Global Airport Surveillance Radar Market, according to MRFR, is projected to account for USD 1.98 Billion by 2025, recording a CAGR of 6.49% during the forecast period (2019 to 2025). Due to increasing military spending and the construction of new and existing airports, the demand is growing at a constant pace.
The pandemic of COVID-19 has prompted the governments of many countries around the world to announce full or partial lockdowns. This lockdowns, particularly those classified as non-essential, like the aviation & defence industry, have disrupted operations in many industries.
In the last two months, the aviation sector has experienced an alarming downturn due to the COVID-19 pandemic. The virus epidemic has had a huge effect on airline operators and airport operators. The spread of COVID-19 and the reaction of the aviation industry has contributed to an unexpected decrease in global air traffic. As a result of this significant decline in global air passenger traffic, airport operators' profits from airport charges such as aircraft landing and parking fees and passenger service charges charged by travellers are projected to decrease by about 50 percent in 2020. This is also anticipated in the course of this year to reduce the requirement for new airport surveillance radars.
Because of the pandemic, airport operators who have orders issued with airport radar monitoring firms have either been delayed or cancelled. In addition, after the pandemic, the construction of new and existing airports will continue, but at a lower pace for some period of time. Thus, after the pandemic stops, the airport surveillance radar industry is expected to rebound and will suffer at a lower growth rate.
Growing Investments in the Defense Sector T odrive market growth
Growing military spending and the evolution of new and current airports can be attributed to the development of the global airport surveillance radar industry. Globally, aircraft have been seen to develop exponentially, needing sufficient control systems such as airport surveillance radar to minimise aviation accidents. Aviation investors have begun to introduce satellite-based technology to expand their air traffic surveillance activities with the development of space technologies. The increasing demand for airspace has produced the need for next-generation technology to make air transport safer, more effective and less environmentally friendly.
Growing Airport Construction to Create Growth Avenues for Key Players
The growth of the airport surveillance radar market is motivated by a growing number of airports worldwide and the convergence of surveillance radar systems with satellite navigation systems that allow air traffic control operators to monitor aircraft more effectively in the airspace. Globally, airport building spending has risen exponentially, providing new business prospects for Airport Surveillance Radar to satisfy the need for airport surveillance.
High Costs Associated with Installation to Impede Market Growth
the high cost of installation and operation is expected to restrain the market growth during the forecast period. Complexity in radar subsystem upgrades and budgetary inconveniences are expected to hinder the growth of airport surveillance radar market.
The global market was dominated by the primary radar segment. In 2018, it was estimated at USD 861.9 million and is projected to post a 7.07 percent CAGR during the forecast period. The highest market share of this category is due to the growing spending by the governments of developed countries in airport expansion.
During the forecast period, the military airbases & airfields segment is predicted to grow at the fastest CAGR. The increasing security expenditures by governments worldwide are driving the growth of the segment.
Presence of Major Players Drives North America
In 2018, the industry was estimated at USD 462.9 million in North America. The country-level markets in North America are the US and Canada. The region's demand is projected to hit USD 689.0 million by 2025, rising during the forecast period at a CAGR of 5.85 percent. This growth can be due to growing US government spending in airport modernization. In addition, technological developments and the existence of major players such as Raytheon Group, Northrop Grumman Corporation, Lockheed Martin Corporation are factors that drive the growth of the market.
Germany to Drive Europe Market Growth
In 2018, Europe accounted for the second biggest share of the market. The growth of the regional market is led by the involvement of prominent players such as ASELSAN AS, BAE Systems and Thales Group. At a CAGR of 6.07 percent during the forecast period, the airport surveillance radar market in Europe is projected to hit USD 444.7 million by 2025.
Rising Air Passenger Traffic to Drive APAC
In 2018, Asia-Pacific represented a significant proportion of the global economy. In 2018, the regional market was estimated at USD 236.5 million and is projected to cross USD 413.0 million by 2025, increasing during the forecast period at a CAGR of 8.29 percent. The growth of the region's demand is motivated by the rise in air passenger traffic in emerging economies like China and India and the increasing need to boost passenger safety.
MEA to Witness Gradual Growth
A substantial share of the overall economy was accounted for by the Middle East & Africa in 2018. The regional market in 2018 was estimated at USD 171.1 million and is projected to hit USD 269.9 million by 2025, expanding during the projection period at a CAGR of 6.73 percent. The growth of the market in the region is led by the growing construction of new airports in countries such as the UAE.
Low-Cost Airline Advent to Drive Latin America Growth
The airport surveillance radar demand in Latin America is forecast to hit USD 169.6 million by 2025, expanding during the study period at a CAGR of 5.79 percent. The region's economy has been separated into Brazil and the rest of Latin America. The arrival of low-cost airlines in the area is projected to fuel the development of the Latin American radar market for airport surveillance.
Mergers and Acuisitions to Remain Primary Focus of Market Players
Airport surveillance radar market market payers are projected to achieve attractive growth prospects in the future, as demand for airport surveillance radars in the global market grows. Organic development techniques, such as product releases, product approvals and others, such as patents and activities, are the subject of numerous firms. Acquisitions, and cooperation & partnerships were inorganic growth plan practises observed in the industry. These operations have opened the way for industry leaders to grow their company and customer base.
January 2021: ENAIRE, Spain's air navigation chief, placed into operation a modern air traffic surveillance radar, using cutting-edge equipment, on the island of Mallorca. In the Balearic archipelago and in eastern mainland Spain, the new radar would continue to improve air traffic surveillance.
November 2020: The Qatar Civil Aviation Authority signed a contract with Italy's Leonardo SpA for the procurement, installation and service at Hamad International Airport of advanced Approach Surveillance Radar PSR & MSSR (Primary and Secondary Radars). The new radar will contribute effectively to keeping pace with the increasing airport and Qatari airspace capability. It would also improve air traffic surveillance and improve the protection and security of air navigation.
|Market Size||USD 1.98 Billion (2025)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||BAE Systems (UK), Northrop Grumman Corporation (US), Thales Group (France), Raytheon Company (US), Lockheed Martin Corporation (US), Leonardo SpA (Italy), L3Harris Technologies, Inc. (the US), Intelcan Technosystems Inc. (Canada), Blighter Surveillance Systems Ltd (UK), NEC Corporation (Japan), HENSOLDT (Germany), Shoghi Communications Ltd (India), TERMA (Denmark), ASELSAN AS (Turkey), Easat Radar Systems Limited (UK), Airbus SAS (Netherlands), DeTect, Inc (US), Saab AB (Sweden), Israel Aerospace Industries Ltd (Israel), Telephonics Corporation (US), Indra Sistemas, SA (Spain)|
|Key Market Opportunities||Growing Airport Construction to Create Growth Avenues for Key Players|
|Key Market Drivers||Growing Investments in the Defense Sector T odrive market growth|