US Air Traffic Surveillance Radar Replacement Market Key Takeaways

• The United States air traffic surveillance radar replacement market, valued at nearly USD 1.73 billion in 2025, is anticipated to expand steadily, reaching USD 3.29 billion by 2032 from USD 1.89 billion in 2026.
• The industry is projected to witness steady growth at a CAGR of 9.68% over 2026–2032.
• By radar type, Mode S secondary surveillance radar accounted for the largest market share of approximately 42% in 2026.
• By end user, the Federal Aviation Administration (FAA) / civil aviation segment held nearly 68% of the market share in 2026.
• The industry is characterized by a moderately consolidated market structure, where the top five manufacturers hold roughly 64% of the market share.

US Air Traffic Surveillance Radar Replacement Market Size and Outlook

At a CAGR of approximately 9.68% over 2026–2032, the US air traffic surveillance radar replacement market is expected to rise from USD 1.89 billion in 2026 to USD 3.29 billion by 2032, following a valuation of USD 1.73 billion in 2025.

The replacement market continues to expand as aging surveillance infrastructure across the National Airspace System (NAS) requires timely modernization. Many radar systems have been operating for decades, increasing the need for advanced solutions that enhance surveillance accuracy, operational reliability, and maintenance efficiency. As a result, civil aviation remains the largest end-user due to the FAA's nationwide surveillance responsibilities, while defense agencies continue upgrading radar assets to strengthen national airspace security.

Building on these modernization efforts, FAA radar modernization programs are reinforcing long-term market growth by prioritizing resilient ground-based surveillance alongside advanced air traffic management technologies. Although automatic dependent surveillance–broadcast (ADS-B) has been widely adopted, ground-based radar continues to play a critical role in tracking non-equipped aircraft, providing surveillance redundancy, and ensuring uninterrupted operations during communication or satellite-based system disruptions. This balanced surveillance approach continues to strengthen the reliability of the country's air traffic management network.

Supported by these developments, the market is expected to maintain a positive growth trajectory over the forecast period. In January 2026, the FAA awarded radar replacement contracts to RTX Corporation and Indra Sistemas, S.A. to replace up to 612 aging radar systems by 2028, accelerating modernization across the national airspace system. Together with increasing aviation activity and continued infrastructure renewal, these investments are expected to sustain demand for advanced radar replacement solutions in the coming years.

US Air Traffic Surveillance Radar Replacement Market Key Indicators

• The Federal Aviation Administration (FAA) proposed USD 8 billion under its Facility Replacement and Radar Modernization (FRRM) initiative over five years to modernize 377 critical radar systems and more than 20 air traffic control facilities. The initiative is expected to accelerate replacement of aging surveillance infrastructure and support continued demand for next-generation radar technologies across the national airspace system.
• More than 60% of the FAA's radar portfolio is planned for modernization under the radar modernization proposal, including up to 343 cooperative radars and 34 non-cooperative radars. The initiative also aims to consolidate multiple legacy radar configurations into standardized systems, reducing maintenance complexity and improving operational efficiency, thereby creating long-term opportunities for radar replacement providers.

US Air Traffic Surveillance Radar Replacement Market Scope

US Air Traffic Surveillance Radar Replacement Market Growth Drivers

Modernization of Ageing Air Traffic Surveillance Infrastructure Driving Market Growth

The modernization of ageing air traffic surveillance infrastructure has become a major driver as many radar systems operating within the National Airspace System (NAS) have remained in service for decades. Legacy primary and secondary surveillance radars require replacement to improve surveillance accuracy, operational reliability, and lifecycle efficiency while supporting the growing complexity of US airspace. Consequently, the Federal Aviation Administration (FAA) continues investing in advanced air traffic control radar systems featuring digital processing, enhanced target detection, and improved cybersecurity to strengthen air traffic management systems. According to the FAA, more than 16 million flights are handled annually across the National Airspace System, further increasing operational demands on surveillance infrastructure.

