Market Highlights

The global target acquisition system market is predicted to increase at a compound annual growth rate (CAGR) of 5.9% from 2022 to 2028, from an estimated US$ 13.8 billion in 2021 to US$ ~17.4 billion in 2028.

Target Acquisition System Market CAGR

2022-2028

CAGR OF

5.9%

Target Acquisition System Market

Multifunctional weapons known as target acquisition systems are employed to locate, recognize, and identify targets in order to make effective use of both lethal and non-lethal weapons. As part of an operation, an enemy commander can make use of a wide range of resources, known as targets, such as troops, equipment, capabilities, facilities, people, and functions in addition to mobile and stationary units. Target acquisition can be understood as the process by which a weapon system selects which object to latch on to, as opposed to surveillance on a single target and target tracking. Talent acquisition systems are in high demand because of their growing use in intelligence, surveillance, and reconnaissance (ISR) missions. Target acquisition systems work in tandem with battlefield management systems, missile and bomb guidance devices, and other systems.

Target acquisition system market growth is expected due to a number of factors, including the development of automatic weapons, increased national defense spending, the requirement for artillery systems by armed forces, and ongoing worldwide military modernization projects. However, the high running costs of these systems are one factor that could restrict the global target acquisition system market growth. Investing more in research and development (R&D) to create technologically advanced systems for defense applications presents a potential for the future, nevertheless.

Recent technological advancements in talent acquisition systems have led to a significant growth in the global target acquisition system market for these systems. In many countries, these systems are highly sought for. For example, an Asia-Pacific country awarded Israel Aerospace Industries a deal worth USD 550 million in November 2018 for the supply of its state-of-the-art Sky Capture air defense system. Thus, more advancements in automatic weapons will be beneficial to the talent acquisition system market.

Target Acquisition System Market

By Range

Short Range

Medium Range

Long Range

The Market will Grow

At the CAGR of:

5.9%

The Forecast Market

Size for 2028 in USD:

$17.4B

To address the growing demand of protecting national security against a variety of threats, the militaries are being forced to modernize their fleets of military vehicles and equipment. As a result, they are either updating their current assets by integrating state-of-the-art sub-systems with enhanced target acquisition and designation capabilities or buying new platforms outfitted with complex target acquisition systems. It is expected that this component will support target acquisition system market growth in the upcoming years.
The target acquisition system market is expected to grow over the estimated period due to ongoing advancements in automated weapons systems and the growing use of unmanned platforms for ISTR operations.

Recent years have seen a number of directives and investments in the sector that should expand the target acquisition system market as a whole. Among them are: 
• The Stockholm International Peace Research Institute estimates that global military spending will increase by 2.6% in 2020 to reach USD 1981 billion. (SIPRI). However, the worldwide economic crisis brought on by the COVID-19 pandemic may result in a decrease in defense budget in the near future. This factor is expected to pose as a barrier to the target acquisition system market growth throughout the projected period. The outbreak has reduced industrial output and only slightly disrupted critical military vehicle and weapon system supply networks. This has also hurt the players in the related supply chains, like the vendors of target acquisition systems.

Market Segments

The platform predicts that the marine sector of the target acquisition system market will develop at the highest rate of compound annual growth (CAGR) throughout the course of the forecast period. The growth of the target acquisition system market can be attributed to the acquisition of heavily used target acquisition systems, such as amphibious ships, destroyers, corvettes, frigates, offshore patrol boats, and unmanned surface vehicles.

Target Acquisition System Market

By Sub System

xx%

Detecting & Locating Systems

Modules

Cameras

Scopes & Sights

13.8

Total Market Size

USD (Billion), 2022

5.9%

CAGR

2022 - 2028

Over the course of the projection period, the short range (0–8 km) category is expected to exhibit the highest CAGR growth. The short-range market has grown as a result of the necessity for short-range target acquisition systems, which offer greater precision than long-range artillery weapons.

The target acquisition system market military segment is expected to grow at a higher rate than the homeland security segment over the course of the forecast period. With the growing use of unmanned systems for surveillance, target acquisition systems utilized in ISR applications are expected to become more and more necessary. Businesses take note of the US since it contributes heavily to military modernization programs and has a sizeable defense budget.

Geographically, the largest market share in 2020 was held by North America. The region is also expected to grow at the fastest rate throughout the predicted period because to the substantial demand from the United States. The country's enormous military expenditures on the development of improved offensive and defensive military capabilities are driving the demand for newer generation target acquisition capabilities. As of 2019, Lockheed Martin was continuing working on developing the Advanced Electro-Optical Targeting System (EOTS) for the F-35 Lightning II fighter aircraft. The Advanced EOTS will provide a range of multi-spectral sensing choices, such as near-IR, short-wave IR, and high-resolution mid-wave infrared (IR). Additional advantages of the advanced tracking system include increased reliability and decreased running costs.

Target Acquisition System Market

By Region

The Market will Grow

At the CAGR of:

5.9%

The Forecast Market

Size for 2028 in USD:

$17.4B

Asia Pacific is expected to grow at the fastest compound annual growth rate (CAGR) throughout the projected period due to the expansion of military capabilities and increased defense spending by China and India. Strong local production bases and a rise in the use of automatic weapons on combat vehicles and naval platforms are two other reasons that are expected to fuel the overall market expansion in Asia Pacific.

Key Players

The target acquisition system market is highly competitive. The state of the sector and government assistance have a direct impact on the companies' growth. Based on their quality and level of penetration in both target and emerging markets, these organizations distinguish their target acquisition systems. Additionally, a few recent large mergers and acquisitions in the sector have had a big impact on the competitive dynamics. 
As an illustration:
• In February 2019, Hensoldt partnered with Electronica, Indra, and Thales to develop a Medium Altitude Long Endurance (MALE) PROGRAM with a future-proof Intelligence, Surveillance, Target Acquisition, and Reconnaissance (ISTAR) capability.
• An Asia-Pacific government placed an order with Israel Aerospace Industries in November 2019 for its advanced Sky Capture air defense system, valued at USD 550.0 million.
• Elbit Systems unveiled HattoriX, a brand-new Forward Observer system, in November 2019. With a target position error of only a few meters, it is capable of acquiring Category 1 (CAT-1) targets.
• In March 2018, Aselsan A.S. and Barzan Holding, a military technology business based in Qatar, signed a technology transfer agreement to develop Aselsan A.S.'s electro-optical reconnaissance and surveillance systems as well as its stabilized advanced remote weapon system.
These mergers and acquisitions have had an impact on the competitive landscape as a whole. The leaders in the market are as follows:
Israel Aerospace Industries; Aselsan AS; Instro Precision Limited; BAE Systems PLC; Raytheon Technologies Corporation; Hensoldt; Lockheed Martin Corporation; Wuhan JOHO Technology Co. Ltd; Leonardo SpA; Safran SA; Raytheon Systems Ltd; Rheinmetall AG; Thales Group.

Target Acquisition System Market Scope: