Airborne Target Acquisition Systems Market Report 2026

The airborne target acquisition systems market size has grown steadily in recent years. It will grow from $15.66 billion in 2025 to $16.33 billion in 2026 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to increasing adoption of airborne sensors for target detection and tracking, integration of precision targeting solutions in military aircraft, rising demand for real-time surveillance and situational awareness, deployment of advanced sensor payloads for reconnaissance missions, development of communication and fire control systems for coordinated targeting.

The airborne target acquisition systems market size is expected to see steady growth in the next few years. It will grow to $19.06 billion in 2030 at a compound annual growth rate (CAGR) of 3.9%. The growth in the forecast period can be attributed to growing investment in AI-driven target acquisition and automated threat detection, expansion of airborne systems for unmanned aerial vehicles (UAVs), focus on multi-sensor integration for enhanced accuracy, rising demand for networked and interoperable targeting solutions, increasing procurement for next-generation combat aircraft and defense platforms. Major trends in the forecast period include increased deployment of multi-sensor fusion, growth in high-resolution eo/ir targeting, expansion of uav-based target acquisition, integration of fire-control and communication systems, demand for advanced threat detection systems.

The growing need for border surveillance is expected to drive the expansion of the airborne target acquisition systems market. Border surveillance uses advanced technologies to monitor border areas in real time to detect, deter, and respond to illegal crossings or potential threats. Rising security concerns are increasing the adoption of sophisticated surveillance systems to track risks and unauthorized entries more effectively. Airborne target acquisition systems play a key role in these efforts by providing real-time aerial detection, tracking, and threat identification. Their advanced sensors and wide-area coverage enable rapid responses in remote or hard-to-monitor border regions. For example, in October 2025, KXAN Austin reported that U.S. Border Patrol agents apprehended 10,203 individuals in September, marking a 26% month-over-month increase. As a result, the heightened demand for border surveillance is contributing to the growth of the airborne target acquisition systems market.

Companies operating in the airborne target acquisition systems sector are focusing on advanced solutions, including AI-enabled airborne targeting systems, to enhance performance in complex combat scenarios. These systems use artificial intelligence to automatically detect, classify, and track targets with improved speed and accuracy. They provide greater situational awareness, threat assessment, and targeting efficiency during dynamic surveillance and combat operations. For instance, in September 2024, Germany-based defense electronics firm Hensoldt introduced the ARGOS-15 at the Africa Aerospace and Defense Expo. This 15-inch gimbal system features AI-powered object detection, classification, and tracking, improving real-time decision-making and mission success. The ARGOS-15 is suitable for both manned and unmanned airborne platforms, delivering high performance in intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) missions.

In May 2024, Airbus, a France-based aerospace company, acquired Flexrotor from Aerovel for an undisclosed sum. This move is aimed at strengthening Airbus’s unmanned aerial systems (UAS) offerings by incorporating Aerovel’s Flexrotor, a vertical-takeoff-and-landing (VTOL), long-endurance drone - into its defense and surveillance lineup. Aerovel is a U.S.-based producer of airborne target acquisition systems.

Major companies operating in the airborne target acquisition systems market are Raytheon Technologies Corporation, The Boeing Company, Lockhee Martin Corporation, Airbus, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Safran SA, Thales Group, L3Harris Technologies Inc., Leidos Holdings Inc., Rheinmetall AG, Saab AB, Hensoldt AG, Aselsan A.S., Kratos Defense & Security Solutions Inc., Teledyne FLIR, Kearfott Corporation, Thermoteknix Systems Ltd., Blighter Surveillance Systems Limited.

North America was the largest region in the airborne target acquisition systems market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the airborne target acquisition systems 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 are increasing the cost of imported electronics, sensor modules, and radar components essential for airborne target acquisition systems, particularly affecting radar, EO/IR, and ESM technologies across North America, Europe, and Asia-Pacific. Higher procurement costs and longer supply cycles can delay upgrades and acquisition programs, though tariffs also encourage domestic production capabilities and stimulate regional innovation in advanced targeting technologies.

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

Airborne target acquisition systems are sophisticated military technologies designed to detect, identify, and monitor targets from airborne platforms. Their main purpose is to improve situational awareness and targeting precision during combat missions. Additionally, they enhance mission success rates, shorten response times, support strategic defense goals, and strengthen modern, technology-based defense capabilities.

The primary platforms for airborne target acquisition systems include fixed-wing aircraft, helicopters, and unmanned aerial vehicles (UAVs). Fixed-wing aircraft outfitted with these systems offer long-range surveillance and high-altitude target detection, boosting intelligence gathering and battlefield visibility. These systems employ various technologies such as radar, electro-optical or infrared (EO/IR) sensors, and electronic support measures (ESM), covering multiple ranges: short (0-8 kilometers), medium (8-250 kilometers), and long (over 250 kilometers). They are utilized in a wide range of operations, including air-to-air combat, air-to-ground reconnaissance, maritime surveillance, and electronic warfare, serving key users like military forces and homeland security agencies.

The countries covered in the airborne target acquisition systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The airborne target acquisition systems market consists of revenues earned by entities by providing services such as threat detection, target tracking, surveillance integration, and precision targeting solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The airborne target acquisition systems market consists of revenues earned by entities by providing services such as threat detection, target tracking, surveillance integration, and precision targeting solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The airborne target acquisition systems market also includes sales of sensor payloads, communication systems, and fire control systems. 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.

This product will be delivered within 1-3 business days.