EO/IR Gimbal Market By Product Type, By End Use: Global Opportunity Analysis and Industry Forecast, 2020-2030

Executive Summary

According to this report titled, 'EO/IR Gimbal Market,' the EO/IR gimbal market size was valued at $604.90 million in 2020, and is estimated to reach $2.1 billion by 2030, growing at a CAGR of 13.3% from 2021 to 2030.

EO/IR camera systems are used for unmanned aerial vehicles (UAVs), drones, and unmanned vehicles including USVs and UGVs as well as fixed-site installations. EO/IR gimbal is ideal for unmanned aerial platforms such as multirotor, fixed-wing & hybrid UAVs, aerostats, and balloons. Gimbal system is mainly used to search, observe, and track land or sea, which can satisfy aerial photography, flight navigation, reconnaissance, and other application demands. In addition, these gimbals have various features including small size & lightweight, wireless digital transmission, HD+IR dual sensor for day or night surveillance, compact structure, high adaptability, low power dissipation, and great cost-efficiency.

The EO/IR gimbal market growth is majorly driven by the rising requirement for intelligent sensors and sighting devices, countermeasures, and reconnaissance. However, the launch of new upgraded technologies in a similar field hampers the market growth. Some of the prominent features of EO/IR gimbals are object tracking, real-time video stabilization, navigation, onboard video encoding, anti-vibration, and GEO-lock.

In May 2021, Teledyne Technologies acquired FLIR Systems, Inc., to provide an advanced targeting solution. Teledyne successfully created a new segment called digital imaging, which comprises services and solutions provided by FLIR Systems, Inc.

The EO/IR gimbal market analysis is segmented based on product type, end-use, and region. By product type, the market is bifurcated into 2-axis EO/IR gimbals and 3-axis EO/IR gimbals. By end-use, it is divided across UAV/UAS, defense, marine, law enforcement, and other segments. By region, the EO/IR gimbal market share is analyzed across the U.S. and the rest of the World.

Key players in the EO/IR gimbal industry include AeroVironment, Inc., Ascent Vision Technologies, CONTROP Precision Technologies Ltd., FLIR Systems, Inc (Teledyne FLIR LLC), Harris Aerial, i2Tech, L3 WESCAM, Leonardo DRS, Lockheed Martin Corporation, MARIO, Ukrspecsystems, and ZHIYUN.

COVID-19 Impact Analysis

The outbreak of coronavirus has led to a halt in the production process in 2020, owing to the global lockdown scenario causing disruption in the overall supply chain of electronic components. COVID-19 outbreak has caused a lag in meeting the requirements of end-users, as the epicenter of the virus outbreak Wuhan, China accounts for the largest manufacturing items of electronic components. On January 30, 2020, the outbreak of this disease on a global scale was acknowledged as a Public Health Emergency of International Concern.

In December 2020, DJI Company along with dozens of other Chinese companies was blacklisted by the U.S. government, which eventually fueled the prices of components and technology. This disruption in the demand-supply chain is expected to cause the market share to decline abruptly, owing to travel restrictions on a global basis.

COVID-19 has impacted both consumers and the economy. Electronics manufacturing hubs have been temporarily shut down to limit the COVID-19 spread among individuals. This has majorly affected the supply chain of the EO/IR Gimbal market by creating a shortage of materials, components, and finished goods. Lack of business continuity ensured a significant negative impact on revenue and shareholder returns, which further resulted in financial disruptions in the EO/IR gimbal market trends.

In addition, changes in government lockdown patterns and difficulties in reaching consumers are significantly impacting demand and prices. However, demand for EO/IR Gimbal has increased after the lockdown period has shortened as more infrastructure work has started.

Major players operating in the EO/IR Gimbal market are expected to make moderate R&D cuts, which allows them to sustain a rich and evolving product portfolio. In addition, companies strive to fund innovation rather than setting bare minimum budget required to keep R&D running.

Demand for new and innovative products is expected to surge once the economy begins to recover. Rather than simply improving products using current state-of-the-art technology, companies are looking forward to investing in next-generation products using new technologies. For instance, in February 2022, AeroVironment, Inc., one of the global leaders in intelligent, multi-domain robotic systems, received a contract worth $8,541,428 from the U.S. Department of Defense Foreign Military Sales (FMS) to provide Puma 3 AE small unmanned systems equipped with EO/IR gimbal payloads. This will help customers to enhance their surveillance, security, and defense capabilities.

Key players in the EO/IR Gimbal market are shifting toward an agile supply chain network model that has multiple pathways to prevent single points of failure. It can help them to balance costs with better assurance for business continuity and sustainability. Shifting from single country hubs to more extensive regional supply networks will initiate collaborative partnerships and industry associations. Stakeholders will be investing in resources and infrastructure that can quickly enable new manufacturing and supply nodes when required.

To stimulate the local economy, several governments have announced subsidies and incentives, which vary by region. However, the COVID-19 crisis is expected to accelerate the adoption of multi-censored EO/IR Gimbals and advanced technology capabilities such as artificial intelligence (AI) and machine learning (ML), which is expected to create a lucrative growth opportunity for the EO/IR Gimbal market.

Key findings of the Study

• The defense is projected to be the major end-user, followed by others.
• The U.S. is anticipated to witness the highest growth rate during the forecast period.
• Depending on product type, the 3-axis EO/IR gimbals segment generated the highest revenue in 2020 and is expected to witness the highest growth rate in the future.
• Region-wise, the EO/IR gimbals market was dominated by the U.S.

The key players profiled in the report include AeroVironment, Inc., Ascent Vision Technologies, CONTROP Precision Technologies Ltd., FLIR Systems, Inc (Teledyne FLIR LLC), Harris Aerial, i2Tech, L3 WESCAM, Leonardo DRS, Lockheed Martin Corporation, MERIO, Ukrspecsystems, and ZHIYUN. These players have adopted various strategies such as acquisitions, mergers, and product launches to strengthen their foothold in the industry

Companies Mentioned

• LEONARDO DRS
• FLIR SYSTEMS, INC.
• LOCKHEED MARTIN CORPORATION
• CONTROP PRECISION TECHNOLOGIES LTD.
• L3 WESCAM (L3HARRIS TECHNOLOGIES, INC.
• ASCENT VISION TECHNOLOGIES
• I2TECH
• HARRIS AERIAL
• UKRSPECSYSTEMS
• ZHIYUN
• MERIO
• Aerovironment, Inc.

Methodology

The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.

They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.

They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:

• Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
• Scientific and technical writings for product information and related preemptions
• Regional government and statistical databases for macro analysis
• Authentic news articles and other related releases for market evaluation
• Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast

Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.