Military Electro-Optics / Infrared Systems

Global Military Electro-Optics / Infrared Systems Market to Reach US$14.5 Billion by 2030

The global market for Military Electro-Optics / Infrared Systems estimated at US$10.5 Billion in the year 2024, is expected to reach US$14.5 Billion by 2030, growing at a CAGR of 5.6% over the analysis period 2024-2030. Air, one of the segments analyzed in the report, is expected to record a 4.8% CAGR and reach US$6.3 Billion by the end of the analysis period. Growth in the Land segment is estimated at 6.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.9 Billion While China is Forecast to Grow at 6.9% CAGR

The Military Electro-Optics / Infrared Systems market in the U.S. is estimated at US$3.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.8 Billion by the year 2030 trailing a CAGR of 6.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.9% and 5.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.7% CAGR.

Global Military Electro-Optics/Infrared Systems Market - Key Drivers and Trends Summarized

Military Electro-Optics/Infrared (EO/IR) systems are advanced sensor technologies used for detection, identification, and surveillance in a variety of military applications. These systems capture light across the electromagnetic spectrum, including visible, infrared, and ultraviolet light, to provide detailed imagery and information that is not visible to the human eye. EO/IR systems are integral components of various military equipment, including aircraft, ships, ground vehicles, and unmanned systems, facilitating operations in all weather conditions and during both day and night. The systems are crucial for target acquisition, reconnaissance, and surveillance missions, enhancing situational awareness and improving the accuracy and effectiveness of military operations.

The utilization of EO/IR systems has significantly expanded due to their ability to offer precise real-time data and imagery, critical for modern warfare where situational awareness and rapid response capabilities are paramount. These systems are increasingly integrated with artificial intelligence (AI) to enhance the processing and interpretation of data, allowing for faster and more accurate decision-making processes. In addition to traditional military applications, EO/IR systems are also being adapted for border surveillance, maritime patrol, and search and rescue operations, underscoring their versatility and broadening their utility beyond conventional battlefield scenarios. The continuous improvement in thermal imaging and laser-ranging technologies has further augmented the capabilities of EO/IR systems, making them more effective in a diverse array of environments and mission profiles.

The growth in the military EO/IR systems market is driven by several factors, including advancements in sensor technology, increasing global security threats, and rising defense expenditures by governments worldwide. The development of more compact, powerful, and cost-effective sensors has enabled broader deployment and integration of EO/IR systems across various platforms. The growing need for enhanced surveillance and reconnaissance capabilities in an era of asymmetric warfare and global terrorism has also spurred demand for these systems. Furthermore, the adoption of unmanned systems, such as drones and unmanned aerial vehicles (UAVs), which heavily rely on EO/IR technology for navigation and mission execution, contributes significantly to the expansion of this market. Consumer behavior within defense sectors shows a clear preference for multi-functional, integrated systems that offer robust performance in diverse operational conditions. This trend is expected to continue driving innovation and growth in the military EO/IR systems market as technological capabilities advance and operational demands evolve.

SCOPE OF STUDY:

The report analyzes the Military Electro-Optics / Infrared Systems market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Platform (Air, Land, Naval); System (Electronic Support Measure (ESM), Imaging System, Targeting System); Technology (Uncooled, Cooled); Imaging Technology (Multispectral, Hyperspectral)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 82 Featured) -

• BAE Systems plc
• Elbit Systems Ltd.
• Excelitas Technologies Corp.
• Israel Aerospace Industries
• L3Harris Technologies, Inc.
• Leonardo DRS, Inc.
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Rheinmetall AG
• Saab AB
• Safran SA
• Teledyne FLIR LLC
• Thales Group
• Ultra Electronics Holdings plc

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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CHINA
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EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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