Business

November 20, 2013

Forecast International predicts electro-optical systems valued at $13.5 billion over the coming decade

Forecast International predicts key land, sea-based electro-optical systems valued at $13.5 billion over the coming 10 years

An estimated $13.5 billion will be spent through 2022 on the research, development, and production of the representative programs covered in Forecast International’s newly updated analysis, “The Market for Land and Sea-Based Electro-Optical Systems.”

Of the major EO systems covered in the report, a total of 296,036 units will be produced over the next 10 years. During the first half of the forecast period, from 2013 through 2017, some 156,561 units will be produced; the 2018-2022 timeframe should see production of 139,475 units.

“Despite the drawdown of troops in Iraq and the reduction of forces in Afghanistan, high demand for EO systems will see only a slight decline over the next few years,” said Forecast International’s senior defense analyst Andrew Dardine. “Profound security challenges are a seemingly permanent feature of both nations.” Iraq in particular is now a major purchaser of U.S. technology and likely will be for some time. The Pentagon in August 2013 notified the U.S. Congress of a possible $2.7 billion arms deal to Iraq that would include air defense, surveillance systems, and other advanced technology.

Some of the leading EO technology in Forecast International’s analysis is critical to the performance of a wide variety of platforms. The next several years should see steady production of the Raytheon-produced VAS-5 Driver’s Vision Enhancer. This production will be spread among other services in the U.S. military, including the Navy, Marine Corps, Air Force, and Special Operations Command. Raytheon is also at work completing a $25.4 million contract for the Foreign Military Sale of the DVE to the Saudi Arabian National Guard. Work under the contract is expected to be completed by April 2014.

Night Vision devices will also continue to see high demand in the years ahead. Driven by ongoing demand by the U.S. Army for a wide range of advanced surveillance systems, the PSQ-20 Enhanced Night Vision Goggle will be produced in relatively steady numbers through the rest of the decade. The U.S. Army in May 2013 awarded prime contractor ITT Exelis a $48 million contract for the system. According to the FY14 U.S. defense budget, $1.1 billion will be spent on the procurement of night vision devices through 2018.

Over the next several years, as navies continue to shift their focus from defense from airborne attack alone (whether from missiles or jet fighters) to an emphasis on the surveillance and targeting of small sea-based threats, developers of sea-based EO systems will follow suit. L-3 KEO, for example, in August 2013 was awarded a $9.7 million cost-plus-fixed-fee basic ordering agreement for engineering and logistics services, refurbishment, overhaul, and upgrade in support of the Mk 46 Optical Sight System and the Mk 20 Electro-Optical Sensor components and subcomponents.




All of this week's top headlines to your email every Friday.


 
 

 
Raytheon photograph

Raytheon completes key Air, Missile Defense Radar reviews

Raytheon photograph Partially-populated, full-sized Air and Missile Defense Radar array. Raytheon has completed two critical program reviews for the new Air and Missile Defense Radar, the U.S. Navy’s next generation integ...
 
 
Insitu photograph

Insitu demonstrates long endurance capabilities of Integrator unmanned aircraft

Insitu photograph Insitu’s Integrator unmanned aircraft recovers via SkyHook; the aircraft recently completed a 24-hour endurance flight. Insitu announced July 22 the successful 24-hour flight of its Integrator unmanned a...
 
 

U.S. Navy selects Northrop Grumman for ship self-defense system

The U.S. Navy has awarded Northrop Grumman a $12 million task order for a full range of engineering services to continue modernizing the Ship Self-Defense System Mark 2. The contract has a potential value of $61 million over five years, if all options are exercised. SSDS MK2 is a combat system designed for anti-air defense...
 

 
Lockheed Martin photograph

Lockheed Martin selected for U.S. Air Force’s satellite hosted payload initiative

Lockheed Martin photograph Lockheed Martin has a long history of developing and integrating hosted payloads onto spacecraft. Since 2000, the company has delivered 84 payloads on 16 different types of satellites from multiple ma...
 
 
boeing-france

Boeing delivers upgraded French AWACS aircraft

Boeing on July 17 delivered on schedule the first of four upgraded French Airborne Warning and Control System aircraft. The upgraded aircraft will increase the fleet’s surveillance, communications and battle management ca...
 
 

Lockheed Martin demonstrates JAGM dual-mode guidance section in second flight test

Lockheed Martin recently demonstrated its Joint Air-to-Ground Missile dual-mode guidance section during a second internally funded flight test at Eglin Air Force Base, Fla. During the test, the rail-mounted JAGM flew 6.2 kilometers and initially acquired the target using its precision strike, semi-active laser. The dual-mode guidance section then engaged its millimeter wave radar, and...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>