Fiber Optic Gyroscope - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The Fiber Optic Gyroscope Market size is estimated at USD 1.18 billion in 2025, and is expected to reach USD 1.47 billion by 2030, at a CAGR of 4.49% during the forecast period (2025-2030).

Fiber optic gyroscopes, known for their high output rates and precision in measuring angular velocity across diverse angles, are witnessing a surge in adoption. This trend is particularly evident in uncrewed military vehicles and airborne surveillance systems, driving up the demand for these gyroscopes in the aerospace and defense sectors.

Various sectors, including aerospace, defense, and industrial domains, are increasingly turning to fiber optic gyroscopes. This is attributed to their compact size, lightweight nature, longevity, reliability, low power consumption, and suitability for mass production. As a result, this heightened demand across sectors propels the market's growth. With governments worldwide ramping up military expenditures to bolster their defense capabilities, there is a corresponding surge in demand for fiber optic gyroscopes, especially in applications like remotely operated vehicle guidance.

The market is driven by the growing adoption of drones and UAVs across defense and commercial sectors. The Federal Aviation Administration (FAA) reported that in 2023, approximately 516.8 thousand drones were registered for recreational flying in the United States. Notably, this count excludes hobbyist drones, which are not required to be registered.

Key drivers bolstering the fiber optics gyroscope (FOG) market include heightened defense spending in both emerging and established economies, alongside a surge in automation adoption across industries and households. Israel, a frontrunner in military application advancements, showcases its prowess with Tel Aviv's Airobotics spearheading autonomous solutions for enterprises, propelling the fiber optic gyroscope market. Using fiber optic gyroscopes for measurement during oil drilling processes and the rising prominence and evolution of remotely operated vehicles further fuel the market's growth.

The market's growth is also being significantly driven by the trend of miniaturizing fiber optic gyroscopes (FOGs) for consumer electronics and industrial applications, alongside efforts to cut manufacturing costs. By reducing the size and cost of FOGs, manufacturers are broadening their applications to sectors like consumer electronics, automotive, aerospace, and industrial automation. This broadened application is spurring greater adoption of FOGs in new and established markets due to their superior precision and reliability. With the surging demand for compact, high-performance sensors, the FOG market is set for substantial growth in the years ahead.

Despite significant demand for fiber optic gyroscopes in the market, their complicated, costly, and time-consuming manufacturing process poses a considerable constraint. This limitation restricts the widespread adoption of fiber optic gyroscopes and curtails the market's growth to some degree.

Macroeconomic factors, including shifting geopolitical issues and economic conditions, are pivotal in shaping the market. For example, regions enjoying robust economic health typically allocate greater budgets to advanced military and defense systems, thereby broadening the adoption of these solutions. Geopolitical challenges, such as wars, further drive the growth of the market studied.

Fiber Optic Gyroscope Market Trends

Aerospace and Aviation Segment to Dominate the Market

• The aerospace and aviation industry, a major end-user of fiber optic gyroscopes, extensively employs these devices in flight control, ground detection, and dynamic global positioning system (GPS) tracking. Coupled with rising investments in the aviation sector, particularly in the Asia-Pacific region, this trend is set to bolster the demand for fiber optic gyroscopes.
• For instance, India is rapidly establishing itself as one of the world's largest aviation markets. Over the past year, leading Indian airlines, including Air India, Indigo, and Akasa Air, collectively placed orders for more than 1,100 aircraft, marking one of the largest commercial aircraft orders in global history.
• Similarly, the global market mirrors this trend. Boeing, a leading name in commercial aircraft manufacturing, projects that from 2023 to 2042, the global commercial fleet will welcome approximately 42,595 new aircraft deliveries. Given the prominent role of fiber optic gyroscopes (FOGs) in aircraft navigation systems, monitoring motion in aviation, and capturing metrics like angular velocity and speed, such instances are poised to propel the growth of the market.
• As countries like India ramp up their space missions, the growing activities in the space exploration sector are set to boost the market studied, especially since FOGs play a crucial role in space rockets and related systems. Moreover, the emergence of private companies like SpaceX and Blue Origin, with their vision of making space travel a reality, further amplifies the opportunities in the market studied.
• As reported by Jonathan Space Report, 2023 witnessed approximately 9,115 active satellites orbiting Earth, marking a 35% surge from the prior year's count. Gyroscopes play a pivotal role in space vehicles and launch rockets, enabling them to detect orientation and angular motion. This capability allows precise control and tracking of the craft's movement from its initial position. Consequently, the uptick in satellite launches fosters a conducive environment for the growth of the market studied.

