RADAR Systems Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Radar Systems Market Trends and Insights

Escalating Global Defense Budgets

Defense ministries continue to channel funding toward next-generation sensors. The United States Department of Defense allocated USD 1.7 billion for the Lower Tier Air and Missile Defense Sensor and USD 537 million for ongoing AN/SPY-6 production in fiscal-year 2025. Similar momentum is visible in Europe, where Latvia and Slovenia ordered HENSOLDT TRML-4D systems worth EUR 100 million (USD 109 million) to reinforce integrated air defense. Asia Pacific defense investment is accelerating through Hanwha Systems’ AESA radar contracts for the KF-21 fighter and L-SAM II missile battery. Multilateral frameworks, such as NATO standardization agreements, ease cross-border technology flow and support volume procurement efficiencies.

Rapid Adoption of Automotive ADAS Radar

Automotive manufacturers are extending radar nodes from adaptive cruise control to full 360-degree perception. Arbe Robotics and NVIDIA cooperated on a 4D imaging radar that maps elevation and velocity for Level-3 autonomy requirements.^{[2]Arbe Robotics, “4D Imaging Radar Technology,” arberobotics.com} NXP Semiconductors partnered with Bitsensing to raise resolution and reduce latency for safety functions across multiple vehicle classes. Regulatory push adds urgency: European rules mandate advanced emergency braking in all new cars, and the U.S. National Highway Traffic Safety Administration promulgated similar proposals. Transition to the 77-81 GHz band provides higher range resolution and smaller antenna footprints, enabling mass-market deployment.

Air-Traffic Control Modernization Programmes

The Federal Aviation Administration’s USD 8 billion Facility Replacement and Risk Mitigation initiative will swap 618 aging radars for solid-state systems with improved reliability and weather penetration. Europe’s Single European Sky program prioritizes digital radar integration and networked sensing, fostering interoperable solutions among air navigation service providers. The International Civil Aviation Organization’s Global Air Navigation Plan harmonizes performance baselines, encouraging suppliers to design globally certifiable platforms. Software-defined architectures allow future algorithm upgrades without hardware change, aligning with growing air-traffic volumes.

Increasing Demand for Advanced Weather Surveillance

National Weather Service completion of its USD 150 million NEXRAD upgrade in 2024 demonstrated dual-polarization benefits for precipitation discrimination. China has fielded more than 50 X-band phased-array radars, indicating global adoption of higher-frequency weather surveillance. AI algorithms fused with radar outputs improve severe-storm forecasting, creating new revenue for data analytics. Technology vendors now offer service contracts bundling hardware, cloud processing, and predictive insights, strengthening recurring-revenue models.

High Upfront Acquisition and Lifecycle Costs

Premium AESA radars strain budgets. Egypt’s order for a single AN/TPS-78 installation reached USD 304 million, and the Ivory Coast’s GM200 radar cost EUR 50 million (USD 54.5 million). Beyond procurement, gallium nitride module maintenance and specialized calibration prolong the total cost of ownership. Mercury Systems is targeting an 80% reduction in radar assembly size, weight, and power under a USD 8.5 million Department of Defense contract, illustrating industry moves to compress lifecycle expense

Radio-Frequency Spectrum Congestion and Allocation Barriers

Expanding 5G deployments overlap radar bands, threatening interference. The U.S. National Spectrum Strategy notes conflicts in 24 GHz and 28 GHz allocations, pushing automotive and weather radar operators to refine waveforms.^{[3]MITRE Corporation, “Spectrum Management and Modernization,” mitre.org} Regulatory negotiations consume resources and delay rollout. Dynamic spectrum sharing solutions exist but demand cognitive radar upgrades, adding complexity and capital expenditure.

Segment Analysis

By System Type: Continuous Wave Systems Gain Momentum

The pulsated wave category accounted for 61.12% of radar systems market share in 2024, supported by long-range missile defense radars such as AN/SPY-6 and TPY-2. Pulsated wave technology continues to anchor strategic early-warning missions due to its superior peak power and range-gate discrimination. Continuous wave designs, however, are forecast to register a 5.92% CAGR, reflecting their suitability for automotive ADAS, small UAV sense-and-avoid, and compact maritime safety installations. 4D imaging radar solutions from Arbe Robotics capitalize on frequency-modulated continuous wave modulation to deliver precise elevation data, promoting adoption across Level-3 autonomy programs.

