|
Forecast Period
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2026-2030
|
|
Market Size (2024)
|
USD 4.25 Billion
|
|
CAGR (2025-2030)
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5.71%
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|
Fastest Growing Segment
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Ballistic Missile Defense
|
|
Largest Market
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United States
|
|
Market Size (2030)
|
USD 5.93 Billion
|
Market
Overview:
North America Air and Missile
Defense Radar (AMDR) Market was valued at USD 4.25 Billion in 2024 and is expected to reach USD
5.93 Billion by 2030 with a CAGR of 5.71% during the forecast period. North America Air and Missile Defense Radar (AMDR) market is witnessing
strong momentum as nations focus on strengthening multi-layered defense
capabilities against evolving aerial threats. Growth is supported by rising
demand for advanced radar systems capable of countering ballistic and cruise
missiles with high accuracy, alongside the modernization of military fleets
requiring sophisticated detection and tracking solutions. Investments in
research and development to enhance radar sensitivity, adaptability, and
integration with command-and-control systems are further boosting adoption. The
market is also being shaped by the increasing importance of electronic warfare
resilience and the integration of AMDR with network-centric operations,
ensuring real-time situational awareness for complex defense missions.
Market Drivers
Rising Demand for Advanced
Threat Detection
The Air and Missile Defense
Radar market is expanding due to the increasing requirement for systems capable
of detecting and tracking advanced aerial threats such as ballistic missiles,
cruise missiles, and hypersonic weapons. Conventional radar platforms struggle
with the speed, maneuverability, and stealth features of modern threats,
creating a strong need for high-resolution and long-range detection systems.
Defense forces are investing heavily in radar technologies that provide rapid
identification, classification, and engagement capabilities, ensuring mission
success in contested environments. The ability to operate in multi-domain
settings, including land, sea, and air, makes advanced detection systems highly
valuable for future warfare scenarios. For instance, US Army has selected
ten defense firms to compete for a major USD 4.2 billion program aimed at
developing a next-generation, lighter-than-air surveillance balloon system an
initiative focused on enhancing persistent, aerostat-based ISR (intelligence,
surveillance, and reconnaissance) capabilities.
Modernization of Defense
Infrastructure
The modernization of defense
infrastructure is fueling strong growth in the Air and Missile Defense Radar
sector. Militaries are upgrading outdated radar systems to match the needs of
next-generation battlefields, where speed, precision, and resilience are
critical. Radar systems are being redesigned with modular architectures that
allow scalability, software upgrades, and multi-mission adaptability, ensuring
long-term operational value. Investments are being directed toward replacing
analog systems with advanced digital platforms that offer enhanced data
processing and improved interoperability with other defense systems. This
modernization trend reflects the strategic emphasis on creating flexible
defense networks that can respond to rapidly changing threat landscapes without
requiring complete infrastructure overhauls. For instance, Raytheon received
a $536 million U.S. Navy contract to support integration, testing, and upgrades
of the SPY-6 radar family, including the SPY-6(V)4 for Flight IIA destroyers. Work
runs through May 2026, with systems planned across 60+ ships in the next decade.
Integration of AI and Automation
Artificial intelligence and
automation are becoming pivotal drivers for the Air and Missile Defense Radar
market. Traditional radar systems rely heavily on manual interpretation, which
can limit speed and accuracy in high-pressure combat environments. By
integrating AI, radar platforms can process massive amounts of data in real
time, enabling predictive threat analysis, automated tracking, and quicker
response decisions. Automation reduces operator workload, minimizes human
error, and ensures that complex multi-target engagements are handled
efficiently. AI also enables adaptive learning within radar systems, allowing
them to recognize new threat patterns and improve resilience against deceptive
tactics such as electronic jamming or decoys.
