U.S. military electro-optical spending to reach $13.5 billion over next 10 years, predicts Forecast International
NEWTOWN, Conn., 7 Jan. 2014. U.S. military forces will spend $13.5 billion on electro-optical systems and technology over the next decade, and buy nearly 300,000 electro-optical systems, say analysts at market researcher Forecast International in Newtown, Conn.
The U.S. military will spend an estimated $13.5 billion on electro-optical programs through 2022 on research, development, and production, say Forecast International analysts in a report entitled The Market for Land and Sea-Based Electro-Optical Systems.
Of the major electro-optical systems covered in the report, a total of 296,036 units will be produced over the next 10 years. From 2013 through 2017, some 156,561 units will be produced, and 139,475 units will be built between 2018-2022, analysts say.
"Despite the drawdown of troops in Iraq and the reduction of forces in Afghanistan, high demand for electro-optical systems will see only a slight decline over the next few years," says Andrew Dardine, senior defense analysts at Forecast International.
The next several years should see steady production of the Raytheon-produced VAS-5 Driver's Vision Enhancer (DVE), analysts say. 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 see high demand in the years ahead, driven by U.S. Army demand for advanced surveillance systems, analysts say. The PSQ-20 Enhanced Night Vision Goggle (ENVG) will be produced in relatively steady numbers through the rest of the decade. The Army in May 2013 awarded prime contractor ITT Exelis a $48 million contract for the system.
The U.S. military will spend $1.1 billion on night-vision devices through 2018, analysts say. Developers of sea-based electro-optical systems over the next several years, meanwhile, will shift their focus to surveillance and targeting of small sea-based threats.
L-3 KEO, for example, in August 2013 won a $9.7 million order to upgrade and refurbish the Mk 46 optical sight system and the Mk 20 electro-optical sensor components and subcomponents, Forecast International analysts point out.
For more information contact Forecast International online at www.forecastinternational.com.