The global electro optical system market is anticipated to be worth US$ 12,064.2 million in 2023, expected to reach US$ 18,794.6 million by 2033. From 2023 to 2033, the market is projected to exhibit a CAGR of 4.5%. However, the CAGR was valued at 2.4% from 2018 to 2022. Increasing demand for safety and security and the growing need for a developed defense system is expected to benefit the market during the forecast period.
| Data Points | Key Statistics |
|---|---|
| Base Year Value (2022) | US$ 11,724.2 million |
| Projected Market Value (2023) | US$ 12,064.2 million |
| Anticipated Forecast Value (2033) | US$ 18,794.6 million |
| Estimated Growth Rate (2023 to 2033) | 4.5% |
The defense segment is expected to acquire substantial traction. The increased need for technologically superior security and surveillance systems as a result of escalating insurgency incidents can be contributed to the segment's expansion. Another aspect driving the segment's expansion is rising military spending throughout the world.
In July 2022, officials from the United States Defence Logistics Agency Land and Maritime segment in Aberdeen, Md, announced a contract for MX-11769 image-intensifier tubes with the L3Harris Integrated Vision Solutions segment in Tempe, Ariz., and the Elbit Systems of America Night Vision segment in Roanoke, Va. The electro-optical image-intensifier tube has a continuous life of 12,000 hours.
The image intensifier is a third-generation 18-millimeter for the AN/PVS-14 night-vision monocular and many weapon sights. It is also a component of the United States Army Enhance Night Vision Goggle-Binocular (ENVG-B). Such market advancements are expected to increase market size throughout the forecast period.
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The global demand for electro optical systems recorded a CAGR of 2.4% during the historical period, reaching around US$ 10,642.3 million in 2018, according to a report from Future Market Insights (FMI). The growing concern for safety and security, as well as the requirement for sophisticated military systems and equipment, are the key drivers driving the global expansion of the electro optical system market.
With an increase in different forms of assaults, images in decision-making processes are becoming increasingly important, encouraging the usage of electro-optics technologies to counter the expanding security risks better and speed up the decision-making process. As a result, the armed services must develop a modern electro optical system capable of dealing with security concerns.
Furthermore, electro optical systems are utilized for non-destructive testing in the aerospace industry, and border protection organizations use these systems to monitor an incursion attempt. As terrorist activities increase across various locations, there is an enormous requirement for enhanced surveillance systems and the necessity to avoid terrorist organization penetration efforts, driving the market ahead.
Increased Purchase of Sophisticated UAVS with Integrated Electro-Optical Systems
Increasing procurement of advanced unmanned aerial vehicles (UAVs) with integrated electro-optical systems is expected to play a significant role in driving the market during the forecast period. The application of unmanned vehicles is expanding for various commercial and military purposes such as navigation, surveillance, policing, photography, and agricultural monitoring.
Also, ongoing developments in electro-optic systems are projected to offer remunerative opportunities to the market. For instance, they have enabled 24-hour situational awareness, guidance for defense gunnery, automated object detection, and 360-degree rotation, among others. Such factors are expected to benefit the industry growth during the forecast period.
Additionally, acquisitions among players are expected to strengthen the industry's growth in the assessment period. For instance, in March 2019, FLIR Systems Inc. announced that it had completed its previously announced acquisition of Endeavor Robotic Holdings, Inc., a pioneer of battle-tested, tactical unmanned ground vehicles (UGVs) for the global military, public safety, and infrastructure markets, from Arlington Capital Partners. Thus, the market is projected to grow notably in the assessment period.
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Short Lifespan is likely to hinder the Market Growth
The electro-optical system has a lifespan of 15-20 years, depending on how it is used in real time. Military equipment is only updated once the system's life cycle has ended. During the projected period, this is likely to be a substantial restraint on the market.
However, several advantages provided by the equipment, such as poor visibility, low light cameras, and others, are expected to drive market expansion in the approaching years.
Rising Use of Technologically Superior UAVs Creating Opportunities for Electro Optical System Manufacturers
North America is likely to lead the market over the projection period, according to the report. In 2022, the region recorded a market share of 29.3% of the worldwide market.
The rising use of technologically superior UAVs can be ascribed to the market's dominance. Furthermore, the deployment of advanced UAVs for surveillance is expected to benefit the regional market throughout the projection period. Furthermore, the United States Army is expected to be the largest equipment buyer in the region.
For example, the United States Army granted L3 Technologies a contract in July 2020 to provide an upgraded next-generation WESCAM MX 10D electro-optical, laser designator, and infrared system to enhance Tactical Unmanned Air System Shadow UAV (RQ-7Bv2). As a result, the regional market is expected to grow considerably throughout the forecast period.
European Government's Expanding Measures Favouring Market Growth
During the projection period, Europe is expected to be the second-leading market. The region accounted for around 23.1% of overall revenue in 2022. The European government's expanding measures are expected to drive regional market development.
In July 2019, NASA, for example, sent electro-optical test devices for future European Euclid dark energy space research. The Euclid space mission of the European Space Agency (ESA) is scheduled to launch in 2022. These measures are expected to boost the regional market in the near future.
Expansion of the Armed Forces Fuelling Rapid Adoption
According to the report, Asia Pacific may be the fastest-growing regional market throughout the projection period. The rapid rise of the armed forces industry may be linked to the region's growth. Increasing the engagement of regional companies is also expected to be a driving force in the regional market.
For example, Elbit Systems Ltd. stated in May 2022 that it had been given a contract for US$ 69 million to offer Electronic Warfare (EQ) capabilities to a government in the Asia Pacific. As a result of such factors, the regional market is expected to expand considerably throughout the assessment period.
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Air Electro Optical System to Have a Massive Demand
The market is further divided into air electro optical systems, land electro optical systems, and sea electro optical systems. In 2022, the air electro optical system may dominate the worldwide market, with a revenue share of roughly two-fourths of the market. The rising need for defense systems for enhanced security and surveillance systems is driving segment expansion.
Furthermore, the growing use of these systems in UAV applications is expected to boost sector expansion throughout the projection period. On the other hand, the land electro optical system is expected to develop at the fastest CAGR over the projection period.
Some market's developing players are EXSEED SPACE, Skyroot Aerospace, Pixxel, EARTH2ORBIT (E2O), Boom Supersonic, Blue Origin, Lilium, Dhruva Space, LeoLabs, Relativity Space, and DJI.
Intro, Lockheed Martin, L3 Communication Holdings, BAE Systems Plc, Northrop Grumman, and DRS Technologies are key participants in the worldwide electro-optic system market. The following are recent developments in the global electro optical system market:
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | US$ 12,064.2 million |
| Market Value in 2033 | US$ 18,794.6 million |
| Growth Rate | CAGR of 4.5% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in US$ million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
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| Regions Covered |
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| Key Countries Profiled |
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| Key Companies Profiled |
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| Customization | Available Upon Request |
The market is valued at US$ 12,264.2 million in 2023.
Lockheed Martin, Thales, and FLIR Systems are key market players.
The primary consumer is the defense industry.
The market is estimated to reach US$ 18,794.6 million by 2033.
The market is forecast to register a CAGR of 4.5% through 2033.
1. Executive Summary 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Product Life Cycle Analysis 3.5. Supply Chain Analysis 3.5.1. Supply Side Participants and their Roles 3.5.1.1. Producers 3.5.1.2. Mid-Level Participants (Traders/ Agents/ Brokers) 3.5.1.3. Wholesalers and Distributors 3.5.2. Value Added and Value Created at Node in the Supply Chain 3.5.3. List of Raw Material Suppliers 3.5.4. List of Existing and Potential Buyer’s 3.6. Investment Feasibility Matrix 3.7. Value Chain Analysis 3.7.1. Profit Margin Analysis 3.7.2. Wholesalers and Distributors 3.7.3. Retailers 3.8. PESTLE and Porter’s Analysis 3.9. Regulatory Landscape 3.9.1. By Key Regions 3.9.2. By Key Countries 3.10. Regional Parent Market Outlook 3.11. Production and Consumption Statistics 3.12. Import and Export Statistics 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) & Volume (Units) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) & Volume (Units) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) & Volume (Units) Analysis By System, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) & Volume (Units) Analysis and Forecast By System, 2023 to 2033 5.3.1. Imaging Electro Optical System 5.3.2. Non-Imaging Electro Optical System 5.4. Y-o-Y Growth Trend Analysis By System, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By System, 2023 to 2033 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application Platform 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) & Volume (Units) Analysis By Application Platform, 2018 to 2022 6.3. Current and Future Market Size Value (US$ Million) & Volume (Units) Analysis and Forecast By Application Platform, 2023 to 2033 6.3.1. Air Electro Optical System 6.3.2. Land Electro Optical System 6.3.3. Sea Electro Optical System 6.4. Y-o-Y Growth Trend Analysis By Application Platform, 2018 to 2022 6.5. Absolute $ Opportunity Analysis By Application Platform, 2023 to 2033 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) & Volume (Units) Analysis By Region, 2018 to 2022 7.3. Current Market Size Value (US$ Million) & Volume (Units) Analysis and Forecast By Region, 2023 to 2033 7.3.1. North America 7.3.2. Latin America 7.3.3. Western Europe 7.3.4. Eastern Europe 7.3.5. South Asia and Pacific 7.3.6. East Asia 7.3.7. Middle East and Africa 7.4. Market Attractiveness Analysis By Region 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 8.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022 8.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033 8.2.1. By Country 8.2.1.1. USA 8.2.1.2. Canada 8.2.2. By System 8.2.3. By Application Platform 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By System 8.3.3. By Application Platform 8.4. Key Takeaways 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022 9.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033 9.2.1. By Country 9.2.1.1. Brazil 9.2.1.2. Mexico 9.2.1.3. Rest of Latin America 9.2.2. By System 9.2.3. By Application Platform 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By System 9.3.3. By Application Platform 9.4. Key Takeaways 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022 10.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033 10.2.1. By Country 10.2.1.1. Germany 10.2.1.2. UK 10.2.1.3. France 10.2.1.4. Spain 10.2.1.5. Italy 10.2.1.6. Rest of Western Europe 10.2.2. By System 10.2.3. By Application Platform 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By System 10.3.3. By Application Platform 10.4. Key Takeaways 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022 11.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033 11.2.1. By Country 11.2.1.1. Poland 11.2.1.2. Russia 11.2.1.3. Czech Republic 11.2.1.4. Romania 11.2.1.5. Rest of Eastern Europe 11.2.2. By System 11.2.3. By Application Platform 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By System 11.3.3. By Application Platform 11.4. Key Takeaways 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022 12.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033 12.2.1. By Country 12.2.1.1. India 12.2.1.2. Bangladesh 12.2.1.3. Australia 12.2.1.4. New Zealand 12.2.1.5. Rest of South Asia and Pacific 12.2.2. By System 12.2.3. By Application Platform 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By System 12.3.3. By Application Platform 12.4. Key Takeaways 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022 13.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033 13.2.1. By Country 13.2.1.1. China 13.2.1.2. Japan 13.2.1.3. South Korea 13.2.2. By System 13.2.3. By Application Platform 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By System 13.3.3. By Application Platform 13.4. Key Takeaways 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022 14.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033 14.2.1. By Country 14.2.1.1. GCC Countries 14.2.1.2. South Africa 14.2.1.3. Israel 14.2.1.4. Rest of MEA 14.2.2. By System 14.2.3. By Application Platform 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By System 14.3.3. By Application Platform 14.4. Key Takeaways 15. Key Countries Market Analysis 15.1. USA 15.1.1. Pricing Analysis 15.1.2. Market Share Analysis, 2022 15.1.2.1. By System 15.1.2.2. By Application Platform 15.2. Canada 15.2.1. Pricing Analysis 15.2.2. Market Share Analysis, 2022 15.2.2.1. By System 15.2.2.2. By Application Platform 15.3. Brazil 15.3.1. Pricing Analysis 15.3.2. Market Share Analysis, 2022 15.3.2.1. By System 15.3.2.2. By Application Platform 15.4. Mexico 15.4.1. Pricing Analysis 15.4.2. Market Share Analysis, 2022 15.4.2.1. By System 15.4.2.2. By Application Platform 15.5. Germany 15.5.1. Pricing Analysis 15.5.2. Market Share Analysis, 2022 15.5.2.1. By System 15.5.2.2. By Application Platform 15.6. UK 15.6.1. Pricing Analysis 15.6.2. Market Share Analysis, 2022 15.6.2.1. By System 15.6.2.2. By Application Platform 15.7. France 15.7.1. Pricing Analysis 15.7.2. Market Share Analysis, 2022 15.7.2.1. By System 15.7.2.2. By Application Platform 15.8. Spain 15.8.1. Pricing Analysis 15.8.2. Market Share Analysis, 2022 15.8.2.1. By System 15.8.2.2. By Application Platform 15.9. Italy 15.9.1. Pricing Analysis 15.9.2. Market Share Analysis, 2022 15.9.2.1. By System 15.9.2.2. By Application Platform 15.10. Poland 15.10.1. Pricing Analysis 15.10.2. Market Share Analysis, 2022 15.10.2.1. By System 15.10.2.2. By Application Platform 15.11. Russia 15.11.1. Pricing Analysis 15.11.2. Market Share Analysis, 2022 15.11.2.1. By System 15.11.2.2. By Application Platform 15.12. Czech Republic 15.12.1. Pricing Analysis 15.12.2. Market Share Analysis, 2022 15.12.2.1. By System 15.12.2.2. By Application Platform 15.13. Romania 15.13.1. Pricing Analysis 15.13.2. Market Share Analysis, 2022 15.13.2.1. By System 15.13.2.2. By Application Platform 15.14. India 15.14.1. Pricing Analysis 15.14.2. Market Share Analysis, 2022 15.14.2.1. By System 15.14.2.2. By Application Platform 15.15. Bangladesh 15.15.1. Pricing Analysis 15.15.2. Market Share Analysis, 2022 15.15.2.1. By System 15.15.2.2. By Application Platform 15.16. Australia 15.16.1. Pricing Analysis 15.16.2. Market Share Analysis, 2022 15.16.2.1. By System 15.16.2.2. By Application Platform 15.17. New Zealand 15.17.1. Pricing Analysis 15.17.2. Market Share Analysis, 2022 15.17.2.1. By System 15.17.2.2. By Application Platform 15.18. China 15.18.1. Pricing Analysis 15.18.2. Market Share Analysis, 2022 15.18.2.1. By System 15.18.2.2. By Application Platform 15.19. Japan 15.19.1. Pricing Analysis 15.19.2. Market Share Analysis, 2022 15.19.2.1. By System 15.19.2.2. By Application Platform 15.20. South Korea 15.20.1. Pricing Analysis 15.20.2. Market Share Analysis, 2022 15.20.2.1. By System 15.20.2.2. By Application Platform 15.21. GCC Countries 15.21.1. Pricing Analysis 15.21.2. Market Share Analysis, 2022 15.21.2.1. By System 15.21.2.2. By Application Platform 15.22. South Africa 15.22.1. Pricing Analysis 15.22.2. Market Share Analysis, 2022 15.22.2.1. By System 15.22.2.2. By Application Platform 15.23. Israel 15.23.1. Pricing Analysis 15.23.2. Market Share Analysis, 2022 15.23.2.1. By System 15.23.2.2. By Application Platform 16. Market Structure Analysis 16.1. Competition Dashboard 16.2. Competition Benchmarking 16.3. Market Share Analysis of Top Players 16.3.1. By Regional 16.3.2. By System 16.3.3. By Application Platform 17. Competition Analysis 17.1. Competition Deep Dive 17.1.1. Instro 17.1.1.1. Overview 17.1.1.2. Product Portfolio 17.1.1.3. Profitability by Market Segments 17.1.1.4. Sales Footprint 17.1.1.5. Strategy Overview 17.1.1.5.1. Marketing Strategy 17.1.1.5.2. Product Strategy 17.1.1.5.3. Channel Strategy 17.1.2. Lockheed Martin 17.1.2.1. Overview 17.1.2.2. Product Portfolio 17.1.2.3. Profitability by Market Segments 17.1.2.4. Sales Footprint 17.1.2.5. Strategy Overview 17.1.2.5.1. Marketing Strategy 17.1.2.5.2. Product Strategy 17.1.2.5.3. Channel Strategy 17.1.3. Raytheon Company 17.1.3.1. Overview 17.1.3.2. Product Portfolio 17.1.3.3. Profitability by Market Segments 17.1.3.4. Sales Footprint 17.1.3.5. Strategy Overview 17.1.3.5.1. Marketing Strategy 17.1.3.5.2. Product Strategy 17.1.3.5.3. Channel Strategy 17.1.4. Textron Systems Corporation 17.1.4.1. Overview 17.1.4.2. Product Portfolio 17.1.4.3. Profitability by Market Segments 17.1.4.4. Sales Footprint 17.1.4.5. Strategy Overview 17.1.4.5.1. Marketing Strategy 17.1.4.5.2. Product Strategy 17.1.4.5.3. Channel Strategy 17.1.5. L3 Communication Holdings 17.1.5.1. Overview 17.1.5.2. Product Portfolio 17.1.5.3. Profitability by Market Segments 17.1.5.4. Sales Footprint 17.1.5.5. Strategy Overview 17.1.5.5.1. Marketing Strategy 17.1.5.5.2. Product Strategy 17.1.5.5.3. Channel Strategy 17.1.6. BAE Systems Plc. 17.1.6.1. Overview 17.1.6.2. Product Portfolio 17.1.6.3. Profitability by Market Segments 17.1.6.4. Sales Footprint 17.1.6.5. Strategy Overview 17.1.6.5.1. Marketing Strategy 17.1.6.5.2. Product Strategy 17.1.6.5.3. Channel Strategy 17.1.7. Northrop Grumman 17.1.7.1. Overview 17.1.7.2. Product Portfolio 17.1.7.3. Profitability by Market Segments 17.1.7.4. Sales Footprint 17.1.7.5. Strategy Overview 17.1.7.5.1. Marketing Strategy 17.1.7.5.2. Product Strategy 17.1.7.5.3. Channel Strategy 17.1.8. DRS Technologies 17.1.8.1. Overview 17.1.8.2. Product Portfolio 17.1.8.3. Profitability by Market Segments 17.1.8.4. Sales Footprint 17.1.8.5. Strategy Overview 17.1.8.5.1. Marketing Strategy 17.1.8.5.2. Product Strategy 17.1.8.5.3. Channel Strategy 17.1.9. Thales S.A 17.1.9.1. Overview 17.1.9.2. Product Portfolio 17.1.9.3. Profitability by Market Segments 17.1.9.4. Sales Footprint 17.1.9.5. Strategy Overview 17.1.9.5.1. Marketing Strategy 17.1.9.5.2. Product Strategy 17.1.9.5.3. Channel Strategy 17.1.10. Safran S.A 17.1.10.1. Overview 17.1.10.2. Product Portfolio 17.1.10.3. Profitability by Market Segments 17.1.10.4. Sales Footprint 17.1.10.5. Strategy Overview 17.1.10.5.1. Marketing Strategy 17.1.10.5.2. Product Strategy 17.1.10.5.3. Channel Strategy 17.1.11. Rheinmetall AG 17.1.11.1. Overview 17.1.11.2. Product Portfolio 17.1.11.3. Profitability by Market Segments 17.1.11.4. Sales Footprint 17.1.11.5. Strategy Overview 17.1.11.5.1. Marketing Strategy 17.1.11.5.2. Product Strategy 17.1.11.5.3. Channel Strategy 18. Assumptions & Acronyms Used 19. Research Methodology
Technology
July 2020
REP-GB-12136
November 2023
227 pages
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Electro Optical System Market
