A new Research and Markets report forecasts that the value of the electro-optical market will grow from $11.76 billion in 2014 to $14.03 billion in 2020 at a compound annual growth rate of 2.98 percent.
The market research firm said Monday that growth is attributed to ongoing upgrade and replacement projects in the defense, homeland security and aerospace segments.
It identified BAE Systems, DRS Technologies, Elbit Systems, Flir Systems, General Dynamics, Ii-Vi, L-3 Communications, Lockheed Martin, Northrop Grumman, Raytheon, Thales and Ultra Electronics Holdings as the prominent vendors in the market.
The report authors expect North American, European and Asia-Pacific markets to drive growth, with demand centered on border control, customs, law enforcement, imaging, surveillance and other applications.
Electro-optics systems are used to support airborne, naval and ground-based operations, in either infrared or laser iterations.