Digital Radar Market Growth Fueled by Defense Modernization Efforts

The global digital radar market was valued at USD 5.25 billion in 2023 and is projected to reach USD 15.52 billion by 2030, expanding at a CAGR of 17.6% from 2024 to 2030. Market growth is primarily driven by continuous technological advancements in signal processing, antenna architectures, and software algorithms, which have enabled the development of highly capable and efficient digital radar systems. These innovations are enhancing detection accuracy, operational reliability, and real-time data processing, thereby increasing adoption across multiple end-use industries.

Key Market Trends & Insights

• North America accounted for the largest revenue share of approximately 36.2% in 2023, supported by strong defense spending and early adoption of advanced radar technologies.
• Asia Pacific is anticipated to witness the fastest growth, registering a CAGR of over 19.0% from 2024 to 2030, driven by rising defense investments and expanding automotive manufacturing.
• By type, the active digital radar segment dominated the market with a revenue share exceeding 64.0% in 2023.
• By application, the security & surveillance segment held the largest share in 2023 due to increasing border monitoring and threat detection requirements.
• By end use, the automotive segment accounted for the highest revenue share in 2023, supported by the growing integration of radar-based safety and driver assistance systems.

Market Size & CAGR

• 2023 Market Size: USD 5.25 Billion
• 2030 Market Size: USD 15.52 Billion
• CAGR (2024–2030): 17.6%
• Largest Market (2023): North America
• Fastest-Growing Market: Asia Pacific

The rising demand for advanced surveillance and security solutions, fueled by concerns related to terrorism, climate change, border security, and critical infrastructure protection, continues to propel market expansion. Digital radar systems offer superior situational awareness and threat detection capabilities, making them essential for both civilian and defense applications.

The defense sector remains a key contributor to market growth. The integration of digital radar with command-and-control systems and intelligence platforms has broadened its application scope and strengthened its value proposition. Additionally, the increasing emphasis on automation and unmanned systems has created new opportunities for digital radar in autonomous vehicles, unmanned aerial vehicles (UAVs), and drone operations.

Government initiatives and defense modernization programs are further accelerating market growth. For instance, in August 2024, Saab AB secured an order worth nearly USD 68 million from the Swedish Defence Materiel Administration for the Giraffe 1X radar, including system integration with Swedish Ground Based Air Defence (GBAD) solutions and associated command-and-control systems.

The expanding automotive industry is also significantly contributing to market growth. Radar sensors are increasingly used in adaptive cruise control, blind spot detection, and lane departure warning systems. As automakers continue to prioritize vehicle safety and autonomous driving technologies, the demand for advanced digital radar solutions is expected to rise steadily.

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Key Digital Radar Company Insights

Major companies operating in the digital radar market include Saab AB, Northrop Grumman, Boeing, NXP Semiconductors N.V., and Advanced Micro Devices, Inc.

• Northrop Grumman provides advanced solutions primarily to the U.S. Department of Defense and global intelligence agencies, with operations spanning aeronautics, defense systems, mission systems, and space systems.
• Saab AB designs and manufactures advanced defense and security systems across aeronautics, surveillance, command and control, weapons, and underwater systems, supporting defense capabilities across multiple nations.
• NXP Semiconductors N.V. delivers semiconductor solutions for automotive, industrial, IoT, and communications infrastructure markets, enabling secure and efficient connected ecosystems.
• Advanced Micro Devices, Inc. (AMD) develops high-performance computing, graphics, and visualization technologies with applications across automotive, aerospace & defense, healthcare, industrial, and consumer electronics sectors.

Leading Digital Radar Companies

• Saab AB
• Israel Aerospace Industries Ltd.
• Leonardo S.p.A
• BAE Systems plc
• Advanced Micro Devices, Inc.
• Thales Group
• UHNDER Inc.
• RTX Corporation
• NXP Semiconductors N.V.
• Magna International, Inc.
• Elbit Systems Ltd.
• L3Harris Technologies Inc.
• Indra
• Teledyne FLIR LLC
• Lockheed Martin Corporation

Conclusion

In conclusion, the global digital radar market is poised for robust growth through 2030, supported by rapid technological advancements, increasing defense and security requirements, and expanding applications in automotive and autonomous systems. Strong government investments, rising adoption of advanced surveillance solutions, and continuous innovation by leading market players are expected to sustain the market’s high growth trajectory over the forecast period.

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