Military Lighting Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Military Lighting Market is projected to expand from USD 0.68 Billion in 2025 to USD 1.01 Billion by 2031, registering a Compound Annual Growth Rate (CAGR) of 6.82%. This sector covers specialized internal and external illumination systems tailored for defense aircraft, naval vessels, and ground vehicles, all of which must strictly adhere to rigorous standards for night vision compatibility and environmental durability. Growth is primarily propelled by the extensive modernization of aging military fleets and the acquisition of advanced combat platforms essential for maintaining operational readiness. Furthermore, the market is benefiting from a widespread shift towards light-emitting diode (LED) technology, which provides significant improvements in energy efficiency and service life compared to legacy incandescent alternatives.

Despite these favorable drivers, the market encounters substantial obstacles related to the high costs associated with developing and qualifying products to meet stringent military specifications, a factor that can strain defense budgets and delay procurement timelines. Nevertheless, sustained global investment in defense infrastructure offers a solid foundation for market expansion. As reported by the Stockholm International Peace Research Institute, global military expenditure climbed to $2.7 trillion for the 2024 fiscal year in 2025, representing a 9.4 percent increase in real terms, which highlights the continued financial commitment of nations worldwide to prioritize and fund defense systems.

Market Drivers

Escalating global defense budgets and strategic military investments are fundamentally transforming the industry as nations dedicate record levels of funding to enhance fleet readiness and procure next-generation platforms. This surge in financial resources supplies the capital necessary for acquiring sophisticated internal and external lighting systems critical for modern combat operations. For example, according to GovCon Wire in June 2025, the U.S. Department of Defense announced a fiscal year 2026 budget request of $961.6 billion, with a focus on revitalizing the industrial base and advancing cutting-edge capabilities. Such significant funding commitments directly support the creation of high-performance lighting technologies, ensuring military assets remain effective across various environments while facilitating the integration of advanced searchlights and navigation systems.

The push to accelerate the modernization of legacy military fleets further intensifies market demand, as armed forces retrofit aging equipment with energy-efficient, NVIS-compatible LED solutions. These upgrades are vital for extending the operational lifespan of vehicles and ensuring crew safety during nighttime maneuvers. This trend is illustrated by a November 2025 report from Army Recognition, which noted that the U.S. Army awarded BAE Systems a contract modification valued at approximately $390 million to upgrade Bradley Fighting Vehicles to the M2A4 standard, a project requiring updated illumination and internal electronics. Consequently, the emphasis on upgrading existing assets is driving revenue for suppliers; Astronics Corporation reported in August 2025 that its military aircraft sales grew by 10.7 percent in the second quarter, largely due to increased demand for safety and lighting products.

Market Challenges

The Global Military Lighting Market faces severe constraints due to the prohibitive costs associated with developing and qualifying products that meet rigorous defense standards. These strict requirements, including compliance with electromagnetic interference thresholds and resistance to extreme environmental conditions, demand extensive testing cycles that far exceed commercial timelines. This arduous qualification process consumes a significant portion of development budgets, diverting resources that might otherwise support mass production. Consequently, high entry barriers deter smaller, innovative manufacturers from entering the market, which reduces competitive pressure and slows the overall rate of technological advancement within the industry.

The financial burden of compliance is also causing a potential contraction in the base of qualified suppliers. According to IPC data from 2025, 24 percent of electronics manufacturers reported that the high costs and complexities of meeting defense certification standards could force them to exit the military supply chain entirely. This trend risks disrupting the availability of critical components for specialized LED and night-vision compatible lighting, potentially leading to longer lead times and higher procurement costs. As a result, modernization programs for legacy fleet lighting are often delayed, hindering the market’s ability to fully capitalize on the rising demand for next-generation military equipment.

Market Trends

The adoption of intelligent, IoT-enabled lighting systems is becoming a transformative trend, evolving military illumination from static hardware into dynamic, network-integrated operations. Defense forces are increasingly implementing smart lighting solutions that offer remote configuration, automated dimming, and real-time health monitoring, capabilities that significantly lower maintenance requirements and improve situational awareness for crews on ground and naval platforms. This transition toward digital management is highlighted by recent procurement deals; as reported by A1 Lighting Magazine in September 2025 within the article 'Glamox's MARL International teams with Apex Industries', Glamox won a significant contract to provide an initial 9,000 LED marine lights and advanced management systems for the Royal Canadian Navy's upcoming River Class destroyers.

concurrently, there is a growing prioritization of SWaP (Size, Weight, and Power) optimized designs, which has become a crucial technical requirement for next-generation tactical and aerial assets where range and payload capacity are critical. Manufacturers are developing high-density, compact lighting units that reduce electrical load and aerodynamic drag without sacrificing durability or NVIS compatibility, directly supporting future vertical lift initiatives. The financial success of this design approach is evident in recent earnings; Astronics Corporation's '2024 Fourth Quarter and Full Year Financial Results' from March 2025 revealed that sales in its military aircraft segment jumped by 41.6 percent to $24.5 million, a surge explicitly attributed to the demand for specialized safety and lighting products for advanced platforms such as the Future Long-Range Assault Aircraft.

Key Players Profiled in the Military Lighting Market

• Oxley Group
• Astronics Corporation
• Orion Energy Systems, Inc.
• Carmanah Technologies Corp.
• Dialight PLC
• Honeywell International Inc.
• Acuity Brands, Inc.
• OSRAM GmbH
• Sealite Pty Ltd.
• Midstream Ltd.

Report Scope

In this report, the Global Military Lighting Market has been segmented into the following categories:

Military Lighting Market, by Application Type:

• Ground
• Airborne
• Marine

Military Lighting Market, by Technology Type:

• LED
• Non-LED

Military Lighting Market, by Solution Type:

• Hardware
• Software

Military Lighting Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Military Lighting Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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