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The dynamics of the airport surveillance radar (ASR) market are influenced by several factors that collectively shape its growth, demand, and competition landscape. One key factor includes increasing global air traffic along with the requirement for improved safety & security measures. This means that despite obstacles like high costs and complex upgrades, the airport surveillance radar market is about to take off and is expected to hit USD 2.5 billion by 2030 at a 6% CAGR. A combination of drivers, such as surging worldwide military budgets, booming airport construction activity, and insatiable demand for efficient air space organizations, are propelling the upward trend of this sector. As technology soars, so too will the sophistication of these radars, further enhancing their vital role in safeguarding our skies and ensuring the smooth flow of air traffic. Technological developments are a crucial market factor in the ASR industry. The continuous evolution of radar technology, like digital signal processing shift towards solid-state radar automation features, shapes market dynamics.
Regulations standards & compliance are important determinants that shape ASR sectors' market factors. For instance, the International Civil Aviation Organization (ICAO), together with national authorities like the Federal Aviation Administration (FAA), put in place rigorous standard requirements for airport surveillance and air traffic control systems all over the world. On the other hand, global trends toward airport modernization initiatives have significantly impacted ASRs' market factors. Demand for advanced surveillance capabilities rises as airports expand or upgrade to accommodate larger aircraft and increased passenger traffic. Market factors are shaped by the imperative for airports to invest in state-of-the-art ASR solutions as part of their broader modernization strategies. The overall market dynamics of the ASR industry include the need for effective ATMs and improved surveillance.
Market drivers in the ASR industry include a focus on air transport security and the need for comprehensive surveillance systems. Airports face changing safety threats, and such concerns are addressed by integrating sophisticated surveillance capabilities into ASR solutions. Interoperability has an important role in determining the behavior of the ASR industry in terms of market factors. The airports require radar solutions that will seamlessly integrate with existing air traffic management infrastructure, communication networks, and surveillance systems. Government funding and airport budget allocations are among some of the economic factors that shape market dynamics within the ASR industry, while competition between manufacturers and suppliers is one of the key market factors that affect the ASR industry. In this context, competitive dynamics involve product innovation, technological differentiation, pricing strategies, and customer relationships.
Airport Surveillance Radar Market Highlights:
Global Airport Surveillance Radar Market Overview
Airport Surveillance Radar Market is estimated to grow USD 2.50 Billion at a CAGR 6% by 2020-2030
An airport surveillance radar (ASR) refers to a radar system used at airports to detect and display aircraft presence and trace position in the terminal area of the airspace all around airports. It is the major air traffic control system for the airspace around airports. At big airports, it usually controls traffic within a range of 60 miles (96 km) of the airport beneath a height of 25,000 feet. The sophisticated systems at big airports comprise two different radar systems, the primary and secondary surveillance radar. The global market for airport surveillance radar has recorded enormous growth in recent years. The market's growth is primarily credited to the increasing military spending across several countries worldwide. Furthermore, the factors such as the increasing construction of new and existing airports, increasing demand for airspace, and consistent technological advancements are also projected to boost the growth of the airport surveillance radar market over the forecasted era. On the other hand, the high cost of installation and operation and complexity in radar subsystem upgrades are projected to restrict the market's growth in the coming years.
COVID-19 Analysis
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.
Market Dynamics
Drivers
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.
Opportunities
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.
Restraints
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.
Segmental Analysis
By Type
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.
By Application
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.
Regional Analysis
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.
Competitive Landscape
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.
- 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)
Recent Development
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February 2022- Taiwan's Taiwan has disclosed that it has chosen Thales to offer support in modernizing its airport surveillance systems for the airports of Songshan, Hualien, and Taitung through new radar systems will take the place of the present technology soon reaching their life expectancy. -
October 2021- Tanzania Civil Aviation Authority (TCAA) and Thales have announced the completion of the Air Traffic Management (ATM) system and radars for over six airports across the country. The systems were offered under a contract signed in August 2017, with a target to enhance Tanzania's air traffic safety and efficiency.
Report Overview
By Type
- Primary Radars
- Secondary Radars
By Application
- Civil & Commercial Airports
- Military Airbases & Airfields
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