Rising Importance of National Security Propels the Air ISR Sensors Markets

SINGAPORE: Following Asia Pacific’s rapid economic growth, which is the fastest in the world, there has been substantial rise in the armed forces’ spending on modernization and upgrade of ageing military aircraft and capabilities. Airborne early warning and maritime patrol aircraft will be some of the main beneficiaries of this modernization drive and consequently, airborne sensors that aid in intelligence, surveillance, and reconnaissance (ISR) will also get a leg up.

New analysis from Frost & Sullivan, Asia Pacific Air ISR Sensors (EO/IR) Markets, finds that the market earned revenues of $86.0 million in 2007 and estimates this to reach $99.5 million in 2014.

These air ISR sensors {electro-optics/infrared (EO/IR)} map accurate images from high altitudes, providing the commanding officers with the data to make well-informed decisions on the battlefield.

Airborne EO/IR sensors can even capture high-resolution images of small ships and the personnel aboard these ships in the vast sea areas surrounding Asia Pacific countries. They will go a long way in helping countries combat rising security threats such as hijacking, piracy, illegal trafficking, and smuggling.

The efficiency of EO/IR sensors has picked up with improvements in technology - especially in high definition imaging and advanced targeting and navigation systems.

“High definition imaging and advanced accurate navigation and targeting pods – the next generation of EO/IR sensors – will eventually replace the existing ones,” says Frost & Sullivan Research Analyst Chern Wai Cheong. “However, these sensor technologies or new aircraft are not affordable to smaller nations, as they have limited defense budgets.”

The high costs of R&D have escalated the costs of EO/IR sensors, compelling market participants to cultivate healthy relationships with governments to secure important contracts. First-hand knowledge of different defense procurement programs will also help companies to pit their capabilities against their competitors.

Market participants can achieve further penetration through mergers, local joint ventures, and acquisitions by global defense contractors. These globalization efforts will enable defense companies to easily overcome entry barriers and develop advanced capabilities faster.

“Many companies have reinvented themselves as they compete on some programs and simultaneously collaborate and partner on others,” notes Cheong. “Although partnering can be difficult, it is important to make it work to spread risks and costs, and combine technologies and capabilities.”

Asia Pacific Air ISR Sensors (EO/IR) Markets is part of the Aerospace & Defense Growth Partnership Service program, which also includes research in the following markets: Asia Pacific air ISR radar markets, Asia Pacific air C2 markets, European air ISR radar markets, European air ISR sensors (EO/IR) markets, and European air C2 markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

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