Air and Missile Defence Radar Market Size, Share and Outlook - Growth Analysis Report and Forecast Trends (2026-2035)

The global air and missile defence radar market stood at a value of around USD 14.81 Billion in 2025. The market is further expected to grow in the forecast period of 2026-2035 at a CAGR of 6.20% to reach USD 27.03 Billion by 2035.

Q1 2026 Market Updates

Overview: Activity in the Air Missile Defence Radar space shifted measurably during Q1 2026, driven by the cascading effects of the Iran-US-Israel war. Tracking and engaging 500+ Iranian ballistic missiles and approximately 2,000 drones at a 90%+ intercept rate (JINSA, March 2026) required the smooth integration of AN/TPY-2 THAAD radars, AN/SPY-6 Aegis arrays, ELM-2084 Israeli multi-mission radars, and US Space Force orbital sensors into a unified fire control architecture. The conflict proved out, and in some dimensions stressed, the existing air and missile defense radar inventory, generating urgent procurement signals for the next radar generation.

United States: US Air and missile defense radars in the Gulf theater during Q1 2026, AN/TPY-2 for THAAD guidance, AN/SPY-6(V) on Arleigh Burke Flight III destroyers, and AN/MPQ-65 for Patriot PAC-3, processed unusual simultaneous track volumes. The AN/SPY-6's simultaneous multi-mission capability, tracking ballistic missiles, cruise missiles, and drone swarms while supporting surface warfare functions, proved out the US Navy's investment in the new-generation AESA radar. US Space Force's integration of orbital missile warning sensors into the ground-based radar fire control chain (JNS.org) demonstrated the value of space-space-ground sensor fusion, a capability that will be expanded under President Trump's USD 185 billion Golden Dome program (CNBC).

Iran: Israel's ELM-2084 multi-mission radar, developed by Israel Aerospace Industries' Elta Division, performed as the central air picture sensor for the IDF's multi-layer air defense, tracking incoming Iranian ballistic missiles, cruise missiles, and drones at the same time and providing fire control data to Arrow-3, David's Sling, and Iron Dome batteries. The Green Pine long-range early warning radar provided the strategic early warning layer that extended IDF and allied intercept timelines against Iranian ballistic missiles launched from 1,000+ km range. Iranian air defense radars, concentrated in Khatam-ol-Anbiya Air Defense Headquarters systems, were systematically targeted by IDF and US electronic attack and kinetic strike, blinding Iranian air defense across 26 provinces (ACLED, March 2026).

Israel: Israel maintained market continuity throughout Q1 2026 under wartime conditions. Gulf state markets in Saudi Arabia, UAE, and Kuwait sustained procurement programmes supported by elevated oil revenues.

Key Takeaways

Government & Policy Watch

• Golden Dome radar demand: The USD 185 billion Golden Dome program will require new ground-based, naval, and potentially space-based radar sensors, a multi-decade procurement wave that dominates the air and missile defense radar market outlook.
• Multi-mission AESA: Post-Q1 2026 procurement specifications require simultaneous multi-mission tracking capability across ballistic, cruise, and drone threat classes, lifting demand for advanced AESA radar systems.
• Space integration: US and allied air and missile defense radar programs are now required to integrate space-based sensor feeds into fire control architectures, a technical and procurement complexity that is reshaping radar program designs.

Market & Industry Impact

• Market inflection: The global air and missile defense radar market is at a demand inflection driven by Q1 2026 performance validation and the Golden Dome investment signal.
• Allied modernization: Japan, South Korea, Australia, Germany, Poland, and Gulf states are all accelerating air and missile defense radar procurement, creating a multi-billion-dollar allied market.
• Elta and Raytheon leadership: Israeli ELM-2084 and US AN/SPY-6 performance over Q1 2026 has positioned their manufacturers as market leaders in new-generation air defense radar procurement.

Procurement & Supply Chain Alert

• GaN module supply: Gallium nitride AESA transmit/receive modules face production capacity constraints across US, European, and Israeli suppliers, the critical bottleneck for radar production scaling.
• Software qualification: Air and missile defense radar software must undergo extensive verification against high-fidelity threat simulations before operational deployment, a qualification process that cannot be fully expedited despite conflict urgency.
• Frequency spectrum management: Air defense radar systems must operate across increasingly congested spectrum while maintaining performance, requiring adaptive, frequency-agile designs that add engineering complexity.