Protection of strategic assets, including offshore installations, and air traffic management systems is driving the demand further in the country.
China market is driven by its ambitions in space exploration and satellite-based surveillance, enhancing both civilian and military capabilities. The country’s Belt and Road Initiative (BRI) has increased the demand for infrastructure security, further boosting investments in radar systems. Moreover, advancements in drone technology and the integration radar for counter drone-solutions are gaining momentum, and strategically enhancing the market growth.
North America Market Analysis
North America surveillance radar market is expected to dominate revenue share of around 41.8% by the end of 2037. The market is driven by high defense budgets, growing security concerns, and technological advancements. Growing demand for border surveillance and counter-drone solutions further fuels market growth. Statista July 2024 stated that the U.S. led the ranking of the countries with the highest military spending in 2023, with USD 916 billion dedicated to the military, over 40% of the total military spending worldwide. Such increasing investments and spending will boost the market during the forecast period significantly.
With a strong presence of leading manufacturers, the U.S. invests heavily in R&D to develop cutting-edge radar systems for military, aviation, and critical infrastructure applications. U.S. dominates the North America market owing to military and homeland security investments. The country prioritizes modernizing its defense infrastructure, adopting AI-integrated radar systems, and space-based surveillance. Strategic government initiatives and collaborations with private companies drive innovation and sustain market leadership.
Canada market focuses on maritime monitoring and Arctic sovereignty. The country invests in radar systems tailored to harsh environmental conditions and supports domestic production through government contracts. Collaborations with allied nations, particularly the U.S. enhance the country’s radar capabilities while ensuring compliance with international defense standards.
Developing advanced radar systems with enhanced detection capabilities, leveraging AI and ML for improved accuracy, and focusing on miniaturization to cater to diverse applications are some of the key strategies adopted by the prominent players in the surveillance radar market. In April 2024, Mitsubishi Electric Corporation delivered a mobile air-surveillance radar system to the Philippine Air Force, ordered by the Department of National Defense of the Republic of the Philippines in August 2020. The system is the second air surveillance radar system and the first mobile unit manufactured and distributed by the Japan-based company to a foreign government.
Here is a list of the key market players:
Author Credits: Dhruv Bhatia
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