THERMAL IMAGING MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Restraints

1. Reduction in the defense budget is expected to restrain growth of the global thermal imaging market during the forecast period

Many developed countries in North America and Europe have started reducing their budget for military and defense. This has negatively affected the regional thermal imaging market. For instance, the U.S. and a few European countries namely Italy and France have reduced their spending on armed forces. These countries have a bigger share of the total thermal imaging market and budgetary cuts in these countries on up-gradation of weapons and other equipment are adversely affecting market growth. Thus, these factors are expected to restrain growth of the global thermal imaging market during the forecast period.

2. Export restrictions imposed on thermal imaging products is expected to hamper the global thermal imaging market growth over the forecast period

Many countries have imposed stringent restrictions on the export of certain thermal imaging products. According to the U.S. Department of State Office of Defense Trade Controls, the export of U.S. manufactured night vision equipment is strictly prohibited without a valid export license. The restrictions are in accordance with the International Traffic in Arms (ITAR), Title 22, Code of Federal Regulation Part 120-130. Thus, these factors are expected to hinder the global thermal imaging market growth over the forecast period.

Market Dynamics- Drivers

1. Increased investment in armed forces modernization is expected to drive growth of the global thermal imaging market during the forecast period

Thermal imaging technology is widely used in military and defense equipment, which accounts for over 40% of the total global thermal imaging market. Increase in investment by governments of various countries such as China, India, the U.K., and Russia for up-gradation and modernization of weapons and equipment in the armed forces is one of the major factors driving the growth of the thermal imaging market. Thermal imaging devices offer armed forces, the ability to see in dark environment by generating a reliable and identifiable image of the environment based on radiation emitted by objects. Countries such as India, China, and the U.K. are improving effectiveness and capabilities of their armed forces and enhancing command, control, and interoperability by investing in thermal imaging. For instance, in 2013, Thales Group received a contract from the German Armed Force to supply sets of long-range cooled thermal imagers named Sophie XF. Thus, these factors are expected to drive growth of the global thermal imaging market during the forecast period.

2. Penetration of thermal imaging devices in new applications is expected to propel the global thermal imaging market growth over the forecast period

Thermal imaging technology is being used in numerous fields apart from military and defense. These sectors include healthcare, commercial, and other applications. Furthermore, the energy audit sector has provided new opportunities for thermal imaging technology, particularly in preventative maintenance. Automobile industry is incorporating thermal imaging cameras in cars to reduce the potential dangers of accidents at night. For instance, BMW and Audi have deployed thermal imaging cameras in cars that help in detecting living objects such as pedestrians and animals, which are difficult to spot in the dark. Moreover, thermal imaging technology is used in the healthcare sector to protect animals and humans from disease. Thus, these factors are expected to propel the global thermal imaging market growth over the forecast period.