The global naval radar market is estimated to grow at a steady compound annual growth rage (CAGR) of over 4% between 2019 and 2029 and reach a value of $2.1 billion by the end of the forecast period, according to a new study.
Heightened defence spending for strengthening naval fleets and securing coastlines is anticipated to drive the market for naval radars during the forecast period. Strengthening coastal surveillance and adoption of e-navigation technologies are estimated to propel the demand growth for naval radars.
Emerging countries offer lucrative growth opportunities for international naval radar manufacturers. Geopolitical threats and maritime disputes, piracy and terrorism have shifted the focus of regional navies to enhance surveillance abilities and mitigate threats to coastlines. Advancements in security and functionality and a proliferating defence sector is set to offer remunerative opportunities for the naval radar market in the foreseeable future, according to the study by Fact.MR.
At the country level, China has shown high growth potential in recent years owing to the increasing shipbuilding industry and naval expansion. The country is expected to showcase moderate growth of 3% in the near future.
North America and Europe collectively remain key regions with a robust shipbuilding industry and highly diverse vessel repair and maintenance services; the region is expected to dominate the demand for naval radars. The two regions cumulatively account for more than 35% share in the global naval radar market.
Surveillance radars will continue to account for bulk demand share and grow 1.3 times during the forecast period. This can be attributed to growing competition between nations for maritime resources utilized for scanning, searching, and identifying targets.
Navigation is another segment that is heightening the demand for naval radars owing to the need to track in a variety of situations and collision avoidance. The segment is anticipated to witness 1.5 times growth by the end of forecast period.
“Up-gradation of existing radar platforms with a shift from specialized radar systems to multi-band and multi role radar systems will positively affect the demand for naval radars in the foreseeable future. With rising terrorist activities across the globe and geopolitical threats, the demand for advanced naval radars will proliferate” the report said.
Leading players such as Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Company, Saab AB, and BAE Systems are key stakeholders and account for more than half of the share in the global market. Most of these players have bases in Europe and North America as the regional policies are favouring private sector involvement in defence technology development. Product innovations and efforts for offering advanced technology and customized solutions, will emerge as a prime differentiating factors in the long term forecast period. Market players must then invest in research and development to differentiate their offerings in a consolidated market.