PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1666663
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1666663
Military Electro-optics/Infrared (EO/IR) Systems Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 - 2034
The Global Military Electro-Optics/Infrared (EO/IR) Systems Market was valued at USD 8.4 billion in 2024 and is anticipated to grow at a CAGR of 3.8% from 2025 to 2034. This growth is driven by increasing demand for advanced surveillance systems, particularly those focused on Intelligence, Surveillance, and Reconnaissance (ISR). Modern armed forces rely heavily on EO/IR technologies to monitor large territories, identify emerging threats, and gather critical intelligence. These systems play a vital role in safeguarding military personnel while ensuring operational success. As the need for real-time threat detection escalates, military forces are prioritizing the development and integration of advanced EO/IR solutions, which are crucial for enhancing situational awareness, strategic planning, and tactical decision-making.
EO/IR systems enable military personnel to track targets and assess threats with unparalleled precision, even in adverse conditions such as nighttime or bad weather. Their ability to offer real-time imaging and data analysis is integral to modern military operations, providing a technological edge in complex combat environments. With ongoing advancements in these systems, including artificial intelligence integration and improved imaging technologies, EO/IR solutions are evolving to meet the diverse needs of land, airborne, and naval platforms. This trend reflects the growing importance of these systems for maintaining operational superiority in rapidly changing combat situations.
| Market Scope | |
|---|---|
| Start Year | 2024 |
| Forecast Year | 2025-2034 |
| Start Value | $8.4 Billion |
| Forecast Value | $12 Billion |
| CAGR | 3.8% |
The electro-optical (EO) systems segment holds a dominant market share, contributing 42.4% in 2024. These systems are critical for military applications, offering high-definition imaging capabilities for reconnaissance, target identification, and surveillance. EO systems capture both visible and near-infrared light to provide clear images even in low-light conditions, making them invaluable for various military operations. The development of EO technology continues to focus on improving resolution, range, and processing speeds, with future advancements likely to include more autonomous systems equipped with enhanced decision-making capabilities.
The market for EO/IR systems on land platforms is expected to grow at the fastest rate, with a CAGR of 4.3% during the forecast period. These systems are installed on military vehicles, such as tanks and armored personnel carriers, to enhance ground surveillance and operational effectiveness. EO/IR technology enables military forces to detect threats over long distances and in diverse environments, improving battlefield awareness and safety. The ongoing evolution of land-based EO/IR systems emphasizes lighter designs, better durability, and AI-driven analysis, ensuring faster and more accurate threat detection and response.
North America is predicted to lead the market, reaching over USD 4.1 billion by 2034. The region's strong demand for advanced defense and surveillance technologies is fueled by significant investments in military modernization programs, particularly in the United States. The focus is on incorporating artificial intelligence, improving situational awareness, and developing multi-platform systems for joint operations. Enhancing cybersecurity measures and upgrading existing platforms are also key priorities to ensure military readiness against emerging threats.
Table of Contents
Chapter 1 Methodology & Scope
- 1.1 Market scope & definitions
