Intelligence Surveillance Reconnaissance Market Size (2024 - 2029)

The intelligence, surveillance, and reconnaissance (ISR) market is anticipated to experience growth driven by increasing global military expenditure and advancements in technology. Despite the moderate impact of the COVID-19 pandemic, the market has stabilized and expanded, supported by rising defense budgets worldwide. The demand for ISR technologies is expected to surge due to geopolitical tensions and the growing use of small unmanned systems, which are contributing to the expansion of the market size. Rapid technological developments are also fostering competition within the defense industry, further influencing the market dynamics.

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Market Size of Intelligence Surveillance Reconnaissance Industry

Intelligence, Surveillance, and Reconnaissance Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 4.50 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Intelligence, Surveillance, and Reconnaissance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Intelligence Surveillance and Reconnaissance (ISR) Market Analysis

The intelligence, surveillance, and reconnaissance (ISR) market is expected to register a CAGR of over 4.5% during the forecast period.

The COVID-19 pandemic had a moderate effect because of the disruption in the supply chain in 2020. However, the market became stable within a short time and has also grown in 2021 and 2022. With the increase in the defense budget by countries worldwide, the market is further expected to grow. According to the Stockholm International Peace Research Institute (SIPRI), the global military expenditure in 2021 crossed USD 2 trillion for the first time ever, which was a 0.7% increase compared to the global military expenditure in 2020. The global military budget has been increasing yearly for the past 8 years. With tensions between the nations, the military expenditure by various nations is expected to increase, which will result in a surge in investments for the development and procurement of intelligence, surveillance, and reconnaissance technologies and devices during the forecast period.

Rapid technological developments are breeding disruptive technologies in the defense industry. The impact of defense majors' portfolio capabilities creates unexpected competition, particularly in the case of ISR. The increasing use of small unmanned systems for surveillance is further expected to generate demand for electronic components used in ISR missions.

Intelligence Surveillance and Reconnaissance (ISR) Industry Segmentation

ISR is an integrated intelligence and operations function that can be defined as the coordinated acquisition, processing, and provision of accurate, relevant, and timely information and intelligence to support the defense force's decision-making process. The market is segmented by platform into air, land, sea, and space. By geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa, and the rest of the world. The report also covers the sizes and forecasts of the market in major countries across different regions. The market size and forecasts have been provided in value (USD million).

Platform
Land
Air
Sea
Space
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Saudi Arabia
South Africa
Israel
Rest of Middle East and Africa
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Intelligence Surveillance Reconnaissance Market Size Summary

The intelligence, surveillance, and reconnaissance (ISR) market is poised for steady growth, driven by increasing global defense budgets and technological advancements. The market experienced a moderate impact from the COVID-19 pandemic due to supply chain disruptions but quickly stabilized and continued to expand in subsequent years. The rising military expenditure, particularly in response to geopolitical tensions, is expected to fuel investments in ISR technologies and devices. Rapid technological developments are introducing disruptive innovations in the defense sector, with small unmanned systems gaining traction for surveillance purposes. The air segment, propelled by the popularity of UAVs and communication systems, is anticipated to grow significantly, while the space segment is expected to attract considerable attention. The market is also witnessing a trend towards the consolidation and integration of ISR systems across various platforms, enhancing efficiency and performance.

North America currently dominates the ISR market, with the United States leading in defense spending and platform development. However, the market dynamics are shifting towards the Asia-Pacific region, where countries like China and India are making significant investments to bolster their armed forces' capabilities. This shift is further supported by increased surveillance activities in response to regional tensions. The market is moderately consolidated, with major players such as L3Harris Technologies Inc., Elbit Systems, BAE Systems PLC, and General Dynamics Corporation holding significant market shares. Collaborations and partnerships among these giants are shaping the market landscape, as seen in various projects aimed at enhancing ISR capabilities. As the market matures, smaller regional players may face challenges, leading to potential acquisitions or mergers with larger entities to maintain competitiveness.

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Intelligence Surveillance Reconnaissance 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 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      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 Land

      2. 2.1.2 Air

      3. 2.1.3 Sea

      4. 2.1.4 Space

    2. 2.2 Geography

      1. 2.2.1 North America

        1. 2.2.1.1 United States

        2. 2.2.1.2 Canada

        3. 2.2.1.3 Mexico

      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 Russia

        5. 2.2.2.5 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 South Korea

        5. 2.2.3.5 Rest of Asia-Pacific

      4. 2.2.4 South America

        1. 2.2.4.1 Brazil

        2. 2.2.4.2 Argentina

        3. 2.2.4.3 Rest of South America

      5. 2.2.5 Middle East and Africa

        1. 2.2.5.1 Saudi Arabia

        2. 2.2.5.2 South Africa

        3. 2.2.5.3 Israel

        4. 2.2.5.4 Rest of Middle East and Africa

Intelligence Surveillance Reconnaissance Market Size FAQs

The Intelligence Surveillance Reconnaissance Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)

L3Harris Technologies Inc., General Dynamics Corporation, The Boeing Company, Elbit Systems Ltd and BAE Systems PLC are the major companies operating in the Intelligence Surveillance Reconnaissance Market.

Intelligence Surveillance and Reconnaissance Market Report Snapshots

Intelligence Surveillance and Reconnaissance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)