Surface Radar Market Size, Share, Trends, Growth and Forecast 2026–2034

Surface Radar Market Overview Analysis By Fortune Business Insights Analysis

Market Size & Growth Outlook

According to Fortune Business Insights: The global surface radar market was valued at USD 19.94 billion in 2025 and is projected to grow from USD 21.97 billion in 2026 to USD 33.50 billion by 2034, exhibiting a CAGR of 5.41% during the forecast period. North America dominated the market with a 36.04% share in 2025.

A surface radar is a radar system used to detect, locate, track, and identify various objects, classified mainly into naval-based and ground-based radar depending on platform type. Surface radar helps locate objects on the surface and lower atmosphere, serving as a critical defense industry system for air and coastal surveillance, air traffic control, border monitoring, protection of critical assets, and mobile military defense operations. The market is expected to grow significantly during the forecast period due to rising defense expenditure and increasing need to detect and counter weaponry and missile systems. Key companies include Lockheed Martin, Raytheon, Thales, Leonardo S.p.A, and Saab AB, with military and navy forces globally collaborating with these players through contracts to strengthen surface surveillance and defense capabilities.

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Impact of Russia-Ukraine War

The Russia-Ukraine conflict has significantly accelerated global demand for advanced surface radar systems, driven by heightened security concerns and urgent need to counter evolving aerial threats. European countries have rapidly increased procurement of air defense and early warning radars, including U.S.-supplied Patriot systems. In June 2024, Thales signed a contract to deliver a second complete short-range air defense system to Ukraine, including the ControlMaster 200 (CM200) with Ground Master 200 air surveillance radar, ControlView command-and-control center, and portable weapon allocation terminals, enabling detection and engagement of threats from low to high altitudes. The conflict has highlighted the need for high-tech, agile radars detecting drones, missiles, and low-flying aircraft, leading to contracts including Ukraine's acquisition of Thales Ground Master 200 and British Blighter A422 radars for anti-UAS operations. Nations globally are prioritizing radar modernization to address vulnerabilities against drones, low-altitude aircraft, and missile systems, with defense budgets reallocated toward multi-mission radars and electronic warfare-resistant technologies capable of resisting jamming and spoofing.

Market Trends

Rapid Integration of GaN and AESA Technologies in Next-Gen Defense Surface Radars: Gallium Nitride (GaN) semiconductor technology enhances radar performance through higher power density, wider bandwidth, and better thermal management compared to traditional silicon-based components — enabling detection of smaller or stealthier targets at longer ranges while resisting electronic jamming. In August 2024, Raytheon commenced production of the LTAMDS gallium nitride missile-defense radar system (GhostEye radar). In January 2024, the U.S. Air Force awarded Lockheed Martin USD 65 million to build three additional 3DELRR radar systems (bringing the total contract to ~USD 471.6 million), replacing aging AN/TPS-75 radars with advanced GaN-based AESA technology. AESA (Active Electronically Scanned Array) antenna technology — consisting of hundreds or thousands of individual GaN-based transmit/receive modules — enables electronic beam steering without moving parts, allowing rapid multi-target tracking, high spatial resolution, and robust operation even with module failures. In September 2023, the U.S. defense force awarded Northrop Grumman a USD 585 million contract for GaN-based AESA surface radar development.

Market Drivers

Increase in Defense Spending: Countries worldwide are increasing defense budgets to modernize armed forces and enhance surveillance capabilities. Global defense spending reached USD 2.46 trillion in 2024, up from USD 2.24 trillion in 2023 — a 7.4% global growth rate — with Asia, MENA, and Europe witnessing major increases amid heightened geopolitical tensions. This expansion has enabled investment in phased array radars and integration of advanced GaN and AESA technologies for evolving mission scenarios.

Rise in Integration of Surface Radar with Defense Systems: Surface radars are essential components of integrated defense systems including missile defense, air defense, naval surveillance, and battlefield management, integrating with command and control systems for real-time situational awareness. In April 2024, Hensoldt received a USD 113 million order to supply TRML-4D radars to Latvia and Slovenia under the European Sky Shield Initiative (ESSI), integrated into IRIS-T SLM air defense systems. Defense systems including THAAD, Patriot, and Aegis rely on surface radars for detecting, tracking, and intercepting ballistic, cruise, and hypersonic missiles, driving the shift toward multi-function radar platforms combining surveillance, tracking, and missile guidance.

Market Restraints

High Development and Deployment Costs: Manufacturing AESA systems requires substantial R&D investment, with military-grade phased array radars demanding significant investment in R&D, precision manufacturing, and maintenance. Components including GaN-based transmitters and high-performance cooling systems drive up production costs, while integration with existing defense networks requires software customization and interoperability trials that further inflate budgets. Ongoing maintenance, technician training, and hardware/software upgrades add to total cost of ownership.

Market Opportunities

Growing Demand for Surface Radars to Counter UAV Threats: UAVs have evolved into critical military assets for ISR roles, with growing weaponization trends posing direct threats to military and civilian targets. Modern surface radars utilizing FMCW and AESA technologies are increasingly deployed for counter-drone operations. In March 2025, Saab and the Swedish Air Force developed and evaluated the "Loke" counter-drone system in just 84 days, integrating the Giraffe 1X radar for drone detection, a lightweight command-and-control system, and the Trackfire remote weapon station for neutralization.

Segmentation Analysis

By Installation Type: Fixed dominates with a 58.38% share in 2026, offering long-range surveillance, early threat detection, and multi-target tracking for building reliable Recognized Air Pictures. In July 2023, Thales signed an agreement with the Swedish FMV for SMART-L Multi Mission Fixed (MM/F) long-range radars. Mobile is the fastest-growing segment, driven by portability and rapid deployment; in August 2024, Saab won a USD 73.02 million contract to supply Giraffe 1X radar for Sweden's Ground Based Air Defence solution.

