Defense optronics is a growing market due to an increase in land vehicle procurement programs, a report released in Britain said.

Market research firm Frost and Sullivan, in its "Land-based Optronics Market" analysis, determined that the total market for land-based optronics will be valued at around $30.77 billion over 2010-16. This includes all soldier-mounted and vehicle-based optronics infrastructure.

"The land-based optronics market is perceived as being only marginally affected by reductions in defense spending," said Frost and Sullivan Program Manager Balaji Srimoolanathan.

"Although soldier hand-held and man-portable optronics devices will be procured in large numbers, the majority of revenues will be generated by vehicle-mounted/integrated optronics solutions."

Reconnaissance, surveillance and target acquisition have become a critical part of a military's capability to ward off potential threats from a variety of sources. Land-based optronics solutions will enjoy precedence over air- and navy-based optronics solutions in the near future due to existing NATO operations in Afghanistan.

"However, there will be high demand for navigation and surveillance equipment for reconnaissance and armed personnel vehicles from the emerging economies like India, Brazil, Russia, South Korea and others who are involved in huge fleet modernization processes," Srimoolanathan said.

Power needs of hand-held and man-portable optronics equipment are expected to increase 10-fold in the next five years. Overcoming the power problem, therefore, will emerge as a key challenge for suppliers in the defense optronics market.

A number of countries in Europe use image intensification binoculars/monoculars for surveillance. Investments in thermal imaging technology haven't been significant. In the next five-eight years, parts of Europe, Asia and the Middle East are projected to see a shift in trend, as these countries try to reduce the capability gap existing with land-based C4ISTAR.

"There is a huge disconnect between the market and policy makers in emerging economies, particularly in India, countries in the Middle East and a few in Eastern Europe," cautions Srimoolanathan. "Understanding or foreseeing the need or demand of a particular nation becomes a formidable challenge for suppliers when they venture into these emerging markets.

"Strategic joint ventures/partnerships between two companies that complement each other in terms of products and services offered will be critical."

The report said the land vehicle procurement programs cited in Europe and the United States are driven by NATO operations in Afghanistan.