Reflecting this commitment to infrastructure modernization, in March 2026, the FAA awarded contracts to RTX Corporation and Indra to replace up to 612 ageing surveillance radar systems by June 2028, supporting the deployment of commercially available next-generation surveillance radar technologies while simplifying maintenance through platform standardization. The FAA has also confirmed that many existing ground-based radar systems will remain operational beyond 2040, reinforcing the need for continuous technical refresh and investments in ground-based radar replacement technologies. As modernization programs continue, sustained federal investment and the adoption of advanced surveillance technologies are expected to strengthen the resilience, efficiency, and long-term reliability of the US air traffic management network.

Recent Trends

Growing Adoption of Digital and Software-Defined Surveillance Radar Technologies

The US aviation sector is increasingly adopting digital and software-defined surveillance radar technologies to enhance surveillance performance, operational flexibility, and lifecycle efficiency. Unlike conventional analogue radar systems, modern software-defined architectures offer advanced digital signal processing, improved target detection and tracking accuracy, remote diagnostics, and software-based upgrades without requiring extensive hardware replacement. These capabilities enable aviation authorities to strengthen operational resilience, simplify system maintenance, and support the broader digital transformation of air traffic management infrastructure.

The transition towards software-defined surveillance radar is becoming increasingly evident through continued industry innovation. In October 2025, Indra introduced its next-generation NORMARC digital air traffic surveillance radar, featuring a fully software-defined architecture, advanced digital signal processing, enhanced cybersecurity protection, and remote maintenance capabilities to support evolving air navigation requirements. The new system enables easier technology upgrades while improving operational availability, surveillance accuracy, and long-term system sustainability across civil aviation environments.

As modernization initiatives continue across the national airspace system, software-defined surveillance radar technologies are expected to become a key consideration in future radar replacement programs. Their ability to improve system scalability, reduce lifecycle costs, simplify technology upgrades, and support evolving operational requirements is accelerating the transition towards next-generation digital surveillance infrastructure, strengthening the long-term efficiency and resilience of US air traffic management systems.

US Air Traffic Surveillance Radar Replacement Market Opportunities and Challenges

Growing Spectrum Congestion Creating Opportunities for Advanced Multi-Sensor Surveillance Solutions

Growing demand for wireless communications, satellite services, and unmanned aircraft operations is increasing pressure on the radio frequency spectrum used by aviation surveillance systems. As more services operate within adjacent frequency bands, the risk of signal interference and reduced surveillance performance is becoming a greater challenge for maintaining safe and efficient air traffic operations. Consequently, aviation authorities are placing greater emphasis on spectrum protection and resilient surveillance infrastructure to ensure uninterrupted aircraft monitoring within increasingly complex airspace.

This challenge is creating significant opportunities for advanced multi-sensor surveillance solutions that integrate surveillance radar with technologies such as Automatic Dependent Surveillance–Broadcast (ADS-B), multilateration (MLAT), and airport automation systems. Reflecting this transition, the Federal Aviation Administration's (FAA) Airport Surface Surveillance Capability (ASSC) combines ASDE-3 Surface Movement Radar, Mode S radar, ADS-B, multilateration, and the Standard Terminal Automation Replacement System (STARS) to provide controllers with a unified real-time surveillance picture, improving aircraft and vehicle tracking on airport surfaces. As airports continue modernising their surveillance infrastructure, integrated multi-sensor architectures are expected to create new growth opportunities for radar manufacturers by enhancing operational reliability, situational awareness, and overall air traffic management efficiency.

Segmentation Insights

Mode S Secondary Surveillance Radar Accounts for 42% Market Share Through Superior Aircraft Identification and NextGen Compatibility

Mode S secondary surveillance radar has established itself as the leading radar technology owing to its ability to deliver highly accurate aircraft identification, enhanced surveillance performance, and more efficient communication than conventional secondary surveillance systems. By assigning a unique identification code to each aircraft and enabling selective interrogation, the system reduces signal congestion while improving controller situational awareness across busy airspace. These capabilities are particularly valuable at high-density airports and en-route air traffic control facilities, where maintaining operational efficiency and aviation safety remains a top priority.

