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Military Radar Market Growth Accelerating towards $20 Billion

by Asif Anwar | Nov 24, 2016

The global squeeze on military budgets is translating into an emphasis on improving capabilities at the system level. Coupled with a relatively limited number of big budget platform programs, this will translate to spending on radar systems continuing to increase. The Strategy Analytics Advanced Defense Systems (ADS) service series of forecasts cover the global military radar market in terms of expenditure as well as system shipments across the land, air, sea and space domains. Strategy Analytics forecasts global spending on radar will reach $19.39 billion in 2025, representing a CAGR of 4.1% over the 2015 to 2025 period.

Technology trends around AESA (active electronically scanned array) architecture, gallium nitride- (GaN) based solid-state components and digital conversion and processing technologies will also add impetus to radar spending globally through both upgrades on existing systems as well as new radar procurement. The associated market for semiconductors and other components will grow to over $3 billion with GaN becoming the primary enabling technology as it grows at a CAGR of 28.0%.

Strategy Analytics radar forecasts are underpinned by a defense spending outlook forecast which uses a range of factors to analyse and assess current and future country-by-country (covering 93 countries that spend a minimum of $500 million on their annual defense budget) regional and global military spending covering procurement (including R&D), services, personnel, infrastructure etc. The select countries have been segmented into three main tiers (Advanced, Emerging and Limited Capability) based on an assessment of their current capabilities and procurement/force moderni\ation trends.

Factors considered for assessing each countries level of defence capability as well as equipment procurement trends include assessments looking at a country's commitment to force modernization, deployment status, budget-to-personnel ratio, MoD capability, interoperability and integration and end-user proficiency. The resultant figure is then split into different sub-accounts (e.g. equipment cost, integration cost, initial training & support cost, documentation and logistics, among others) of a project/program to obtain figure for the core hardware expenditure, which is then divided by representative equipment hardware prices to determine shipment volumes.

Clients of Strategy Analytics Advanced Defense Systems (ADS) service have full access to the forecasts.
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