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Forecast International Expects Key Land- and Sea-Based EO Programs to Yield $10.2 Billion Over the Next 10 Years

NEWTOWN, CONN., Oct. 14, 2014 (GLOBE NEWSWIRE) -- An estimated $10.2 billion will be spent through 2023 on R &D and production of the world's prominent electro-optical programs, according to "The Market for Land and Sea-Based Electro-Optical Systems," a new analysis from Forecast International. According to the analysis, the leaders in the land/sea-based EO market over the next 10 years will be BAE Systems, DRS Technologies, Exelis, Northrop Grumman, Raytheon, Thales, and Australia's Electro Optic Systems.

"Because of their relative affordability and high production rates, EO systems for dismounted soldiers will continue to dominate the land and sea EO market for years to come," said Forecast International electronics defense analyst Andrew Dardine. "While production rates may not be as astronomically high as in the middle of the last decade, or even recent years, the simple need for upgrades and replenishment of older systems will still drive a very active market."

This need was demonstrated this past April when the U.S. Army handed BAE Systems a five-year, $444.8 million firm-fixed-price contract for Individual and Enhanced Night Vision Goggle III weapons sights. Around the same time, the U.S. Army awarded a five-year, $367 million FFP contract to DRS Technologies for that company's version of the Individual and Enhanced Night Vision Goggle III weapon sight.

Meanwhile, according to the FY15 U.S. defense budget, $783 million will be spent on the procurement of night vision devices through 2019. Some of this funding will be used to continue support of the PVS-7/14 units already in wide distribution.

Over the next several years, developers of sea-based EO systems will continue to shift their focus from defense from airborne attack alone (whether by missiles or jet fighters) to an emphasis on the surveillance and targeting of small sea-based threats. The analysis reports that the companies that will lead in this aspect of the market are L-3 Communications and Sagem Defense.

The Sagem Defense electro-optical multifunction system (EOMS) should see steady production over the next several years to address this new focus. Sagem has taken a strong lead in providing surveillance technology to naval operators, particularly those in the dangerous waters of Southeast Asia. Also, in February 2014, the French DGA (defense procurement agency) announced its choice of Sagem to modernize the optronic systems on four Horizon and Cassard class air defense frigates of the French Navy. These ships will be equipped with the EOMS-NG.

Meanwhile, the L-3 KEO-produced Mk 46 EO fire control director system is expected to see significant production for the U.S. Coast Guard through the forecast period (2014-2023). The FY15 budget for the U.S. Navy's Coast Guard Equipment procurement program – through which the Mk 46 is purchased for the service – includes $26.7 million for the system and other electronic systems through 2019.

Forecast International, Inc. (www.forecastinternational.com) is a leading provider of Market Intelligence and Analysis in the areas of aerospace, defense, power systems and military electronics. Based in Newtown, Conn., USA, Forecast International specializes in long-range industry forecasts and market assessments used by strategic planners, marketing professionals, military organizations, and governments worldwide. To arrange an interview with Forecast International's editors, please contact Ray Peterson, Vice President, Research & Editorial Services (203) 426-0800, ray.peterson@forecast1.com. Questions regarding sales may be directed to sales@forecast1.com.

CONTACT: Andrew Dardine, Senior Aerospace & Defense Analyst Phone: (203) 426-0800 Fax: (203) 426-4262 Website: www.forecastinternational.com E-mail: andrew.dardine@forecast1.com Forecast International, Inc. 22 Commerce Rd. Newtown, CT 06470 USA

Source:Forecast International, Inc.