Market Size of Military Electro-optical And Infrared Systems Industry
| 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 |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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).
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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.
Military Electro-optical And Infrared Systems Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Buyers/Consumers
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1.4.2 Bargaining Power of Suppliers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Platform
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2.1.1 Air-based
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2.1.2 Land-based
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2.1.3 Sea-based
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2.2 Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.2 Europe
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2.2.2.1 Germany
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2.2.2.2 United Kingdom
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2.2.2.3 France
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2.2.2.4 Italy
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2.2.2.5 Spain
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2.2.2.6 Russia
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2.2.2.7 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 China
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2.2.3.2 Japan
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2.2.3.3 India
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2.2.3.4 Australia
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2.2.3.5 South Korea
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2.2.3.6 Rest of Asia-Pacific
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2.2.4 Latin America
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2.2.4.1 Mexico
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2.2.4.2 Brazil
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2.2.4.3 Rest of Latin America
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2.2.5 Middle East and Africa
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2.2.5.1 United Arab Emirates
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2.2.5.2 Saudi Arabia
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2.2.5.3 South Africa
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2.2.5.4 Rest of Middle East and Africa
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Military Electro-optical And Infrared Systems Market Size FAQs
How big is the Military Electro-optical and Infrared Systems Market?
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.
What is the current Military Electro-optical and Infrared Systems Market size?
In 2024, the Military Electro-optical and Infrared Systems Market size is expected to reach USD 8.91 billion.
