US Air Traffic Surveillance Radar Replacement Market to Reach USD 3.29 Billion by 2032, Growing at a CAGR of 9.68% During 2026–2032

The U.S. air traffic surveillance radar replacement market was valued at nearly USD 1.73 billion in 2025 and is projected to grow from USD 1.89 billion in 2026 to USD 3.29 billion by 2032, exhibiting a CAGR of 9.68% during the forecast period. The market is witnessing steady growth as aging surveillance infrastructure across the National Airspace System (NAS) drives the replacement of legacy radar systems with advanced digital surveillance technologies. Continued investments under the Federal Aviation Administration's (FAA) radar modernization initiatives and the growing need for resilient, high-performance air traffic management infrastructure are further accelerating market expansion.

Modernization of aging air traffic surveillance infrastructure continues to be the primary driver supporting market growth. Many radar systems currently operating across the National Airspace System have been in service for decades, creating the need for technologically advanced replacements that improve surveillance accuracy, operational reliability, and lifecycle efficiency. Continued federal investments, including the FAA's radar modernization programmes and contracts awarded for replacing hundreds of legacy radar systems, are accelerating the deployment of next-generation surveillance technologies across civil aviation infrastructure.

Another significant trend shaping the market is the growing adoption of digital and software-defined surveillance radar technologies. Radar manufacturers are introducing software-defined architectures equipped with advanced digital signal processing, enhanced cybersecurity, remote diagnostics, and predictive maintenance capabilities. These innovations simplify future upgrades, reduce lifecycle costs, improve surveillance performance, and strengthen the long-term resilience of the U.S. air traffic management network while supporting the broader digital transformation of aviation infrastructure.

The U.S. continues to strengthen its leadership in air traffic surveillance modernization through sustained federal investments, nationwide radar replacement programmes, and continuous advancement of digital air traffic management technologies. Ongoing FAA modernization initiatives, increasing adoption of software-defined surveillance systems, and continued investments in resilient aviation infrastructure are expected to reinforce long-term market growth, further states the research report, "U.S. Air Traffic Surveillance Radar Replacement Market Analysis, 2026.”

U.S. Air Traffic Surveillance Radar Replacement Market Highlights

The U.S. air traffic surveillance radar replacement market was valued at nearly USD 1.73 billion in 2025 and is projected to grow from USD 1.89 billion in 2026 to USD 3.29 billion by 2032.
The market is projected to register a CAGR of 9.68% during 2026–2032, driven by modernization of aging surveillance infrastructure, FAA radar replacement programmes, and increasing investments in advanced air traffic management technologies.
By radar type, Mode S secondary surveillance radar accounted for approximately 42% of the market in 2026, supported by superior aircraft identification, NextGen compatibility, and enhanced surveillance performance.
By end user, Federal Aviation Administration (FAA) / Civil Aviation held nearly 68% of the market in 2026, driven by nationwide surveillance modernization initiatives and continued investment in the National Airspace System.
The FAA's Facility Replacement and Radar Modernization (FRRM) initiative, contracts for replacing up to 612 aging radar systems, and increasing adoption of software-defined surveillance technologies are creating significant long-term opportunities for radar replacement providers.
The market is moderately consolidated, with RTX Corporation (Collins Aerospace), Indra Sistemas, S.A., Peraton Inc., Leidos Holdings, Inc., and Saab, Inc. collectively accounting for approximately 64% of the market. These companies maintain their leadership through advanced surveillance radar technologies, FAA modernization contracts, and extensive expertise in air traffic management system integration.

U.S. Air Traffic Surveillance Radar Replacement Market Segmentation

By Radar Type
- Mode S Secondary Surveillance Radar
- Primary Surveillance Radar (PSR)
- Conventional Secondary Surveillance Radar (SSR)
- Surface Movement Radar / ASDE-X Systems
By Component
- Antenna & Rotary Joint
- Transmitter
- Receiver
- Signal & Data Processor
- Power Supply & Conditioning Systems
- Display & Controller Systems
- Software
By Frequency Band
- L-Band
- S-Band
- X-Band
By Application
- En Route Surveillance
- Terminal Area Surveillance
- Airport Surface Surveillance
By Offering
- Equipment (Hardware & Software)
- Installation & Integration Services
- Maintenance, Support & Upgrade Services
By Replacement Type
- Full System Replacement
- Upgrade & Retrofit
- New Site Installation
By Platform
- Fixed Ground-Based Systems
- Mobile & Transportable Systems
By End User
- Federal Aviation Administration (FAA) / Civil Aviation
- Department of Defense (DoD) / Military Agencies
- Joint-Use Facilities