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Electro Optics Market Overview
Electro Optics Market Size is forecast to reach $19.0 billion by 2026, at a CAGR of 6.8% during 2021-2026. The rising concern for safety and security and the need for advanced defense systems and equipment are the primary factors driving the growth of the electro optics market share. In addition increasing deployment of electro optics systems in unmanned vehicles is another factor driving the growth of the electro optical industry. Moreover, the electro optics system is also being used for non-destructive testing in the aerospace sector and also border protection agencies use these systems for monitoring an intrusion attempt. As terrorist activities are on a rise across various regions, there is an immense need for advanced surveillance systems and the need to prevent intrusion attempts by the terrorist organization, which is driving the market forward. Moreover, these equipment include multispectral day and night imaging sensors, laser rangefinders (LRF), night vision goggles, and infrared targeting pods, optical fibers among others. These capabilities have led to the growth of electro optics market share in defense and military applications in the forecast period 2021-2026.
Report Coverage
The report: “Electro Optics Market Report– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Electro Optics market
By System: Targeting System, Electronic Support Measure, and Imaging System
By Technology: Uncooled, Cooled
By Sensor Technology: Staring Sensors, Scanning Sensors
By Imaging Technology: Hyperspectral, Multispectral
By Application: Air Based, Land Based, Naval Based
By End User: Defense, Aerospace, and Homeland Security
By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle East and Africa)
Key Takeaways
- Defense sector in Electro Optics market is expected to witness a highest CAGR of 7.4% during the forecast period. With the increasing demand for technologically advanced security and surveillance systems due to the increasing acts of insurgency, and growing demand for the drone-powered electro-optical systems for surveillance are some of the factors driving the market.
- Electro optics and related equipment are being increasingly used by the armed forces in APAC due to the advantages provided by these systems such as enabling fast-paced decision-making through effective imagery solution, intelligence gathering and targeting solutions.
- The naval segment of the market is anticipated to register the highest CAGR of 7.5% during the forecast period. The growth of territorial conflicts and border issues increased the risk for maritime assets of militaries, which led to increasing emphasis on surveillance, threat detection, and target identification at sea.
- The increasing defense budgets have led to the rise in the procurement of advanced surveillance equipment, air defence systems, unmanned helicopters warships, submarines, missiles, and others, which is predicted to boost the growth of the Electro optics market during the forecast period.
Global Electro Optics Market, By Region, 2020
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Electro Optics Market Segment Analysis - By Platform
The naval segment of the market is anticipated to register the highest CAGR of 7.5% during the forecast period. The growth of territorial conflicts and border issues increased the risk for maritime assets of militaries, which led to increasing emphasis on surveillance, threat detection, and target identification at sea. In addition, the need for better sensor systems that are highly reliable and accurate for maritime patrol to improve sea-based situational awareness has increased. Adding to this, as the naval vessels are isolated from the terrain, it becomes important for them to possess advanced threat detection and countermeasure systems for their long-time survival from impending threats. This is driving the growth of R&D in these sea-based electro optics currently. Moreover various regions are upgrading their electro optics system. In January 2020, US Navy placed its first production order for 40 WESCAM MX-10MS electro-optical, infrared (EOIR) sensor suites from L3Harris Technologies in support of their Military Sealift Command Electro-Optical System (MSC-EOS) program. The MSC-EOS System’s primary mission is to provide enhanced visual imagery to augment existing electronic sensors. Likewise, in August 2019, the US Department of Defense announced the agreement with FLIR Surveillance Inc. for the supply, repair, and up gradation of Sea Star SAFIRE III Electro-optics Sensor Systems. The project is expected to be completed by August 2024. Hence developments as such are expected to drive the market for naval platform thereby driving the growth of Electro Optics Market share in the forecast period 2021-2026.
Electro Optics Market Segment Analysis - By End User
Defense sector in Electro Optics market is expected to witness a highest CAGR of 7.4% during the forecast period. With the increasing demand for technologically advanced security and surveillance systems due to the increasing acts of insurgency, and growing demand for the drone-powered electro-optical systems for surveillance are some of the factors driving the market. These systems present various advantages, such as in case of low visibility, low light cameras are used as they give better performance with comparatively less power consumption and better output. Moreover, with the ongoing advancements in electro optics system, they have enabled 24-hour situational awareness, 360-degree rotation, guidance for defense gunnery, and automated object detection. Further Electro Optics systems can recognize the targets in the day or at night and in high as well as in low contrast environments. Owing to the increasing military expenditure worldwide, with the armed forces acquiring various devices such as electro optical systems and also developing new technologies in this field, thus electro optics industry is expected to witness further growth.
Electro Optics Market Segment Analysis - By Geography
Electro Optics market in Asia-Pacific region held significant market share of 36.5% in 2020, Electro optics and related equipment are being increasingly used by the armed forces in this region due to the advantages provided by these systems such as enabling fast-paced decision-making through effective imagery solution, intelligence gathering and targeting solutions. Further governments of countries such as China, India are investing heavily for procurement of these systems. In 2020, India has committed to spend $130 billion on military modernization in the next 5 years, as achieving self- reliance in defence production is a key target for the Government of India. Similarly, China has increased its defense budget 6.8% in 2021. These countries are continuously trying to modernize their armed forces to face any security threats from terrorist organizations in a better way. Moreover, soldier modernization programs are also driving the market in this region. The development of eye-safe laser equipment that is harmless on a soldier eyes have become a global need and will replace the existing equipment used for search applications for defense forces is also a factor which drives the electro optics market size.
Electro Optics Market Drivers
Increasing Adoption of Technologically Advanced UAVs to Propel Market Growth
Rising deployment of advanced UAVs for surveillance purposes is expected to drive electro-optics market during the forecast period. According to a new report issued by the General Atomics. General Atomics received $7.4 billion MQ-9 Reaper contract with U.S. Air Force. Similarly, in 2020, Textron Inc. announced to collaborate with Shield AI to advance the multi-domain autonomy for military applications to provide reliable, highly capable unmanned aerial system. In 2020, BAE Systems announced to sign a $400 million contract with the U.S Air Force under Skyborg program to develop a low cost unmanned aerial vehicle, capable of operating autonomously to bolster the air combat power. As Electro-optics enable unmanned vehicles to see and avoid obstacles, detect movement, navigate accurately, and warn of the potential for buried improvised explosive devices (IEDs). Hence these factors are analyzed to drive the electro optics market growth in the forecast period 2021-2026.
Growing adoption of Electro optics in Military
Change in warfare and battlefield operations has increased the need for modernization of conventional military equipment into highly advanced systems. Modernization is necessary to keep pace with the technological advancements during warfare. This is expected to increase the demand for long-range Electro Optics for surveillance purposes. The U.S. Department of Defense (DoD) is strongly focused on upgrading their defense platforms. For instance, in 2019, the US spent $718.69 billion to modernize its armed forces and enhance its combat capabilities. Growing defense budgets have led to the rise in the procurement of advanced military equipment, as electro optics is used for various applications in military segment hence modernization will have significant impact on the growth electro optics industry outlook during the forecast period.
Electro Optics Market Challenges
Design Complexities
The electro optics are highly preferred for military applications due to its advanced features such as high operational efficiency, high integration, and compatibility to operate under various unmanned aerial system platforms for night light target identification and target tracking. However, design complexity and fundamental theories limit the long-range photography, camera size, and performance of the electro optics. These constraints in the design and development of the military miniature lightweight electro-optics are expected to hamper the growth of the market.
Electro Optics Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Electro Optics market. Electro Optics top 10 companies include Northrop Grumman Corporation, Leonardo DRS, Elbit Systems Ltd., BAE Systems plc, FLIR Systems, L-3 Technologies, Lockheed Martin Corporation, Raytheon Company, Thales Group, Safran SA among others.
