Electro Optics Market Expected to Reach $15.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Electro Optics Market,by application, end user: Global Opportunity Analysis And Industry Forecast, 2023-2032," the electro optics market was valued at $10.17 billion in 2022, and is estimated to reach $15.6 billion by 2032, growing at a CAGR of 4.5% from 2023 to 2032.

Electro optics is a branch of physics that deals with the use of electrical energy to create or manipulate light waves, generally by changing the refractive index of a light-propagating material. Electro-optics involves the design and integration of optical components such as lenses, mirrors, and waveguides, as devices like lasers, photodetectors, and optical modulators optics with electronics enable precise control and modulation of light, allowing for applications like data transmission and imaging. They are critical in improving military equipment, security products such as sensors, thermal imagers, and aerospace-related products such as spacecraft, radar, UAVs etc. Electro-optics encompasses a wide range of capabilities such as sensing, imaging, data transmission, light modulation, night vision, defense and surveillance, and more.

The electro optics industry is driven by a rise in demand for surveillance and security systems. The increasing concern about security threats, potential terror attacks, and illegal migration due to geopolitical tensions has led to the rapid adoption of electro optical equipment and devices in applications such as naval vessels, border security and air space security. As military organizations across the world modernize their equipment and upgrade modern warfare, the market sees the potential of growing demand for electro optics technology. Electro-optics enables a wide range of capabilities and applications across various industries by harnessing the interaction between electronics and optics to manipulate and utilize light and electromagnetic radiation.

However, there are high installation and maintenance costs, a barrier to the expansion of the Electro Optics market. These costs include not only the purchase of the electro optics system but also the installation of the necessary supporting infrastructure, such as systems for storing and processing the collected data. Furthermore, specialized skills and qualified personnel may be required to handle the installation and maintenance processes, increasing the overall costs. These high costs can be a barrier to the adoption and utilization of electro optics technology, particularly for smaller firms or organizations with restricted finances. Furthermore, the growing preference for electro optical systems for the defense industry creates a substantial opportunity for the electro optics market. Defense consumers like the army, navy and Airforce are increasingly embracing electro optics technology as its help in improving accuracy, precision, and security. It also reduces human interference which leads to low casualties on the battlefield. This trend indicates the demand for more advanced and intelligent warfare equipment equipped with electro optic technology can improve the efficiency of military operations, security, and space exploration.

The electro optics market size is segmented based on application, end user, and region. By application, the market is divided into air based, land based, and naval based. By end user, the electro optics market analysis is segmented into defense, aerospace, and homeland security.

By region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).

Competitive analysis and profiles of the major electro optics market players, such as Lockheed Martin Corporation, Thales Group, FLIR Systems Inc., BAE Systems plc, Northrop Grumman Corporation, Raytheon Technologies Corporation, L3Harris Technologies, Inc., Leonardo DRS, Textron Systems Corporation., and Safran Group are provided in this report. Product launch and acquisition business strategies were adopted by the major market players in 2022.

KEY FINDINGS OF THE STUDY

• The electro optics market share is expected to grow significantly in the coming years, driven by the rise in demand for surveillance and security systems.
• The market is expected to be driven by the electro optics demand for electro optics market growth in Air Based sector.
• The market is highly competitive, with several major players competing for market share. The competition is expected to intensify in the coming years as new players enter the market. The North America region is expected to be a major market for electro optics market trends owing to an increase in adoption of advanced technologies in the region.

The key players profiled in the Electro optics market, such as Lockheed Martin Corporation, Thales Group, FLIR Systems Inc., BAE Systems plc, Northrop Grumman Corporation, Raytheon Technologies Corporation, L3Harris Technologies, Inc., Leonardo DRS, Textron Systems Corporation., and Safran Group are provided in this report. Product launch, branding, investment and acquisition business strategies were adopted by the major market players in 2022.