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The global electro-optical/infrared (EO/IR) systems market size was USD 13.15 billion in 2018 and is projected to reach USD 20.36 billion by 2026, exhibiting a CAGR of 5.84% during the forecast period.
The EO/IR system is an electronic device that consists of both electro-optical and infrared sensors, that provide accurate optical information during the day as well as night. An electro-optical sensor has the ability to convert the light into the electric signal. Moreover, the infrared sensor can detect any structure in its surroundings by either emitting or detecting infrared radiation. Thus, an EO/IR system is mainly used to enhance target identification, assess threats from a specific distance, target monitoring in different weather conditions. The EO/IR system can be mounted on vehicles, aircraft, ships, helmets, military weapons, or it can be used as a hand-held detection device.
Owing to high image stabilization and long-range imaging features, an EO/IR system is used to improve the capabilities of the military as well as commercial applications. Especially in the defence sector, it is widely used for various applications, including situational awareness, fire control system, airborne homeland security, search, and rescue, and intelligence, surveillance, and reconnaissance (ISR).
Furthermore, the electro-optical/infrared system is divided into imaging EO/IR and non-imaging EO/IR systems. The non-imaging EO/IR systems are largely focused on long-range target monitoring tasks, where as, the imaging system is dedicted on scanning the structure and delvering noise-free images for accurate detection. On the basis of technology, the EO/IR systems market is bifurcated into cooled and uncooled. Based on sensor technology, the market is segmented into staring and scanning. On the basis of imaging technology electro-optical/infrared (EO/IR) systems market is divided into multispectral, and hyperspectral. The development of advanced sensor technology-based systems is increasing to meet with end-user’s numerous application demand.
This EO/IR system market is mainly driven by the growing adoption of advanced sensors integrated systems for military applications. Additionaly, the market is further driven by the risig demand for unmanned vehicles in detection and surveillance application. Also, the rising trend towards miniaturization will aid the development of advanced, highly efficient, small-sized, and portable EO/IR systems for situation awareness and ISR application across the world.
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Growing Miniaturization of Military Electronics Systems is Propelling the Market Growth
The adoption of micro-sized system components are growing by various industry verticals including aerospace & defence, consumer electronics, automotive, and medical, among others to meet with the growing demand for portable electronic devices. Therefore, the manufacturers are focusing on the deployment of miniaturized devices to meet with the growing demand. These small-sized devices have the capability to provide enhanced performance and high reliability which makes it an ideal choice for commercial and military aircraft application.
Moreover, the aerospace industry is stringent in the requirements of aircraft component’s size and weight. Therefore, the demand for miniaturized systems is incrsed by aviation industry. Thus, the manufacturers are focusing on the design and development of miniaturized EO/IR systems to reduce payloads and improve system performance. These miniaturized electro-optical/infrared systems are supporting the development of lightweight laser designators besides improving the efficiency of military operations and the safety of army personnel. Therefore, the rising integration of EO/IR systems in manned and unmanned vehicles for ISR and military missions is expected to aid the market growth.
Incresed Adoption Of Sensors Integrated Systems To Improve The capabilities of Military Applications
The EO/IR system consit of integrated electro-optical sensor and infrared sensor. These two sensors combinedly provide the information of target present at different wavelengths such as ultraviolet, near-infrared, short-wavelength infrared, medium wavelength infrared, and long-wavelength infrared. The provided information can be in an image or a signal format depending upon the configuration of the EO/IR system. The non-imaging Eo/IR system is mainly focusing on target point detection, for example infrared search and track system (IRST). Moreover, the imaging system offers a detailed image of the target from different wavelengths in different weather. This information helps achieve more accurate target details in a day as well as night.
Furthermore, EO/IR system operates based on either staring sensor technology or scanning sensor technology. In scanning sensor technology, a limited number of detectors are used to scan the area. While in staring technology, a large number of detectors are used in rectangular arrays. Therefore, an EO/IR sensor-based system is widely used for multiple applications, such as border monitoring, target tracking, situational awareness, C5ISR, and tactical mission, among others. The EO/IR sensor technology is also used to develop night vision goggles used for ground military tactical missions.
