Market Size and Opportunity Analysis of the Indian Thermal Imaging Systems Market.

1. Market Snapshot
Thermal Imaging Systems in India
Energy and Defense Sectors to Drive Long-Term Growth while
Lucrative Short-Term Opportunities continue to exist due to COVID19

2. At the same time, India is also facing potential cross-border threats due to regional geopolitical
instabilities and is thus, focusing on modernization programmes to counter these threats. This is
expected to spur the demand for a range of land and air based surveillance systems by the Military.
With a view to minimize the adverse impact of the pandemic, increase public health and safety,
effectively mitigate cross border threats as well as sustain long term economic goals, the
government has been doing an effective job of keeping things under control.
The COVID19 pandemic has stirred nation-wide panic due to the highly contagious nature of the
virus and the far-reaching implications. Owing to this, India has witnessed a tremendous surge in
demand for COVID-prevention products which in turn, has opened up new growth avenues.
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Source: Secondary Research Articles and Publications, Runaway Insights Analysis
Overview – Security Threats faced amidst backdrop of COVID19 pandemic

3. • To keep up with the nation-wide goals and curb the spread of COVID19, the government has
come up with several schemes and programs to facilitate the rapid deployment of preventative
measures such as thermal imaging solutions, thermography solutions and other sanitization
products across several commercial establishments.
• As a result of this, almost all players within the thermal imaging and video surveillance space
have developed and customized thermal imaging products to help combat the spread of
COVID19 across commercial and public safety applications. A number of foreign players have
also entered the Indian market for thermal imaging. These developments have resulted in a
surge in market growth over the past year as well as an increase in competition.
• At the same time, the new policies on defense procurement which place regulations on import
of certain items, is in turn, expected to increase self-reliance and result in new growth and
sales opportunities for local providers of thermal imaging solutions for military use.
• Further to this, the continuous development of critical infrastructure, power & utilities
structures, and manufacturing footprint across the country is expected to drive the demand
for thermal imaging systems used for these applications.
• The following slides will shed light on the size and segmentation of the Thermal Imaging
Systems market in India and potential growth opportunities.
Executive Summary – The Scope of Thermal Imaging Systems in India
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

4. Market Size & Growth Projections – Thermal Imaging Systems in India
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2019 2020 2021 2022 2023 2024 2025
Market Size & Forecast: Indian Thermal Imaging Market,
2019-2025
Revenue (USD Million) Growth Rate (YoY)
Key Takeaways
• The Thermal Imaging Market in India is expected
to reach USD 1,497 Million by 2025, growing at a
CAGR of 19.5% during the forecast period of
2020-2025.
• Most of the growth in demand is expected to be
driven by Uncooled thermal imaging systems,
which constitutes a majority of the market share
by Product Type.
• The steadily declining rate of growth from 2020
to 2025 is partly attributable to the decreasing
costs of thermal imaging systems as competitors
enter the market.
• The Key verticals driving growth are Industrial,
Energy and R&D, followed by Defense & Military.
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

5. Market Segmentation – By Technology
Market Share Estimates
Uncooled vs. Cooled
Thermal Imaging
Systems
Uncooled Thermal Imaging
(65% - 75% of Market Share)
Cooled Thermal Imaging
(25% - 35% of Market Share)
Characteristics
• Less detail oriented solutions.
• Used for short distances.
• Less Technology-intensive.
Key End-User Segments/Applications
• Surveillance & SAR – Defense &
Military.
Potential Growth Opportunities
In light of “Make-in-India” intitiatives,
engaging in strategic tie-ups with
international companies to
indigenously develop products may
result in new opportunities for local,
Indian companies to start selling to
the defense sector.
Characteristics
• High level of detail and technology.
• Used for long distances and high-
precision industrial processes.
Key End-User Segments/Applications
• Monitoring & Detection – Auto,
Aerospace, Industrial Processes.
Potential Growth Opportunities
The Indian Thermal imaging solutions
market is price-sensitive. However,
compromising on quality for certain
high precision processes is not an
option. Spreading awareness of the
high quality offered by cooled thermal
imaging systems is an essential step
which can increase and sustain sales.
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

