Missile Defense and ISR Drive Airborne and Space-Based Electro-Optical Market

NEWTOWN: Over the next 10 years, missile defense and intelligence, surveillance and reconnaissance (ISR) will be the primary forces driving the almost $33.6 billion Airborne and Space-Based EO market as defined in Forecast International’s annual review of the industry.

At the present time, there are three major programs dedicated to supporting a U.S. defense capability against intercontinental and theater ballistic missiles. These three programs – the Boeing YAL-1A Airborne Laser (ABL), the Space Tracking and Surveillance System (STSS), and the Space-Based Infrared System - High (SBIRS-High) – are forecast to be worth almost $17 billion over the 2008-2017 timeframe. Also covered in Forecast International’s “The Market for Airborne and Space-Based Electro-Optical Systems” is the U.S. Army’s Aerial Common Sensor (ACS) program, which will seek to develop a replacement for the older U.S. Army Airborne Reconnaissance Low (ARL) platform. Meanwhile, the U.S. Navy has launched its service-specific EPX initiative.

In the short term, companies are manufacturing airborne and space-based EO equipment to support operations in Iraq and Afghanistan. During the first half of the forecast period – from 2008-2012, approximately 7,300 electro-optical systems are expected to be procured. During the second half, from 2013-2017, nearly 4,150 units are anticipated to be bought.

“Manufacturers are projected to produce roughly 10,000 airborne platforms over the next decade, and most of these will be equipped with at least one EO system such as a targeting pod, thermal imaging equipment, a missile warning system, or IR countermeasures,” said Theresa Hartley, Forecast International Aerospace and Defense Analyst and author of the analysis

“The value of the market is expected to remain constant during both halves of the forecast period, with the first half being dominated by combat systems such as night vision goggles, and the second characterized by increased spending on long-term programs such as the YAL-1 Airborne Laser, the U.S. Navy EPX, and the Space Tracking and Surveillance System.”

This analysis also addresses non-traditional ISR, or NTISR, one example being the use of fighter aircraft equipped with targeting pods to view areas of interest in the combat zone. (Airborne ISR platforms are the ultimate “eye in the sky” spy machines.) The Air Force has also stated that, in the future, NTISR aircraft could be used in the fight against improvised explosive devices (IEDs).

In the decade 2008-2017, Northrop Grumman and Boeing will hold the two top spots in the market in terms of value, with almost half of the funding to be allocated for airborne and space-based EO defense to be received by these two companies. Other top performers will include Lockheed Martin, BAE Systems, Finmeccanica, Raytheon and Thales.

Forecast International, Inc., 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.