The increasing focus on information superiority by militaries and situational awareness is leading to the procurement of military electro-optical/infrared (EO/IR) systems worldwide. Additionally, the increased demand for battlespace reconnaissance and greater adoption on airborne platforms such as unmanned aerial vehicles (UAV), fighter aircrafts, helicopters, among others are the major factors driving the military electro-optics/infrared systems market, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘The Global Electro-optical/Infrared (EO/IR) Systems Market 2020-2030’, reveals that the market is valued at US$12.3bn in 2020. The global market for military EO/IR systems market will witness an overall compound annual growth rate (CAGR) of 2.32% to reach US$15.5bn by 2030.
According to GlobalData’s analysis, the US will continue to hold a major market share in the military EO/IR systems market primarily due to continuous procurement of airborne platforms, soldier modernization programs and funding towards large-scale EO/IR projects such as Common Infrared Countermeasure (CIRCM) system. The US military EO/IR systems market in 2020 is valued at US$3.3bn to reach US$2.8bn in 2030, with a cumulative expenditure of US$33.0bn during 2020-2030.
The increasing funding from the US government for R&D activities, modernization and up-gradation of warfare platforms and procurement of new warfare platforms with advanced EO/IR systems are major drivers for sustained demand of military EO/IR systems in the US. The country will account for 21.2% share in the global military EO/IR systems market by 2030.
Tejaswi Singh, Aerospace, Defense and Security Analyst at GlobalData, says: “The demand for military EO/IR systems will continue to rise across the globe. This can be attributed to the increasing dependence of warfare platforms on EO/IR systems for situational awareness, threat detection & countermeasure, target acquisition, surveillance & reconnaissance, among others.
“In line with this trend, militaries are procuring warfare platforms added with high-resolution electro-optical payloads, targeting systems, infrared-countermeasures, advanced display systems, among others. Moreover, the adoption of various EO/IR products by dismounted soldier such as sights, scopes, spotters, night vision attachments, light intensifiers and fire control sights along with weapon sights & scopes is one of the major drivers for the market.”