6. Market Segmentation – By Competitors
Includes:
- Major Local & International Companies specializing in
offering a broad range of Thermal Imaging solutions.
- A number of other smaller sized companies offering a
comparatively limited range of thermal imaging solutions.
Includes:
- Major Local and International CCTV & Surveillance
solution providers that integrate thermal imaging
components into their existing product line of surveillance
solutions.
Key Competitors (Non-Exhaustive List):
• FLIR
• Fluke
• Testo
• Tonbo Imaging
• MKU Systems
Key Competitors (Non-Exhaustive List):
• Axis Communications
• Hikvision
• CP Plus
• Dahua
• Bosch
The Indian Market for Thermal Imaging Systems can broadly be categorized into two prominent
segments of market participants
Pure Play Thermal Imaging Specialists Security & Surveillance Solution Providers
Key End-User Segments catered to:
• Defense & Military
• Industrial (Including Power & Utilities)
Key End-User Segments catered to:
• Commercial
• Residential
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

7. Key Market Challenges Short Term
Impact
Medium Term
Impact
Long Term
Impact
Lack of suppliers of thermal imaging modules in India is causing
roadblocks in setting up strong indigenous manufacturing footprint and
in turn, resulting in reliance on imports and assembly-made products.
High Medium Low
High price sensitivity of end-customers in part due to priority given to L1
(lowest bidders) suppliers which in turn results in compromise on
choosing industry-leading products by established organizations.
High Medium Low
Lack of awareness of thermal imaging cameras and its significant
benefits is resulting in slightly staggered, slower adoption of these
products.
Medium Low Low
Key Market Challenges – Thermal Imaging Systems in India
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

8. Growth Opportunities – By Key End-User Industries
Key Trends
• A significant proportion of demand is being driven by the set-up of renewable energy and grid
infrastructure. Apart from this, power plant installations are adopting a proactive method of
conducting maintenance by utilizing thermal imaging systems.
• Most of the growth in electricity grids is being driven by the states of Maharashtra, Gujarat, Madhya
Pradesh, Uttar Pradesh and Tamil Nadu.
• Increase in Manufacturing sector and Research & Development (R&D) expenditure, especially within
the Automotive sector has also been driving growth of thermal imaging systems.
Future Outlook
• The Government has outlined plans to increase footprint of grid-connected renewable energy over
the next 5 years.
• The installation of new infrastructure to support the grid-connected systems will generate demand
for thermal imaging.
Industrial, Energy and R&D Defense & Military Commercial & Others
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

9. Growth Opportunities – By Key End-User Industries
Industrial, Energy and R&D Defense & Military Commercial & Others
Key Opportunities – Power & Utilities
• Total renewable energy capacity in India is
expected to reach 175 GW by 2022 from
current total installed capacity of ~ 88 GW.
• Total planned future investment of close to
USD 100 Billion is expected in the energy
sector by the year 2024.
• Maharashtra, Gujarat, Madhya Pradesh, Uttar
Pradesh, Tamil Nadu and Karnataka are
driving the expansion of power grid.
• Installation of a number of transmission lines
as a result of these plans is expected to be a
major opportunity for thermal imaging
solutions. 0
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2020 2022
TotalInstalledCapactiy(GW)
Total Installed Capacity, Renewable
Energy, India (2020-2022)
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

10. Growth Opportunities – By Key End-User Industries
Industrial, Energy and R&D Defense & Military Commercial & Others
Key Trends
• High YoY growth of Defense spending has been driving the demand for thermal imaging solutions
used across various weapon platforms, and airborne and ground-based surveillance systems.
• Rise in Border Patrol Operations and efforts to upgrade weapon systems and surveillance are also
partly driving the demand for such systems.
• Uncooled thermal imaging systems, which constitute a majority of total market share are being
driven by demand from the defense sector.
Future Outlook
• The Indian Government’s new policies state that all tenders uptill INR 200 Crores in value will be
limited to National market in an effort to drive self-reliance in defense manufacturing.
• This is expected to drive demand for indigenous products and in turn, drive local manufacturing and
new opportunities for local players.
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

11. Growth Opportunities – By Key End-User Industries
Industrial, Energy and R&D Defense & Military Commercial & Others
Key Opportunities – Defense & Military
• Increase in Defense FDI limit cap from 49% to 74%. Further to this,
the rising defense budgets is expected to drive spending on
thermal imaging scopes for assault rifles, rocket-based weapons
and surveillance-application thermal systems.
• Surveillance Systems, Small Arms, UAVs, Missile Systems are some
of the key weapon systems/platforms that the Indian Government
plans to achieve self-reliance in. Most of these above-mentioned
platforms employ thermal imaging systems hence, significant
growth for thermal imaging systems is expected to be driven by
local private sector companies.
• Further to this, as a result of Make in India policies and ongoing
plans to increase negative list of defense imports, local players are
likely to cater to the demand for thermal imaging systems.
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2018-2019 2019-2020 2020-2021
DefenseBudgets(USDBillion)
India - Defense Budgets (2018-2021)
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

