Global Land-based Military Electro-optical and Infrared Systems Market Grows Steadily at a CAGR of 2.45%

Introduction

Electro-optical systems are hybrid optical/electronic devices that produce, detect, and quantify optical radiation. An associative device may use this tech to analyze the electromagnetic spectrum and detect wavelengths between 0.1 and 1 mm. The majority of the electromagnetic spectrum consists of the invisible infrared, ultraviolet, and visible light ranges. In order to have a complete awareness of the battlefield at all times, including in low-light conditions, this imaging technology is frequently employed by law enforcement and military organizations.

Market Dynamics

Rising Defense Expenditures Drive the Global Market

Several procurement initiatives are underway to enhance the military's situational awareness and ensure the combat readiness of the current defensive systems. These programs are now funded in part by increased defense spending. Additionally, due to the continuously changing battlefield conditions, it is necessary to replace outmoded military equipment. Many armed services continued to deploy military land vehicles from the 1970s and 1980s, but their capabilities are less advanced than those of more recent cars. These armed forces have greatly emphasized purchasing and upgrading ground vehicles.

Growing Focus on Vehicle-Mounted Segment Creates Tremendous Opportunities

Advanced optronic systems are becoming essential to improve armored vehicles’ combat effectiveness. For land vehicles and dismounted foot soldiers, some technologies include thermal imaging, 360-degree vision, and improved night vision capabilities. Players are developing sensors that give military armored vehicles and crews increased visibility, situational awareness, and threat warning as the emphasis shifts toward improving vehicle protection systems. With features like fire-on-the-move capability, day and night imaging, automatic target tracking, laser range finder for precise ballistics, last round warning, manual backup, and high ammo storage capacities, RWS for land vehicles has become more effective. As a result, several nations are replacing outdated military systems with more modern ones to utilize cutting-edge technology.

Regional Analysis

North America is the most significant shareholder in the global land-based military electro-optical and infrared systems market and is expected to grow at a CAGR of 2.54% during the forecast period. Additionally, the Army is contemplating testing SEPv4 upgrades such as new color cameras, onboard networks, slip rings, enhanced meteorological sensors, ammunition data linkages, laser warning receivers, and a significantly more potent, multipurpose 120mm tank round. The Integrated Visual Augmentation System (IVAS), an augmented reality gadget based on Microsoft's HoloLens, has undergone testing in freezing circumstances at the US Army Cold Regions Test Center. The US Army also buys Centaur UGVs from FLIR Systems under the Man Transportable Robotic System Increment II (MTRS Inc II) program. Mission Master, a modular autonomous uncrewed ground vehicle, was revealed by Rheinmetall Canada (A-UGV). The autonomous ground vehicle can also transport various payloads, including long-range electro-optical/infrared (EO/IR) sensors, surveillance radar, 360-degree full-ring cameras, laser rangefinders, and laser designators for recognizing potential threats.

Asia-Pacific is expected to grow at a CAGR of 3.05%, generating USD 520.47 million during the forecast period. China North Industries Corporation (Norinco) has focused on increasing the manufacture and sales of domestically produced armored vehicles during the last few years. The business developed a 6x6 VN2C mine-resistant vehicle in 2016 that resembles the WMZ-551 APC and has a 12.7mm and 762mm MG, eight electrically powered grenade launchers, and room for more turrets. The license purchase from Russia has already received approval from the Cabinet Committee on Security, and the production responsibilities have been delegated to the Tamil Nadu-based Avadi Heavy Vehicle Factory (VHF), a division of the Ordinance Factory Board, primarily to meet the needs of the Indian Army. The T-90M, an enhanced version of the type, has several enhancements, including a modernized turret outfitted with an integrated targeting suite and the Kalina fire control system.

Europe is anticipated to grow significantly during the forecast period. The UK armed forces have upgraded their current EO/IR equipment because adversaries deploy more advanced tactics and equipment. The UK Defense and Security Accelerator (DASA) recently awarded contracts for upgrading EO/IR sensors. Numerous companies obtained contracts worth a total of USD 2.8 million, including Thales, Teledyne e2v, the University of Exeter, QinetiQ, the University of Stirling, Heriot-Watt University, the University of Bristol, Iceni Labs, Frazer-Nash Consultancy, Living Optics, and Spectra Medical. To maintain its high firepower, the French Army plans to enlist 200 upgraded Leclerc MBTs between 2020 and 2022.

Key Highlights

• The global land-based military electro-optical and infrared systems market was valued at USD 1,556.26 million in 2021. It is projected to reach USD 1,935.04 million by 2030, growing at a CAGR of 2.45% during the forecast period (2022-2030). 
• Based on type, the global land-based military electro-optical and infrared systems market is bifurcated into vehicle-mounted and man-portable. The vehicle-mounted segment owns the highest market share and is expected to grow at a CAGR of 2.39% during the forecast period.
• North America is the most significant shareholder in the global land-based military electro-optical and infrared systems market and is expected to grow at a CAGR of 2.54% during the forecast period.

Competitive Players

1. Elbit Systems Ltd
2. FLIR Systems Inc.
3. Israel Aerospace Industries
4. Rheinmetall AG
5. Saab AB
6. Thales Group
7. HENSOLDT AG
8. L3Harris Technologies Inc.
9. Leonardo DRS.

Recent Developments

• June 2022- Teledyne FLIR Defense, part of Teledyne Technologies Incorporated, announced at Eurosatory that it is completing deliveries of 127 PackBot® 525 unmanned ground vehicles (UGVs) to the German Army (Deutsches Heer).
• July 2022- KMW and Elbit Systems signed Rocket Artillery Cooperation Agreement.
• August 2022- Elbit Systems was awarded contracts in an aggregate amount of USD 240 Million to Upgrade Tanks for an International Customer.

Segmentation

1. By Type
   1. Vehicle-mounted
   2. Man-portable