Air and Missile Defense Radar (AMDR) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Platform (Airborne, Land, Naval), By Radar Type (X Band Radar, Y Band Radar), By Application (Conventional, Ballistics Missile Defense), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.98 Billion
CAGR (2026-2031)	6.62%
Fastest Growing Segment	Airborne
Largest Market	North America
Market Size (2031)	USD 11.72 Billion

Market Overview

The Global Air and Missile Defense Radar (AMDR) Market will grow from USD 7.98 Billion in 2025 to USD 11.72 Billion by 2031 at a 6.62% CAGR. The Air and Missile Defense Radar (AMDR) market consists of specialized sensing systems designed to detect, track, and classify aerial threats, including ballistic missiles and unmanned systems. Growth in this sector is primarily driven by heightened geopolitical instability and the rapid proliferation of high-speed missile technologies, which compels nations to modernize their defensive architectures. According to the Aerospace Industries Association, in 2024, U.S. aerospace and defense exports reached $138.6 billion, highlighting the intense global demand for security-related technologies.

Market expansion is continually challenged by the immense costs associated with the research, development, and integration of modern radar components. The transition to active electronically scanned array technologies involves complex manufacturing requirements that drive up unit prices, often straining national procurement budgets. Additionally, persistent supply chain constraints regarding critical semiconductors can delay production schedules, thereby impeding the timely delivery and operational deployment of these essential defense assets.

Key Market Drivers

The Proliferation of Advanced Hypersonic and Ballistic Missile Threats is a primary catalyst propelling the market, as nations race to counter weapons capable of traveling at speeds exceeding Mach 5 with unpredictable trajectories. Traditional radar systems often lack the sensitivity and processing speed required to track these maneuverable threats, necessitating a shift toward next-generation Active Electronically Scanned Array (AESA) architectures using Gallium Nitride (GaN). This technological urgency is evident in major procurement programs; for instance, according to RTX, September 2025, the U.S. Army awarded Raytheon a $1.7 billion contract to begin production of the Lower Tier Air and Missile Defense Sensor (LTAMDS), a system specifically designed to defeat advanced hypersonic weapons. Such investments underscore the critical operational requirement for radars that can simultaneously detect and engage complex aerial targets across a 360-degree field of view.

Concurrently, the Global Expansion of National Defense Budgets and Military Expenditure provides the necessary capital to sustain these high-value modernization efforts. Heightened instability in Eastern Europe and the Indo-Pacific has ended the era of post-Cold War austerity, prompting governments to aggressively increase defense outlays to close capability gaps. According to the Stockholm International Peace Research Institute (SIPRI), April 2025, world military expenditure reached a record $2,718 billion in 2024, reflecting a 9.4 percent real-term increase from the previous year. This fiscal growth directly correlates with surged funding for strategic sensing capabilities as nations prioritize air sovereignty. Highlighting this trend, according to The Diplomat, December 2024, Japan’s Ministry of Defense secured approximately $3.4 billion specifically for strengthening its Integrated Air and Missile Defense (IAMD) network in the fiscal year 2025 budget. These financial commitments ensure the continued procurement and deployment of sophisticated radar infrastructures despite their high unit costs.

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Key Market Challenges

The persistent constraint of supply chain disruptions, particularly regarding critical semiconductors, stands as a formidable barrier to the expansion of the Air and Missile Defense Radar market. Modern radar systems, such as those utilizing active electronically scanned array technology, are heavily dependent on a steady flow of advanced microelectronics to function. When access to these essential components is restricted, manufacturers face unavoidable production delays that prevent the timely fulfillment of existing contracts. This inability to deliver finished systems on schedule directly hampers market growth by deferring revenue recognition and causing backlog accumulation.

The magnitude of this dependency is evident in the substantial economic value derived from the supplier network, which underpins the entire industry. According to the Aerospace Industries Association, in 2024, the supply chain for the U.S. aerospace and defense sector generated approximately $439 billion in indirect economic activity. Any interruption within this vast network, such as a semiconductor shortage, creates a ripple effect that stalls the deployment of critical defense assets, thereby restricting the overall momentum of the global AMDR market.

Key Market Trends

The Shift Toward Multi-Mission and Multi-Mode Capabilities is fundamentally reshaping the market as defense forces seek to consolidate their logistical footprints and operational flexibility. Rather than deploying separate sensing systems for volume search, fire control, and counter-battery operations, nations are increasingly procuring software-defined architectures capable of executing these diverse tasks simultaneously. This convergence allows for dynamic resource allocation, where a single radar unit can detecting ballistic missiles while concurrently tracking low-flying aerial threats, thereby reducing the hardware count required in expeditionary formations. Highlighting this demand for versatile, consolidated assets, according to Lockheed Martin, September 2024, in the 'Lockheed Martin Tapped for Additional Norwegian TPY-4 Radars, Completes Critical Design Review on Schedule' press release, the Norwegian Defence Materiel Agency exercised a contract option to procure three additional TPY-4 ground-based multi-mission radars to enhance its all-domain deterrence network.

