The Military Optronics Surveillance and Sighting Systems market was valued at approximately US$ 17,358.98 million in 2023 and is projected to grow to US$ 26,852.12 million by 2031, reflecting a compound annual growth rate (CAGR) of 5.6% during the period from 2023 to 2031.
This market is categorized into five primary regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America. In 2023, the Asia Pacific region led the market, followed closely by Europe and North America.
The growth of the military optronics surveillance and sighting systems market is significantly influenced by the rising military expenditures worldwide. In 2023, military spending represented 2.3% of the global gross domestic product (GDP). The top five military spenders?the United States, Russia, China, India, and Saudi Arabia?accounted for approximately 61% of global military expenditures. Total military spending reached US$ 2,443 billion in 2023, marking a 6.8% increase from the previous year. The United States and China were the largest military spenders, with the US allocating US$ 916 billion and China US$ 296 billion.
North America commanded the largest share of the global military optronics surveillance and sighting systems market, followed by the Asia Pacific, Europe, MEA, and South America. The demand from the US military, driven by increased defense budgets, has led to significant investments in military optronics systems. For instance, in November 2023, Elbit Systems Ltd. secured a US$ 500 million contract from the US Department of Defense (DOD) to supply Squad Binocular Night Vision Goggle (SBNVG) systems through its US subsidiary, Night Vision LLC. Such contracts highlight the growing investments by the DOD in military optronics systems, further propelling market growth.
Among the various regions, the Asia Pacific is anticipated to be the fastest-growing market for military optronics surveillance and sighting systems. Key players in this sector include Lockheed Martin Corporation, Thales Group, Raytheon Technologies Corporation, Rafael Advanced Defense Systems Ltd., and HENSOLDT. The ongoing military modernization efforts and the integration of advanced technologies, such as artificial intelligence, into defense systems are significant factors driving market expansion. However, trade barriers arising from differing regulations and policies across countries may pose challenges to market growth.
Many countries in the Asia Pacific, including Pakistan, Bangladesh, Bhutan, India, Nepal, Myanmar, and Mongolia, are still in the developmental phase. As these nations recognize the importance of advanced surveillance systems for national security, they are enhancing their technological capabilities. The increase in military spending as a percentage of GDP is also notable in many developing countries. The rising threat of terrorism in Asia is expected to drive demand for surveillance optronics systems, including sights, scopes, night-vision devices, target sight systems (TSS), laser rangefinders, monitoring systems, and security cameras. Countries like India are boosting their local defense manufacturing capabilities through contracts awarded to domestic firms.
The global military optronics surveillance and sighting systems market is divided into segments based on offerings, including image intensification, military laser systems, and electro-optics/infrared. In 2023, the electro-optics/infrared segment held the largest market share. These systems, which combine infrared and visible sensors, are crucial for providing situational awareness in both day and night conditions, as well as in low-light environments. Continuous advancements in military technology are evident, such as the 19 multi-sensor electro-optical and infrared fire-control systems being developed by Lockheed Martin for the AH-1Z Viper attack helicopters used by the Czech Republic and Bahrain.
The military laser systems segment ranked second in market share in 2023. Laser technologies have the potential to enhance military effectiveness significantly. These precision weapons can dazzle optronics at low power and destroy targets at higher power levels. Noteworthy developments include the US Army's commissioning of a 300 KW solid-state laser, awarded to General Atomics, capable of neutralizing various threats, from drones to missiles. Boeing is collaborating on this project to integrate targeting and tracking capabilities.
Key players in the Military Optronics Surveillance and Sighting Systems market include Airbus, Lockheed Martin Corporation, Thales Group, General Dynamics Corporation, L3Harris Technologies Inc., Israel Aerospace Industries, Leidos Inc., Rafael Advanced Defense Systems Ltd., Raytheon Company, and Safran S.A..
The overall market size for military optronics surveillance and sighting systems has been determined through a combination of primary and secondary research methods. Extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data regarding the market size. This approach also facilitated an overview and forecast of the market across all segments. Additionally, numerous primary interviews with industry stakeholders, including VPs, business development managers, market intelligence managers, and external consultants, were conducted to validate the data and gain deeper insights into the military optronics surveillance and sighting systems market.