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.
Drivers and trends
Demand for advanced communication systems and hearing protection is growing steadily. The main drivers include digitalization, extensive modernization, more powerful weapon systems and more widespread radio use. Increased defense spending due to the uncertain geopolitical landscape further reinforces this trend.
Defense spending rising due to geopolitical instability
A marked increase in geopolitical instability and uncertainty has led to sharp hikes in defense budgets and military appropriations. European defense spending is expected to rise significantly over the next 10–15 years. INVISIO’s assessment is that this will steadily impact the need and demand for modern communication equipment and hearing protection from 2026 onwards.
Digitalization, military modernization and increased users
In many countries, long-term processes are underway to modernize the communications systems used by defense and public safety organizations. Driving this trend are outdated existing equipment and new opportunities arising from digitalization and technological development.
As the advantages of enhanced communications capacity become clearer, more people in our target groups are being issued with radio equipment. This indicates structural growth in demand for effective communication systems.
Ever more powerful weapon systems
Modern weapon systems are increasingly powerful, with higher firepower and stronger shockwaves that increase the risk of hearing loss. In vehicles, more powerful engines, heavier armoring and increased vibration lead to higher sound levels. These multiple drivers are increasing demand for more effective hearing protection.
Increased awareness of effects and costs of hearing loss
Among the drivers of higher demand is a growing awareness of the impact of hearing loss on individuals and society. According to data from the US Department of Veterans Affairs, hearing impairment and tinnitus are the most common injuries among US defense force veterans. These two conditions account for 15–20 percent of all claims that qualify for compensation. The US defense forces’ direct costs for care and support amount to billions of US dollars annually.
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.