Rising Procurement of Upgraded Unmanned Aerials Vehicles (UAVs) with Integrated EO/IR System
Evolving manufacturing technologies is boosting the development of unmanned vehicles for land, sea, and air platforms. The usage of unmanned vehicles is constantly growing for multiple military and commercial applications such as surveillance, policing, navigation, product deliveries, photography, and agricultural monitoring, among others.
Among these, the defence sector witnesses the high adoption of unmanned vehicles for military applications with the advancement in remote operations. The current unmanned vehicles have integrated sensors and cameras that provide several wavelength information for accurate detection and monitoring. Generally, the EO/IR sensors are mounted on most of the UAVs to get accurate data and noise-free image of target present at long-range or mid-range wavelength. The UAVs are also used for situational awareness and intelligence, surveillance and reconnaissance applications
Moreover, worldwide defence spending is increasing with growing nation threats. Thus, to strengthen the nation's defence sector, the procurement and development of advanced UAV with integrated long-range, noise-free image sensing capability EO/IR systems is rising. This is the key factor is propelling the EO/IR systems market growth.
Stagnant Product Timeframe of Electro-Optical/Infrared (EO/IR) Systems is Expected To Hamper the Market Growth
The EO/IR system has 15 to 20 year of life span depending on its real-time use. The military systems are always upgraded only after the completion of the system life period. Also, the new system with evolving technology will not able to procure for military application before the completion of life span of existing military system. This will keep electro-optical/infrared (EO/IR) systems technology adoption remain stagnant for a long-time, is expected to hamper the market growth.
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Increased Adoption of Imaging System for Situational Awareness Application
Based on the systems, the market has been classified into imaging and non-imaging EO/IR systems. Among these, the imaging EO/IR system is expected to drive at a significant CAGR during the forecast period. The growth is attributed to the increased adoption of the EO/IR imaging system for extended target tracking and detection.
The EO/IR system consists of a thermal imaging camera. The detectors used for thermal imaging cameras are developed using specific material. This material plays an important role in the performance of EO/IR integrated sensors. Moreover, the chemical composition of a thermal imaging camera detector material can affect the sensitivity of the EO/IR sensor and define the spectral band of the cool and uncool detector. Furthermore, the new cooled, imaging EO/IR systems offer long-range, high image quality target detection. These imaging EO/IR system offers the fine detailing of the target area, which helps to extract accurate target information. Therefore the adoption of cool imaging EO/IR system is increased for situational awareness.
Increased demand for Low-Cost Thermal Imaging Camera to Develop Imaging EO/IR System
By technology, the EOIR market has been segmented into cool and uncool technology. The cool EO/IR system technology is expected to grow at a higher compound annual growth rate during the forecast period. This higher growth is due to the development of cost-efficient cooling technology. This technique is largely used to reduce the overall cost of a thermal imaging camera. Therefore, the demand for cool thermal imaging cameras is increased to develop the imaging EO/IR system. This demand is boosting the growth of the cool technology segment.
Rising Demand for Staring Sensor Technology Based EO/IR System for Quick Representation of Target Image
On the basis of sensor technology, the EO/IR system market has been classified into the staring sensor and scanning sensor. Win scanning technology-based system, an image of the target area, is generated column by column or row by row. Thus, it takes a longer time to display a complete image.
While in starting a sensor technology-based system, an image is projected simultaneously into all pixels of the detector array. Therefore, the target image display time with staring sensor technology is shorter than the scanning sensor technology. Therefore, the adoption of a staring sensor technology-based EO/IR system is rising during the forecast period.
Growing Need for Fine Information Provider Imaging Technology to Enhance Detection Capabilities
By imaging technology, the EO/IR systems market has been segmented into a multispectral and hyperspectral imaging technology. Among these, the multispectral imaging technology dominates the market owing to its large adoption in multiple applications, including military target tracking, remote sensing, land mine detection, ballistic missile detection, farming, serving and mapping, and environmental monitoring among other. However, the hyperspectral imaging technology witness high growth rate. This growth is attributed to the rise in the adoption of hyperspectral imaging technology to produce an image with fine detailing. Moreover, an image generated from hyperspectral imaging technology contains large data than images from multispectral imaging technology. Hyperspectral imaging technology has the ability to detect differences between sea and land features.