Asia-Pacific to Witness a Significant Growth Rate

• In the coming years, the Asia-Pacific is set to witness significant market growth, driven by rising defense budgets in several emerging economies. Notably, China and Japan are leading the demand for fiber optic gyroscopes in the region. Contributing to this growth are factors such as heightened R&D activities in the aerospace and defense segment, swift industrialization, and substantial investments to enhance sensors, drones, and unmanned maritime vessels.
• China's emergence as a manufacturing hub for the automobile industry, coupled with its new development plans for driverless vehicles, is spurring the adoption of fiber optic gyroscopes. The tightening of regulations in countries like China, Japan, and South Korea has further incentivized corporate investments. As a result, end-user companies increasingly prioritize orientation measurement in various monitoring systems, underscoring the market's expansion.
• In recent years, India has emerged as a leading spender on military and defense products, making it a lucrative market for FOGs. For example, in February 2024, the US State Department approved a potential USD 3.9 billion deal for General Atomics MQ-9B drones to India. This deal underscores the strengthening of defense and security cooperation between Washington and New Delhi. The proposed package for the Indian military encompasses 31 SkyGuardian unmanned aerial vehicles, 310 Small Diameter Bombs, and 170 Hellfire missiles. The package includes radars and anti-submarine equipment for the maritime-focused SeaGuardian variant.
• India is making notable strides in aerospace and defense production, driving opportunities in the studied market. For instance, recently, Adani-Elbit Advanced Systems India Ltd, India's inaugural private UAV manufacturing facility, successfully delivered over 20 Hermes 900 medium-altitude, long-endurance (MALE) UAVs to Israel. This joint venture, based in Hyderabad and formed between India's Adani Defence and Aerospace and Israel's Elbit Systems, proudly stands as the first entity to produce these UAVs outside of Israel.
• Other countries are witnessing similar trends. For example, China is actively bolstering its UAV capabilities. According to the Civil Aviation Administration of China (CAAC), by the end of 2023, China boasted 1.27 million registered drones, marking a 32.2% increase from the prior year. Consequently, these trends and advancements are poised to fuel the growth of the market studied in the region during the forecast period.

Fiber Optic Gyroscope Industry Overview

The fiber optic gyroscope market features a moderate level of competition, with several key players at the forefront. A select few of these players currently hold a dominant position in terms of market share. The swift ascent of unmanned vehicles, coupled with ongoing technological advancements, presents enticing opportunities for market vendors. While the competitive rivalry among established players remains moderate, companies are leveraging innovation strategies to drive market demand. However, challenges such as intricate and time-intensive manufacturing processes, substantial investments, and a low cost-benefit ratio have deterred new entrants from producing fiber optic gyroscopes. Some key market players include Emcore, Honeywell, and Safran.

June 2024: Exail clinched a significant deal with Rheinmetall, agreeing to deliver 1004 units of its Advans Ursa inertial navigation systems (INS) for the German Army's Caracal 4X4 vehicles. Leveraging Exail's advanced Fiber-Optic Gyroscope (FOG) technology, the Advans Ursa stands out as a compact and budget-friendly INS specifically designed for tactical navigation. This system ensures accurate and dependable navigation data, even in challenging conditions. As a result, Caracal vehicles can confidently navigate without any constraints, regardless of time or distance, even in scenarios where GNSS signals are entirely absent.

June 2024: Inertial Labs has unveiled its newest offering, the INS-FI. This GPS-assisted Inertial Navigation System (INS) leverages Tactical-grade Fiber Optic Gyroscope (FOG) technology, positioning it as one of the market's most sophisticated and dependable INS solutions. It boasts a multi-band GNSS receiver compatible with all constellations, including GPS, GALILEO, GLONASS, QZSS, NAVIC, and BEIDOU.

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