European Air ISR Sensors (EO/IR) Market Assessment

New Security Threats and Multinational Operations Boost European Air ISR Sensors (EO/IR) Market

The need for force modernisation, increasing new dimensions of security threats and the rising number of multinational, combined forces exercises is spurring countries across Europe to procure more aircrafts and rotorcrafts. This is providing a fillip to the European air intelligence, surveillance and reconnaissance (ISR) sensors (EO/IR) market. The market is highly competitive with a large number of participants. For the most part, these participants operate on a global level, except for some, whose operations are currently limited to the regional level. "The market holds considerable potential due to countries in Europe opting to procure fourth and fifth generation aircrafts," notes the analyst of this research. "With most aircrafts in current service with the armed forces in need of upgrades with the latest technology, there is significant growth potential for industry participants in this particular market."

Sizeable business potential awaits market participants due to force modernisation plans across European countries. Most militaries have plans to procure special mission aircraft for tactical and strategic surveillance and equip their forces with the latest technology. Partnerships and joint ventures are the key trends in the market and are set to continue as it allows participants to exchange innovative ideas and devise unique products. R&D activity will remain a key trend in the upcoming years as companies focus on new technologies for military applications, motivating countries to acquire advanced products.

Achieving Interoperatibility and Timely Delivery are Key Challenges

Meeting European Union (EU) and/or NATO standards is a central trend in all defence-related markets. This is in order to ensure interoperability among member countries. With increasing multinational operations, meeting NATO and EU-specified standards will remain a key challenge. Another challenge relates to the timely meeting of delivery schedules. "Delays might be due to bureaucratic negotiations or other policy and legislation related issues," states the analyst "Agreeing to a conservative delivery schedule would help industry participants address this particular challenge."

Infrared sensors and electro-optic sensors are the two critical elements in an aircraft/rotorcraft that are required to provide target locking, night vision, enemy detection and many other vital functions. Achieving all-electric aircraft in military applications can pave the way for more advanced electro-optic/infrared sensors implementation in ISR.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Rotorcraft
• Fighter aircraft
• Fixed-wing aircraft