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Key
Market Challenges
High Development and Procurement
Costs
The high cost of developing,
deploying, and maintaining advanced radar systems poses a significant challenge
for the Air and Missile Defense Radar market. Building radar capable of
countering hypersonic weapons, stealth technologies, and electronic warfare
tactics requires extensive research, cutting-edge components, and rigorous
testing. These factors substantially increase procurement budgets, making
acquisition difficult even for well-funded defense organizations. Maintenance
and lifecycle costs add further financial strain, as radar systems must undergo
continuous upgrades to remain effective against evolving threats. Smaller
defense budgets often force trade-offs between radar acquisition and other
strategic priorities, slowing down widespread adoption.
Complexity of Integration with
Legacy Systems
Integrating advanced radar
systems with existing legacy platforms creates significant operational and
technical challenges. Defense organizations often operate a mix of old and
modern technologies, which makes compatibility a critical issue during system
upgrades. Advanced radar systems require seamless communication with
command-and-control centers, missile interceptors, and surveillance networks,
but outdated infrastructures may lack the capacity to handle modern data
processing speeds or bandwidth requirements. Modifying older systems to
accommodate new radar technologies can result in delays, cost overruns, and
technical inefficiencies. Cybersecurity risks also increase during integration,
as legacy systems may not have been designed with modern digital security
measures, leaving vulnerabilities that adversaries could exploit.
Key Market Trends
Adoption of Digital Beamforming
Digital beamforming is emerging
as a transformative trend in the Air and Missile Defense Radar market. Unlike
traditional radars that rely on mechanically steered antennas, digital
beamforming enables radars to electronically steer multiple beams simultaneously,
offering faster and more precise tracking of targets. This technology enhances
detection accuracy, improves clutter rejection, and enables better performance
in complex environments where multiple threats may appear at once. Its ability
to allocate resources dynamically makes it highly effective in countering both
aerial and missile threats in real time. Defense forces are increasingly
focusing on digital beamforming to achieve greater flexibility, as it supports
the development of scalable radar architectures adaptable for various platforms
including ships, aircraft, and land-based systems.
Modular and Scalable Radar
Architectures
The shift toward modular and
scalable radar architectures is reshaping the design and deployment of Air and
Missile Defense Radar systems. Modular architectures allow radar systems to be
tailored for specific missions, ranging from localized defense needs to
full-scale strategic operations, without requiring complete redesigns.
Scalability ensures that components can be upgraded or replaced easily,
extending the lifecycle of radar systems while keeping them technologically
relevant. This approach reduces long-term costs and improves adaptability to
emerging threats, as new modules can be added to enhance functionality such as
extended range, higher resolution, or improved electronic warfare resilience.
Integration of Network-Centric
Operations
The integration of radar systems
into network-centric operations represents a significant trend in the Air and
Missile Defense Radar market. Modern conflicts demand seamless communication
and information sharing across multiple platforms, including land-based
systems, naval assets, and airborne surveillance. Network-centric radar systems
enable real-time data exchange, improving coordination and situational
awareness across defense forces. By linking radars into larger battle networks,
operators can achieve a comprehensive view of the operational environment,
enhancing the effectiveness of missile defense and air surveillance missions.
This approach also allows distributed engagement strategies, where multiple
systems collaborate to neutralize threats more efficiently than isolated
platforms.
Segmental Insights
Platform Insights
In 2024, the naval segment is
dominating North America Air and Missile Defense Radar (AMDR) market due to the
critical role maritime forces play in missile defense strategies and the
growing need to protect naval assets from advanced aerial and ballistic
threats. Modern warships require powerful, multi-mission radars capable of
tracking numerous targets simultaneously while providing long-range
surveillance and engagement support. The naval environment demands high
resilience against electronic warfare tactics and the ability to operate under
diverse conditions, which drives the preference for advanced AMDR systems on
destroyers, cruisers, and other frontline vessels. These radars are designed
with scalable architectures, offering flexibility to handle a wide range of
missions from missile interception to air traffic management within combat
zones.
