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Electro Optical Systems - Global Market Trajectory & Analytics

  • ID: 4804322
  • Report
  • February 2022
  • Region: Global
  • 409 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • BAE Systems PLC
  • Collins Aerospace
  • Elbit Systems Ltd.
  • FLIR Systems, Inc.
  • Instro Precision Limited
  • Leonardo DRS

Global Electro Optical Systems Market to Reach $14.2 Billion by 2026


Electro optical systems or infrared systems constitute imaging systems primarily used by law enforcement and military departments for achieving better situational awareness of environments, during daytime and nights, and even in conditions of low light. Comprising of infrared sensors as well as electro-optical sensors, the EO systems are capable of offering precise optical data during the day and night. Growth in the global market is being driven by rising adoption of EO systems in homeland security (airborne), fire control system, for situational awareness, target acquisition, search and rescue operations, and in ISR (intelligence, surveillance, and reconnaissance). Demand for EO systems is mainly fueled by the rising use of sophisticated sensor-based systems in the military space. The global market for these systems is propelled by increasing adoption in unmanned vehicles and for battle-space awareness along with increasing use by armed forces for efficiently dealing with security threats. Another primary driver for the market is increasing focus of several countries to modernize armed forces and upgrade to new products. These systems are used in the aerospace sector for non-destructive testing as well as by border protection agencies to monitor intrusion. Also, the growing focus on miniaturization will support the emergence of sophisticated, portable, and small EO systems for ISR and situational awareness applications globally.

Amid the COVID-19 crisis, the global market for Electro Optical Systems estimated at US$11.3 Billion in the year 2020, is projected to reach a revised size of US$14.2 Billion by 2026, growing at a CAGR of 4.1% over the analysis period. Airborne, one of the segments analyzed in the report, is projected to record a 3.5% CAGR and reach US$9.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Ground segment is readjusted to a revised 4.7% CAGR for the next 7-year period. Airborne platforms are emerging as an important resource for defense forces to ensure an efficient and robust security & surveillance environment. The growth of airborne segment is likely to be supported by the increasing use of these systems in UAV applications including surveillance, mapping, search & rescue and reconnaissance that require cameras to capture data and transfer video information to ground control stations.



The U.S. Market is Estimated at $4.2 Billion in 2021, While China is Forecast to Reach $1.8 Billion by 2026


The Electro Optical Systems market in the U.S. is estimated at US$4.2 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.8 Billion by the year 2026 trailing a CAGR of 5.8% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.9% and 3.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR. The US dominates market growth due to the huge investments being made in the development and procurement of electro optical systems used in military platforms such as aircraft, armored vehicles, helicopters, naval vessels, submarines and UAVs. Europe is witnessing increasing focus on R&D for these systems to develop lightweight, robust and cost-efficient solutions for mission-critical operations. Asian economies are poised to emerge as promising regional markets for advanced military electro optical and infrared systems. Supported by strong growth exhibited by Japan, Australia, China and India, the spending on electro optical systems is rising. These systems are widely used by armed forces for make quick decisions using superior imagery and intelligence gathering.

Naval Segment to Reach $2.3 Billion by 2026


Escalating territorial disputes among countries and the resulting focus on the naval warfare is prompting naval agencies to use advanced electro optical and infrared systems, sensors and combat systems to update target acquisition capabilities of naval platforms. Naval forces use electro optical systems in different ways like infrared search & track systems and fire control directors. Naval platforms are using these systems in CIWS (Close-in Weapon System) for target acquisition and engagement. Ongoing research is likely to result in launch of advanced sensors for body armor and weapons along with communication systems. In the global Naval segment, USA, Canada, Japan, China and Europe will drive the 5.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.2 Billion in the year 2020 will reach a projected size of US$1.8 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$197.6 Million by the year 2026.

Select Competitors (Total 62 Featured) -

  • BAE Systems PLC
  • Collins Aerospace
  • Elbit Systems Ltd.
  • FLIR Systems, Inc.
  • General Dynamics Mission Systems, Inc.
  • Instro Precision Limited
  • Israel Aerospace Industries
  • L3Harris Technologies, Inc.
  • Leonardo DRS
  • Lockheed Martin Corporation
  • Rheinmetall AG
  • Saab AB
  • Safran S.A.
  • Textron Systems
  • Thales Group
Frequently Asked Questions about the Global Market for Electro Optical Systems

What is the estimated value of the Global Market for Electro Optical Systems?

The Global Market for Electro Optical Systems was estimated to be valued at $11.3 Billion in 2020.

