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NEXT-Generation Military Radar Systems Market Worth $32.7 Bn by 2035 at 5.3% CAGR

09-17-2025 01:14 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Meticulous Research®

NEXT-Generation Military Radar Systems Market Worth $32.7 Bn

Market Overview

The global next-generation military radar systems market is entering a strong growth phase. Valued at USD 18.6 billion in 2024, the market is projected to reach USD 19.4 billion in 2025 and surge to USD 32.7 billion by 2035, expanding at a CAGR of 5.3%. This steady rise highlights the critical role radar systems play in modern defense infrastructure. The shift toward next-generation technologies is driven by the need to counter emerging threats such as stealth aircraft, hypersonic missiles, drone swarms, and advanced electronic warfare.

Unlike traditional platforms, the latest radar systems feature active electronically scanned arrays (AESA), multi-band capabilities, and software-defined frameworks. They are designed to deliver real-time threat detection, improved target accuracy, and enhanced resilience against jamming. The integration of artificial intelligence (AI), machine learning, and even quantum radar research underlines the transition toward smarter and more adaptable defense systems.

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Technology Transformation in Radar Systems

Next-generation radar systems represent a decisive step forward from conventional phased arrays. AESA technology enables multiple beams to be steered simultaneously, providing faster detection and more reliable tracking of diverse targets. These systems also employ digital beamforming and modular architectures that allow flexible upgrades, ensuring longevity and cost-effectiveness.

AI-enabled signal processing further enhances radar performance by improving multi-target tracking and reducing false positives. For example, during exercises in 2025, AI software tested by the U.S. Air Force provided real-time recommendations to targeting teams, showcasing its role in speeding up decision-making. Quantum radar and silent radar concepts are also in development, promising greater accuracy in detecting stealth threats while reducing vulnerability to electronic countermeasures.

Competitive Landscape

The market is highly competitive, led by global defense giants such as Lockheed Martin, Raytheon Technologies, Northrop Grumman, Thales Group, Saab AB, and Leonardo. These companies have built extensive portfolios spanning airborne, naval, and ground-based radar systems. Competition is intensifying as firms integrate AESA, AI, and open-architecture designs to deliver scalable solutions for multi-domain operations.

Recent developments include Raytheon's GhostEye MR, introduced in 2024, which uses AI-driven threat classification and virtual beamforming to improve target detection by up to 40%. In 2025, Raytheon's Lower-Tier Air and Missile Defense Sensor (LTAMDS) entered low-rate production, offering full 360-degree coverage and a significant leap in detection capabilities over legacy systems. These advancements underline the strategic focus on modularity, adaptability, and readiness for evolving threats.

Key Market Drivers

One of the strongest drivers of this market is the growing use of AI in radar systems. By enabling real-time classification of radar returns, AI enhances multi-target tracking and reduces the chances of false alarms. Rising threats from drones and hypersonic missiles are also reshaping procurement priorities. With over one million registered drones in the United States and new hypersonic weapons being deployed globally, defense agencies are rushing to acquire advanced radars that can detect fast, low-altitude, and unpredictable threats.

Another major driver is the growing emphasis on multi-domain operations. Radars are now expected to operate seamlessly across land, sea, air, and even space, with interoperability and scalability becoming key procurement criteria. Systems like Raytheon's AN/SPY-6 and Thales' Ground Master series exemplify this trend, offering flexible architectures suited for multiple mission environments.

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What makes next-generation radar systems different from traditional radar platforms?
Next-generation radar systems go beyond simple detection by offering adaptability, multi-band operations, and integration with AI for real-time analysis. Unlike older phased-array radars, they use AESA technology for faster scanning, greater accuracy, and resilience against jamming. Their modular and open-architecture frameworks also allow upgrades through software rather than costly hardware replacements, making them more efficient and future-ready.

Regional Outlook

North America currently dominates the next-generation military radar systems market, driven by the United States' massive defense spending and modernization programs. The U.S. Department of Defense is running multiple radar programs, including the Navy's AN/SPY-6, the Army's LTAMDS, and the Air Force's long-range surveillance radars. These programs are aligned with strategies like Joint All-Domain Command and Control (JADC2), which require seamless integration across platforms. Canada is also strengthening its radar infrastructure, particularly in the Arctic, as part of its NORAD commitments.

Asia-Pacific is emerging as the fastest-growing region, driven by rising defense budgets and regional security challenges. Japan is integrating AESA radars into its next-generation fighter jets, India is advancing its indigenous long-range surveillance radars, and Australia is upgrading its over-the-horizon radar network with U.S. support. China stands out with large-scale investments in indigenous radar development, including AI-powered and quantum radar projects that align with its long-term anti-access/area-denial strategy.

Europe remains another key region, with France, Germany, and the UK investing heavily in radar modernization to support NATO commitments. France, for instance, is modernizing its Nostradamus over-the-horizon radar and exploring space-based platforms to strengthen its extended air defense system. These investments reflect Europe's focus on both sovereignty in defense capabilities and interoperability with NATO allies.

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Segmental Insights

In terms of components, antennas currently hold the largest market share, with demand rising for AESA-based multi-beam antennas that provide rapid scanning and improved resistance to jamming. On the other hand, transmitters are emerging as the fastest-growing segment, fueled by innovation in high-frequency, high-power designs.

By range, long-range radar systems dominate the market, essential for early warning, missile defense, and wide-area surveillance. Their adoption has accelerated in regions with growing missile threats, such as Asia-Pacific and North America. Medium-range radars, however, are witnessing rapid growth due to their versatility in counter-drone operations and battlefield situational awareness.

Related Reports:

Military Drones Market: https://www.meticulousresearch.com/product/military-drones-market-5876
Military Satellite Payloads Market: https://www.meticulousresearch.com/product/military-satellite-payloads-market-6236

About Us:

We are a trusted research partner for leading businesses worldwide, empowering Fortune 500 organizations and emerging enterprises with actionable market intelligence tailored to drive revenue transformation and strategic growth. Our insights reveal forward-looking revenue opportunities, providing our clients with a competitive edge through a diverse suite of research solutions-syndicated reports, custom research, and direct analyst engagement.

Each year, we conduct over 300 syndicated studies and manage 60+ consulting engagements across eight key industry sectors and 20+ geographic markets. With a focus on solving the complex challenges facing global business leaders, our research enables informed decision-making that propels sustainable growth and operational excellence. We are dedicated to delivering high-impact solutions that transform business performance and fuel innovation in the competitive global marketplace.

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