The global targeting pods market size was pegged at USD 3.07 billion in 2016 and is likely to expand at a CAGR of 6.3% over the forecast period. Increasing demand for enhanced targeting systems is the prime factor driving the growth of the market. Additionally, the rise in terrorist activities across the globe has an elevated demand for targeting pods.
Targeting pods offer advanced features such as integrated GPS, which enables users to receive precise target location as well as store and share data with other users via wired and wireless connection for enhanced communication. Additionally, they allow users to obtain clear images of targets identified through touchscreen color display.
Targeting pods offer Ground Moving Target Indication (GMTI) capability, which assists users in detecting moving ground vehicles. It also enables them to distinguish between moving and unmoving objects. Additionally, they offer mission history recording capability, which allows users to store large amounts of data.
On the downside, factors such as high costs associated with the development and maintenance of targeting pods and decreasing defense expenditure in developed countries are likely to hamper the market growth. Furthermore, stringent government regulations pertaining to import and export of defense articles are expected to hinder the market.
Laser designator pods offer features such as long-range surveillance, laser illumination capabilities, and Advanced Video Tracker (AVT). These features enable users to identify targets from a long distance and also assist them in receiving real-time videos of targets identified. This segment dominated the market in 2016.
However, FLIR and laser designator pods are expected to form the fastest-growing segment over the forecast period. Features such as geolocation coordinates and manual control options offer accuracy and convenience to users. Demand for FLIR pods is anticipated to increase owing to the capabilities they offer, such as enhanced target recognition, Plug-and-Play interface, and multi-target auto tracker.
Technological advancements increased defense expenditure in developing countries, and the growing adoption of targeting pods by various governments to enhance security measures are driving the OEM fit segment. Technological advancements have led to the development of advanced targeting systems such as FLIR Exx-Series that provide users with features such as W-Fi connectivity and laser-assisted autofocus. Thus, the segment is anticipated to develop at the highest CAGR over the forecast period.
Post-sale services offered by targeting pods providers are encouraging users to opt for upgrades. Furthermore, targeting pod providers offer upgrades based on customer requirements. Therefore, the segment is anticipated to gain traction over the forecast period.
FLIR sensors offer enhanced functionalities such as web browser GUI control and Battle Damage Assessment (BDA) capability. Short-wave IR imaging assists pilots in detecting targets in a foggy climate and also enables them to assess damages inflicted on a target. Therefore, the segment is anticipated to exhibit the highest CAGR in the targeting pods market.
Charge Coupled Device (CCD) are sensors utilized in digital cameras that assist users in capturing still and moving images. CCD cameras offer enhanced image quality, reduced noise, and higher quantum efficiency. Therefore, the segment is anticipated to register the second-highest CAGR over the forecast period.
With the increasing adoption of Moving Map Systems (MMS) by various sectors such as aviation, naval, and automotive, demand for the same is also anticipated to rise. These systems assist users in receiving real-time location information and also offer high-definition color display, which enables users to view precise images of targets identified. This convenience and accuracy provided by MMS are anticipated to drive segment growth.
The combat aircraft segment dominated the market in 2016, thanks to favorable features such as stealth built, heavy payloader, and inbuilt radar. Additionally, combat aircraft offer laser rangefinder that helps pilots calculate the distance to a target by using a laser beam. Furthermore, they even provide an eye-safe mode for the laser rangefinder, thus offering enhanced safety to users.
The unmanned aerial vehicle (UAV) segment is anticipated to exhibit the highest CAGR over the forecast period. Increased adoption of UAVs in countries such as India for various purposes, including surveillance, disaster management, and law enforcement operations, is boosting the market. Additionally, UAVs offer portability, cost efficiency, and enhanced battery life to users. These benefits are leading to increased adoption.
The European market held the largest share in 2016 owing to the presence of prominent targeting pod providers such as Thales Group and Ultra Electronics Holdings plc. The Asia Pacific region is expected to witness more growth opportunities owing to the rising demand for public safety. Development activities undertaken by various space organizations in the field of targeting pods are also boosting the market. Additionally, development programs undertaken by governments of countries such as India and Thailand are further driving the growth of the regional market.
In the RoW, investments made by prominent targeting pod providers such as Raytheon Company are driving the market growth. For instance, Raytheon Company formed a new subsidiary named the Raytheon Emirates with an aim to enhance its position in the UAE defense market.
Prominent industry participants include ASELSAN A.S.; Thales Group; Raytheon Company; FLIR Systems, Inc.; Ultra Electronics Holdings plc; L3 Technologies, Inc.; and Northrop Grumman Corporation. Key players in the market are focusing on collaborating with other companies. Moreover, they are making large investments in R&D to develop innovative solutions and gain a competitive edge over others.
Various companies undertake mergers and acquisitions to stay ahead of the competition. For instance, in 2016, FLIR Systems, Inc. acquired Prox Dynamics, a developer, manufacturer, and distributor of aerial sensors. The acquisition was worth approximately USD 134 million and was aimed at enhancing its surveillance segment.
Market size value in 2020
USD 3,694.0 million
Revenue forecast in 2025
USD 5,207.1 million
CAGR of 6.3% from 2018 to 2025
Base year for estimation
2014 - 2015
2018 - 2025
Revenue in USD million and CAGR from 2018 to 2025
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Type, component, fit, platform, and regions.
North America; Europe; Asia Pacific; and RoW
U.S.; Canada; France; Germany; Russia; China; Japan; India; and Israel
Key companies profiled
ASELSAN A.S.; Thales Group; Raytheon Company; Ultra Electronics Holdings plc; L3 Technologies, Inc.; FLIR Systems, Inc.; and Moog, Inc.
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This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2017 to 2025. For this study, Grand View Research has segmented the global targeting pods market report based on type, component, fit, platform, and region:
Type Outlook (Revenue, USD Million, 2014 - 2025)
FLIR & Laser Designator Pods
Laser Designator Pods
Laser Spot Tracker Pods
Component Outlook (Revenue, USD Million, 2014 - 2025)
Charge Coupled Device (CCD) Camera
Environmental Control Unit (ECU)
Moving Map System (MMS)
Digital Data Recorder
High Definition (HD) TV
Fit Outlook (Revenue, USD Million, 2014 - 2025)
Platform Outlook (Revenue, USD Million, 2014 - 2025)
Unmanned Aerial Vehicle (UAV)
Regional Outlook (Revenue, USD Million, 2014 - 2025)
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