Land-based Military Electro-optical And Infrared Systems Market - Growth, Trends, And Forecasts (2020 - 2025)

The land-based military electro-optical and infrared systems market is expected to register a CAGR of 3.07% during the forecast period.

- Growing defense expenditures and the increasing necessity to enhance the military ISR capabilities and the battlefield situational awareness are the main drivers for the market.
- However, various design challenges, technological constraints, supply chain risks, the evolving global crisis, and unprecedented factors, like the outbreak of the COVID-19 pandemic, are projected to affect the market prospects during the forecast period.

Key Market Trends

Increasing Necessity to Enhance the Military ISR Capabilities and the Battlefield Situational Awareness Driving the Market

Growing asymmetric threat environments are necessitating the need for more advanced ISR capabilities for militaries. There is a growing need to integrate different systems together to work in tandem, in order to create enterprise-like systems that provide a broader view of the entire ISR spectrum. In this regard, militaries are demanding full situational awareness distributed across the battle network. In the current battlefield scenario, militaries are required to operate in the day, night, and under adverse weather and limited visibility conditions, where human vision is not enough. Therefore, EO/IR sensors with their high range and better target recognition capabilities in challenging visibility conditions will be useful, realizing which, many countries are procuring these systems currently. Thus, with the rising focus on enhancing the militariesÕ situational awareness, companies are working on technologies that provide expanded visibility and threat warning to military vehicles and the dismounted infantry, thereby increasing their safety. Thus, the growing emphasis on improving situational awareness on the battlefield and the growing demand from the militaries in terms of better ISR capabilities are currently aiding the marketÕs growth.

Man-Portable Segment is Expected to Show High Growth During the Forecast Period

The importance of man-portable EO/IR sensors for gathering battlefield information is steadily increasing. There is an increase in the number of intelligence missions, in which tactical information is collected on the battlefield through systematic observation by deployed soldiers, with the help of a variety of electro-optical sensors. This is driving the growth of the market. As more and more EO/IR sensors become man-portable, more tasks can be accomplished from the ground rather than the air. This will provide commanders with greater flexibility in achieving their objectives with shorter timelines. In addition, the EO/IR sensors also enhance situational awareness thereby increasing their safety and efficiency in the battlefield at all times, even in adverse weather conditions. Due to these factors, the procurement of the man-portable EO/IR sensors is increasing. In October 2019, the US Army soldiers received 40 new Enhanced Night Vision Goggle Ð Binocular (ENVG-B) from L3Harris Technologies as a part of USD 391 million ENVG-B Directed Requirement contract from the US Army that was awarded in 2018. Following the delivery, the company received an order for about 7,000 additional systems and logistics support. With this new order, the government has more than 10,000 ENVG-B systems on order under the Directed Requirement contract. Similar orders for new electro-optical sensors for various man-portable applications is anticipated to propel the growth of the segment during the forecast period.

Competitive Landscape

Some of the prominent players in the market are FLIR Systems Inc., L3Harris Technologies Inc., BAE Systems plc, Thales Group, and Leonardo DRS. Players in the market are trying to modify and enhance their current capabilities through continuous R&D and introduce sophisticated features to deliver value-added EO/IR solutions to end-users. Most of the integration programs are long-term, and hence, several IDIQ contracts are currently underway, signifying design modification and production of sophisticated EO/IR sensors as per end-user specifications. Gaining such contracts will help the players in terms of continuous cash-inflow, thereby helping their sustained growth. Furthermore, the development of a new integration platform drives the demand for integration of sophisticated EO/IR sensors and systems, which in turn, may create a positive outlook for the market during the forecast period.

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