The global market for Military Electro-Optics / Infrared Systems was estimated at US$10.5 Billion in 2024 and is projected to reach US$14.5 Billion by 2030, growing at a CAGR of 5.6% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Military Electro-Optics / Infrared Systems market.
The utilization of EO/IR systems has significantly expanded due to their ability to offer precise real-time data and imagery, critical for modern warfare where situational awareness and rapid response capabilities are paramount. These systems are increasingly integrated with artificial intelligence (AI) to enhance the processing and interpretation of data, allowing for faster and more accurate decision-making processes. In addition to traditional military applications, EO/IR systems are also being adapted for border surveillance, maritime patrol, and search and rescue operations, underscoring their versatility and broadening their utility beyond conventional battlefield scenarios. The continuous improvement in thermal imaging and laser-ranging technologies has further augmented the capabilities of EO/IR systems, making them more effective in a diverse array of environments and mission profiles.
The growth in the military EO/IR systems market is driven by several factors, including advancements in sensor technology, increasing global security threats, and rising defense expenditures by governments worldwide. The development of more compact, powerful, and cost-effective sensors has enabled broader deployment and integration of EO/IR systems across various platforms. The growing need for enhanced surveillance and reconnaissance capabilities in an era of asymmetric warfare and global terrorism has also spurred demand for these systems. Furthermore, the adoption of unmanned systems, such as drones and unmanned aerial vehicles (UAVs), which heavily rely on EO/IR technology for navigation and mission execution, contributes significantly to the expansion of this market. Consumer behavior within defense sectors shows a clear preference for multi-functional, integrated systems that offer robust performance in diverse operational conditions. This trend is expected to continue driving innovation and growth in the military EO/IR systems market as technological capabilities advance and operational demands evolve.
Global Military Electro-Optics/Infrared Systems Market - Key Drivers and Trends Summarized
Military Electro-Optics/Infrared (EO/IR) systems are advanced sensor technologies used for detection, identification, and surveillance in a variety of military applications. These systems capture light across the electromagnetic spectrum, including visible, infrared, and ultraviolet light, to provide detailed imagery and information that is not visible to the human eye. EO/IR systems are integral components of various military equipment, including aircraft, ships, ground vehicles, and unmanned systems, facilitating operations in all weather conditions and during both day and night. The systems are crucial for target acquisition, reconnaissance, and surveillance missions, enhancing situational awareness and improving the accuracy and effectiveness of military operations.The utilization of EO/IR systems has significantly expanded due to their ability to offer precise real-time data and imagery, critical for modern warfare where situational awareness and rapid response capabilities are paramount. These systems are increasingly integrated with artificial intelligence (AI) to enhance the processing and interpretation of data, allowing for faster and more accurate decision-making processes. In addition to traditional military applications, EO/IR systems are also being adapted for border surveillance, maritime patrol, and search and rescue operations, underscoring their versatility and broadening their utility beyond conventional battlefield scenarios. The continuous improvement in thermal imaging and laser-ranging technologies has further augmented the capabilities of EO/IR systems, making them more effective in a diverse array of environments and mission profiles.
The growth in the military EO/IR systems market is driven by several factors, including advancements in sensor technology, increasing global security threats, and rising defense expenditures by governments worldwide. The development of more compact, powerful, and cost-effective sensors has enabled broader deployment and integration of EO/IR systems across various platforms. The growing need for enhanced surveillance and reconnaissance capabilities in an era of asymmetric warfare and global terrorism has also spurred demand for these systems. Furthermore, the adoption of unmanned systems, such as drones and unmanned aerial vehicles (UAVs), which heavily rely on EO/IR technology for navigation and mission execution, contributes significantly to the expansion of this market. Consumer behavior within defense sectors shows a clear preference for multi-functional, integrated systems that offer robust performance in diverse operational conditions. This trend is expected to continue driving innovation and growth in the military EO/IR systems market as technological capabilities advance and operational demands evolve.
SCOPE OF STUDY:
The report analyzes the Military Electro-Optics / Infrared Systems market in terms of units by the following Segments, and Geographic Regions/Countries:- Segments: Platform (Air, Land, Naval); System (Electronic Support Measure (ESM), Imaging System, Targeting System); Technology (Uncooled, Cooled); Imaging Technology (Multispectral, Hyperspectral)
- Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Air segment, which is expected to reach US$6.3 Billion by 2030 with a CAGR of a 4.8%. The Land segment is also set to grow at 6.5% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $3.9 Billion in 2024, and China, forecasted to grow at an impressive 6.9% CAGR to reach $1.8 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Military Electro-Optics / Infrared Systems Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Military Electro-Optics / Infrared Systems Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Military Electro-Optics / Infrared Systems Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as BAE Systems plc, Elbit Systems Ltd., Excelitas Technologies Corp., Israel Aerospace Industries, L3Harris Technologies, Inc. and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 82 companies featured in this Military Electro-Optics / Infrared Systems market report include:
- BAE Systems plc
- Elbit Systems Ltd.
- Excelitas Technologies Corp.
- Israel Aerospace Industries
- L3Harris Technologies, Inc.
- Leonardo DRS, Inc.
- Lockheed Martin Corporation
- Northrop Grumman Corporation
- Raytheon Technologies Corporation
- Rheinmetall AG
- Saab AB
- Safran SA
- Teledyne FLIR LLC
- Thales Group
- Ultra Electronics Holdings plc
This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:
- Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
- Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
- Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
- Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
- Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
- Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
- Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIII. MARKET ANALYSISCANADAJAPANFRANCEGERMANYITALYUNITED KINGDOMREST OF EUROPEREST OF WORLDIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
UNITED STATES
CHINA
EUROPE
ASIA-PACIFIC
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- BAE Systems plc
- Elbit Systems Ltd.
- Excelitas Technologies Corp.
- Israel Aerospace Industries
- L3Harris Technologies, Inc.
- Leonardo DRS, Inc.
- Lockheed Martin Corporation
- Northrop Grumman Corporation
- Raytheon Technologies Corporation
- Rheinmetall AG
- Saab AB
- Safran SA
- Teledyne FLIR LLC
- Thales Group
- Ultra Electronics Holdings plc
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 537 |
| Published | June 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 10.5 Billion |
| Forecasted Market Value ( USD | $ 14.5 Billion |
| Compound Annual Growth Rate | 5.6% |
| Regions Covered | Global |
