Industry decline will be partially mitigated by the need to replace older and nearly obsolete NVDs.
New York, NY (PRWEB) August 09, 2014
Over the past five years, conditions got less bright for the Night Vision Equipment Manufacturing industry. Industry players manufacture a wide range of night vision devices such as night vision scopes, goggles, binoculars, cameras and related components. The industry was minimally affected by the economic downturn, with revenue reaching a record high in 2009. The resilience of the industry is attributed to its primary source of demand, the US military and law enforcement agencies. According to IBISWorld analyst Maksim Soshkin, "these organizations use night vision devices (NVDs) to conduct nighttime combat, surveillance, search and rescue, criminal tracking and border protection missions." Therefore, the United States' involvement in the Iraq and Afghan wars, as well as anti-terror operations, caused demand for industry products to surge.
However, the recession eventually strained local and state government budgets, with governments having to cut down spending on law enforcement, including industry products, in order to balance their rising deficits. Moreover, greater federal budget deficit concerns and the withdrawal of troops from the Middle East (Iraq in 2011 and Afghanistan later this year) caused federal funding for defense to contract over the past five years. Consequently, "demand for industry products plunged from previously abnormal levels," says Soshkin. Therefore, in the five years to 2014, industry revenue is expected to decline at an annualized rate.
The Night Vision Equipment Manufacturing industry has a medium level of market share concentration, with the four largest companies accounting for a large proportion of revenue in 2014. The industry is projected to continue declining over the next five years, as defense and homeland security budgets are cut along with a decrease in US conflict involvement. However, the decline will be partially mitigated by the need to replace older and nearly obsolete NVDs as technologies advance and demand from commercial operators and local and state governments increases. As a result, the decline in industry revenue is forecast to slow, dropping at an annualized rate in the five years to 2019.
For more information, visit IBISWorld’s Night Vision Equipment Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Night Vision Equipment Manufacturing industry manufactures night vision devices. These devices include image intensifier tubes, which are protective and generally water-resistant housing and mounting systems.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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