A new study by Forecast International of Newtown, CT, USA estimates that $6.4 billion will be spent over the next 10 years on land and sea-based electro-optical (EO) systems. This category includes thermal weapon sights, night vision goggles, combat vehicle surveillance systems, and naval fire control systems. “The Market for Land & Sea-Based EO Systems” estimates that some 363,779 systems will be produced through 2014, with Raytheon, Northrop Grumman, ITT, Thales and Kollmorgen playing a large role. The report’s author, Andrew Dardine, notes that “in some cases these devices are being fielded to troops as fast as they can be produced.”

In terms of production, FI expects that two of the biggest systems in the coming years will be ITT’s PVS-7/14 series of night vision goggles and Raytheon’s PAS-13 thermal sight, which has been selected for the U.S. Army’s Land Warrior future infantry program. Combined, an impressive total of some 253,950 of these systems are expected to be produced over the next 10 years, with a value of some $1.5 billion. In the case of the PAS-13, more than $165 million worth of 2004 contracts has doubled monthly production rates for the system to 1,000 units per month.

As submarines continue to rise in popularity and the navies of many nations seek to upgrade their fleets, Naval EO sensor manufacturers may also find opportunities. In the case of the U.S. company Kollmorgen, for instance, a recent order for its Non-Penetrating Periscope (which transmits results to a viewscreen, instead of being a set of lenses in a tube that goes through the hull) illustrates to FI that the systems will probably be in demand as long as submarines are being built or modified. An estimated 15 NPPs are expected to be produced through 2014 for the U.S. Navy, mostly for the Virginia-Class submarines, at a value of $55.5 million.

Finally, FI cites a wide array of directed energy (DE) systems and capabilities as a new market area for electro-optic manufacturers. “Although expensive DE programs like the Mobile Tactical High Energy Laser (MTHEL) system have been hampered by deep funding cuts, more practical and relatively less expensive DE systems are making steady advances toward possible production.” Dardine said. See corporate release.

The report did not evaluate the airborne EO market, which is experiencing significant growth of its own due to the explosion in the UAV market, as well as the rising popularity or weapons targeting and surveillance pods like the Northrop Grumman/ Rafael LITENING.