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Military Electro-optical And Infrared Systems Market Size (2024 - 2029)

The Military Electro-Optical and Infrared Systems Market is anticipated to experience steady growth over the forecast period, driven by increasing demand for enhanced intelligence, surveillance, and reconnaissance capabilities in both manned and unmanned systems. This growth is supported by the adoption of electro-optical/infrared sensors to improve situational awareness among countries. However, the market's expansion may face challenges due to design complexities, technological limitations, supply chain vulnerabilities, and the impact of global crises.

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Market Size of Military Electro-optical And Infrared Systems Industry

Military EO/IR Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 8.91 Billion
Market Size (2029) USD 10.23 Billion
CAGR (2024 - 2029) 2.80 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Military Electro-optical and Infrared Systems Market Analysis

The Military Electro-optical And Infrared Systems Market size is estimated at USD 8.91 billion in 2024, and is expected to reach USD 10.23 billion by 2029, growing at a CAGR of 2.80% during the forecast period (2024-2029).

  • The outbreak of the COVID-19 pandemic and the subsequent shutdowns affected the defense manufacturing sector and the pace of military R&D activities in several countries. The negative impacts of the pandemic were visible in the global defense supply chains, as several programs relied upon a unique global network of part suppliers.
  • The market studied is likely to grow steadily during the latter half of the forecast period due to the growing demand for enhanced ISR capabilities for various manned and unmanned systems. These systems make use of electro-optical/infrared (EO/IR) sensors. Countries are progressively adopting these systems to increase their situational awareness.
  • However, various design challenges, technological constraints, supply chain risks, the evolving global crisis, and unprecedented factors are projected to restrain the market growth during the forecast period.

Military Electro-optical and Infrared Systems Industry Segmentation

Electro-optical and infrared systems, referred to as EO/IR systems, cover various distinct technologies based on targets and their missions. These sensors include visible spectrum and infrared sensors, due to which electro-optical/infrared (EO/IR) systems provide total situational awareness during both day and night, even in low light conditions. EO/IR sensors can be deployed in many ways. They are usually mounted on aircraft or vehicles used at sea or are hand-carried and can identify targets, track moving targets, and assess threats from a distance. Their applications include but are not limited to, airborne security, combat, patrol, surveillance, reconnaissance, and search and rescue operations.

The market has been segmented by platform and geography. By platform, the market is segmented into land-based, air-based, and sea-based. The report also covers the market sizes and forecasts for the military electro-optical and infrared systems market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).

Platform
Air-based
Land-based
Sea-based
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Latin America
Mexico
Brazil
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Military Electro-optical And Infrared Systems Market Size Summary

The military electro-optical and infrared systems market is poised for steady growth over the forecast period, driven by the increasing demand for enhanced intelligence, surveillance, and reconnaissance capabilities across various manned and unmanned systems. The market's expansion is supported by the growing adoption of electro-optical/infrared sensors, which are crucial for improving situational awareness. However, the market faces challenges such as design complexities, technological constraints, and supply chain risks, which could potentially hinder its growth. The sea-based segment is expected to experience the highest growth rate, fueled by the rising need for advanced surveillance and threat detection systems in maritime operations. This demand is largely driven by territorial conflicts and the necessity for improved situational awareness at sea, prompting nations to invest in sophisticated sensor systems for their naval vessels.

North America holds a significant share of the market, primarily due to the substantial demand from the US armed forces for advanced EO/IR systems. The US's increased investment in technologically advanced weapon systems, driven by the need to counter enhanced adversary capabilities, has significantly contributed to market growth. The region's market is further bolstered by ongoing procurement and upgrade activities of EO/IR sensors. The market is semi-consolidated, with key players like Leonardo S.p.A, BAE Systems plc, THALES, Ultra Electronics Holding, and Lockheed Martin Corporation holding substantial shares. These companies are actively engaged in research and development to enhance their product offerings and maintain competitive pricing. Strategic collaborations and long-term integration programs are prevalent, as the demand for sophisticated EO/IR systems continues to rise, creating a positive outlook for the market during the forecast period.

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Military Electro-optical And Infrared Systems Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Buyers/Consumers

      2. 1.4.2 Bargaining Power of Suppliers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Platform

      1. 2.1.1 Air-based

      2. 2.1.2 Land-based

      3. 2.1.3 Sea-based

    2. 2.2 Geography

      1. 2.2.1 North America

        1. 2.2.1.1 United States

        2. 2.2.1.2 Canada

      2. 2.2.2 Europe

        1. 2.2.2.1 Germany

        2. 2.2.2.2 United Kingdom

        3. 2.2.2.3 France

        4. 2.2.2.4 Italy

        5. 2.2.2.5 Spain

        6. 2.2.2.6 Russia

        7. 2.2.2.7 Rest of Europe

      3. 2.2.3 Asia-Pacific

        1. 2.2.3.1 China

        2. 2.2.3.2 Japan

        3. 2.2.3.3 India

        4. 2.2.3.4 Australia

        5. 2.2.3.5 South Korea

        6. 2.2.3.6 Rest of Asia-Pacific

      4. 2.2.4 Latin America

        1. 2.2.4.1 Mexico

        2. 2.2.4.2 Brazil

        3. 2.2.4.3 Rest of Latin America

      5. 2.2.5 Middle East and Africa

        1. 2.2.5.1 United Arab Emirates

        2. 2.2.5.2 Saudi Arabia

        3. 2.2.5.3 South Africa

        4. 2.2.5.4 Rest of Middle East and Africa

Military Electro-optical And Infrared Systems Market Size FAQs

The Military Electro-optical and Infrared Systems Market size is expected to reach USD 8.91 billion in 2024 and grow at a CAGR of 2.80% to reach USD 10.23 billion by 2029.

In 2024, the Military Electro-optical and Infrared Systems Market size is expected to reach USD 8.91 billion.

Military Electro-optical and Infrared Systems Market Report Snapshots

Military Electro Optical and Infrared Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)