What is the growth rate of the Global Market for Electro Optical Systems?

The growth rate of the Global Market for Electro Optical Systems is 3.9%, with an estimated value of $14.2 Billion by 2026.

What is the forecasted size of the Global Market for Electro Optical Systems?

The Global Market for Electro Optical Systems is estimated to be worth $14.2 Billion by 2026.

Who are the key companies in the Global Market for Electro Optical Systems?

Key companies in the Global Market for Electro Optical Systems include BAE Systems PLC, Collins Aerospace, Elbit Systems Ltd., FLIR Systems, Inc., General Dynamics Mission Systems, Inc., Instro Precision Limited, Israel Aerospace Industries, L3Harris Technologies, Inc. and Lockheed Martin Corporation.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • BAE Systems PLC
  • Collins Aerospace
  • Elbit Systems Ltd.
  • FLIR Systems, Inc.
  • Instro Precision Limited
  • Leonardo DRS

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Influencer Market Insights
  • World Market Trajectories
  • Impact of Covid-19 and a Looming Global Recession
  • Worsening COVID-19 and Economic Scenario Dampens Outlook for Electro Optical (EO) Systems, But Provides a Burning Platform for Innovation: Confirmed COVID-19 Cases Per Million in June Vs GDP Per Capita Vs GDP Growth for 2020
  • Electro Optical Systems Market: Prospects and Outlook
  • Military Applications Boost Growth in Electro-Optical System Market
  • North America Leads Global EO Systems Market
  • Competition
  • Key Brands in Electro Optical Industry
  • Recent Market Activity
  • Electro Optical Systems – Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • Military Electro Optical and Infrared Systems Market: Evolving Defense Needs Support Growth
  • Advancements in Defense Electronics and Miniaturization of Military Electronics Support Market Growth
  • Growing Use of Sensor-Based Systems in Military Applications Augurs Well for the Market
  • With Defense Budgets Coming Under Intense Pressure, EO Systems Market Witnesses Challenging Times
  • Defense Spending Trends Set Demand Dynamics for EO Systems: Defense Expenditure Worldwide in US$ Billion for the Years 2001 through 2018
  • Leading Countries Ranked by Defense Budgets in US$ Billion for 2019
  • Improving Target Identification, Threat Assessment and Monitoring: Essential Capabilities of EO Systems
  • Growing Emphasis on Border Security Drives Demand for EO Systems
  • Continued Threat of Terrorism Drives the Focus on Surveillance as Counterterrorism Response: Global Number of Fatalities (in ‘000) Due to Terrorist Attacks: 2010-2018
  • Thermal Cameras: An Important System for Securing Borders
  • Market Primed to Benefit from the Rising Adoption of High Capability UAVs
  • Increasing Use of Drones in the Battlefield Pushes Up Demand for EO/IR Systems: Global Market for Military Drones (In US$ Billion) for the Years 2018, 2020, 2022 and 2024
  • With Unmanned Aircrafts Posing Threat of Terrorism and Smuggling, EO/IR-based Counter-Drone Systems Grow in Prominence
  • Application of EO/IR in Homeland Security and Search and Rescue Missions: Opportunities for Growth
  • Technological Advances to Bolster Market Growth
  • A Glance at Select Innovations in Electro Optical Systems
  • New and Advanced EO Materials
  • Ultra-rapid EO Modulator for Converting THz Signals into Optical Signals
  • US Companies Offer Support to US Air Force for EO/RF-Related Technology Development
  • EO System-Based Coast Guard Technology for Turkey

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Improved EO Systems for the US Defense Industry

CANADA

JAPAN

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)

CHINA

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)

EUROPE

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)

FRANCE

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)

ITALY

UNITED KINGDOM

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)

REST OF EUROPE

ASIA-PACIFIC

  • Electro Optical Systems Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • India: Electro Optical Systems Market Presents Lucrative Opportunities for Vendors

REST OF WORLD

IV. COMPETITION

  • Total Companies Profiled: 62
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • BAE Systems PLC
  • Collins Aerospace
  • Elbit Systems Ltd.
  • FLIR Systems, Inc.
  • General Dynamics Mission Systems, Inc.
  • Instro Precision Limited
  • Israel Aerospace Industries
  • L3Harris Technologies, Inc.
  • Leonardo DRS
  • Lockheed Martin Corporation
  • Rheinmetall AG
  • Saab AB
  • Safran S.A.
  • Textron Systems
  • Thales Group
Note: Product cover images may vary from those shown