Global air and missile defense radar (AMDR) market size was estimated to be USD 7 billion in 2014 and is expected to grow at an estimated CAGR of over 6.5% making it a lucrative market in sophisticated and advanced technology industry. Increased threats in the Middle East, Asia pacific and Europe lead to higher demand of these radars.
Major countries in the Asia and Middle East are in constant threat of missile and nuclear attacks thus making these regions a potential market for the firms. There is an increased demand for naval based radar system from the armed forces from both European and U.S central command.
A joint commission is formed by U.S navy to increase the number of ballistic missile defense tracking systems for the naval fleets. The development of dual ship based radiolocation created an upspring in the naval air and missile defense radar market.
A forward move or upgrading of the equipment by one country creates a need for equipment by another country. As it is an R&D driven industry, a small advancement in technology by one country creates a demand all over the world.
Industry trend is highly opportunistic as the increased threat in the East Asian, Middle East and European countries regarding the nuclear and other missiles has been very high from the era of cold war.
Air and missile defense radar industry is never stagnant as there are constant R&D practices which lead to the upgrading of product due to which global demand never goes down. Constant upgradation of the missile’s and other air strike weapons creates a need for better geo-tracking technology. Need of possessing improved and much stronger naval fleet amongst many countries creates opportunities for the market.
Budget cut in Europe and U.S. led to a temporary downturn of the air and missile defense radar industry. As it is a technology driven market even though the missiles are tested successfully their real time deployment in the war zone is limited which causes limitation for these products.
The market is segmented on the basis of usage and working platforms of air and missile defense radars systems and on the basis of regions. Products are differentiated into three sectors as ship based defense, land based defense and air based surveillance & defense radar systems.
On the basis of regions, market can be segmented as Central & South America, North America, Middle East & Africa, Asia pacific and Europe. Major countries in the industry are Israel, India, China, Turkey, Germany, Russia, France, UK, UAE, Australia, South Korea, U.S., Canada, Saudi Arabia and Brazil.
Dual band radars have been developed to reduce the gap between standardization of naval-based air and missile defense radiolocation system and technology. In order to counter the continuously changing warfare techniques, armed forces across globe require highly advanced defense equipment and technology. The dual band technology has created a high demand in the market as U.S. planned replace all the ships with the dual band radars which will be replacing the existing geo-tracking systems.
South America is expected to be a high potential region where it is estimated that the procurement and maintenance cost of radars will be on constant growth. Technological collaboration between many countries is expected to drive R&D activities, which is in turn expected to fuel the industry growth. U.S. and Australia jointly agreed to develop an active phased array radar based on x-band phased array and s-band active array technologies.
Israel, a leader in producing military defense technologies in the world, did successful test of its arrow 3 anti-missile system. This version of arrow can destroy missiles at higher altitudes 100km and away. Israel influences the global market to a great extent as there are hundreds of industry’s in Israel which are directly or indirectly related to the defense sector. Israel has a good industry trend where the government and industries go hand in hand which is a good sign for new establishments.
Number of competitors in the industry is very limited as it needs high investments and has to deal with advanced technology. Often these few players work in joint ventures to acquire the government contracts. Air and defense radar industry is influenced by the U.S. based Raytheon and Lockheed Martin, holding major percent of the market share.
Other key players operating in the global air and missile defense radar market are BAE, North Group Gurumaan, SAAB, Airbus and Boeing. The introduction of multi-mission phased array systems by Aselsan and the development of dual band radars from Raytheon is expected to create a good thrust in the market for upgradation.
Constant tensions of oil war in the Middle East, thrive for dominance by countries like Russia, U.S and Israeli and the fear created by these countries missile strength towards the whole world keeps the air missile defense industry alive.
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