Radar Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Radar Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Radar Systems Market was valued at USD 29.12 billion in 2020 and expected to reach USD 35.9 billion by 2026 and grow at a CAGR of 3.57% over the forecast period (2021 - 2026). Radars are used to detect and track spacecraft, ships, and aircraft, as well as insects and birds in the atmosphere. It also measures the speed of automobiles; map the surface of the earth from space, and measure properties of the atmosphere and oceans.

Key Highlights

• Weather radars improve aviation safety and increase the operational efficiency of the entire air transport industry, and they contribute to agriculture alerts and flood warnings through monitoring of rainfall intensity. These alerts help in preparation for the environmental hazards in advance. Hence, the demand for improved and continuous weather monitoring systems is increasing and driving the market for radar systems.
• Advanced Weather Interactive Processing System (AWIPS) and the Integrated Terminal Weather System (ITWS) are the new systems for short term forecasting and nowcasting based that blend data from weather radar and other instruments to produce a complete picture of atmospheric conditions.
• The rapid growth of automation in the automotive and aviation industry fueled the growth of the radar systems market. Autonomous vehicles and ADAS are trending in the automotive industry, which will optimize and improve the accuracy of autonomous driving and towards passengers safety. The autonomous vehicle market growth will create more opportunities for the radar systems market.
• The huge penetration of the radar market has been in the defense and military applications since decades. Most of the country's military spendings have been increasing over the years, and with the technological advancements in the radar systems, they are demanding advanced radar systems and driving the market growth.
• However, high cost incorporated with the system installations and maintenance has been restricting the market.

Key Market TrendsAutomotive Application to Witness Significant Growth

• The autonomous driving is gaining traction into the market, and companies are commercializing their products. In response, regulatory bodies across the globe are mandating the deployment of security features, and hence, the adoption of advanced driver assistance systems is on the rise. Several different sensing technologies are being used currently, including radar and other technologies. Most of the ADAS systems today rely on multiple technologies to provide reliable solutions to the market.
• The developments of the radar systems towards its miniaturization has increased the opportunities of applications for the automotive industry. Radars can sustain all weather conditions like temperature and humidity. Also, the accuracy towards detecting multiple objects at a time is gaining its deployment on autonomous vehicles. Whereas, radars are less effective in enclosed environments like tunnels is the factor affecting its dominance in the segment to an extent.
• Recently many leading companies are investing in driverless technology. For instance, Volkswagen has dedicated USD 50 billion investment for the technology is the highest value by any company. The value is over 500% more than its successor company investing for the same. Volkswagen is potential to build 15 million electric cars in just a few years using its planned electric vehicle platform.

North America to Record a Significant Growth Rate

• The United States is the highest paying country in the world for defense and military with over USD 639 billion spent for the purpose in 2018. Being the strongest military base in the world, aviation and maritime applications have a major demand for the radar systems in the region.
• The technological advancements in the Unmanned Vehicles for defense applications have increased its applications in the segments resulting in demanding more radar for the product.
• Pioneer of the electric cars Tesla Inc. has its production plant in California, USA. The production of Tesla's model 3 has an application of the radar system facing forward. in quarter 4 of the year 2018, Tesla has produced 61,394 Model 3 vehicles and the figure is towards the growing trend and is expected to follow in the forecast period.
• Radar application has a significant penetration in the space technology segment for remote monitoring of the earth from space and also for the space stuttles to the other planets. NASA has released its next ten-year plan for projects which includes the next project to visit Mars. Such projects will drive the market for heavy duty and integrated radar systems in the region.

Competitive Landscape

The radar systems market trend is towards a consolidated market as it is dominated by a few major players like Airbus and BAE Systems. With the growing opportunity of the applications in the automotive market, companies like Infineon Technologies and NXP Semiconductors have entered the market for the automotive radar system solutions.

• Jun 2019 - BAE Systems, Inc. announced the acquisition of Riptide Autonomous Solutions (Riptide). It is a provider of an innovative, affordable unmanned underwater vehicle (UUV) technology and solutions. Addition of Riptide's technological capabilities will position BAE systems to provide customers unmatched flexibility by offering UUVs and integrated payload solutions capable of supporting a variety of critical missions.
• Apr 2019 - Leonardo S.p.A., an Italian defense contractor completed the full acquisition of Vitrociset, a manufacturer of protection, command and control systems, and other electronic products. this initiative allows Italian national consolidation of the aerospace, defense, and security value chain, increasing its competitiveness with significant market opportunities.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Airbus Defense and Space, Inc.
BAE Systems, Inc.
Leonardo S.p.A.
General Dynamics Corporation
NXP Semiconductors N.V.
Infineon Technologies AG
Israel Aerospace Industries Ltd.
Lockheed Martin Corporation
Raytheon Corporation
Rockwell Collins, Inc.
Saab AB
Thales Nederland B.V.

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