While the military radar systems market exhibits promising growth, it faces challenges such as high development costs, technical complexities in electronic counter-countermeasures (ECCM), and vulnerability to radar jamming. Addressing these requires sustained R&D investments alongside collaborations between technology developers, military agencies, and regulatory bodies.

The complexity of integrating legacy radar platforms with modern systems poses another challenge, necessitating modular and software-upgradable designs for future readiness. Cybersecurity concerns in networked radar systems also call for robust protection mechanisms to prevent data breaches and sabotage.

Strategically, market players focusing on developing resilient, versatile radar systems capable of functioning in contested electronic warfare environments will gain competitive advantages. Governments increasingly prefer such advanced systems for multi-domain operations, offering strong long-term opportunities.

Partnerships and co-development initiatives, along with ongoing modernization programs, provide defensive and technological innovation avenues vital for sustained market growth.