12 Mar RADA Electronics Making A Mark On The Global Radar Market
RADA Electronic Industries (NASDAQ: RADA), a global defense technology Company offering leading-edge radar solutions and legacy avionics systems, announced the manufacture of the first radar in the U.S through its American Subsidiary in its manufacturing facility based in Germantown, Maryland. The company would be delivering the first US-manufactured MHR radar to the US Marine Corps.
The Company develops manufactures and sells tactical land radars and advanced avionics systems for border protection and fighters and UAV’s. RADA offers diverse products to suit the needs of its defense and military clientele such as advanced pulse-Doppler, multi-mission, 4D AESA radars for land-based tactical uses, Active Protection Systems (APS) for combat vehicles, Short-Range Air Defense (SHORAD) solutions for the maneuver force (including Counter-UAS), Counter Rockets/Artillery/Mortars (C-RAM) systems to name a few.
Dov Sella, RADA’s CEO, stated,
“Our US subsidiary has enabled us to successfully Americanize and adapt our technologies for US military needs, bringing RADA a very significant market for our radar technologies. Our radar systems are already embedded in the US Army and US Marine Corps’ current SHORAD solutions, and we look forward to further empowering US defense agencies with our active protection solutions.”
In addition, the Company also provides an advanced range of solid-state digital recorders, cameras and debriefing systems based on cutting-edge Micro-Electro-Mechanical Sensors (MEMS), which are the best fit for aerial and land tactical vehicles. RADA is in the process of obtaining a Special Security Agreement (SSA) from the US Department of Defense.
Furthermore the Company also announced the receipt of over $6 million in new orders since January 2020, $5million of which were for its software-defined radars for counter UAV and shot range air defense (SHORAD). The orders also included initial sales for point-defense solutions such as protection against cruise missiles and drones.
RADA Electronic Industries (NASDAQ: RADA)
Market Cap: $180.03M; Current Share Price: 4.16 USD
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Technological advancements have revolutionized modern warfare, leading to development of new generation land, naval and aerial warfare systems. Radar technology has evolved over time from locating targets to finding application in numerous areas such automotives, manufacturing, weather and medicine.
The military applications of radar include air traffic control (ATC), Concealed Weapon identification, ground surveillance, mission critical control and surveillance support. The need to defend against advanced systems and availability of next-generation software and manufacturing capabilities is the driving force behind the growth in the global military radar markets.
According to a report by MarketsandMarkets, the Global Military Radars Market is expected to reach USD 15.42 Billion by 2022, growing at a CAGR of 3.38%, from USD 13.06 Billion in 2017. Increasing conflicts and global unrest, rising defense budgets, use of innovation are the primary drivers of growth in the market. Additionally the emergence of unmanned Aerial vehicles and increase in ground surveillance activities will contribute to the growth in the market.
However, the prohibitive costs associated with radar development and manufacturing, emergence of radar jammers that prevent them for working efficiently and integration issues may hamper the growth in the market.
RADA is a specialist in aerospace and defense solutions that encompass advanced electronic systems for land and aerial applications. The Company provides Tactical land radars, Intertial Navigation systems and Avionics system that offer hemispheric spatial coverage and excellent performance-to-price ratio.
The Company offers exceptional performance at a superior price point, by delivering high performance, software-defined customized solutions that are amenable to technology of the future and support open architecture. RADA offers industry-leading solutions at competitive prices that are below the prices of its competitors.
RADA has set up a US subsidiary and has completed technology transfer and established necessary production, maintenance and customer support.
RADA has built numerous strategic partnerships and caters to leading military organizations and defense integrators around the world such as IDF/IAF, US Army, USMC, USAF, US SOF, Rafael Advanced Defense Systems, Elbit Systems, Israel Aerospace Industries (IAI), Lockheed Martin, Boeing, Leonardo DRS, Rheinmetall Air Defense, ELT, Hindustan Aeronautics Ltd (HAL), Embraer name a few.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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