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Teal Group’s Naval Surface Ship Radar & C4I Systems funding forecasts for major large-ship radar programs will truly be huge for a military electronics program – even compared to F-35 Joint Strike Fighter (JSF) programs.
When in full rate production for the US Navy, before F-35 production ramped up, Lockheed Martin’s AN/SPY-1(V) Aegis program was the biggest military electronics program in the world.
In mid-2026, with production for US Navy Flight IIA Arleigh Burke destroyers and minor production for international navies finally ended, the SPY-1 Aegis program is still one of the most important electronics programs worldwide, especially due to Aegis BMD (Ballistic Missile Defense) and forthcoming Integrated Combat System (ICS) programs.
And when we add forecast funding for Lockheed Martin’s new AN/SPY-7(V) radar and C4I suites, overall funding for Lockheed Martin Aegis systems will nearly return to legacy funding levels from before the Flight III Arleigh Burkes shifted to Raytheon’s AN/SPY-6 AMDR radar.
What ultimately dethroned the SPY-1 as the US Navy’s dominant naval combat radar was Raytheon’s new AN/SPY-6(V)1 Air and Missile Defense Radar (AMDR), a next-generation radar system designed to provide ballistic missile defense (BMD), air defense, and surface warfare capabilities. AMDR was initially being developed to support theater air and missile defense requirements as part of the next generation cruiser (CG(X)) radar suite, with a special emphasis on BMD. But following CG(X) cancellation, by early 2013 the AMDR was planned to “initially support” the Arleigh Burke follow-on DDG-51 Flight III destroyer, beginning with ships to be funded in 2016, with future expectations of AMDR “providing the foundation for a scalable radar architecture” to supplant the AN/SPY-1 Aegis for “multiple ship classes.”
By 2026, versions of the SPY-6 were aboard, in production for, or planned for nearly every new major combatant in the US Navy’s fleet, as well as refits on a number of legacy ships including Flight IIA Arleigh Burke (DDG-51) destroyers.
When combined, Lockheed Martin’s SPY-1/7 and Raytheon’s SPY-6 programs will be truly be huge – larger and more dominant even than the SPY-1 Aegis systems at their Cold War peak.
Teal Group forecasts the naval radar market for large ships – one of the biggest electronics markets ever – will be worth $45.7 billion for Raytheon’s AN/SPY-6(V) AMDR & EASR & DBR Radar & C4I over the next ten years, and $25.6 billion for Lockheed Martin’s AN/SPY-1(V) & SPY-7(V) & Aegis & ICS.
Another major program is the AN/SPQ-9(V) mounted on Arleigh Burke destroyers as well as cruisers, amphibious landing ships, carriers, and various other ships. The current SPQ-9B offers Over-The-Horizon (OTH) Anti-Ship Missile Defense (ASMD) optimized to detect, track, and respond to very low-flying, small radar cross section, high-speed targets in heavy clutter environments. The SPQ-9B and the US Navy’s notional Future X-band Radar (FXR) will combine to be worth an estimated $2.9 billion through Teal Group’s forecast period – a substantial middle-tier radar program – for DRS, Northrop Grumman, and an Undetermined Future Naval X-band Radar developer/producer.
Our Naval Surface Ship Radar & C4I Systems funding forecast for the much smaller US Navy Littoral Combat Ship (LCS) will be worth only $1.3 billion over the next ten years, for the Airbus Defense and Space TRS-3D/16-ES and active electronically-scanned array antenna (AESA) TRS-4D systems (designated AN/SPS-80(V) on US Navy [LCS-1] Freedom class LCSs), and the smaller Saab Sensis Sea Giraffe AMB and AESA Sea Giraffe 4A systems (designated AN/SPS-77(V) on US Navy [LCS-2] Independence class LCSs).