Intelligence Surveillance Reconnaissance Market Report 2026

The intelligence surveillance reconnaissance market size has grown strongly in recent years. It will grow from $53.85 billion in 2025 to $58.29 billion in 2026 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to rising global defense spending post-2010, increasing adoption of drones and unmanned aerial vehicles, advancements in sensor technologies (eo/ir and sigint), growth in counterterrorism and border security operations, expansion of simulation and training services for military personnel.

The intelligence surveillance reconnaissance market size is expected to see strong growth in the next few years. It will grow to $79.28 billion in 2030 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to integration of AI and machine learning for real-time data analysis, increased deployment of autonomous ISR drones, demand for advanced data analytics and post-processing software, expansion of ISR capabilities in emerging defense markets, rising need for network-centric warfare and battlefield intelligence solutions. Major trends in the forecast period include integration of advanced uavs and isr aircraft for enhanced situational awareness, expansion of multi-sensor fusion capabilities for real-time data analysis, rising demand for geospatial intelligence and signal intelligence solutions, development of ai-enabled analytics software for predictive threat detection, increased use of simulation and training services to support isr operations.

The rising terrorism is expected to propel the growth of the intelligence surveillance reconnaissance (ISR) market going forward. Terrorism refers to the use of violence, threats, or intimidation, often targeting civilians, to achieve political, ideological, or religious objectives. The incidence of terrorism is increasing due to growing political and ideological extremism, with radical groups exploiting social and economic instability to recruit supporters and justify violence against authorities or rival communities. ISR enhances geopolitical stability and border security by delivering real-time data to detect, monitor, and counter terrorist threats and unauthorized border activities. It enables security forces to act swiftly and decisively, preventing potential attacks, disrupting terrorist networks, and ultimately saving lives. For instance, in February 2024, according to the Institute for Economics & Peace, an Australia-based independent agency, deaths from terrorism rose to 8,352 in 2023, representing a 22% increase from the previous year. Therefore, the rise in terrorism is driving the growth of the ISR market.

Major companies operating in the ISR market are focusing on developing innovative solutions such as space-based intelligence, surveillance, and reconnaissance to enhance real-time situational awareness and provide advanced surveillance capabilities without risking human lives. Space-based ISR involves using satellites to collect and analyze data for tracking global activities and potential threats from space, ensuring real-time situational awareness while supporting defense, security, and strategic decision-making through imagery, signals, and geospatial intelligence across remote regions. For instance, in September 2025, ICEYE, a Finland-based space technology company, launched the ISR Cell, an end-to-end containerized unit that provides defense forces with direct access to space-based tactical ISR in near-real time, improving decision-making speed and effectiveness. It compresses the ISR loop from hours or days to minutes, covering satellite tasking, data downlink, analysis, and intelligence dissemination. The system also enhances resilience and operational flexibility by enabling on-site tasking and independent downlinking, serving as a fallback or augmentation to fixed centralized ground segments.

In June 2024, Hitachi Ltd., a Japan-based conglomerate, acquired Thales S.A. for $1.66 billion. This acquisition represents Hitachi's strategic effort to broaden its portfolio by integrating Thales's expertise in ISR solutions. Thales S.A., a France-based company, specializes in providing intelligence surveillance reconnaissance solutions.

Major companies operating in the intelligence surveillance reconnaissance market are The Boeing Company, RTX Corporation, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales S.A., L3Harris Technologies Inc., Leonardo S.p.A., Textron Systems, Huntington Ingalls Industries Inc., Science Applications International Corporation Inc., Bombardier Inc., Rheinmetall AG, Teledyne Technologies Incorporated, Elbit Systems Ltd., Embraer S.A., Israel Aerospace Industries Limited, General Atomics Inc., Kongsberg Gruppen ASA, Meggitt PLC, QinetiQ Group PLC, Cubic Corporation, Kratos Defense & Security Solutions Inc., AeroVironment Inc.

North America was the largest region in the intelligence surveillance reconnaissance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the intelligence surveillance reconnaissance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electronics, sensor components, and high-precision hardware have raised production costs for ISR systems, affecting cyber intelligence, geospatial intelligence, and signal intelligence segments. North America, Europe, and Asia-Pacific regions, which rely heavily on imports for advanced sensors and aerospace components, are most impacted. Despite increased costs, tariffs drive investment in local manufacturing, encourage innovation in analytics software and ISR platforms, and enhance domestic supply chain resilience for critical defense technologies.

The intelligence surveillance reconnaissance market research report is one of a series of new reports that provides intelligence surveillance reconnaissance market statistics, including intelligence surveillance reconnaissance industry global market size, regional shares, competitors with an intelligence surveillance reconnaissance market share, detailed intelligence surveillance reconnaissance market segments, market trends, and opportunities, and any further data you may need to thrive in the intelligence surveillance reconnaissance industry. This intelligence surveillance reconnaissance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Intelligence Surveillance Reconnaissance (ISR) is a comprehensive method for gathering and analyzing information to enhance decision-making and operational effectiveness. This approach integrates various components to deliver a thorough understanding of a situation, environment, or target. ISR is essential for supporting strategic and operational goals, forming a basis for informed decisions and mission success.

The primary types of ISR include cyber intelligence, geospatial intelligence, human intelligence, open-source intelligence, and signals intelligence. Cyber intelligence focuses on collecting and analyzing data related to cyber threats and activities. The process involves various components such as hardware, services, and software, and utilizes data processing and analytics techniques such as image processing, signal processing, data fusion, artificial intelligence, and machine learning. Different sensor types, including electro-optical, radar, and acoustic sensors, are employed across platforms such as air, land, sea, and space.

The countries covered in the intelligence surveillance reconnaissance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The intelligence surveillance reconnaissance market consists of revenues earned by entities by providing services such as simulation services, active maintenance services, data analytics and post-processing, training and support services, and integration services. The market value includes the value of related goods sold by the service provider or included within the service offering. The intelligence surveillance reconnaissance market includes sales of ISR aircraft, ISR drones (UAVs), infrared (EO/IR) sensors, signal intelligence (SIGINT) systems, and data analytics software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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