Continuous wave radars reduce size, weight, and power, easing integration in space-constrained platforms. Leonardo’s Osprey family demonstrates low-SWaP performance for unmanned aerial vehicles. Regulatory allocation in the 77-81 GHz band favors continuous wave automotive sensors, reinforcing volume production economics. Over the next five years, the radar systems market size revenue split between the two architectures is expected to narrow as automotive, drone, and infrastructure deployments outpace traditional defense spending.

By Component: Software and Services Lead Growth

Antenna modules anchored 32.84% of the overall revenue in 2024, propelled by gallium nitride transmit-receive modules enabling simultaneous multi-mission operations. As phased-array density climbs, antenna tiles integrate control, calibration, and health-monitoring sensors, boosting subsystem value. Transmit-receive and power amplifier modules transition from gallium arsenide to gallium nitride for higher thermal margins, while mixed-signal RFIC integration shrinks board count.

Software and services will rise at 6.13% CAGR through 2030, buoyed by AI-driven threat classification, radar-data analytics, and cloud-hosted post-processing. AI frameworks such as RTX Corporation’s Cognitive Aircraft Defense System demonstrate real-time electromagnetic environment learning. As procurement migrates to capability-as-a-service models, vendors secure recurring revenue through algorithm updates and cybersecurity patches. Regulatory compliance, including FCC certification and ISO-9001 quality audits, stimulates demand for professional services, accelerating ecosystem monetization.

By Application: Land-Based Systems Show Promise

Airborne platforms claimed 45.23% revenue share in 2024, reflecting active combat aircraft upgrades and commercial aviation fleet expansion. Fighter programs integrate AESA radars that merge air-to-air, air-to-ground, and electronic warfare modes into a single aperture. Naval demand persists via destroyer and frigate modernization schedules featuring modular SPY-6 variants.

Land-based sensors are poised for a 5.87% CAGR, propelled by counter-battery missions, border surveillance, and emergent counter-drone requirements. Ukraine’s deployment of TRML-4D radars illustrates multirole land-based utility, tracking 1,500 targets across 250 kilometers. Ground-based weather radars enjoy stable civil funding, while vehicle-to-infrastructure radar nodes gain momentum in intelligent transportation pilots.

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Automotive Sector Drives Innovation

Military and defense retained 57.79 of % radar systems market share in 2024, sustained by the multi-domain operations doctrine that stresses joint-force sensor fusion. Naval, ground, and space-based radar investments converge under integrated air and missile defense architectures. Aviation organizations, both military and civil, recapitalize surveillance and weather radars to meet capacity demands

The automotive community is on track for a 6.21% CAGR, the highest among end users, driven by mandated automatic emergency braking and lane-keeping systems. OEMs are evolving from single-function corner radars to centralized 4D imaging arrays linked via high-speed in-vehicle networks. Standardization bodies such as ISO and SAE establish performance metrics that guide mass-manufacturing economies of scale, pushing cost per sensor downward and fueling broader adoption across economy-class models.

Geography Analysis

North America held 37.26% of 2024 revenue, underpinned by the United States Department of Defense’s USD 849.8 billion fiscal-year 2025 allocation and the FAA’s USD 8 billion radar replacement program. Canada advances NORAD upgrades, while Mexico invests in air-traffic management and coastal surveillance. Automotive adoption grows in tandem with U.S. and Canadian EV manufacturing, supporting sensor demand.

Asia Pacific is the fastest-growing region at 6.34% CAGR. China fielded more than 50 X-band phased-array weather radars and invests in maritime surveillance for the South China Sea CIIS. South Korea’s Hanwha Systems supplies AESA units to the KF-21 and L-SAM II, and Japan accelerates fighter radar upgrades. Automotive radar deployment accelerates on domestic electric and autonomous vehicle platforms, supported by regulatory clarity in the 77-81 GHz band.

Europe sees steady uptake, anchored by NATO commitments and Single European Sky modernization. Latvia and Slovenia ordered EUR 100 million (USD 109 million) of TRML-4D units, while Leonardo’s ECRS Mk2 completed its first Typhoon flight. Thales GM400α radars bolster Baltic defense. Advanced driver-assistance mandates in Germany, France, and Italy accelerate automotive radar penetration, reinforcing cross-segment demand.