- 1.2 Base estimates & calculations
- 1.3 Forecast calculations
- 1.4 Data sources
- 1.4.1 Primary
- 1.4.2 Secondary
- 1.4.2.1 Paid sources
- 1.4.2.2 Public sources
Chapter 2 Executive Summary
- 2.1 Industry synopsis, 2021-2034
Chapter 3 Industry Insights
- 3.1 Industry ecosystem analysis
- 3.1.1 Factor affecting the value chain
- 3.1.2 Profit margin analysis
- 3.1.3 Disruptions
- 3.1.4 Future outlook
- 3.1.5 Manufacturers
- 3.1.6 Distributors
- 3.2 Supplier landscape
- 3.3 Profit margin analysis
- 3.4 Key news & initiatives
- 3.5 Regulatory landscape
- 3.6 Impact forces
- 3.6.1 Growth drivers
- 3.6.1.1 Growing need for Intelligence, Surveillance, and Reconnaissance (ISR)
- 3.6.1.2 Increasing demand for advanced situational awareness
- 3.6.1.3 Development of advanced technologies
- 3.6.1.4 Growing use of unmanned aerial vehicles (UAVs) or drones
- 3.6.1.5 Modernization of military forces
- 3.6.2 Industry pitfalls & challenges
- 3.6.2.1 Complexity involved in integration of EO/IR System with wide range of platforms
- 3.6.2.2 High development and production costs
- 3.6.1 Growth drivers
- 3.7 Growth potential analysis
- 3.8 Porter’s analysis
- 3.9 PESTEL analysis
Chapter 4 Competitive Landscape, 2024
- 4.1 Introduction
- 4.2 Company market share analysis
- 4.3 Competitive positioning matrix
- 4.4 Strategic outlook matrix
Chapter 5 Market Estimates & Forecast, By Cooling Technology, 2021-2034 (USD Million)
- 5.1 Key trends
- 5.2 Cooled
- 5.3 Uncooled
Chapter 6 Market Estimates & Forecast, By Sensor Technology, 2021-2034 (USD Million)
- 6.1 Key trends
- 6.2 Staring sensor
- 6.3 Scanning sensor
Chapter 7 Market Estimates & Forecast, By Imaging Technology, 2021-2034 (USD Million)
- 7.1 Key trends
- 7.2 Electro-optical (EO) systems
- 7.3 Infrared (IR) systems
- 7.4 Hyper-spectral and multi-spectral systems
Chapter 8 Market Estimates & Forecast, By Product Type, 2021-2034 (USD Million)
- 8.1 Key trends
- 8.2 Handheld system
- 8.3 EO/IR payload
Chapter 9 Market Estimates & Forecast, By Platform, 2021-2034 (USD Million)
- 9.1 Key trends
- 9.2 Land
- 9.2.1 Vehicle-mounted
- 9.2.2 Combat vehicles
- 9.2.3 Unmanned Ground Vehicles (UGVs)
- 9.2.4 Soldier system
- 9.3 Airborne
- 9.3.1 Attack helicopters
- 9.3.2 Military aircrafts
- 9.3.3 Fighter aircraft
- 9.3.4 Transport aircraft
- 9.3.5 Special mission aircraft
- 9.3.6 Unmanned Aerial Vehicles (UAVs)
- 9.4 Naval
- 9.4.1 Combat ships
- 9.4.2 Unmanned Surface Vehicles (USVs)
Chapter 10 Market Estimates & Forecast, By Application, 2021-2034 (USD Million)
- 10.1 Key trends
- 10.2 Intelligence, Surveillance, and Reconnaissance (ISR)
- 10.3 Targeting
- 10.4 Situational awareness
- 10.5 Navigation
- 10.6 Others
Chapter 11 Market Estimates & Forecast, By Point of Sale, 2021-2034 (USD Million)
- 11.1 Key trends
- 11.2 OEM
- 11.3 Aftermarket
Chapter 12 Market Estimates & Forecast, By Region, 2021-2034 (USD Million)
- 12.1 Key trends
- 12.2 North America
- 12.2.1 U.S.
- 12.2.2 Canada
- 12.3 Europe
- 12.3.1 UK
- 12.3.2 Germany
- 12.3.3 France
- 12.3.4 Italy
- 12.3.5 Spain
- 12.3.6 Russia
- 12.4 Asia Pacific
- 12.4.1 China
- 12.4.2 India
- 12.4.3 Japan
- 12.4.4 South Korea
- 12.4.5 Australia
- 12.5 Latin America
- 12.5.1 Brazil
- 12.5.2 Mexico
- 12.6 MEA
- 12.6.1 South Africa
- 12.6.2 Saudi Arabia
- 12.6.3 UAE
Chapter 13 Company Profiles
- 13.1 Aselsan A.S.
- 13.2 BAE Systems plc
- 13.3 CONTROP Precision Technologies Ltd.
- 13.4 Elbit Systems Ltd.
- 13.5 Excelitas Technologies Corp.
- 13.6 Hensoldt AG
- 13.7 Indra Sistemas, S.A.
- 13.8 Israel Aerospace Industries
- 13.9 L3Harris Technologies, Inc.
- 13.10 Leonardo S.p.A.
- 13.11 Lockheed Martin Corporation
- 13.12 Northrop Grumman
- 13.13 Rafael Advanced Defense Systems Ltd.
- 13.14 Rheinmetall AG
- 13.15 Safran SA
- 13.16 Teledyne FLIR LLC
- 13.17 Textron Systems
- 13.18 Thales Group
- 13.19 Ultra Electronics Holdings plc
