Electro-Optical/Infrared (EO/IR) sensors are still the default sensor for the vast majority of UAVs (Unmanned Aerial Vehicles). UAV EO/IR system funding increased rapidly in the decade after 9/11, with some growth continuing in recent years. But the financial crisis of 2008, proposed budget cuts, and sequestration resulted in several years of up-and-down funding, and considerable uncertainty. Teal Group historical data show a $779 million market for UAV EO/IR systems in FY09 and only $781 million in FY13.
However, we saw this end of growth as only a pause, as most major U.S. endurance UAV platform programs were ending or nearing the end of their planned production runs. As we forecast, since 2015 budgets have extended future production for MALE programs such as the USAF Reaper and U.S. Army Gray Eagle. And the USAF also received additional HALE Block 30 Global Hawks (albeit in danger of being retired again in 2020). Global Hawk international sales have now begun with urgent orders from South Korea and Japan (though Japan may cancel its order), and Triton buys for Germany (now cancelled) and Australia (going ahead).