Rising Demand for Long Wavelength Infrared Tracking EO/IR System to Enhanced Soldier Safety
On the basis of wavelength, this market has been bifurcated into the ultraviolet, near-infrared, short-wavelength infrared, medium wavelength infrared, and long-wavelength infrared. Among these wavelengths, the long-wavelength infrared segment is expected to grow at a higher CAGR. This growth is attributed to the increased demand for long-range image tracking to improve soldier safety.
High Adoption of Unmanned Aerial Vehicle for Military and Commercial Application
Based on the platform, the market has been segmented into land, sea, and air. In 2018, the air segment dominated this market due to increased adoption EO/IR system for UAV applications such as situational awareness, detection, ISR, mapping, search & rescue, and product delivery. It is also used for applications in which a camera is used to monitor and accumulate data and transmit video information data to the ground based control stations.
Increased Usage of UAVs For Situational Awareness Application
The Global electro-optical/infrared systems market based on the end-user industry has been segmented into commercial and military. The military users segment is dominating the market due to increased procurement and development of UAVs with the EO/IR system. The growing military modernization programs and increased defence spending is led to the increasing adoption of highly reliable and efficient multi-sensor EO/IR systems.
North America Electro-Optical/Infrared (EO/IR) Systems Market Size, 2018 (USD Billion)
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The findings based on our analysis it indicate North America held the largest share in 2018. Moreover, the region has the presence of major players and OEMs will facilitate the growth in the region. As per our EOIR market research study, Asia Pacific is expected to witness strong growth in the market during the forecast period owing to the significant increase in military expenditure with growing territorial issues. Therefore, the armed forces in this region are spending largely in the military electronics system modernization programs. Moreover, the increasing development and procurement of advanced military aircraft and unmanned vehicles for military missions is expected to spur demand for efficient systems such as EO/IR system. Such innovations are boosting the electro-optical/infrared systems market growth during the forecast period.
For instance, Elbit Systems Ltd. announced that it was awarded a contract worth USD 670 million to supply the military solution to a country in Asia-Pacific.
Constant Innovation Strategy Has Adopted by The Key Player, To Sustain in The Market
The electro-optical/infrared systems market is largely fragmented, with numerous manufacturers present across the world. The leading companies are adopting organic and inorganic growth strategies such as mergers and acquisitions, a large investment in R&D, continuous Systems innovation, long-term Systems providing contracts with the government to support the growth of the market.
The report offers qualitative and quantitative insights on the electro-optical/infrared (EO/IR) systems and detailed analysis of market size & growth rate for the segments in the market.
Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption of advanced technology, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.
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Value (USD Billion)
By Sensor Technology
By Imaging Technology
In 2018, the global market was USD 13.15 Bn, and it is anticipated to reach USD 20.36 Bn by 2026, growing at a stellar CAGR of 5.84% during the forecast period (2019-2026).
In the market, imaging EO/IR system, cooled technology, staring sensor technology, hyperspectral imaging technology, long-wavelength infrared, sea, and military are the leading segments.
Growing adoption of advanced sensors integrated systems such as EO/IR system for military applications and an increase in demand for EO/IR system for unmanned vehicles are driving the growth of this market.
In the market, some of the key players are Lockheed Martin Corporation, L-3Harris Technologies Inc., Northrop Grumman Corporation, Thales Group, Raytheon Company, BAE Systems Plc., and Elbit Systems Ltd. among others. These players dominate the EO/IR systems market with their wide range Systems portfolio and high R&D investments.
In the market, the key players are mainly focusing on establishing a strong supply chain network in high growth regions such as Asia-Pacific. It is also involved in acquisitions and technological collaborations to strengthen its market share. Furthermore, investment in the R&D capabilities for designing miniature, highly reliable, and cost-effective electro-optical/infrared (EO/IR) systems.
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