Acquisitions/Product Launches
- In June 2019, Lockheed Martin successfully delivered the 500th Electro-Optical Targeting System (EOTS). EOTS is the world's first sensor to combine forward-looking infrared and infrared search and track functionality to provide F-35 pilots with precise air-to-air and air-to-ground targeting capability.
- In March 2019, FLIR Systems, Inc. announced that it has completed its previously announced acquisition of Endeavour Robotic Holdings, Inc., a leading developer of battle-tested, tactical unmanned ground vehicles (UGVs) for the global military, public safety, and critical infrastructure markets, from Arlington Capital Partners.
Relevant Report Titles:
Report Code: AIR 0087
1. Electro Optics Market - Market Overview
1.1 Definitions and Scope
2. Electro Optics Market - Executive Summary
2.1 Market Revenue, Market Size and Key Trends by Company
2.2 Key trends by type
2.3 Key trends segmented by geography
3. Electro Optics Market– Industry Landscape
3.1 Comparative Analysis
3.1.1 product/Company Benchmarking-Top 5 Companies
3.1.2 Top 5 Financial Analysis
3.1.3 Market Value Split by Top 5 Companies
3.1.4 Patent Analysis
3.1.5 Pricing Analysis
4. Electro Optics Market - Startup companies Scenario Premium (Premium)
4.1 Top 10 startup company Analysis by
4.1.1 Investment
4.1.2 Revenue
4.1.3 Market Shares
4.1.4 Market Size and Application Analysis
4.1.5 Venture Capital and Funding Scenario
5. Electro Optics Market - Industry Market Entry Scenario Premium (Premium)
5.1 Regulatory Framework Overview
5.2 New Business and Ease of Doing business index
5.3 Case studies of successful ventures
5.4 Customer Analysis - Top 10 companies
6. Electro Optics Market - Market Forces
6.1 Market Drivers
6.2 Market Constraints
6.3 Porters five force model
6.3.1 Bargaining power of suppliers
6.3.2 Bargaining powers of customers
6.3.3 Threat of new entrants
6.3.4 Rivalry among existing players
7. Electro Optics Market - By Strategic Analysis (Market Size -$Million/Billion)
7.1 Value Cain Analysis
7.2 Opportunities Analysis
7.3 Product Life Cycle/Market Life Cycle Analysis
7.4 Supplier/Distributor Analysis
8. Electro Optics Market – By System (Market Size -$Million/Billion)
8.1 Targeting System
8.2 Electronic Support Measure,
8.3 Imaging System
9. Electro Optics Market – By Technology (Market Size -$Million/Billion)
9.1 Uncooled
9.2 Cooled
10. Electro Optics Market – By Sensor technology (Market Size -$Million/Billion)
10.1 Staring Sensors
10.2 Scanning Sensors
11. Electro Optics Market – By Imaging technology (Market Size -$Million/Billion)
11.1 Hyperspectral
11.2 Multispectral
12. Electro Optics Market – By Application Platform (Market Size -$Million/Billion)
12.1 Air Based
12.2 Land Based
12.3 Naval Based
13. Electro Optics Market – By End User (Market Size -$Million/Billion)
13.1 Defense
13.2 Aerospace
13.3 Homeland Security
13.4 Others
14. Electro Optics Market – By Geography
14.1 North America
14.1.1 U.S
14.1.2 Canada
14.1.3 Mexico
14.2 South America
14.2.1 Brazil
14.2.2 Argentina
14.2.3 Chile
14.2.4 Others
14.3 Europe
14.3.1 U.K
14.3.2 Germany
14.3.3 France
14.3.4 Italy
14.3.5 Netherlands
14.3.6 Belgium
14.3.7 Spain
14.3.8 Russia
14.3.9 Others
14.4 APAC
