How Has The Military Electro-Optics/Infrared (EO/IR) Systems Market Size Evolved In Recent Years?
The military electro-optics/infrared (eo/ir) systems market has seen considerable growth due to a variety of factors.
•In recent times, there has been significant growth in the military electro-optics/infrared (EO/IR) systems market. The market value is projected to increase from $10.29 billion in 2024 to $10.94 billion in 2025, recording a compound annual growth rate (CAGR) of 6.3%.
The escalating growth in the historical period is attributable to factors such as heightened threats and conflicts, modernization efforts in the military platforms, counterinsurgency operation requirements, increased need for border surveillance, and search and rescue missions.
What Are The Estimated Market Size And Expected Annual Growth Rates For Global Military Electro-Optics/Infrared (EO/IR) Systems Market?
The military electro-optics/infrared (eo/ir) systems market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for military electro-optics/infrared (EO/IR) systems is forecasted to experience substantial growth in the forthcoming years. The market is projected to expand to "$14.2 billion in 2029 with a compound annual growth rate (CAGR) of 6.7%.
This expected growth during the forecast period can be credited to geopolitical uncertainties, increased focus on unmanned systems, anti-drone capabilities, improved target acquisition and fire control, and response to natural disasters. Key trends during this forecast period are expected to include integration with command and control (c2) systems, the evolution of 3d imaging technologies, advancements in image processing algorithms, emphasis on cybersecurity for EO/IR systems, and application in urban warfare and asymmetric threat situations.
Which Drivers Are Accelerating Growth In The Military Electro-Optics/Infrared (EO/IR) Systems Market?
The demand for intelligence, surveillance, and reconnaissance (ISR), is anticipated to stimulate the expansion of the military electro-optics and infrared (EO/IR) systems market. ISR, which is a military acronym that stands for the systematic collection, administration, and circulation of accurate, real-time data to assist the commander’s decision-making process. The EO/IR system sensor technology facilitates distributed ISR for military airborne, terrestrial, and maritime platforms. For example, in March 2022, the Defense Intelligence Agency, a US-based intelligence and combat support organization, stated that there were 550 ISR satellites for the year 2022 to aid military operations, a considerable increase from the nearly 100 ISR satellites a decade prior. In addition, as of December 2022, the Skykam Technical Inspection, a UK-based firm that offers UAV building inspection services reported that the FAA documented 855,860 drones in the US as of 2023, with 37% of these registrations (316,075) being for commercial applications used for ISR operations. Therefore, the increasing necessity for ISR is fueling the growth of the military’s electro-optics and infrared (EO/IR) systems market.
What Are The Core Segments Of The Global Military Electro-Optics/Infrared (EO/IR) Systems Market?
The military electro-optics/infrared (EO/IR) systems market covered in this report is segmented –
1) By Product Type: Handheld System, EO/IR Payload.
2) By Component: Human Machine Interfaces, Stabilization Units, Control Systems, Optics, Sensors, Processor.
3) By Imaging Technology: Scanning, Starring, Hyperspectral, Multispectral.
4) By Platform: Land, Airborne, Naval.
5) By Application: Military Intelligence, Surveillance, Reconnaissance.
Subsegments:
1) By Handheld System: Portable Thermal Imaging Devices, Night Vision Goggles, Handheld Multi-Sensor Systems, Tactical Thermal Monoculars
2) By EO Or IR Payload: UAV Payloads, Ground Vehicle Mounted Systems, Maritime EO Or IR Systems, Aerial Surveillance Payloads
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Which Emerging Trends Are Reshaping The Military Electro-Optics/Infrared (EO/IR) Systems Market Size?
The increasing integration of artificial intelligence is becoming a predominant trend within the military electro-optics/infrared (EO/IR) systems industry. Firms within this sector are exploiting artificial intelligence technologies to maintain their market foothold. As an example, Raytheon Technologies Corporation, an American aerospace and defense enterprise, introduced RAIVEN, an advanced electro-optical intelligent-sensing technology for EO/IR systems, in April 2023. RAIVEN enhances system resilience and safeguards combatants by offering accurate, continuous target surveillance and quick information distribution. With its 'intelligent-sensing' aspect, RAIVEN allows operators to perceive up to five times further and with greater precision than standard optical imaging. It employs artificial intelligence, hyperspectral imaging, and LiDAR (light detection and ranging). This bolsters system longevity and grants a strategic advantage to the combatant against opponents.
Who Are the Key Players in the Military Electro-Optics/Infrared (EO/IR) Systems Market?
Major companies operating in the military electro-optics/infrared (EO/IR) systems market include:
• Raytheon Technologies Corporation
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Thales Group
• L3Harris Technologies Inc.
• BAE Systems PLC
• Leonardo SpA
• Elbit Systems Ltd.
• Rheinmetall AG
• Ultra Electronics Holdings
• Theon Sensors SA
• Safran SA
• Excelitas Technologies Corp.
• General Dynamics Corporation
• PVP Advanced EO Inc.
• Textron Inc
• Teledyne FLIR
• Leidos Holdings Inc.
• Logos Technologies
• Moog Inc.
• Apie Group
• The Boeing Co.
• CONTROP Precision Technologies
• Alpha Design Technologies
• SPI Corp
• Tonbo Imaging
• UTC Aerospace Systems
• Zhejiang Dali Technology Co. Ltd.
• Luminator Technology Group
• Curtiss-Wright Corporation
What are the Regional Insights into the Military Electro-Optics/Infrared (EO/IR) Systems Market?
North America was the largest region in the military electro-Optics/Infrared (EO/IR) Systems market in 2024. The regions covered in the military electro-optics/infrared (EO/IR) systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
