Market
A niche market with attractive growth potential and low penetration
INVISIO addresses a global niche market. Customers are mainly public agencies and other public sector actors associated with defense, law enforcement, security and rescue services.
Demand on INVISIO’s markets is growing, as requirements concerning police and defense communications equipment grow, and as awareness of the consequences of hearing loss become increasingly known. The INVISIO and Racal Acoustics brands have clear market leading positions in their respective niches.
Market drivers
INVISIO drives the market
Several interconnected factors drive demand for INVISIO’s products. Foremost among them are ongoing long-term equipment modernization programs, the increasing use of communication equipment, and greater awareness regarding hearing loss and its impact on individuals and society. In addition, increased geopolitical uncertainty is expected to drive higher demand in future.
High entry barriers
The main entry barriers are the multi-year procurement programs and long framework agreements between supplier and customer. These conditions have led to a market structure characterized by few actors and long-term relations between suppliers and customers.
INVISIO considers that the company has an advantage in relation to its competitors as regards innovative capacity, well-established relations with customers and an understanding of their needs.
The high entry barriers mean that INVISIO has a strong market position in the short and medium-term perspective.
Market for personal systems
The INVISIO and Racal Acoustics brands offer systems developed for users who are mobile and serve in the field or operate in vehicle environments with constantly high noise levels. These systems include headsets, cables and control units. They are compatible with all radio models and other sound sources.
I understand the risks they face.
Defense market
Industry statistics indicate there are about 50 million soldiers in the world, of which 20 million are deemed to be active.
The largest numbers are in Asia. Investments in advanced communication and hearing protection systems by countries in this region have historically been relatively limited, but are now growing at a comparatively rapid rate.
INVISIO’s primary target group consists of technologically mature countries in Europe and North America. About two million potential users serve in these countries' defense forces. The value of the potential addressable market for INVISIO's personal system is estimated at SEK 20 billion. As a rule, procurement takes place at four-year intervals, which means that the average annual target market is about SEK 5 billion.
INVISIO today has almost 250,000 system users, equivalent to a market penetration of just over 10 percent. Consequently, there is great potential for continued growth in the target market.
Law enforcement and security market
The law enforcement and security market is a relatively new market for INVISIO in which our initial focus is on addressing customers in the US, Europe and selected countries in Asia.
The law enforcement and security market is more fragmented and decentralized than the defense market, which requires us to address a larger number of customers in our sales work. An average order is therefore generally smaller than in the more centralized defense market.
Our markets contain 2.7 million police officers. Of these, 30 percent are deemed to be relevant to our offer, meaning that we have a target group of 700,000 to 900,000 potential users.
The value of the law enforcement and security market for INVISIO’s personal system in these geographies is estimated at SEK 9 billion. We estimate that customers carry out procurements at intervals of five to seven years, which puts the annual addressable market for INVISIO’s systems at SEK 1.5 billion.
Headsets and hearing protection for environments with constant and extreme sound levels
The acquisition of the UK company Racal Acoustics in 2021 enabled INVISIO to broaden our offer with a new, complementary product category consisting of advanced and robust hearing protection and communications headsets for users in environments with constant high noise levels. Users of Racal Acoustics branded equipment are often stationed or traveling in large military vehicles.
Market for the Intercom system
INVISIO’s Intercom system addresses communication needs that arise while in transit, where team members want to be able to communicate both among themselves and with the driver and also with units outside the vehicle. In these environments, the Intercom system facilitates simple and cost-effective communication.
Initially, INVISIO has decided to focus on the portable offer and direct it towards our current personal system users. We estimate that the addressable market is 25,000–40,000 systems.
We also assess that customers will carry out procurement rounds at intervals of five to seven years, which puts the annual addressable market for INVISIO at about SEK 0.5 billion.
Going forward, INVISIO also intends to address customers’ existing vehicle fleets, as well as vehicle manufacturers and equippers. We estimate that there are about 650,000 vehicles relevant to our offer. The estimated life of the mounted system is about 10 years, which equates to an annual addressable market of about SEK 6.5 billion.
The INVISIO Intercom System delivered the best speech clarity and intelligibility results ever heard on a maritime vessel going 63-64 knots, 118 KPH, or 74 MPH into a direct headwind!
The portable system
In a first phase INVISIO intends to focus on the portable offer and direct it towards current users of the personal system. The company estimates that the addressable market is 25,000–40,000 systems.
The company assesses that its customers will carry out procurements at intervals of five to seven years, which means that the annual addressable market for INVISIO’s portable Intercom system is worth about SEK 0.5 billion.
The mounted system
In a second phase INVISIO intends to address the customers’ existing fleets of vehicles, as well as vehicle manufacturers and vehicle equipment companies.
The company estimates that there are about 650,000 vehicles relevant to INVISIO’s offer. The estimated life of the system is about ten years, which gives an annual addressable market of about SEK 6.5 billion.
