The riflescopes market is projected to register a CAGR of more than 3% during the forecast period.
- The growth in military spending to support the soldier modernization programs of various countries is propelling the investments in the procurement of new riflescopes that offer higher magnification and accuracy of the target.
- The rise in recreational shooting activities, like sporting and hunting, is driving the growth of riflescopes.
- Due to the presence of a higher number of manufacturers (mostly regional) in the market, the market is highly fragmented.
- Companies are developing new riflescopes integrated with advanced technologies to increase accuracy.
Key Market Trends
The Military Segment is Expected to Register the Highest Growth During the Forecast Period
The military segment is expected to witness the highest growth during the forecast period, owing to the modernization programs of various countries. The procurement of new and advanced infantry weaponry, like sniper rifles, light machine guns, and automatic weapon systems, may drive the growth of the segment. For instance, in the coming years, the US Army plans to procure over 120,000 new light machine guns and rifles to replace M4 carbine and M249 squad automatic weapons. Such robust plans are anticipated to generate demand for new and advanced riflescopes during the forecast period. Also, the procurement of advanced scopes by the armed forces for higher accuracy and effectiveness to hit the target may propel the growth during the forecast period. In February 2020, the US Marine Corps awarded a USD 64 million contract to Michigan-based Trijicon to supply squad common optic (SCO) riflescopes. These scopes can be mounted on the M27 infantry automatic rifle and the M4 rifles and have a continuously adjustable magnification range moving from 1X to 8X magnification. Similarly, many developing countries are spending heavily on army warfare modernization. These trends are expected to drive growth during the forecast period.
Asia-Pacific is Projected to Register the Highest CAGR During the Forecast Period
Asia-Pacific is projected to register the highest CAGR during the forecast period, owing to the rapid military modernization plans of countries in the Asia-Pacific region, such as China, India, and South Korea, which are some of the biggest defense spenders in the world. The major emerging economies in the region, like China and India, are aggressively increasing their investments in the defense sector for soldier modernization, owing to the territorial issues and geopolitical tensions. For instance, in 2018, the Defence Acquisition Council of India received approval from the government to procure 745,000 assault rifles (including 5,719 sniper rifles) for the armed forces of India. Similarly, the Philippine Army received 80 assault rifles from the US government under the Military Assistance Program, in March 2019. Such initiatives by the governments of the countries to increase the capabilities of their frontline troops of armed forces are anticipated to generate demand for new riflescopes, during the forecast period.
The riflescope market is highly fragmented, with several players accounting for significant amounts of shares in the market. Some of the prominent companies in the riflescope market are Burris Company, Hawke Optics, Hensoldt, Leupold & Stevens Inc., and Nightforce Optics. Several companies have formed long-term partnerships with the armed forces to upgrade and enhance the battlefield capabilities of infantry soldiers, as well as for the development of future soldier modernization programs of defense ministries. Companies are investing heavily in R&D for the innovation of new and advanced products and technologies that may help the soldiers in the frontline to have a tactical advantage over the rivals. For instance, in September 2019, Nikon introduced a new flagship hunting riflescope, Monarch riflescope, which is a long-range type riflescope that is best for hunting and sports activities. For military applications, manufacturers are introducing technologies, such as GPS geotagging, increased magnification, ultra HD magnification, along with connectivity features, such as Bluetooth and Wi-Fi, in the riflescope for connectivity with other gadgets, such as smart goggles for increased accuracy. Such developments are anticipated to help the companies increase their geographic presence by acquiring new contracts from the armed forces.
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