The US air traffic surveillance radar replacement market is gaining momentum as aging surveillance infrastructure across the National Airspace System requires modernization. Ground-based radar remains an important component of air traffic surveillance even as technologies such as Automatic Dependent Surveillance–Broadcast (ADS-B) expand. Radar continues to provide coverage for non-equipped aircraft, complement other surveillance technologies, and provide backup capabilities that support resilient air traffic operations.

A comprehensive market assessment by Markntel Advisor reveals that the US air traffic surveillance radar replacement market was valued at 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, registering a CAGR of 9.68% during 2026–2032. 

The US air traffic surveillance radar replacement market analysis indicates that Mode S secondary surveillance radar accounted for approximately 42% of the market in 2026, while the Federal Aviation Administration (FAA)/civil aviation segment held nearly 68%.

Aging Radar Infrastructure Creates Replacement Demand

Many radar systems supporting US air traffic surveillance have been operating for decades, increasing requirements for replacement, technical refresh, and lifecycle management. Aging equipment can create challenges related to maintenance, spare parts, reliability, and integration with newer air traffic management technologies.

The Federal Aviation Administration has acknowledged the continuing importance of ground-based radar in the National Airspace System. Its Terminal and En Route Surveillance Technical Refresh Portfolio manages projects aimed at sustaining and maintaining terminal and en-route radar systems while replacement or divestiture programs progress. The FAA notes that these systems continue to support surveillance where ADS-B is unavailable or requires backup coverage.

The replacement requirement is therefore not simply related to equipment age. Modern radar systems are increasingly expected to provide improved detection, digital signal processing, cybersecurity, remote diagnostics, and compatibility with broader surveillance architectures. These requirements are encouraging aviation authorities to consider standardized and technologically adaptable radar platforms.

Federal Modernization Programs Strengthen the Market

Federal investment is an important factor influencing radar replacement activity across the United States. The FAA's Facility Replacement and Radar Modernization initiative proposed USD 8 billion over five years to modernize 377 critical radar systems and more than 20 air traffic control facilities. The initiative reflects the scale of modernization requirements across aging air traffic infrastructure.

In January 2026, the FAA also announced radar replacement contracts with RTX and Indra as part of its broader effort to replace aging radar infrastructure. The contracts target the modernization of radar systems that form an important part of the country's air traffic surveillance network.

These programs are creating sustained demand for replacement equipment, installation and integration services, maintenance, support, and technology upgrades. They are also encouraging suppliers to develop systems capable of meeting evolving requirements for digital connectivity, interoperability, and operational resilience.

Mode S Radar Maintains a Leading Position

Mode S secondary surveillance radar accounted for approximately 42% of the US air traffic surveillance radar replacement market in 2026. Its position is supported by its ability to provide aircraft identification and selective interrogation, helping reduce unnecessary signal congestion while supporting more precise surveillance.

Mode S technology is particularly relevant in busy terminal and en-route environments where controllers require reliable aircraft identification and tracking. Its compatibility with modern air traffic management architectures also supports its continued relevance as legacy surveillance systems are progressively upgraded.

The modernization of the National Airspace System is increasing the need for radar technologies that can operate alongside ADS-B and other surveillance systems. Rather than replacing every radar function with a single technology, the evolving architecture is emphasizing complementary surveillance capabilities that improve coverage and resilience.

Digital and Software-Defined Radar Technologies Are Emerging

The transition from conventional analog radar architectures toward digital and software-defined systems is another important development. Modern systems can incorporate advanced signal processing, improved target detection, remote diagnostics, cybersecurity features, and software-based upgrades.

Software-defined architectures can also simplify technology refresh by allowing certain capabilities to be updated through software rather than requiring complete hardware replacement. This approach can potentially improve lifecycle efficiency while supporting the integration of new operational requirements.

Indra's introduction of its NORMARC digital air traffic surveillance radar in 2025 illustrates this technological direction. The system incorporates software-defined architecture, digital signal processing, cybersecurity capabilities, and remote maintenance features, reflecting the industry's broader movement toward digitally managed surveillance infrastructure.

Multi-Sensor Surveillance Creates New Opportunities

The increasing use of ADS-B, multilateration, and airport automation systems is creating opportunities for integrated multi-sensor surveillance architectures. Rather than treating radar as an isolated technology, modern air traffic management increasingly combines information from multiple surveillance sources to create a more comprehensive operational picture.

The FAA's Airport Surface Surveillance Capability, for example, combines surface movement radar, Mode S radar, ADS-B, multilateration, and terminal automation technologies. This integrated approach supports real-time tracking of aircraft and vehicles operating on airport surfaces.

Growing spectrum demand is another factor encouraging integrated approaches. Wireless communications, satellite services, and unmanned aircraft operations are increasing pressure on available radio-frequency resources. Multi-sensor architectures can help authorities optimize surveillance capabilities while reducing reliance on any single technology.

FAA and Civil Aviation Represent the Largest End User

The FAA/civil aviation segment accounted for nearly 68% of the US air traffic surveillance radar replacement market in 2026. The agency's responsibility for operating and modernizing the National Airspace System makes it the central end user for a large portion of surveillance radar replacement activity.

The scale of the US aviation network means that modernization requirements extend across en-route surveillance, terminal area surveillance, and airport surface surveillance. Radar replacement must also be coordinated with existing automation, communications, and surveillance systems to prevent disruption to ongoing air traffic operations.

The FAA's broader modernization program reinforces this requirement. The agency's planned replacement of aging radar and other air traffic control infrastructure demonstrates that surveillance modernization is being addressed as part of a wider transformation of the national air traffic management system.

Airport Surface Radar Replacement Is Accelerating

Airport surface surveillance is another area attracting modernization investment. Surface movement radar helps controllers monitor aircraft and vehicles on runways and taxiways, including during conditions where visibility may be limited.

In September 2025, Saab secured a USD 267.3 million FAA contract to replace aging ASDE-3 surface movement radars with SMR-4 systems at 44 major US airports. The development demonstrates continued investment in next-generation airport surface surveillance infrastructure.

More recently, the FAA announced the installation of a new SMR-4 surface movement radar at Newark Liberty International Airport in August 2026. The system replaced a 30-year-old radar and became the fifth SMR-4 installed nationwide.

Outlook for the US Radar Replacement Market

The US air traffic surveillance radar replacement market is expected to remain closely tied to the modernization of aging aviation infrastructure. Federal investment, the need for reliable surveillance redundancy, rising technology requirements, and integration with ADS-B and other surveillance systems are supporting demand for next-generation radar solutions.

The market's development will increasingly depend on digital architectures, software-defined capabilities, cybersecurity, multi-sensor integration, and standardized platforms. At the same time, existing ground-based radar will continue to serve important surveillance functions while replacement and divestiture programs progress.

As the United States modernizes its air traffic control infrastructure, radar replacement is becoming part of a broader transition toward more connected, resilient, and digitally managed airspace surveillance. The combination of infrastructure renewal and technological advancement is expected to sustain investment across radar equipment, integration, maintenance, and upgrade services through the forecast period.