Air and Missile Defense Radar (AMDR) Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Air and Missile Defense Radar (AMDR) Market is projected to expand from USD 7.98 Billion in 2025 to USD 11.72 Billion by 2031, reflecting a CAGR of 6.62%. This sector comprises specialized sensing systems engineered to identify, track, and categorize aerial dangers, including ballistic missiles and unmanned aerial systems. The market's upward trajectory is largely fueled by increasing geopolitical volatility and the rapid advancement of high-speed missile technologies, which are forcing nations to update their defense infrastructures. As reported by the Aerospace Industries Association, U.S. aerospace and defense exports hit $138.6 billion in 2024, underscoring the strong worldwide demand for security-focused technologies.

Despite this potential, market growth faces significant hurdles due to the exorbitant costs involved in researching, developing, and integrating advanced radar components. The shift toward active electronically scanned array technologies entails intricate manufacturing processes that raise unit costs, frequently stretching national procurement budgets. Furthermore, ongoing supply chain bottlenecks related to essential semiconductors can retard production timelines, thereby hindering the timely supply and operational activation of these critical defensive systems.

Market Drivers

The escalation of advanced hypersonic and ballistic missile threats acts as a major market accelerator, as countries strive to neutralize weapons that exceed Mach 5 and possess unpredictable flight paths. Conventional radar systems frequently lack the necessary sensitivity and processing velocity to monitor these agile threats, driving a transition to next-generation Active Electronically Scanned Array (AESA) architectures utilizing Gallium Nitride (GaN). This technological necessity is highlighted by significant procurement initiatives; for example, RTX reported in September 2025 that the U.S. Army granted Raytheon a $1.7 billion contract to initiate production of the Lower Tier Air and Missile Defense Sensor (LTAMDS), a system engineered to counter sophisticated hypersonic weaponry. Such investments emphasize the vital need for radars capable of engaging complex aerial targets simultaneously across a 360-degree horizon.

Simultaneously, the worldwide rise in national defense budgets and military spending supplies the essential funding to support these costly modernization projects. Increasing instability in Eastern Europe and the Indo-Pacific has concluded the period of post-Cold War fiscal restraint, leading governments to significantly boost defense spending to address capability deficiencies. According to the Stockholm International Peace Research Institute (SIPRI) in April 2025, global military expenditure hit a record high of $2.71 trillion in 2024, marking a 9.4 percent increase in real terms from the prior year. This fiscal expansion directly supports increased funding for strategic sensing capabilities as nations focus on air sovereignty, evidenced by The Diplomat's December 2024 report that Japan’s Ministry of Defense allocated roughly $3.4 billion specifically to bolster its Integrated Air and Missile Defense (IAMD) network in the 2025 fiscal budget.

Market Challenges

Ongoing supply chain interruptions, particularly concerning vital semiconductors, represent a significant obstacle to the growth of the Air and Missile Defense Radar market. Advanced radar systems, especially those employing active electronically scanned array technology, rely heavily on a consistent supply of sophisticated microelectronics for operation. When the availability of these key components is limited, manufacturers encounter inevitable production setbacks that hinder the timely execution of existing contracts. This failure to deliver completed systems on time directly impedes market expansion by delaying revenue realization and leading to an accumulation of backlogs.

The extent of this reliance is demonstrated by the considerable economic value generated by the supplier network that supports the industry. As stated by the Aerospace Industries Association, the supply chain for the U.S. aerospace and defense sector created approximately $439 billion in indirect economic activity in 2024. Any disruption within this extensive network, such as a semiconductor deficit, triggers a chain reaction that halts the deployment of essential defense assets, thereby constraining the overall progress of the global AMDR market.

Market Trends

The transition toward multi-mission and multi-mode capabilities is fundamentally transforming the market as military forces aim to streamline their logistical requirements and enhance operational versatility. Instead of utilizing distinct sensing systems for volume search, fire control, and counter-battery tasks, nations are increasingly adopting software-defined architectures capable of performing these varied functions concurrently. This integration permits dynamic resource management, enabling a single radar unit to detect ballistic missiles while simultaneously tracking low-altitude aerial threats, thus lowering the hardware inventory needed in expeditionary forces. Reflecting this demand for flexible, consolidated assets, Lockheed Martin announced in September 2024 that the Norwegian Defence Materiel Agency exercised an option to acquire three more TPY-4 ground-based multi-mission radars to strengthen its comprehensive deterrence network.

At the same time, the trend toward miniaturization for UAV and tactical platform integration is accelerating to counter the asymmetric danger posed by drone swarms and short-range projectiles. Conventional high-power surveillance radars are frequently too static for rapid tactical movements, leading to a rise in demand for compact, lightweight sensors that can be mounted on armored vehicles or mobile short-range air defense (SHORAD) platforms. These scaled-down systems employ high-frequency bands to deliver accurate tracking of targets with small cross-sections in complex environments, providing security for mobile ground units. This shift is illustrated by recent procurement actions; for instance, Hensoldt reported in July 2024 that it received an order valued at nearly 100 million euros to provide SPEXER air defence radars specifically for the mobile Skyranger 30 anti-aircraft gun tank.

Key Players Profiled in the Air and Missile Defense Radar (AMDR) Market

• Hensoldt AG
• Israel Aerospace Industries
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman
• RTX Corporation
• Rheinmetall AG
• Saab AB
• Terma Group
• Thales S.A.

Report Scope

In this report, the Global Air and Missile Defense Radar (AMDR) Market has been segmented into the following categories:

Air and Missile Defense Radar (AMDR) Market, by Platform:

• Airborne
• Land
• Naval

Air and Missile Defense Radar (AMDR) Market, by Radar Type:

• X Band Radar
• Y BRadar

Air and Missile Defense Radar (AMDR) Market, by Application:

• Conventional
• Ballistics Missile Defense

Air and Missile Defense Radar (AMDR) Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Air and Missile Defense Radar (AMDR) Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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