Market Trends of Land-based Military Electro-optical And Infrared Systems Industry
Vehicle-mounted Segment is Projected to Showcase Highest Growth During the Forecast Period
Advanced optronic systems are becoming essential to enhance armored vehicles’ combat effectiveness. Thermal imaging, 360-degree vision, and enhanced night vision capabilities are some of the technologies being focused upon for land vehicles and dismounted infantrymen. With the focus growing on enhancing vehicle protection systems, players are working on sensors that provide expanded visibility, situational awareness, and threat warning to military armored vehicles and crews. The demand for this segment is expected to increase due to rising military expenditure, and various military modernization efforts.
Additionally, the ongoing modernization efforts for land vehicles are also expected to generate demand for newer-generation vehicle-based EO/IR sensors. RWS for land vehicles has grown more effective with the incorporation of features, like fire-on-the-move capabilities, day and night imaging, automatic target tracking, laser range finder for accurate ballistics, last-round warning, manual backup, and high ammunition storage capabilities, among others. Due to this, many countries are upgrading their weapon systems to newer versions to take advantage of the latest technologies. For instance, in September 2023, the US Army awarded Kongsberg a USD 94 million order for the supply of an additional 409 Commonly Remotely Operated Weapon Station (CROWS). The CROWS weapon station features a day camera, thermal imager, and laser range finder (LRF), and it has fire-on-the-move capabilities. Such developments are envisioned to drive the segment growth during the forecast period.
North America to Dominate Market Share During the Forecast Period
North America held the largest market share among all the regions driven by high demand from the US. The enhanced capabilities of China and Russia on the battlefield forced the US to increase its investments in technologically advanced military vehicles and weapon systems. Some of the large acquisitions planned by the US Army over the next two years include a collection of night vision devices, including night-vision goggles, laser target locator modules, monocular night vision devices, the Integrated Visual Augmentation System (IVAS) heads-up display, and multi-function laser illuminators. For instance, in July 2023 the US Army awarded a USD 117.5 million contract to RTX Corporation for low-rate initial production of 3rd Generation Forward Looking Infrared (3GEN FLIR) B-Kit sensors. As per the terms of the contract, RTX Corporation will deliver 3GEN FLIR B-Kit sensors for the US Army's combat platforms. The 3GEN FLIR will enable soldiers to detect, recognize, and identify military targets from civilian targets in all operating environments and conditions via improved long-range imaging capabilities.
Additionally, as modern warfighting becomes more technologically driven foreign military powers such as the US are integrating cutting-edge systems to boost combat preparedness. For instance, in March 2022, the US Army announced its plans to procure Microsoft's militarised HoloLens 2 augmented reality (AR) system. Also, the country’s focus on obtaining advanced ISR capabilities is proving to be fruitful for several EO/IR technology providers. The procurement of unmanned ground vehicles for ISR purposes is expected to increase in the country in years to come, which will propel the demand for land-based military EO/IR systems from North America during the forecast period.
