Tactical Optics Market Size, Share, Key Companies & Competitive Landscape Insights by 2032
In 2023, the global tactical optics market was worth $12.26 billion. It is expected to grow steadily, reaching $13.13 billion in 2024 and expanding to $22.43 billion by 2032, with an annual growth rate of 6.9%. North America led the market in 2023, accounting for 41.76% of the total share.
Tactical optics is an optical equipment specially made to enhance visibility, precision, and situational awareness in risky surroundings, including military actions, law enforcement, and self-care circumstances. These devices are crucial in advanced processes, such as improving military effectiveness through ISR capabilities, improving law enforcement procedures, and assisting civilian recreational actions. Rapid advancements in tactical optics, including improved lens coatings, greater reticle designs, and image stabilization technologies, to boost their performance are bolstering market expansion.
During the COVID-19 pandemic, the market was drastically affected on account of upheavals in supply chains, halted productions, and cut-down in military budgets. Moreover, fewer sales and lower investments affected manufacturing companies.
Fortune Business Insights presents this information in their report titled “Tactical Optics Market, 2024–2032.”
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List of Key Players Profiled in the Report:
- Kongsberg Defence & Aerospace (Norway)
- Raytheon Corporation (U.S.)
- Elbit Systems Ltd. (Israel)
- Saab AB (Sweden)
- BAE Systems (U.K)
- Thales Group (France)
- L3 Harris Technologies Inc. (U.S)
- Leonardo SPA (Italy)
- Lockheed Martin Corporation (U.S.)
- Northrop Grumman Corporation (U.S.)
- Hensoldt AG (Germany)
- Teledyne FLIR LLC (U.S)
Segments
Rifle Scopes & Sights Led the Market with Improved Functionality and Efficacy
By product, the market is divided into rifle scope & sights, cameras & display, sighting devices, rangefinders, and others. Rifle scopes & sights held the highest tactical optics market share due to their improved functionality and efficacy. Rapid integration of innovative features in advanced weapon scopes & sights to enhance target acquisition and precision in different conditions is fueling segment expansion.
Surging Need for High Precision in Military Operations to Fuel Demand for >25 Km Optics
In terms of range, the market is divided into km, 3 km to 25 km, and >25 km. The >25 km segment is set to increase with the highest CAGR in the coming years. >25 km is considered in products for long-range optics. The surging need for high precision in military and law enforcement operations is driving the demand for >25 km optics.
Rising Demand for First-class Imagery and Data to Bolster Intelligence, Surveillance, and Reconnaissance (ISR) Segment Growth
On the basis of application, the market is categorized into Intelligence, Surveillance, and Reconnaissance (ISR), Search and Rescue (SAR), patrolling, and others. The Intelligence, Surveillance, and Reconnaissance (ISR) segment commanded the market due to the rising need for modern optics to function efficiently under diverse environmental circumstances. These devices offer first-class imagery and data collection capabilities during day and night actions.
Increase in Advanced Aerial Platforms to Propel Airborne Segment Growth
Based on the platform, the market is segmented into airborne, naval, and ground. The airborne segment is predicted to lead the market over the forecast period as it is crucial in improving situational awareness for military commanders. UAVs armed with high-resolution camera displays and cutting-edge optics can offer thorough imagery and data from the battlefield, assisting with more up-to-date decision-making procedures.
From the regional ground, the market is classified into Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa.
Report Coverage
The market research report presents a complete market examination, highlighting essential elements, including the competitive environment and noticeable product categories. Furthermore, the report provides valuable insights on market trends and significant industry developments. Apart from the factors above, the report includes several aspects that have fostered market expansion in recent times.
Drivers and Restraints
Rise in Defense Budgets and Military Transformation to Bolster Market Growth
A rise in geopolitical pressures and security threats are pushing countries to increase their defense budgets. Governments are highly investing in revolutionizing their military forces and border coastal patrol, which comprises enhancing present equipment and integrating innovative technologies, including tactical optics. Military forces are experiencing wide-ranging transformation programs intended to substitute old-fashioned equipment with unconventional systems that advance operational efficacy. This involves modernizing weaponry with advanced optical systems that improve accuracy and situational awareness. This is expected to bolster the tactical optics market growth.
On the other hand, substantial production costs of tactical optics are restricting market growth.
Regional Insights
Presence of Robust Defense Infrastructure Boosted Market Growth in North America
The market size in North America stood at USD 5.12 billion in 2023, owing to a rise in military spending by the U.S. and Canada. The presence of robust defense infrastructure and prominent optical producers is also fueling market expansion in the region. Rising emphasis on improving operational capacities by the U.S. military is propelling market expansion.
The market in Asia Pacific is set to rise at the highest CAGR in the coming years due to an increase in defense budgets and upgrading efforts among China, India, and Japan. Rising investments by countries in transforming their armed forces are bolstering market expansion in the region.
Competitive Landscape
Top Players Offer Innovative Tactical Optics to Strengthen Their Market Presence
The presence of numerous global and regional players, including Kongsberg Defense & Aerospace, Raytheon Corporation, Elbit Systems, Saab AB, BAE Systems, Thales Group, and L3 Harris Technologies Inc., is driving market expansion. Furthermore, there is an increased purchase of EO/IR cameras for border coastal surveillance. Raytheon and Elbit Systems focus on the development of innovative EO/IR systems that offer improved targeting capabilities in numerous environmental situations, such as low-light situations. Such advances give important growth of EO/IR cameras for border coastal surveillance. In March 2023, Elbit Systems declared an agreement to provide electro-optic equipment for infantry soldiers, further strengthening its position as a top participant in the market.
Key Industry Development
August 2024: Leonardo DRS has secured a USD 52-million contract to produce additional sniper weapon sights for the US Army. The contract includes supplying an undisclosed number of advanced infrared-equipped Family of Weapon Sights — Sniper (FWS-S).