The global airport surveillance radar market is expected to grow significantly in the coming years due to an increase in defense expenditure and development of new & existing airports. The global airport surveillance radar market is characterized by the presence of several global and regional vendors. The market is highly competitive with all the players trying to gain the maximum market share. Frequent changes in government policies, intense competition, and aviation regulations are the key factors that impact the global market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. It is crucial for the players to offer cost-efficient and high-quality airport surveillance radar systems to succeed in an intensely competitive market environment.
Market Share Analysis
The leading players, as mentioned above, are dominating the market due to their advanced products offering, high industry experience, and geographic reach. These players may establish their presence worldwide through strategic partnerships and acquisitions during the forecast period. Players with access to better technologies can develop unique and innovative products, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify further due to the rising number of contracts and expansions.
Major Growth Strategies In The Global Airport Surveillance Radar Market
Threat of New Entrants
The global airport surveillance radar market is expected to grow at a significant pace during the forecast period. However, the need for high investments and difficulty in forming a client base deter the entry of new vendors in the market to a certain extent. Moreover, the technological know-how required for radar system manufacturing is high as present market players are continuously developing products to enhance safety for passengers. The eminent companies in the global airport surveillance radar market such BAE Systems, Northrop Grumman Corporation, Thales Group, Lockheed Martin Corporation, Raytheon Company, and L3Harris Technologies, Inc. have established customer bases and a wide geographic reach, making it difficult for new entrants to achieve economies of scale, which the leading players already possess. These factors are expected to result in a low threat of new entrants in the global airport surveillance radar market during the review period.
Bargaining Power of Suppliers
The capital and technological requirements for manufacturing radar systems are very high; hence, there are few material and component suppliers in the market. Manufacturers only select raw material and component suppliers that are reliable and offer guaranteed quality and performance. Thus, manufacturers cannot easily switch between suppliers as the switching cost is high and companies tend to enter into long-term contracts with suppliers. Moreover, the risks associated with the quality of components and materials is high with new suppliers. Due to these factors, the bargaining power of suppliers in the global airport surveillance radar market is projected to be moderate.
Bargaining Power of Buyers
The buyers in the global airport surveillance radar market are defense and commercial end users. There are a number of buyers in the global airport surveillance radar market. However, these buyers are highly reliant on successful and established manufacturers that provide radar systems. Moreover, there is moderate product differentiation in the market. Hence, the bargaining power of buyers in the global airport surveillance radar market is projected to be low.
Threat of Substitutes
LiDAR sensors are the only alternative for the radar system at present. LiDAR technology is more effective in long-distance applications than radar. Furthermore, LiDAR systems are more efficient in extreme weather conditions as they are not affected by conditions such as rain or low-lying clouds. However, the accuracy and precision of the radar system over short distances are high as compared to LiDAR sensors. Hence, the threat of substitutes in the global airport surveillance radar market is projected to be moderate during the assessment period.
Rivalry
There is intense competition among the existing players in the market, with manufacturers investing heavily in the research and development of high-quality, advanced, and cost-effective systems. Moreover, these companies are collaborating with key industry players to provided combined solutions and increase their global presence and market share. Furthermore, due to the increase in defense expenditure and the development of new & existing airports, the rivalry for market share is set to increase. Thus, the rivalry in the market is projected to be high during the review period.
