Air and Missile Defense Radar Systems to See Strong Growth
The global air and missile defense radar system market is set to reach $10.58 billion by 2020.
The global air and missile defense radar system market is set to reach $10.58 billion by 2020, growing at a compound annual growth rate (CAGR) of 6.81% during the forecast period, according to latest recent market study from Technavio. The naval air and missile defense radar (AMDR) systems market gained its importance after the commencement of the Cold War in the early 1990s. Since then, countries like the U.S., Russia, Israel, South Korea, and Japan have made enormous investments in the development and procurement of these systems. Moreover, member nations of North Atlantic Treaty Organization (NATO), such as the Netherlands, Norway, Portugal, the UK, Greece and the U.S., are upgrading their existing naval fleets to dual-band capability, which was introduced in 2014.
In 2016, AMEC, a U.S.-based vendor, signed a contract worth $182.8 million with the U.S. Department of Defense (DOD) for the development and installation of an Aegis Ashore land-based BMDS in Poland. The Aegis Ashore is the successor of the shipborne Aegis Combat System. Both systems are equipped with Lockheed Martin’s SPY-1 passive electronically scanned array (PESA) air defense radar.
“In response to the increasing demand for naval AMDR systems from the U.S. DOD and the Russian Ministry of Defense, the U.S. Navy initiated a joint commission to increase the ballistic missile defense radar systems in the future naval fleets,” said Abhay Singh, lead analyst. “These systems would deliver an enduring, supportable, operationally efficient, and integrated ballistic missile defense capability in destroyers and cruisers.”
AMDR systems facilitate defense authorities to enhance the capabilities of their military vehicles and units to track incoming missiles. In addition, the defense industry is embracing new radar technologies and shifting toward a new generation of sophisticated systems that enable faster, secure, weather-resistant, and wider frequency bandwidth detection of missiles.
Technavio expects the global airborne AMDR system market to grow from $1.61 billion in 2015 to $2.13 billion by 2020. In 2014, 34,073 fighter aircraft and combat helicopters were in service, which was an increase of 1.37% from the total number in 2013. During the same period, Russia accounted for a 7.81% increase in the number of such aircrafts, followed by the U.S. with 2.82% and China with 2.54%. In the same year, India had 1,346 such planes, reflecting a growth of 3.78% compared to that of 2013. Similarly, Japan had a 0.11% increase in the total number of such aircraft in 2014.
“The growing number of aircrafts would simultaneously result in increased investments by the defense authorities for the development and procurement of AMDR systems, driving the market during the forecast period,” said Abhay.
For more information, visit www.technavio.com.