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.


 
 

 

Headlines September 19, 2014

News: McKeon on broader military authorization: Anything can ‘fail or pass’ - Rep. Howard “Buck” McKeon, R-Calif., chairman of the House Armed Services Committee, said if Congress returns after the midterm elections to weigh a broader military authorization for the battle against Islamic State, it might not pass. Defense contractor gets 7 years for giving secrets...
 
 

News Briefs September 19, 2014

U.S. military deaths in Afghanistan at 2,203 As of Sept. 16, 2014, at least 2,203 members of the U.S. military had died in Afghanistan as a result of the U.S.-led invasion of Afghanistan in late 2001, according to an Associated Press count. At least 1,823 military service members have died in Afghanistan as a result...
 
 

Pratt & Whitney, U.S. Air Force complete qualification for F135 engine testing

Pratt & Whitney, a United Technologies Corp. , together with its U.S. Air Force partner at the F135 Heavy Maintenance Center at Tinker Air Force Base, Okla., celebrated another significant milestone qualification for F135 engine testing at the Oklahoma City Air Logistics Complex. OC-ALC which in addition to engine testing is also qualified to perform...
 

 
Navy photograph

Triton has first cross-country flight from Palmdale

Northrop Grumman photograph The MQ-4C Triton Unmanned Aircraft System takes off from Northrop Grummanís Palmdale, Calif., facility Sept. 17 for its first cross-country flight to Naval Air Station Patuxent, River, Md. PALMDALE,...
 
 
Air Force photograph by Michael J. Pausic

Future of NATO: Adapting to a new security environment

Air Force photograph by Michael J. Pausic Gen. Phillip Breedlove informs the assembled crowd about the results of the recent NATO Summit and the areas of instability that affect Europe that have regional implications. Seated in...
 
 
Air Force photograph by Scott M. Ash

AFRL commander describes Air Force’s technology vision

Air Force photograph by Scott M. Ash Maj. Gen. Thomas Masiello takes a question from an audience member after discussing Air Force Research Laboratory breakthrough technologies during the 2014 Air Force Association’s Air ...
 




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>