Concurrently, Miniaturization for UAV and Tactical Platform Integration is gaining momentum to address the asymmetric threat of drone swarms and short-range projectiles. Traditional high-power surveillance radars are often too immobile for rapid tactical maneuvering, prompting a surge in demand for compact, lightweight sensors mountable on armored vehicles or mobile short-range air defense (SHORAD) platforms. These miniaturized systems utilize high-frequency bands to provide precise tracking of small cross-section targets in cluttered environments, ensuring protection for maneuvering ground units. Evidence of this trajectory is seen in recent procurement activity; according to Hensoldt, July 2024, in the 'HENSOLDT receives major orders for army air defence' press release, the company was awarded a contract worth almost 100 million euros to supply SPEXER air defence radars specifically for the mobile Skyranger 30 anti-aircraft gun tank.

Segmental Insights

The Airborne segment represents the fastest-growing category within the Global Air and Missile Defense Radar Market due to the increasing strategic necessity for elevated situational awareness and rapid deployment capabilities. Nations are actively prioritizing the modernization of aerial fleets, integrating advanced detection systems onto fighter jets and unmanned aerial vehicles to counter evolving aerial threats. Defense organizations, such as the United States Department of Defense, are directing substantial investments toward these mobile platforms to overcome the line-of-sight limitations inherent in ground-based systems, thereby ensuring comprehensive coverage and enhanced tracking precision across extensive operational theaters.

Regional Insights

North America maintains a dominant position in the global Air and Missile Defense Radar market, primarily driven by significant defense budget allocations within the United States. The region benefits from extensive procurement initiatives led by the U.S. Department of Defense aimed at upgrading legacy systems to detect emerging ballistic and aerial threats. Furthermore, the strong presence of established defense contractors fosters continuous technological development and production capacity. This market leadership is sustained by long-term strategies from institutions such as the Missile Defense Agency to enhance situational awareness and continental protection capabilities.

Recent Developments

• In September 2025, Northrop Grumman established a strategic collaboration with several Taiwanese industry partners to supply the AN/TPS-78 Advanced Capabilities Radar to Taiwan. The company signed memoranda of understanding with local firms to facilitate the delivery, integration, and maintenance of these highly mobile long-range air surveillance systems. The AN/TPS-78 is designed to operate in the S-band frequency, offering superior performance in cluttered environments and the ability to detect high- and low-altitude targets. This partnership aimed to strengthen Taiwan's self-defense infrastructure by leveraging local industrial expertise for the deployment of critical missile defense sensor technology.
• In April 2025, Lockheed Martin delivered the first TPY-4 radar to the U.S. Air Force, marking a significant milestone in the Three-Dimensional Expeditionary Long-Range Radar program. This next-generation, software-defined radar system completed early phase testing prior to its handover, demonstrating its readiness for government-led evaluation. Designed for both fixed and mobile operations, the TPY-4 utilizes a fully digital architecture that enables it to identify and track smaller, harder-to-detect targets even in contested radio-frequency environments. This delivery underscored the system’s role in modernizing the air surveillance and early warning capabilities of the U.S. military and its international allies.
• In November 2024, Raytheon successfully completed a complex live-fire exercise for its Lower Tier Air and Missile Defense Sensor (LTAMDS) at the White Sands Missile Range. During this critical developmental test, the 360-degree active electronically scanned array radar detected and tracked a tactical ballistic missile surrogate, subsequently guiding a PAC-3 Missile Segment Enhancement interceptor to destroy the target. This event demonstrated the system’s advanced performance within the U.S. Army’s Integrated Battle Command System, validating the radar's capability to handle high-speed, long-range threats in a realistic operational environment and moving the program closer to deployment.
• In April 2024, Thales secured a follow-on order to supply seven Ground Master 200 Multi-Mission Compact radars to the Royal Netherlands Army. Signed with the Dutch procurement agency COMMIT, this agreement included an option for two additional systems and reinforced a partnership established during a previous acquisition in 2019. The radars feature advanced 4D Active Electronically Scanned Array technology, capable of simultaneously detecting and tracking diverse threats such as drones, missiles, and aircraft. The system's high mobility and rapid deployment capabilities were cited as critical factors for enhancing the nation's air surveillance and air sovereignty infrastructure.

Key Market Players

• Hensoldt AG
• Israel Aerospace Industries
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman
• RTX Corporation
• Rheinmetall AG
• Saab AB
• Terma Group
• Thales S.A.

By Platform	By Radar Type	By Application	By Region
Airborne Land Naval	X Band Radar Y Band Radar	Conventional Ballistics Missile Defense	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Air and Missile Defense Radar (AMDR) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Air and Missile Defense Radar (AMDR) Market, By Platform:

• Airborne
• Land
• Naval

• Air and Missile Defense Radar (AMDR) Market, By Radar Type:

• X Band Radar
• Y Band Radar

• Air and Missile Defense Radar (AMDR) Market, By Application:

• Conventional
• Ballistics Missile Defense

• Air and Missile Defense Radar (AMDR) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE