Target Acquisition Systems Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| CAGR | 5.50 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Target Acquisition Systems Market Analysis
The target acquisition systems market is anticipated to register a CAGR of more than 5.5% during the forecast period (2021-2030).
The global military spending increased by 2.6% to reach USD 1981 billion in 2020, according to the Stockholm International Peace Research Institute (SIPRI). Nevertheless, the defense spending may come down in the near future due to the global economic crisis triggered by the ongoing COVID-19 pandemic. This factor is expected to challenge the growth of the target acquisition systems market during the forecast period. The pandemic has resulted in few disruptions in the supply chains of major military vehicle and weapon system programs and has resulted in a reduction in production output. This has also negatively impacted the players in the related supply chains, like the target acquisition system providers.
The ever-increasing need to ensure national security against a variety of threats is forcing the militaries to modernize their military weapons and vehicle fleets with newer generation capabilities. This is driving them to procure new platforms featuring advanced target acquisition systems or to upgrade existing assets by integrating sophisticated sub-systems offering better target acquisition and designation capabilities. This factor is expected to drive the market growth in the years to come.
The ongoing advancements in automatic weapons systems and the increasing use of unmanned systems for intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) purposes are expected to propel the growth of the target acquisition systems market during the forecast period.
Target Acquisition Systems Market Trends
This section covers the major market trends shaping the Target Acquisition Systems Market according to our research experts:
The Land Segment Held the Largest Market Share in 2020
The land segment of the market accounted for a major share of the revenues in 2020. This was primarily due to the increased demand for missions involving terrestrial surveillance and target acquisition. Due to the growing border security threats and cross-border terrorism, the demand for surveillance vehicles and forward observation from a safe distance is increasing. Land-based target acquisition systems provide specific locations of threats from a safe distance, which can then be neutralized by forces without any harm to the observer. Several armies are procuring newer generation target acquisition systems for their frontline troops. In January 2021, Elbit Systems Ltd announced that its UK subsidiary, Elbit Systems UK Ltd, was awarded an approximately USD 137 million contract by the UK Ministry of Defence to provide the British Armed Forces with the future target acquisition solution for Joint Terminal Attack Controllers and Fire Support Teams under the Dismounted Joint Fires Integrators ('D-JFI') program. The contract will be performed over a five-year period. The growing demand for the acquisition of armored vehicles is also expected to drive the growth of the land segment in the years to come. For instance, in May 2021, Rheinmetall BAE Systems Land (RBSL) was awarded a contract by the UK MOD to upgrade 148 British Army Challenger 3 Main Battle Tanks. The upgraded vehicle will be a network-enabled, digital Main Battle Tank with state-of-the-art lethality, upgraded survivability, and world-class surveillance and target acquisition capabilities. Thus, the growth in demand for associated platforms is expected to drive the demand for target acquisition systems in the land segment during the forecast period.
North America is Expected to Dominate the Market During the Forecast Period
In terms of geography, North America held the largest market share in 2020. The region is also expected to exhibit the highest growth rate during the forecast period as a result of a high demand from the United States. The huge military spending of the country toward developing advanced offensive and defensive military capabilities is generating the demand for newer generation target acquisition capabilities. As of 2019, Lockheed Martin was continuing the development of its Advanced Electro-Optical Targeting System (EOTS) for the F-35 Lightning II fighter aircraft. The Advanced EOTS will provide a range of multi-spectral sensing options, including high-resolution mid-wave infrared (IR), short-wave IR, and near IR. The advanced tracking system also provides greater reliability and reduced operational costs. Likewise, in June 2020, Applied Technology Associates (ATA) announced that it was awarded a contract for the Independent Target Acquisition and Tracking System (ITATS) as part of the US Army Directed Energy-Maneuver Short Range Air Defense (DE-MSHORAD) prototyping initiative. Furthermore, the focus of the country toward equipping its forces with newer generation situational awareness systems is also expected to drive the market growth. The US Army plans to field more than 120,000 custom, ruggedized versions of Microsoft's HoloLens headsets as part of the Integrated Visual Augmentation System program, which integrates key capabilities such as high-resolution night, thermal and soldier-borne sensors, and radio communications into a single, lightweight wearable device. The system has also been fitted with rapid target acquisition and identification, performance assessment, and biometric applications. Such developments are anticipated to drive the growth of the market in the region during the forecast period.
Target Acquisition Systems Industry Overview
Some of the prominent players in the target acquisition systems market are Elbit Systems Ltd, Leonardo SpA, Raytheon Technologies Corporation, Safran SA, and Thales Group, among others. The defense manufacturing industry is highly competitive, and with the evolving global battlefield environment, companies must align their product portfolios to the evolving requirements of end users. In order to gain long-term contracts and enhance the market share, players are investing significantly in the R&D of sophisticated product offerings. Furthermore, continuous R&D has been fostering the technological advancements in platforms and associated products and solutions of the active players in the target acquisition systems market. For instance, in June 2020, Thales unveiled the Sophie Optima Long Range handheld targeting system, the latest addition to its Sophie family of systems. According to the company, the new member of the Thales targeting binoculars portfolio offers better ergonomics, size, weight, and power (SWaP) characteristics, and superior performance. Such developments are expected to help the growth of the players during the forecast period.
Target Acquisition Systems Market Leaders
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Elbit Systems Ltd
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Leonardo SpA
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Safran SA
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Thales Group
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Raytheon Technologies Corporation
*Disclaimer: Major Players sorted in no particular order
Target Acquisition Systems Market News
In February 2021, Israel Aerospace Industries and Matrix Defense announced their partnership for an artificial intelligence center to develop automated target detection for future battlefields. The two companies will co-develop AI, machine learning (ML), and Big Data-driven solutions, which will be integrated into IAI's satellite and space systems, defense and attack systems, missiles, homing heads, electro-optical payloads, and additional systems.
In January 2021, Elbit Systems completed live demonstrations of its artificial intelligence-enabled target acquisition and fire support system HattoriX for several European militaries. The capability demonstrations focus on the system's targeting capabilities in urban and austere environments in both day and night, simulating a variety of operational scenarios.
In May 2019, Qinetiq Target Systems announced that it had received a USD 51 million contract to help develop a new unmanned aerial system for the Canadian armed forces. Once operational, the system will be used for intelligence, surveillance, target acquisition, and reconnaissance missions.
In September 2021, General Atomics' electromagnetics systems business has signed a cooperative research and development agreement with the U.S. Army to develop sensors for acquiring and tracking targets. The partnership with the Army Combat Capabilities Development Command's Aviation and Missile Center aims to build sensing tools and algorithms to extend the range of missile and weapon systems when deployed in anti-access and area-denial environments
Target Acquisition Systems Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD billion)
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5.1 Platform
- 5.1.1 Land
- 5.1.2 Airborne
- 5.1.3 Naval
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5.2 Geography
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.2 Europe
- 5.2.2.1 Germany
- 5.2.2.2 United Kingdom
- 5.2.2.3 France
- 5.2.2.4 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 China
- 5.2.3.2 India
- 5.2.3.3 South Korea
- 5.2.3.4 Rest of Asia-Pacific
- 5.2.4 Latin America
- 5.2.4.1 Brazil
- 5.2.4.2 Rest of Latin America
- 5.2.5 Middle-East and Africa
- 5.2.5.1 United Arab Emirates
- 5.2.5.2 Saudi Arabia
- 5.2.5.3 Turkey
- 5.2.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Aselsan AS
- 6.2.2 BAE Systems PLC
- 6.2.3 Elbit Systems Ltd
- 6.2.4 Hensoldt
- 6.2.5 Instro Precision Limited
- 6.2.6 Israel Aerospace Industries
- 6.2.7 Wuhan JOHO Technology Co. Ltd
- 6.2.8 Leonardo SpA
- 6.2.9 Lockheed Martin Corporation
- 6.2.10 Raytheon Technologies Corporation
- 6.2.11 Rheinmetall AG
- 6.2.12 Safran SA
- 6.2.13 Thales Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Target Acquisition Systems Industry Segmentation
Target acquisition systems are used by defense operators to detect and identify targets with enough detail to aid in the effective deployment of lethal and non-lethal means to neutralize a stationary or moving target. The target acquisition systems market is segmented by platform into the land, airborne, and naval platforms. The report also offers the market sizes and forecasts for the target acquisition systems market across the major regions in the world. For each segment, the market sizes and forecasts have been done based on value (USD billion).
| Platform | Land | |
| Airborne | ||
| Naval | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Rest of Latin America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| Turkey | ||
| Rest of Middle-East and Africa |
Target Acquisition Systems Market Research FAQs
What is the current Target Acquisition Systems Market size?
The Target Acquisition Systems Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Target Acquisition Systems Market?
Elbit Systems Ltd, Leonardo SpA, Safran SA, Thales Group and Raytheon Technologies Corporation are the major companies operating in the Target Acquisition Systems Market.
Which is the fastest growing region in Target Acquisition Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Target Acquisition Systems Market?
In 2024, the North America accounts for the largest market share in Target Acquisition Systems Market.
What years does this Target Acquisition Systems Market cover?
The report covers the Target Acquisition Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Target Acquisition Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Target Acquisition Systems Industry Report
Statistics for the 2024 Target Acquisition Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Target Acquisition Systems analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
