Thermal Scanner Market Assessment, By Type [Portable, Fixed], By Wavelength [Long-Wave Infrared, Medium-Wave Infrared, Short-Wave Infrared], By End-user [Aerospace & Defense, Healthcare, Automotive, Oil & Gas, Others], By Region, Opportunities and Forecas

Thermal Scanner Market Assessment, By Type [Portable, Fixed], By Wavelength [Long-Wave Infrared, Medium-Wave Infrared, Short-Wave Infrared], By End-user [Aerospace & Defense, Healthcare, Automotive, Oil & Gas, Others], By Region, Opportunities and Forecast, 2016-2030F

Global thermal scanner market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years. With projected revenue of approximately USD 3.82 billion in 2022, the market is forecasted to reach a value of USD 7.4 billion by 2030, displaying a robust CAGR of 8.7% from 2023 to 2030.

Thermal scanning devices offer a high Return on Investment as the overall cost of owning a thermal camera-based security system is considerably lower than that of a traditional CCTV system. The market is experiencing significant growth due to the rising demand for mass screening amid the COVID-19 crisis and increased adoption in the Aerospace & Defense sector for security and surveillance purposes. The pandemic has prompted key players to position these products as vital tools to contain the spread of the virus. Apart from the heightened demand in commercial and healthcare sectors, thermal scanning solutions are increasingly being utilized for security and surveillance applications. The surge in demand for these applications can be attributed to citizens' growing need for enhanced security measures. The market growth is further bolstered by investments in infrastructural systems and the rising demand for professional surveillance services. These factors are anticipated to drive the expansion of the thermal scanners market in the coming years.

Several companies embrace thermal scanning technologies to enhance safety protocols. For instance, Amazon.com, Inc., deployed thermal scanners in some of its warehouses outside Los Angeles and Seattle to screen workers as part of their essential goods delivery operations. Whole Foods Market Inc. adopted these devices in their stores. Furthermore, industry leaders like General Motors Company and Wynn Resorts Ltd. have confirmed using thermal scanners for screening purposes. Tyson Foods Inc. and Intel Corp. are among the companies exploring thermal camera solutions, indicating a trend likely to continue beyond the pandemic.

Healthcare Industry Creates Significant Demand for Thermal Scanners

The healthcare sector is driving the adoption and innovation of thermal scanners in several ways, especially in response to the COVID-19 pandemic and the ongoing need for effective health screening methods. Thermal scanners are deployed at hospital entrances to screen patients, staff, and visitors, ensuring that individuals with fevers can be identified before entering healthcare facilities. Thermal imaging is utilized in research studies to monitor the progression of diseases, especially those affecting the skin, by analyzing temperature patterns. In clinical trials, thermal scanners are used to monitor the impact of new drugs or treatments on patients' body temperature and overall health. Moreover, thermal imaging devices integrated into telemedicine platforms allow healthcare professionals to remotely assess patients' conditions, including fever, without physical contact.

For example, in April 2022, Wipro GE Healthcare unveiled its latest Revolution Aspire CT (Computed Tomography) scanner. The advanced imaging solution is entirely designed and produced in India at the newly established Wipro GE Medical Devices Manufacturing plant, aligning with the 'Atmanirbhar Bharat' initiative. The CT system boasts enhanced imaging intelligence, elevating clinical confidence in diagnosing diseases and anomalies.

Increased in the Adoption of Security & Surveillance

The increased adoption of security and surveillance measures and technological advancements in thermal imaging continue to drive the thermal scanner industry. These devices have become integral components of comprehensive security strategies, ensuring public safety, health security, and effective threat detection across various sectors. Thermal scanners are deployed in critical infrastructures such as power plants, government buildings, and military installations for continuous monitoring, ensuring early detection of unauthorized access or potential threats. Thermal scanners are used in large public spaces and events to screen crowds and detect individuals with elevated temperatures. It helps in identifying potential security threats while contributing to public safety.

