Military Electro-Optics/Infrared (EO/IR) Systems Market Report 2026

Military Electro-Optics/Infrared (EO/IR) Systems Market Overview

• Military Electro-Optics/Infrared (EO/IR) Systems market size has reached to $10.77 billion in 2025 • Expected to grow to $14.75 billion in 2030 at a compound annual growth rate (CAGR) of 6.6% • Growth Driver: Geopolitical Tensions Fueling Growth In The Military Electro-Optics And Infrared (EO/IR) Systems Market • Market Trend: Israel Aerospace Industries Unveils Point Blank For Tactical Unit Enhancement • North America was the largest region in 2025.

What Is Covered Under Military Electro-Optics/Infrared (EO/IR) Systems Market?

A military electro-optics/infrared (EO/IR) system refers to a technological system that combines both electro-optics and infrared capabilities to gather and process information from the electromagnetic spectrum. It integrates various devices and components to enable the detection, imaging, tracking, and analysis of targets or objects using both visible light and infrared radiation. The main types of products included in military electro-optics/infrared (EO/IR) systems are handheld systems and EO/IR payloads. A handheld system refers to a portable electronic device that can be operated while held in the hand or carried by the person. The various components include human-machine interfaces, stabilization units, control systems, optics, sensors, and processors, with various types of imaging technology involved, such as scanning, starring, hyperspectral, and multispectral. These are used on various platforms, including land, airborne, and naval, for several applications such as military intelligence, surveillance, and reconnaissance.

What Is The Military Electro-Optics/Infrared (EO/IR) Systems Market Growth Forecast?

The military electro-optics/infrared (eo/ir) systems market size is expected to see strong growth in the next few years. It will grow to $14.75 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to rising demand for advanced thermal imaging, increasing investment in unmanned defense systems, expansion of hyperspectral imaging technologies, development of long-range surveillance solutions, growth in multispectral target acquisition. Major trends in the forecast period include adoption of AI-driven target recognition, integration of autonomous surveillance platforms, advancement of cloud-connected eo/ir processing, development of intelligent multi-spectral imaging systems, expansion of IoT-enabled defense monitoring.

Global Military Electro-Optics/Infrared (EO/IR) Systems Market Segmentation

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

What Is The Driver Of The Military Electro-Optics/Infrared (EO/IR) Systems Market?

Rising geopolitical tensions are expected to propel the growth of the military electro-optics and infrared (EO/IR) systems market going forward. Geopolitical tensions refer to conflicts, disputes, or heightened competition between nations or geopolitical entities, often driven by political, economic, territorial, or ideological differences. Geopolitical tensions drive the increased demand for military electro-optic and infrared (EO/IR) systems as essential components for enhancing situational awareness, reconnaissance, and surveillance capabilities. According to data from Lebanon’s Ministry of Public Health, between 8 October 2023 and 27 January 2025, the Israel Defense Forces killed 217 healthcare workers, damaged 177 ambulances, carried out 68 attacks on hospitals, and were responsible for 237 assaults on emergency medical services. Therefore, rising geopolitical tensions affect the military's electro-optic and infrared (EO/IR) systems market.

Key Players In The Global Military Electro-Optics/Infrared (EO/IR) Systems Market

Major companies operating in the military electro-optics/infrared (eo/ir) systems market are 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., The Boeing Co., CONTROP Precision Technologies, Tonbo Imaging, UTC Aerospace Systems, Curtiss-Wright Corporation

Global Military Electro-Optics/Infrared (EO/IR) Systems Market Trends and Insights

Major companies operating in the military electro-optics/infrared (EO/IR) systems market are focused on product innovations such as Point Blank to provide tactical units ranging in size from small tactical teams. The point-blank missile aims to enhance tactical units' lethality by providing an independent capability. Hand-launched and operated by a single soldier, it uses advanced electro-optical systems to validate and collect real-time surveillance information, enabling high-precision target targeting and real-time target strikes. For instance, in January 2023, Israel Aerospace Industries Corporation, an Israel-based aerospace and defense company, unveiled the Point Blank, a hand-launched electro-optical guided missile that can be carried in a soldier's backpack. The missile is equipped with advanced electro-optical systems to validate and collect surveillance information in real time.

What Are Latest Mergers And Acquisitions In The Military Electro-Optics/Infrared (EO/IR) Systems Market?

In September 2023, General Atomics, a US-based energy and defense corporation, acquired EO Vista for an undisclosed amount. This acquisition aims to significantly enhance its capabilities in the field of electro-optical sensor systems, particularly for military and aerospace applications. EO Vista is a US-based aerospace company that specializes in the development of advanced electro-optical (EO) sensor systems.

Regional Outlook

North America was the largest region in the military electro-optics/infrared (EO/IR) systems market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Military Electro-Optics/Infrared (EO/IR) Systems Market?

The military electro-optics/infrared (EO/IR) system market consists of sales of radar systems, lidar systems, and electro-optical targeting 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.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Military Electro-Optics/Infrared (EO/IR) Systems Market Report 2026?

The military electro-optics/infrared (eo/ir) systems market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the military electro-optics/infrared (eo/ir) systems industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.