Military Optronics Surveillance and Sighting Systems Market is expected to reach US$ 26,852.12 Million by 2031

Rising Government Investments in ImprovingSurveillance and Sighting Systems Bolsters Military Optronics Surveillance and Sighting Systems Market Growth

According to our latest study on "Military Optronics Surveillance and Sighting Systems Market Analysis to 2031 – Geography Analysis – by Type, Component, and End Users," the market was valued at US$ 17,358.98 million in 2023 and is projected to reach US$ 26,852.12 million by 2031; it is anticipated to record a CAGR of 5.6 during 2023–2031. The report includes growth prospects owing to the current military optronics surveillance and sighting systems market trends and their foreseeable impact during the forecast period.

Several government bodies are investing heavily to improve surveillance and sighting systems to protect their land. For example, governments in countries such as Ghana, Morocco, Malawi, Nigeria, and Zambia collectively invest ~US$ 1 billion per year on digital surveillance technologies. These countries provide contracts to companies across the UK, the US, China, the European Union, and Israel. Moreover, in December 2023, the government of Canada awarded four contracts, with a valuation of US$ 1.68 billion, to the General Dynamics Mission Systems, Canada. These contracts provided support for the Land Commands, Control Equipment, Communications, Intelligence, Computers, Surveillance, and Reconnaissance (LC4ISR) systems for the Army of Canada. This armed force requires advanced LC4ISR technology-based systems to enable commanders to make real-time operations. Furthermore, in September 2022, the Ontario state government planned to invest around US$ 1.8 million to help 20 police services across the province by expanding video surveillance systems and protecting communities. Such increasing investments by governments to improve surveillance and sighting systems have created a massive demand for these systems.

Military Optronics Surveillance and Sighting Systems Market Size — by Region, 2023

Source: The Insight Partners Analysis

Likewise, governments of various countries are investing significantly in implementing next-generation surveillance and sighting systems to improve the capabilities of their military forces. For instance, in March 2024, the US military army launched surveillance assets in its geostationary orbit. The US Space Army Force is planning to modernize their ground-based sensors, such as deep space radars, that are critical for monitoring the GEO stationary belt. The US intelligence community is working on the adoption of new surveillance satellites to keep an eye on potential threats such as anti-satellite weapons. Further, in September 2024, the US Army awarded a contract worth US$ 117 million to Leonardo DRS to produce next-generation thermal weapon, the FWS-I sights. The FWS-I is an infrared weapon sight that has rapid target acquisition capabilities for the users day or night. In 2024, according to the Swedish Defence Commission's report, the government planned to submit the development defense bill 2025–2030 to the Riksdag. This proposal will include investment in the development of the military and defense sector equipment. Such increasing investment and contracts by militaries of various countries for survivability and efficacy on the battlefield have created a massive demand for military optronics surveillance and sighting systems products. Thus, technological advancements in the military and defense system are driving the military optronics surveillance and sighting systems market size.

The geographic scope of the military optronics surveillance and sighting systems market report offers a detailed country analysis. North America, Europe, and Asia Pacific are major regions witnessing significant growth in the military optronics surveillance and sighting systems market. The US holds a prominent market share in North America. Increasing military spending across the globe is driving the military optronics surveillance and sighting systems market growth. In 2023, the military spent  2.3% of the global gross domestic product (GDP). The five largest military spenders in 2023 were the US, Russia, China, India, and Saudi Arabia, which together accounted for around 61% of the world’s military spending. The global military expenditure reached US$ 2,443 billion in 2023, which is an increase of 6.8% compared to 2022. The US and China remained the largest two military spenders across the globe. In 2023, the total spending of the US was valued at US$ 916 billion, while the military spending of China was valued at US$ 296 billion.

North America held the largest share of the global military optronics surveillance and sighting systems market, followed by Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). Countries in North America experience significant demand from the US army owing to increasing military spending. Several major players in North America are investing significant amounts in the procurement of military optronics surveillance and sighting systems. In November 2023, Elbit Systems Ltd. announced a contract worth US$ 500 million from the US Department of Defense (DOD). Elbit Systems’ US-based subsidiary, Night Vision LLC (Elbit Systems of America), was awarded a contract to supply Squad Binocular Night Vision Goggle (SBNVG) systems to the US Department of Defense. Such increasing investments by the US Department of Defense to procure military optronics surveillance and sighting systems drive the market. Moreover, North America quickly adopts the latest technological advancements. Major countries, such as the US, Canada, and Mexico, are well equipped with the latest surveillance instruments needed to safeguard the nation.

Asia Pacific was estimated to be the fastest-growing region during the forecast period across the global military optronics surveillance & sighting systems market. Lockheed Martin Corporation, Thales Group, Raytheon Technologies Corporation, Rafael Advanced Defense Systems Ltd., and HENSOLDT are among the key players operating in the military optronics surveillance and sighting systems market. Enhancing military modernization initiatives worldwide and integration of next-generation technologies such as artificial intelligence in defense systems drive the market for military optronics surveillance and sighting systems. Owing to distinct rules, regulations, norms, and policies of different countries, trade barriers in the market are expected to act as restraining factors to some extent in the coming years. Nations in Asia Pacific, including Pakistan, Bangladesh, Bhutan, India, Nepal, Myanmar, and Mongolia are still developing. With growing awareness of high-end surveillance systems for the security of the country, these nations are expanding their existing technological capabilities. Growing military spending as a part of GDP is also increasing considerably in almost all developing nations across the world. Owing to the growing threat of terrorist attacks in Asia, the demand for surveillance optronics systems, sights, scopes, night-vision attachments, target sight systems (TSS), laser rangefinders, monitoring systems, and security cameras is expected to grow notably. Countries such as India are enhancing their local weapon manufacturing capacities with contracts awarded to firms and organizations.

Europe holds the second-largest military optronics surveillance and sighting systems market share owing to increasing military spending and growing investment by several governments to procure night vision goggles. Russia’s military spending was valued at US$ 109 billion, which increased by 24% in 2023. This spending was equivalent to 5.9% of Russia’s GDP. Furthermore, in February 2021, the European Air Force selected The Photonis 4G to procure more than 1,400 piece intensifier tubes with the latest state-of-the-art technology in night vision. With this contract, Photonics AG’s image intensifiers serve to upgrade its existing fleet of about 700 avionics binoculars for pilots and helicopter crews for European forces.

Airbus, Lockheed Martin Corporation, Thales Group, General Dynamics Corporation, L3Harris Technologies Inc., Israel Aerospace Industries, Leidos inc., Rafael Advanced Defense Systems Ltd., Raytheon Company, Safran S.A. are among the key players operating in the military optronics surveillance and sighting systems market report. Includes companies operating in the military optronics surveillance and sighting systems market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.

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