By Technology: AESA dominates with a 60.79% share in 2026 and is also fastest-growing, offering beam steering without physical movement, faster scanning, and jamming resistance. In December 2023, Thales signed a letter of award for GM400α long-range radar delivery to the Royal Malaysia Air Force. PESA is expected to grow steadily, exemplified by Lockheed Martin's AN/SPY-1 Aegis Combat System radar.

By Frequency Band: S Band holds the largest 40.95% share in 2026, valued for long-range, wide-area surveillance tracking missiles, aircraft, and drones. In December 2024, Saab signed a USD 48 million contract with BAE Systems for Sea Giraffe 4A naval AESA S-band radars. X Band is the fastest-growing, valued for accurate target discrimination and high-resolution imaging in fire control operations.

By Range: Long range dominates with a 43.98% share in 2026 (detecting targets beyond 200 km), used extensively for air surveillance and missile locating. In February 2025, the U.S. approved a USD 304 million AN/TPS-78 long-range radar sale to Egypt. Short range is the fastest-growing segment amid rising counter-drone demand; in November 2024, Thales and NSPA signed a ForceShield contract with the Portuguese Army for VSHORAD capabilities.

By Platform: Ground based holds the largest share, driven by border surveillance and counter-drone needs; in January 2024, Lithuania and the Netherlands jointly procured Thales GM200 MM/C radars. Naval is the fastest-growing platform amid rising maritime security focus; in June 2024, Raytheon received a USD 677 million contract to continue producing AN/SPY-6(V) radars for over 65 U.S. Navy ships over the next decade.

By Application: Surveillance holds the leading position, driven by escalating geopolitical tensions and NATO collaborative programs. C-UAS is the fastest-growing segment; in January 2025, Elbit Systems received a USD 60 million contract to supply multi-layered C-UAS systems including DAiR Radar to a NATO European country.

By Dimension: 3D dominates, exemplified by the AN/MPQ-64 Sentinel and Lockheed Martin's AN/TPY-4 and TPS-77 MRR systems. 4D is fastest-growing; in April 2025, Sweden's FMV signed an agreement with Thales for the 4D Ground Master 200 MM/C radar.

By Component: Signal processors dominate due to their critical role in detection accuracy, clutter suppression, and real-time target identification amid increasingly stealthy threats. Transmitters are fastest-growing, driven by demand for higher power and frequency agility; in October 2024, Norway announced plans to develop a GaN-based radar with Raytheon and Kongsberg for NASAMS support.

Regional Outlook

North America represented USD 7.19 billion in 2025 (36.04% share), projected to reach USD 7.95 billion in 2026, driven by defense spending and missile defense investment from Lockheed Martin, Raytheon, and Northrop Grumman. In April 2025, the U.S. Army selected Raytheon's LTAMDS to replace aging Patriot radars, delivering 360-degree threat detection including against hypersonic weapons. The U.S. market is projected to reach USD 7.28 billion by 2026.

Europe generated USD 5.87 billion in 2025 (29.45% share), projected to reach USD 6.43 billion in 2026, driven by Hensoldt and Saab AB's presence and NATO collaborative procurement. In June 2023, the UK awarded BAE Systems a USD 359.23 million contract supporting the Royal Navy's Artisan, Sampson, and Long Range Radar systems. The U.K. market is projected to reach USD 1.5 billion and Germany at USD 1.24 billion by 2026.

Asia Pacific contributed 25.42% (USD 5.07 billion) in 2025, projected to reach USD 5.64 billion in 2026, driven by rising defense budgets amid regional disputes. India's indigenous 3D surveillance radars and China's maritime radar network expansion underscore strategic radar importance. In January 2025, Japan received its first AN/SPY-7(V)1 radar antenna for the Aegis System Equipped Vessel. Japan is projected at USD 0.95 billion, China at USD 2.08 billion, and India at USD 1.63 billion by 2026.

Rest of the World contributed approximately USD 1.81 billion in 2025 (9.08% share), projected to reach USD 1.96 billion in 2026. In June 2024, the Brazilian Air Force acquired Ground Master 200 Multi-mission All-in-one (GM 200 MM/A) tactical air surveillance radars for air surveillance and ground-based air defense operations.

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Competitive Landscape

The surface radar market is highly competitive, driven by rising global defense budgets and technological advancement. Key players include Lockheed Martin Corporation (U.S.), Raytheon Technologies Corporation (U.S.), Thales (France), Leonardo S.p.A (Italy), Saab AB (Sweden), BAE Systems (U.K.), Northrop Grumman Corporation (U.S.), IAI (Israel), Elbit Systems (Israel), and L3Harris Technologies, Inc. (U.S.). Players focus on continuous R&D investment, product innovation, and strategic partnerships with defense agencies to co-develop advanced radar solutions for counter-drone, missile defense, and autonomous systems applications.

Key recent developments include Thales' April 2025 contract from the Swedish FMV for Ground Master 200 Multi-Mission Compact radar with 4D AESA technology; India's March 2025 USD 340.6 million contract with Bharat Electronics Limited for the indigenous "Ashwini" Low-level Transportable Radar; Raytheon's January 2025 USD 529 million contract to supply the Netherlands with a Patriot air and missile defense fire unit including LTAMDS radar; Lockheed Martin's September 2024 additional order from Norway for three more TPY-4 ground-based multi-mission radars, raising Norway's total to 11; and RTX/Raytheon's March 2024 USD 2.1 billion Army contract and 2025 Milestone C approval for LTAMDS production, scaling to 12 units annually for global air defense demand.

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