14.4.1 China
14.4.2 India
14.4.3 Japan
14.4.4 South Korea
14.4.5 Indonesia
14.4.6 Malaysia
14.4.7 Australia & New Zealand
14.4.8 Others
14.5 ROW
14.5.1 Middle East
14.5.2 Africa
15. Electro Optics Market – Entropy
16. Electro Optics Market – Industry / Segment Competition landscape Premium (Premium)
16.1 Market Share Analysis
16.1.1 Market Share by Region- Top 10 companies
16.1.2 Market Share by type of Industry vertical – Top 10 companies
16.1.3 Market Share by type of component- Top 10 companies
16.1.4 Market Share at global level- Top 10 companies
16.1.5 Best Practices for companies
17. Electro Optics Market – Key Company List by Country Premium (Premium)
18. Electro Optics Market -Company Analysis
18.1 Northrop Grumman Corporation
18.2 Leonardo DRS
18.3 Elbit Systems Ltd.
18.4 BAE Systems plc
18.5 FLIR Systems.
18.6 Company 6
18.7 Company 7
18.8 Company 8
18.9 Company 9
18.10 Company 10
"*Financials would be provided on a best efforts basis for private companies"
19. Electro Optics Market –Appendix (premium)
19.1 Abbreviations Sources
19.2 Sources
20. Electro Optics Market -Methodology Premium (premium)
20.1 Research Methodology
20.1.1 Company Expert Interviews
20.1.2 Industry Databases
20.1.3 Associations
20.1.4 Company News
20.1.5 Company Annual Reports
20.1.6 Application Trends
20.1.7 New Products and Product Database
20.1.8 Company Transcripts
20.1.9 R&D Trends
20.1.10 Key Opinion Leaders Interviews
20.1.11 Supply and Demand Trends
LIST OF TABLES
1.Global MARKET SEGMENTATION Market 2023-2030 ($M)1.1 By Application Platform Market 2023-2030 ($M) - Global Industry Research
1.1.1 Air Based Market 2023-2030 ($M)
1.1.2 Land Based Market 2023-2030 ($M)
1.1.3 Naval Based Market 2023-2030 ($M)
1.2 By End User Market 2023-2030 ($M) - Global Industry Research
1.2.1 Defense Market 2023-2030 ($M)
1.2.2 Aerospace Market 2023-2030 ($M)
1.2.3 Homeland Security Market 2023-2030 ($M)
2.Global COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
3.Global MARKET SEGMENTATION Market 2023-2030 (Volume/Units)
3.1 By Application Platform Market 2023-2030 (Volume/Units) - Global Industry Research
3.1.1 Air Based Market 2023-2030 (Volume/Units)
3.1.2 Land Based Market 2023-2030 (Volume/Units)
3.1.3 Naval Based Market 2023-2030 (Volume/Units)
3.2 By End User Market 2023-2030 (Volume/Units) - Global Industry Research
3.2.1 Defense Market 2023-2030 (Volume/Units)
3.2.2 Aerospace Market 2023-2030 (Volume/Units)
3.2.3 Homeland Security Market 2023-2030 (Volume/Units)
4.Global COMPETITIVE LANDSCAPE Market 2023-2030 (Volume/Units)
5.North America MARKET SEGMENTATION Market 2023-2030 ($M)
5.1 By Application Platform Market 2023-2030 ($M) - Regional Industry Research
5.1.1 Air Based Market 2023-2030 ($M)
5.1.2 Land Based Market 2023-2030 ($M)
5.1.3 Naval Based Market 2023-2030 ($M)
5.2 By End User Market 2023-2030 ($M) - Regional Industry Research
5.2.1 Defense Market 2023-2030 ($M)
5.2.2 Aerospace Market 2023-2030 ($M)
5.2.3 Homeland Security Market 2023-2030 ($M)
6.North America COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
7.South America MARKET SEGMENTATION Market 2023-2030 ($M)
7.1 By Application Platform Market 2023-2030 ($M) - Regional Industry Research
7.1.1 Air Based Market 2023-2030 ($M)
