Between now and 2020, the air and missile defense radar market is expected to experience significant growth. According to the new research report by MarketsandMarkets, “Air and Missile Defense Radar Market (by Land-Based Systems, Naval Systems and Airborne Systems)—Global Forecasts and Analysis to 2014-2020,” the market is currently at $7 billion. It will grow at a CAGR of 6.8% to reach $10.4 billion by 2020. Currently, there are several factors driving the AMDR market. The global involvement in ballistic-missile programs and the need to increase radar footprints in Europe, East Asia, and North America are key factors. In addition, potentially threatening nuclear programs, like those in North Korea and Iran, have resulted in radar spending increases across many nations. And despite budget cuts in the U.S. and Europe, those regions have put military spending from other programs toward new radar-development programs.

In the next five years, the AMDR market will be very profitable. Demand is being created by countries in the air and missile defense radar market, such as South Korea, United Arab Emirates, Saudi Arabia, and Israel. The U.S. has recently increased air and missile defense radar power by introducing sensors and radar systems. In naval platforms, for example, the AN/TPY 2 X-band radars can detect and track ballistic missiles at long range. The U.S. also is planning on replacing Aegis-based radar systems with dual-band radar systems, driving the market globally. Between airborne, naval, and land-based radar systems, naval radar systems will increase the most by 2020. Globally, widespread interest and investment was birthed by the development of dual-band, ship-based radar. NATO and the U.S. are planning on upgrading fleets with dual-band capability and implementing such capability on all future ships. This trend reveals a technology shift in creating new interest on a global level.

The report notes that joint ventures between Thales and American counterpart Raytheon, forming ThalesRaytheon, will play a significant role in advancing technology in this market. Both companies will have new opportunities in technology development and market research. Altogether, the AMDR market will steadily increase between now and 2020 due to factors including competition, joint ventures, increasing radar footprint, and new naval-based radar systems.