Radar Technology Remains a High Priority, Despite Defense Cuts

Wednesday 21 August 2013, Amsterdam

Although the global economic slowdown has impacted defense budgets worldwide – especially in Europe – the diversion of funds towards the rapid development and deployment of technology in the US and Asia, combined with the continuous programs of radar technology procurement in high growth markets such as the BRIC regions, sees the global military radar market set to grow at a CAGR of 1.58% over the next decade, according to the new report: The Global Military Radar Market 2013-2023.

Economic Impact
Whilst the global economic crisis has seen the implementation of austerity measures in a great number of countries – with Defense budgets often taking some of the more significant hits – the military radar market is expected to fare relatively well, even despite an forecast decline at a CAGR of -2.01% in Europe.

This is thanks to the fact that despite Defense budget cuts, radar technology is considered a key priority the world over. The perceived nuclear threat from North Korea and Iran has compelled an increase in equipment procurement in the US, precipitating an increased drive to acquire detection technology to protect against aircraft, naval vessels, and missiles; this is expected to drive a significant increase in US spending on advanced radar technologies over the next decade. This desire to protect its own territory, combined with its strong presence across the globe, will see the US spend US$41.4 billion on radar technology between 2013 and 2023.

Additionally, the Asian arms race is set to drive the procurement of military radar technology with China, India, South Korea and Australia set to be key players. Consequently, the Asia-Pacific region’s military radar market is set to grow at a CAGR of 4.40% over the next ten years.


KEY DRIVERS
Beyond broad international tensions and countries’ desire to safeguard their citizens, there are a number of key demand drivers and growth stimulators that will see the global military radar market grow over the next ten years.

Development of AESA Technology
The advent of active electronically scanned array (AESA) technology, and its increasing use in radars, is driving the military radar systems market. The demand for these radar systems is largely driven by significant performance improvements and increased reliability when compared to traditional systems, which rely on mechanically driven antennas to move back and forth, while scanning for objects. According to Patrick Geraghty, EVP Radar Systems for Selex Sensors and Airborne Systems:

“AESA radars are expected to result in a 40% saving on life cycle costs and a three in performance over the legacy”.

Increasing Use of Radars on Unmanned Aerial Vehicles (UAVs)
The use of unmanned aerial vehicles (UAVs) for battlefield intelligence gathering, and reconnaissance missions, has proliferated significantly over the past decade, and now new technologies are laying the groundwork for smaller radar systems to be incorporated into UAVs. With the global UAV market set for considerable growth in the coming years, this development will drive consequent expansion in the global military radar market.

Border and Coastal Surveillance Programs in Latin America
Countries in the Latin American region continuously face border protection issues, starting from illegal trespassing, the trafficking of drugs, minerals, and firearms. These issues have motivated major countries in the region such as Brazil, Venezuela, Chile and Peru to strengthen their border with virtual electronic fence systems. Brazil is planning to invest significantly on border and coastline surveillance programs, integrating a number of technologies and platforms – such as software radios, satellite communications, and long range radar. Similarly, Venezuela plans to install long-range radars in order to maximize the surveillance of maritime areas.

These programs are expected to drive demand for long range surveillance radars in the region over the next decade.