Forecast Int'l: $8.36B to be Spent on Land, Sea-Based EO Systems
November 24, 2007 // Published as a news service by IHS
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An estimated $8.36 billion will be spent on the development and production of key land- and sea-based electro-optical (EO) systems over the next 10 years, according to an analysis called The Market for Land & Sea-Based Electro-Optical Systems by Forecast International.
"The pressing need for the all-important troop-level systems, such as night vision goggles and thermal viewing systems, will drive procurement in this market segment for the next few years," said Andrew Dardine, Forecast International senior analyst and author of the analysis.
"Still, the introduction of some significant, new EO systems is fast emerging as a major market force for the years ahead."
The market leaders among land- and sea-based EO system providers are ITT, DRS Technologies, Northrop Grumman, Raytheon, Thales and Australia's Electro Optic Systems, according to the analysis.
Electro Optic Systems is expected to produce an estimated 5,724 of its Electro-Optic Fire Control Systems (EFCS) over the next 10 years at a value of $954 million, according to the analysis.
EFCS is being considered for some European and Middle Eastern programs and is fitted to Singapore's Bionix infantry fighting vehicle (IFV), said Forecast International.
ITT will likely continue to dominate the EO market for its involvement in production of the night vision goggle, said Forecast International. Production of the company's PVS-14 for the U.S. military will run at 50,000-70,000 units per year into the next decade, according to the analysis. A recent $33 million order from Norway for 4,400 units will boost the system’s international production line.
DRS Technologies moved among the top rankings of EO producers after receiving orders for its version of the PAS-13 Thermal Weapon Sight also known as the TWS II, said Forecast International.
Under the fiscal year (FY) 2008-2009 U.S. defense budget, annual funding rates for the TWS will be at an all-time high, claims Forecast International. Roughly $200 million per year will be pumped into purchases of the PAS-13 through 2011.
Meanwhile, Thales is carving a niche for itself in the development of new naval EO systems for some emerging platforms, according to the analysis.
Since the attack on the USS Cole in October 2000, there was a shift in development of sea-based EO systems from a focus on defense from airborne missile attack to an emphasis on the surveillance and targeting of small, sea-based threats, according to the analysis.
Thales introduced the Artemis system for improved situational awareness and ship self-protection. The company secured a place for Artemis on the French Navy's complement of multifunction FREMM frigates and may receive orders for other international clients in the years ahead, said Forecast International.
Source: Forecast International.