US Military Radar Market - Market Share Analysis, Industry Trends & Statistics, and Growth Forecasts 2020 - 2035

Posted On 13-08-2025

• Increasing Investment in Advanced Surveillance: The US military’s rapidly growing emphasis on multi-domain operations is fueling investment in next-generation radar technologies for aerial, maritime, and ground surveillance. Firms such as Raytheon Technologies have secured multiple contracts to provide advanced AESA (Active Electronically Scanned Array) radars, significantly enhancing the capabilities of platforms like the F-35 and the U.S. Navy’s ships. This reflects the military’s strategy to strengthen early warning and situational awareness against both conventional and asymmetric threats.
• Growing Threats from Hypersonic & Stealth Technologies: The escalation of hypersonic missile and stealth aircraft development by global adversaries has driven the U.S. Department of Defense to prioritize investments in radars capable of tracking fast-moving and low-observable targets. Lockheed Martin, for example, is developing over-the-horizon (OTH) and missile defense radars enabling real-time detection and response, directly addressing evolving threat vectors and boosting defense effectiveness.

• Integration of AI and Machine Learning: There is a clear trend towards integrating artificial intelligence (AI) and machine learning algorithms in radar systems to automate threat detection, tracking, and classification. Northrop Grumman, for instance, is deploying cognitive radar solutions that continuously learn from input data, adapt to new scenarios, and boost operator decision-making, dramatically improving response times and reducing false alarms.
• Miniaturization and Mobile Radars: The demand for compact, mobile radar units is surging as the US military adapts to multi-domain and expeditionary operations. Leonardo DRS and General Dynamics are developing lightweight radar solutions that can be mounted on tactical vehicles, drones, and portable platforms, enhancing maneuverability and providing rapid situational awareness in dynamic combat environments.

• Expansion of Missile Defense Programs: The anticipated growth in US missile defense spending offers significant opportunities for radar system manufacturers. Raytheon's ongoing expansion of the AN/TPY-2 radar supports U.S. and allied missile defense networks, opening doors for new contracts and joint development projects.
• Emergence of Space-Based Radar Systems: As space domains become more contested, the demand for surveillance and tracking radars on satellites is rising. Companies like Lockheed Martin are actively investing in space-based radar R&D, offering potential for long-term contracts and technological leadership.

• In April 2024, Raytheon Technologies was awarded a USD 650 Million contract by the U.S. Army for the delivery of next-generation mobile radar systems (LTAMDS) designed to enhance missile and aircraft threat tracking capabilities. The solution features advanced digital processing and integration with artificial intelligence, bolstering the Army’s layered air and missile defense architecture.
• In May 2024, Lockheed Martin successfully demonstrated an over-the-horizon (OTH) radar prototype at the Utah Test and Training Range, validating its ability to detect and track hypersonic projectiles well beyond traditional radar line-of-sight. This breakthrough is seen as a major milestone towards bolstering national missile defense against emerging long-range threats.
• In February 2024, Northrop Grumman announced a significant upgrade to the AN/TPS-80 G/ATOR radar, now featuring AI-assisted threat identification. The upgrade enhances the US Marine Corps' ability to perform simultaneous air surveillance, weapons cueing, and counter-unmanned aerial system (CUAS) operations, improving reliability and mission versatility.