For example, in September 2021, Axis Communications launched two thermal imaging cameras for detection and verification purposes. Tailored for perimeter security and long-range detection needs, these cameras, free from halogen, ensure superior thermal video streams round the clock, regardless of weather conditions or lighting situations. The Axis Q1951-E and Axis Q1952-E cameras provide excellent image contrast, and the Axis Q1952-E model offers VGA 640x480 thermal resolution, enabling extensive area coverage. Thermal cameras can distinguish various heat sources emitting equal thermal energy. Additionally, the inclusion of thermal palettes simplifies and enhances scene interpretation, making the process more efficient.

North America Holds the Largest Share in Thermal Scanner Industry

North America is anticipated to lead the market share during the forecast period, primarily due to the significant presence of device manufacturers and providers in the region. The market growth is further bolstered by substantial investments made by the government in the military and defense sector. For example, In May 2022, Teledyne FLIR Defense secured a five-year contract worth USD 500.2 million. The contract entails delivering cutting-edge thermal imaging systems for the Family of Weapons Sights-Individual (FWS-I) program in the US Army.

Export Restrictions Placed on Thermal Imaging Products are Curbing Market Expansion

Thermal imaging products have long faced export sensitivity concerns. The U.S. Government places restrictions on exporting thermal and infrared cameras to specific countries, governed by the International Traffic in Arms Regulations (ITAR). Some cameras are subject to Export Control Classification Number (ECCN) codes overseen by the Bureau of Industry and Security, an entity within the U.S. Department of Commerce. Manufacturers are required to adhere to all government-imposed rules and regulations, as failure to do so may result in substantial penalties.

Government Initiatives

In April 2020, the US Department of Defense implemented the 'blacklist clause' under the National Defense Authorization Act (""NDAA""), targeting numerous non-US-based video surveillance equipment manufacturers. The development has opened a market opportunity for ThermalPass, a non-camera fever-detection solution based on sensors.

Unlike the thermal camera technologies affected by this regulation, ThermalPass utilizes medical-grade temperature sensors, recording 400 readings per second and accurately detecting body temperature with a precision of +/- 0.2°C. It makes ThermalPass, one of the most dependable and precise fever detection devices available in the market.

Impact of COVID-19

With the easing of lockdown restrictions and the reopening of businesses, there was a heightened risk for workers. The healthcare sector had highest risk, where non-COVID-19-related treatments were being reintroduced, potentially exposing individuals to a high-risk environment. Thermal scanners installed at ports and airports identified passengers with elevated body temperature, possibly indicating potential COVID-19 infection. In case of national strategy to prevent new COVID-19 cases and improve the identification of active cases, the Asian Development Bank (ADB) and UNICEF, in collaboration with the Government of India and the Ministry of Health and Family Welfare, facilitated the installation of these scanners for mass passenger screening as key entry points in 2021.

Key Players Landscape and Outlook

Global thermal scanner market is witnessing a swift growth trajectory due to the increasing emphasis placed by companies worldwide on establishing advanced security and surveillance infrastructure. Furthermore, the market expansion is greatly facilitated by increasing safety measures and significant investments made by companies to enhance research and development resources, engage in collaboration projects, bolster marketing efforts, and expand distribution networks. These factors collectively contribute to the rapid expansion of the market.

In June 2020, NUOS Home Automation introduced India's first-ever IR Touchless Thermal Scanner for COVID-19 safety, an infrared wall-mount thermal touchless detector designed to identify individuals with elevated body temperature automatically. In accordance with the Government of India’s SOPs for social distancing in offices, workplaces, factories, and establishments, thermal scanning of everyone entering and exiting the workplace or establishment is mandatory. The installation of these touchless thermal scanners at the entrances of institutions, commercial establishments such as offices, shops, clinics, as well as at the entrances of societies and households, have played a pivotal role in containing the spread of the virus and are being often used post pandemic in public areas.