Allied Market Research published a report, titled “Electro Optics Market By Application, and End User: Global Opportunity Analysis and Industry Forecast, 2023-2032.” According to the report, the electro optics industry is anticipated to grow at $15.6 billion by 2032, having endorsed a value of $10.2 billion in 2022, exhibiting a notable CAGR of 4.5% from 2023 to 2032.
Prime Factors Influencing Market Growth:
The global electro optics market growth is driven by various factors, including the increasing demand for security and surveillance systems, the benefits of an electro optical system, and the rise in military spending all over the world. On the other hand, the high initial investment is expected to slow down the market growth. Moreover, the development of innovative technologies, and the growing demand of electro optical systems for military applications is expected to create tremendous growth opportunities for the electro optics market in the coming years.
The Air Based segment to lead the trail by 2032
On the basis of application, the air based segment accounted for the largest market share in 2022, contributing to more than two-fifths of the global electro optics industry revenue, and is expected to lead the trail by 2032. The same segment would also exhibit the fastest CAGR of 5.24% from 2023 to 2032. This is due to the fact that various nations are spending more money on defense.
The Defense segment to retain its dominance throughout the forecast timeframe
By end user, the defense segment garnered the major market share in 2022, holding more than three-fourths of the global electro optics market revenue, and is anticipated to maintain its dominance throughout the forecast timeframe. On the other hand, the aerospace segment is expected to witness the fastest CAGR of 5.52% from 2023 to 2032. This is due to the growing use of multiple sensor electro-optic systems, such as cameras and infrared sensors, and lidar. Aerospace offers unparalleled situational awareness and enhances navigation, targeting, and threat detection.
North America garnered the major share in 2023
By region, North America dominates the largest market share in terms of revenue in 2022, contributing to around one-third of the global electro optics market. Simultaneously, the Asia-Pacific region would cite the highest CAGR of 5.66% from 2023 to 2032. This is due to the growing investments in the defense sector which are contributing to the growth of the region.
Industry Leading Players:
- Northrop Grumman Corporation
- Lockheed Martin Corporation
- Thales Group
- Raytheon Technologies Corporation
- FLIR Systems Inc.
- L3Harris Technologies, Inc.
- Textron Systems
- BAE Systems plc
- Leonardo DRS
- Safran Group