Airborne Optronics Market was estimated at USD 1,631 million in 2021 and is projected to witness a CAGR of 11.5% over the forecast period (2022-2029), reaching a value of USD 3,896 million in 2029, owing to the emerging need for smaller and stronger aircraft with an intent to minimize the fuel emissions.

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Key Driver

Rising asymmetric warfare, an increasing number of terrorist activities, and rising demand for robust surveillance systems all over the globe are key factors expected to drive the airborne optronics market growth. Along with supplying weapons at long range, combat aircraft are also designed with systems that offer real-time intelligence gathering and close air support to ground forces. Furthermore, the rapid adoption of advanced technologies like Artificial Intelligence,next-generation thermal cameras, High Definition (HD) cameras, multispectral technology, and state-of-the-art laser sensors are allowing major success in diverse surveillance and combat missions. These airborne optronics systems are constructed to withstand harsh weather conditions and extreme vibration during operation. Hence, demand has been rising rapidly for military, commercial, and aerospace applications in the recent past.

The Airborne Optronics market size is expected to witness a strong growth over the upcoming years, such as the augmenting demand for optoelectronic devices in military applications and the rising investment in research and development. The advent of latest optoelectronic technologies and the miniaturization of optoelectronic devices have bolstered the market growth. Factors like the increase in the fleet of commercial and combat aircraft and rising application of electro-optics in unmanned vehicles are expected to propel the market growth. Increasing demand for optoelectronic devices in military applications such as target acquisition, night vision, and navigation has strengthened the market growth.  Thus, the emerging need for improved situational awareness will offer enormous opportunities for the market. With the rising incidences of conflicts, the awareness about preventing the citizens from increasing the demand for advanced technologies, influencing the market growth.

Restraint in the Airborne Optronics Market

However, the increasing risk of collateral damage and fires due to inaccurate weapon systems in a combat zone is a major restraining factor that is hampering the airborne optronics industry. Moreover, the high cost of airborne optronics systems and the emerging need for specialized training and expertise to operate and maintain these systems will further hamper the market growth.

Impact of COVID-19 on the Airborne Optronics Market

The COVID-19 outbreak has impacted the end-use verticals adversely, resulting in a sudden decline in 2020 aircraft orders and deliveries. This is forecasted to negatively impact the aircraft industry market in the short term, with a slow recovery expected in the first quarter of 2021.

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System – Segment Analysis

Based on the System, the Surveillance system is expected to grow at a higher CAGR during the forecast period. The growth of this segment can be attributed to the growing application of small UAVs in the military sector as well as long-range and high-altitude UAVs to assist with battlefield intelligence. Small UAVs helps in monitoring enemy forces or specific locations and send video feedback to base stations with the help of GPS. On the other hand, UAVs are used for ISR operations to record information of potential targets that are otherwise challenging to detect.

Application – Segment Analysis

Based on the Application, the Commercial segment is expected to grow at a higher CAGR during the forecast period. This growth can be attributed to diverse commercial applications of airborne optronics. The use of drones is not limited to surveying applications and aerial imaging. UAVs are also coupled with artificial intelligence (AI) to carry out a wide range of commercial operations, including preventive maintenance, facility surveys, rapid emergency response, security, and land surveys. Moreover, the demand for drone services in different verticals is also increasing, with the rise in the use of UAVs.

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Regional – Segment Analysis:

Based on the region, the North America region is projected to dominate the market during the forecast period. The key factor responsible for segment growth can be attributed to the development of technologically advanced optronics in this region and the increasing investment in the research and development for defense and aerospace. In North America, the increase in aircraft orders and supplies is promoting manufacturers of airborne optronics to raise their sales year on year. The growing demand for commercial aircraft and the proximity of some of the leading players operating in the market, like Northrop Grumman Corporation (US) and FLIR System (US), are expected to propel the airborne optronics market in North America. These players are emphasizing R&D to raise their product lines using advanced technologies, subsystems, and other components for manufacturing airborne optronics.

Top Market Players

Various notable players operating in the market include Northrop Grumman, Thales Group, Safran S.A., Teledyne FLIR LLC, Elbit Systems Ltd., Lockheed Martin Corporation, Leonardo S.p.A., L3Harris Technologies, Inc., Hensoldt AG, Collins Aerospace, among others. 

