Night Vision Market to Reach $499M by 2005

The world market for military, law-enforcement, and commercial night vision equipment will rise from $378.4 million in 1998 to reach $499.6 million by 2005, according to a new study by Frost & Sullivan. The average compound growth rate will be 4%, with year-by-year levels ranging from -6.4% in 1998 to a predicted maximum of 8.6% in 2002.

Broken down by application, the maximum growth will be seen in the commercial/law-enforcement markets, which is expected to grow at 5.5% annually. The military market will lag somewhat, rising 3.7% per year.

According to the report, uncooled infrared imaging technology is a strong growth area that is pulling market share from the image intensifier device segment in some applications. About 30 manufacturers of night vision devices exist worldwide, and only four are known generation II and III image intensifier tube makers.

Market entry is difficult on the military side, but opportunities exist in the commercial and law enforcement sectors, evidenced by the growing number of OEMs participating in that segment. Strategic alliances have become more frequent as some companies seek to offer both thermal infrared and image intensifier night vision technologies.

The North American and European markets for night vision devices account for the lion's share of revenues, and this trend is expected to continue throughout the forecast period. Although these markets will not offer major growth opportunities other than replacements and upgrades, they will remain the most important markets due to the large number of users.

The Latin America and the Pacific Rim markets are growing as a result of recent contracts.