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Country Insights
In 2024, the United States
dominates North America Air and Missile Defense Radar (AMDR) market as it
maintains the largest defense expenditure and places strong emphasis on
enhancing multi-layered air and missile defense systems. The country’s
continuous focus on modernizing its radar infrastructure, coupled with
large-scale naval and land-based deployment programs, ensures significant
adoption of AMDR technologies. For instance, U.S. Army awarded Raytheon a
$1.7 billion contract to begin low-rate production of the Lower Tier Air and
Missile Defense Sensor (LTAMDS), a next-generation radar set to replace the
Patriot system’s radar, bringing the program’s total value to $3.8 billion. The
contract funds about 10 radars for the Army plus 12 for Poland, with full-rate
production targeted for 2028 and program completion by 2029. Advanced
research and development efforts, strong investment in next-generation radar
platforms, and the integration of these systems into national missile defense
frameworks make the United States the clear leader. Its extensive defense
strategies and global commitments further reinforce the demand for
high-performance radar capabilities, cementing its dominant position in the
regional market.
Canada represents the
second-largest market, driven by its efforts to strengthen aerospace and
defense capabilities with an emphasis on surveillance, detection, and
protection from emerging aerial threats. The nation’s strategic focus on
supporting allied defense operations, improving interoperability, and investing
in modern radar technologies has fueled steady demand. While its scale of
procurement is smaller compared to the United States, Canada continues to
prioritize radar upgrades that enhance situational awareness and support
continental defense initiatives, securing its position as the region’s
second-largest market. For instance, Canada announced a $9 billion increase
in military spending for the fiscal year, raising total defense expenditures to
$62.7 billion, aimed at enhancing the Canadian Armed Forces’ capabilities and
reducing reliance on the U.S. Investments will fund new submarines, aircraft,
ships, armored vehicles, radar drones, AI deployments, cyber command expansion,
over-the-horizon radar, integrated underwater surveillance, domestic ammunition
production, and infrastructure modernization.
Recent Developments
- In 2025, U.S. Soldiers deployed
near Rio Grande City are using battlefield-proven radar systems specifically
the AN/MPQ-64 Sentinel and AN/TPQ-53 Quick Reaction Capability to support
federal agencies by detecting low-flying aerial threats such as drones and
monitoring ground movement in high-traffic border ar.
- In 2025, Raytheon, part of RTX,
delivered the 13th AN/TPY-2 radar to the U.S. Missile Defense Agency, the first
with a full GaN array and CX6 software, boosting sensitivity, range, and
hypersonic missile defense capabilities.
- In 2025, China unveiled a
6G-powered electronic warfare system said to disable advanced radars like the
F-35’s AN/APG-85 in seconds, using photonic tech to jam, create 3,600+ phantom
targets, and transmit data across 300+ platforms.
- In 2025, S. Air Force received
its first TPY-4 radar from Lockheed Martin, a transportable, software-defined
AESA system designed for long-range detection and resilience against jamming,
supporting advanced air surveillance and missile warning.
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 Radar
Type
|
By Platform
|
By
Application
|
By
Country
|
|
|
|
- Conventional
- Ballistic
Missile Defense
|
- United
States
- Canada
- Mexico
|
Report
Scope:
In this
report, North America 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:
- North America Air and Missile Defense Radar (AMDR) Market, By Radar Type:
o
X Band
Radar
o
Y Band
Radar
- North America Air and Missile Defense Radar (AMDR) Market, By Platform:
o
Airborne
o
Land
o
Naval
- North America Air and Missile Defense Radar (AMDR) Market, By Application:
o
Conventional
o
Ballistic
Missile Defense
- North America Air and Missile Defense Radar (AMDR) Market, By Country:
o
United
States
o
Canada
o
Mexico
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in North America Air and Missile
Defense Radar (AMDR) Market.
Available
Customizations:
North
America Air and Missile Defense Radar (AMDR) Market report with the
given market data, Tech Sci Research offers customizations according to the
company’s specific needs. The following customization options are available for
the report:
Company
Information
- Detailed analysis
and profiling of additional market players (up to five).
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America Air and Missile Defense Radar (AMDR) Market is an upcoming report to be
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