Key Developments:

• • In 2021, HENSOLDT entered into a strategic partnership with Fraunhofer IOSB in Ettlingen, Germany, with an intent to develop future-proof, robust, and powerful lasers for laser-based countermeasures for self-protection systems and reconnaissance purposes.
  • In 2021, Elbit Systems Ltd. unveiled to have received a five-year contract worth USD 300 million from an Asian country to provide HermesTM 900 Unmanned Aircraft Systems. As per the contract, the company will provide its Hermes 900 UAS and associated sub-systems, as well as maintenance and support services.
  • In 2021, Northrop Grumman’s RQ-4D Phoenix Global Hawk allowed NATO Alliance Ground Surveillance (AGS) Force to receive a declaration of initial operating capability (IOC) from Supreme Allied Commander Europe, providing NATO commanders the ability to perform uninterrupted in-theater operations 24/7/365.
  • In 2021, Hensoldt AG and Fraunhofer IOSB in Ettlingen, Germany, signed a cooperation agreement with the aim of developing future-proof, robust, and powerful lasers for laser-based countermeasures for self-protection systems and reconnaissance purposes.

Segments covered in the Report:

The global Airborne Optronics market has been segmented on the basis of System, Technology, Application, Aircraft Type, End Use and regions. Based on System, the market is segmented into Reconnaissance system, Targeting system, Search and track system, Surveillance system, Warning/detection system, Countermeasure system, Navigation and guidance system and Special mission system. Based on Technology, the market is segmented into Multispectral and Hyperspectral. Based on Application, the market is segmented into Commercial, Military and Space. Based on Aircraft Type the market is segmented into Fixed Wing, Rotary Wing, Urban Air Mobility and Unmanned Aerial Vehicles. Based on End Use, the market is segmented into OEM and Aftermarket. 

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Key questions answered in this research report:

• • At what pace is global Airborne Optronics market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Airborne Optronics market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Airborne Optronics market?
  • Which System generated maximum revenues in 2021 and identify the most promising System during the forecast period?
  • What are the various Technology areas of global Airborne Optronics market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Revenues (2021)	USD 1,631 Million
Market Base Year	2021
Market Forecast Period	2022-2029
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By System, By Technology, By Application, By Aircraft Type, By End Use, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Northrop Grumman, Thales Group, Safran S.A., Teledyne FLIR LLC, Elbit Systems Ltd., Lockheed Martin Corporation, Leonardo S.p.A., L3Harris Technologies, Inc., Hensoldt AG, Collins Aerospace, among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Airborne Optronics Market by System

• • Reconnaissance system
  • Targeting system
  • Search and track system
  • Surveillance system
  • Warning/detection system
  • Countermeasure system
  • Navigation and guidance system
  • Special mission system

Global Airborne Optronics Market by Technology

• • Multispectral
  • Hyperspectral

Global Airborne Optronics Market by Application

• • Commercial
  • Military
  • Space

Global Airborne Optronics Market by Aircraft Type

• • Fixed Wing
  • Rotary Wing
  • Urban Air Mobility
  • Unmanned Aerial Vehicles

Global Airborne Optronics Market by End Use

• • OEM
  • Aftermarket

Global Airborne Optronics Market by Region

• • North America Airborne Optronics Market (Option 1: As a part of the free 25% customization)
    • By System
    • By Technology
    • By Application
    • By Aircraft Type
    • By End Use
    • US Market All-Up
    • Canada Market All-Up
  • Europe Airborne Optronics Market (Option 2: As a part of the free 25% customization)
    • By System
    • By Technology
    • By Application
    • By Aircraft Type
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Airborne Optronics Market (Option 3: As a part of the free 25% customization)
    • By System
    • By Technology
    • By Application
    • By Aircraft Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Airborne Optronics Market (Option 4: As a part of the free 25% customization)
    • By System
    • By Technology
    • By Application
    • By Aircraft Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Airborne Optronics Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Airborne Optronics (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Northrop Grumman
  • Thales Group
  • Safran S.A.
  • Teledyne FLIR LLC
  • Elbit Systems Ltd.
  • Lockheed Martin Corporation
  • Leonardo S.p.A.
  • L3Harris Technologies, Inc.
  • Hensoldt AG
  • Collins Aerospace