12. Growth Opportunities – By Key End-User Industries
Industrial, Energy and R&D Defense & Military Commercial & Others
Key Trends
• The COVID19 pandemic has caused a massive surge in demand for hand-held thermometers and
thermal imaging devices across existing commercial structures such as malls, offices, residential and
retail complexes, and other public spaces.
• Further to this, the growth of several IT multinationals have been driving the demand for thermal
imaging for certain back-office applications such as data centers and warehousing.
• The Healthcare sector in India has also been driving the demand for thermal imaging solutions at
hospitals and for other pharmaceutical applications.
Future Outlook
• The market is expected to continue to witness a steady demand for thermal imaging solutions at-
least until Q4 of 2021.
• This demand is expected to accelerate market growth over short term future after which, demand
will be generated by the industrial and defense segments.
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

13. Growth Opportunities – By Key End-User Industries
Industrial, Energy and R&D Defense & Military Commercial & Others
Key Opportunities
• India is one of the countries leading the global growth in data centers, which in turn are
significant users of thermal imaging systems, thus, posing a high growth opportunity.
Data Centers
• As malls and several other commercial buildings are continually developed, the demand
for surveillance based thermal imaging systems and fever detection devices are expected
to grow.
New Commercial
Constructions
• There is significant opportunity for thermal imaging systems being adopted for HVAC
(Heating, Ventilation, and Air Conditioning) applications, as new commercial and
residential constructions are undertaken.
Building
Technologies
• As terrorism threats increase, critical infrastructure such as public transportation venues,
airports, factories and power plants require round-the-clock thermal imaging perimeter
surveillance with AI capabilities to mitigate threats.
Critical Infrastructure
Protection
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

14. Key Takeaways – Insights by Key Industry Decision-Makers
Key Segments Driving Growth of Thermal Imaging Systems
“The biggest segments contributing to the growth of Thermal Imaging systems in India are Defense and
Industrial. Within the Defense sector there is a high demand for drone-mounted thermal imagers and long-
range thermal imagers for border security and surveillance. Generally these thermal imagers are of the
uncooled type. Within the Industrial segment, manufacturing and state transmission & distribution and power
grid contribute to the highest demand for high-end thermal imaging systems to monitor transmission lines.”
Mr. Prashant Jain
Head of Retail Sales, Fluke India
“A significant share of the Thermal Imaging Systems market is comprised from sales to the Power & Utilities
sector. Growth of renewable energy and expansion of the power grid is expected to drive demand for thermal
imaging systems over the next few years. The Defense sector is also a high growth market driving the demand
for thermal imaging systems.”
Mr. Parag Yelegaonkar
Manager ID / Project Sales, Testo India

15. Key Takeaways – Insights by Key Industry Decision-Makers
Impact of COVID19 on the Demand for Thermal Imaging Systems
“Due to the COVID19 pandemic, a number of mainstream CCTV companies have started integrating thermal
imaging and analytics into their existing product lines. These companies’ products are primarily CCTV systems
with some integration of thermal imaging technology and biometrics which is presented and marketed
towards end-user applications of human surveillance and office automation.”
Mr. Prashant Jain
Head of Retail Sales, Fluke India
“Due to COVID19, there is a sudden upbeat and growth in the Thermal Imaging systems market over the last
year. This increase in growth rate is expected to continue for the next year. One of the reasons for this growth
is also the entry of a number of regional foreign competitors offering low cost thermal imaging products. Due
to the price sensitivity of the market, a few established players are facing competition in some segments since
tender issuing authorities place emphasis on lower price at the cost of foregoing quality.”
Mr. Parag Yelegaonkar
Manager ID / Project Sales, Testo India

16. Future Growth Prospects and Opportunities
Key Sales Opportunities by End-User Segments
In-Depth Competitive Analysis / Competitor Profiles
Voice-of-the-Customer Analysis
Other Custom Consulting Engagements
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Source: Secondary Research Articles and Publications, Runaway Insights Analysis

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