Market Trends of Naval Radar Systems Industry
Surveillance Segment Will Dominate the Market During the Forecast Period
The surveillance segment provides comprehensive threat detection capabilities, encompassing surface and airborne threats. With an increasing emphasis on early warning and threat identification, naval forces prioritize surveillance radar systems to enhance their situational awareness and response capabilities. Surveillance radar systems are designed to operate effectively in diverse maritime environments, including open seas, coastal zones, and congested waterways. Their adaptability makes them indispensable for naval operations across various scenarios, contributing to their prevalence in the market.
Moreover, integrating surveillance radar systems with advanced command and control systems enhances the overall effectiveness of naval operations. Real-time data provided by these systems enables naval commanders to make informed decisions, coordinate responses, and optimize the allocation of resources, reinforcing the significance of the surveillance segment in the market.
For instance, in March 2022, the US Navy awarded a USD 651 million contract to RTX corporation for SPY-6 radars. As per the plans, the US Navy is outfitting new surface ships in its fleet with new radars that can find and track enemy missiles and planes simultaneously. RTX Corporation will provide hardware, production, and sustainment for the SPY-6 family of radars. The SPY-6 radars will allow naval vessels to find threats, including hypersonic weapons, at greater distances and react faster. The Navy began installing the first SPY-6 radar on its high-tech Aegis Flight III, the USS Jack H. Lucas (DDG 125), in 2021.
Asia-Pacific is Expected Show Remarkable Growth During the Forecast Period
The escalating tensions between the various countries in this region due to the increasing dominance of China in the South China Sea have led to an increase in naval investments by the neighboring countries to procure and modernize their maritime fleet. Countries like South Korea, Australia, India, China, and Indonesia are primarily investing in developing and procuring new naval vessels.
China's navy is undergoing a substantial maritime fleet expansion, which is projected to help China surpass Russia as the largest navy in the world in terms of frigates and submarines shortly. China continually emphasizes increasing its anti-submarine warfare (ASW) capabilities from coastal defense to blue-water operations.
Similarly, out of the total modernization budget as a percentage of India's capital outlay budget, the Indian Navy was allocated 30.35%, i.e., USD 5.88 billion, for the fiscal year 2023-2024. The Indian Navy鈥檚 modernization budget has seen a 13.25% increase from the FY 2022-2023 budget. Increasing investments in the procurement of new-generation naval vessels are expected to accelerate the growth of the naval radar market during the forecast period.