Its widespread adoption is further supported by the Federal Aviation Administration's continued modernization of the National Airspace System through the NextGen programme, which is gradually integrating advanced surveillance technologies to improve the efficiency and reliability of air traffic management. As legacy radar infrastructure is progressively replaced with interoperable and digitally connected systems, Mode S radar continues to offer the performance, compatibility, and scalability required for future airspace operations. These advantages are expected to reinforce its leadership over other radar technologies throughout the forecast period. Based on radar type, the market has been segmented into:

• Mode S Secondary Surveillance Radar
• Primary Surveillance Radar (PSR)
• Conventional Secondary Surveillance Radar (SSR)
• Surface Movement Radar / ASDE-X Systems

FAA / Civil Aviation Accounts for 68% Market Share Backed by Nationwide Air Traffic Surveillance Modernization

The Federal Aviation Administration (FAA) / civil aviation continues to represent the largest end user of air traffic surveillance radar replacement systems owing to its responsibility for operating and modernizing the National Airspace System (NAS), one of the world's busiest and most complex aviation networks. The agency manages extensive controlled airspace and a nationwide network of surveillance radar installations that are essential for maintaining safe aircraft separation, efficient traffic flow, and uninterrupted flight operations. As a result, replacing ageing radar infrastructure has become a strategic priority to enhance surveillance accuracy, improve operational resilience, and support the long-term efficiency of the country's air traffic management system.

Its dominant position is further reinforced by the steady expansion of civil aviation activity, which continues to place greater demands on existing surveillance infrastructure. According to the US Government Accountability Office (GAO), civil air travel is expected to grow by an average of 6.2% annually, increasing pressure on the FAA's ageing cooperative and non-cooperative radar inventory used for civil airspace separation. This growing operational demand is driving sustained investment in advanced surveillance radar technologies, enabling the FAA to strengthen airspace capacity, enhance operational reliability, and support the safe integration of future air traffic across the United States. Based on end user, the market is categorized into:

• Federal Aviation Administration (FAA) / Civil Aviation
• Department of Defense (DoD) / Military Agencies
• Joint-Use Facilities

US Air Traffic Surveillance Radar Replacement Market Competitive Analysis

The market is moderately consolidated, with established defense contractors and air traffic management technology providers competing in surveillance radar modernization and system integration. The top five players, RTX Corporation (Collins Aerospace), Indra Sistemas, S.A., Peraton Inc., Leidos Holdings, Inc., and Saab, Inc., collectively account for approximately 64% of the market, supported by FAA modernization contracts, advanced radar technologies, and long-term integration expertise.

Key Players in US Air Traffic Surveillance Radar Replacement Market

• RTX Corporation (Collins Aerospace)
• Indra Sistemas, S.A.
• Peraton Inc.
• Leidos Holdings, Inc.
• Saab, Inc.
• Lockheed Martin Corporation
• Others

US Air Traffic Surveillance Radar Replacement Industry News and Recent Developments

September 2025: Saab Secures FAA Contract to Modernize Airport Surface Surveillance Radars

Saab, Inc. secured a USD 267.3 million contract from the Federal Aviation Administration (FAA) to replace ageing ASDE-3 Surface Movement Radars with next-generation SMR-4 systems at 44 major US airports. The programme aims to modernize airport surface surveillance infrastructure, improve situational awareness, and enhance operational efficiency through advanced radar technology.

Impact Analysis: The contract reinforces the FAA's commitment to modernizing airport surveillance infrastructure and is expected to accelerate the deployment of next-generation surface movement radar systems, supporting improved runway safety, operational reliability, and long-term demand for advanced surveillance radar technologies across the United States.