7.1.2 Land Based Market 2023-2030 ($M)
7.1.3 Naval Based Market 2023-2030 ($M)
7.2 By End User Market 2023-2030 ($M) - Regional Industry Research
7.2.1 Defense Market 2023-2030 ($M)
7.2.2 Aerospace Market 2023-2030 ($M)
7.2.3 Homeland Security Market 2023-2030 ($M)
8.South America COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
9.Europe MARKET SEGMENTATION Market 2023-2030 ($M)
9.1 By Application Platform Market 2023-2030 ($M) - Regional Industry Research
9.1.1 Air Based Market 2023-2030 ($M)
9.1.2 Land Based Market 2023-2030 ($M)
9.1.3 Naval Based Market 2023-2030 ($M)
9.2 By End User Market 2023-2030 ($M) - Regional Industry Research
9.2.1 Defense Market 2023-2030 ($M)
9.2.2 Aerospace Market 2023-2030 ($M)
9.2.3 Homeland Security Market 2023-2030 ($M)
10.Europe COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
11.APAC MARKET SEGMENTATION Market 2023-2030 ($M)
11.1 By Application Platform Market 2023-2030 ($M) - Regional Industry Research
11.1.1 Air Based Market 2023-2030 ($M)
11.1.2 Land Based Market 2023-2030 ($M)
11.1.3 Naval Based Market 2023-2030 ($M)
11.2 By End User Market 2023-2030 ($M) - Regional Industry Research
11.2.1 Defense Market 2023-2030 ($M)
11.2.2 Aerospace Market 2023-2030 ($M)
11.2.3 Homeland Security Market 2023-2030 ($M)
12.APAC COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
13.MENA MARKET SEGMENTATION Market 2023-2030 ($M)
13.1 By Application Platform Market 2023-2030 ($M) - Regional Industry Research
13.1.1 Air Based Market 2023-2030 ($M)
13.1.2 Land Based Market 2023-2030 ($M)
13.1.3 Naval Based Market 2023-2030 ($M)
13.2 By End User Market 2023-2030 ($M) - Regional Industry Research
13.2.1 Defense Market 2023-2030 ($M)
13.2.2 Aerospace Market 2023-2030 ($M)
13.2.3 Homeland Security Market 2023-2030 ($M)
14.MENA COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
LIST OF FIGURES
1.US Electro Optics Market Revenue, 2023-2030 ($M)2.Canada Electro Optics Market Revenue, 2023-2030 ($M)
3.Mexico Electro Optics Market Revenue, 2023-2030 ($M)
4.Brazil Electro Optics Market Revenue, 2023-2030 ($M)
5.Argentina Electro Optics Market Revenue, 2023-2030 ($M)
6.Peru Electro Optics Market Revenue, 2023-2030 ($M)
7.Colombia Electro Optics Market Revenue, 2023-2030 ($M)
8.Chile Electro Optics Market Revenue, 2023-2030 ($M)
9.Rest of South America Electro Optics Market Revenue, 2023-2030 ($M)
10.UK Electro Optics Market Revenue, 2023-2030 ($M)
11.Germany Electro Optics Market Revenue, 2023-2030 ($M)
12.France Electro Optics Market Revenue, 2023-2030 ($M)
13.Italy Electro Optics Market Revenue, 2023-2030 ($M)
14.Spain Electro Optics Market Revenue, 2023-2030 ($M)
15.Rest of Europe Electro Optics Market Revenue, 2023-2030 ($M)
16.China Electro Optics Market Revenue, 2023-2030 ($M)
17.India Electro Optics Market Revenue, 2023-2030 ($M)
18.Japan Electro Optics Market Revenue, 2023-2030 ($M)
19.South Korea Electro Optics Market Revenue, 2023-2030 ($M)
20.South Africa Electro Optics Market Revenue, 2023-2030 ($M)
21.North America Electro Optics By Application
22.South America Electro Optics By Application
23.Europe Electro Optics By Application
24.APAC Electro Optics By Application
25.MENA Electro Optics By Application