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Military Electro-optics/Infrared (EO/IR) Systems Market Size

Military Electro-Optics/Infrared Systems Market size crossed USD 5 billion in 2022 and is projected to witness over 6% CAGR between 2023 and 2032. The market growth is attributed to the growing need for Intelligence, Surveillance, and Reconnaissance (ISR).

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The military needs dependable and accurate surveillance, intelligence, and reconnaissance capabilities to obtain crucial information on enemy forces, topography, and other battlefield elements. This information is essential in deciding the appropriate course of action for military operations and gauging their efficacy. EO/IR sensors are a crucial part of ISR capabilities as they offer real-time situational surveillance & awareness and other capabilities. EO/IR sensors can locate & identify possible threats in a variety of lighting and weather scenarios, providing important data for military operations. The evolving modern warfare is driving the demand for ISR capabilities. Militaries use EO/IR systems to recognize & eliminate possible dangers and deal with asymmetrical challenges, such as terrorism and insurgency, propelling market growth.
 

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Integrating an EO/IR system with standalone solutions to the necessary level is difficult. The incorporation of an EO/IR system's gun systems, ISR system, and CS41 system demands large financial investments and power sources. Military command & radar systems, control systems, and communication networks must be integrated with EO/IR systems to assure compatibility and optimal performance. This integration may be difficult and may require extensive modification & testing, restraining military electro-optics/infrared systems market growth.

COVID-19 Impacts

Governments worldwide declared countrywide lockdowns during the COVID-19 epidemic, causing disruptions in various businesses. Defense equipment manufacturing operations were also disrupted. Many countries cut down their defense budgets due to weakened economies and increased attention toward healthcare spending, negatively impacting the military electro-optics/infrared systems market. The lockdown affected the availability of raw materials needed to manufacture military electro-optics/infrared equipment, and there was a shortage of labor required for military electro-optics infrared equipment production due to travel restrictions and social exclusion. Thus, the defense industry suffered a minor setback during the pandemic.

Military Electro-optics/Infrared (EO/IR) Systems Business Trends

The market has experienced significant growth in recent years and is expected to continue expanding. Several factors including the increasing military modernization programs, rising global tension, and the need for advanced surveillance & targeting systems are boosting military electro-optics/infrared systems market growth. One of the key market trends is the growing demand for unmanned aerial vehicles and unmanned ground vehicles equipped with electro-optical/infrared sensors. These sensors provide real-time situational awareness and enhance the overall effectiveness of unmanned platforms. There is also a rising trend toward the miniaturization of electro-optical/infrared systems, allowing these systems to be integrated into smaller platforms, such as handheld devices and unmanned systems, without affecting their performance.

Military Electro-optics/Infrared (EO/IR) Systems Market Analysis

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Based on platform, the naval segment accounted for 25% military electro-optics/infrared systems market share in 2022 and is anticipated to grow at a 6% through 2032. Military maritime assets were at greater risk due to border disputes and territorial wars, which resulted in a greater focus on maritime surveillance, threat detection, and target identification. Armed forces primarily concentrate on integrating advanced sensor systems into their military naval vessels as modern combats emphasize these capabilities. To better identify targets, assess threats, and judge intent as per the rules of support weapon engagement through fire control solutions, automatic tracking, and line-of-sight, navy vessels must obtain motion imagery from EO/IR sensors that provide long-range and day-night focus on the target. The requirement for more accurate & reliable sensor systems for the maritime patrol to improve naval awareness is growing.

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Based on sensor technology, the military electro-optics/infrared systems market is categorized into infrared, laser, and imaging. The infrared segment will register gains at nearly 5% CAGR up to 2032. Infrared (IR) sensors are important components in military electro-optics/infrared systems. They enable the tracing and detection of targets in nighttime and low-light conditions. The demand for IR sensor technology is forecast to depict substantial growth, particularly in reconnaissance, surveillance, and target acquisition. One of the factors driving market growth is the use of unmanned aerial vehicles for defense and military operations. These vehicles rely on IR sensors for locating targets and gathering intelligence. The increasing demand for UAVs will fuel the demand for IR sensor technology.

Based on application, the military electro-optics/infrared systems market is segmented into Intelligence, Surveillance, and Reconnaissance (ISR), targeting, situational awareness, navigation, and others. The ISR segment was valued at USD 2,000 million in 2022 and is to see noteworthy growth in coming years. EO/IR systems use a combination of visible light and IR technology to identify, track, and detect targets day and night, at long ranges, and in harsh weather conditions. The increasing demand for situational awareness in modern military operations is fostering market growth.

EO/IR systems are critical to military forces as they provide accurate and timely intelligence on enemy movements & activities. They allow military personnel to see what is happening on the ground and in the air from a safe distance. Another factor contributing to the rising demand for EO/IR systems is the increasing use of unmanned aerial vehicles for military purposes. EO/IR sensors are a critical component of many UAVs, providing a high-resolution imaging capability for ISR missions. These factors along with the ability of EO/IR systems to perform efficiently will augment market growth.

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North America military Electro-optics/Infrared systems market is predicted to observe 6% CAGR from 2022 to 2032. North America holds the largest share as the U.S. armed services have a significant demand for EO/IR equipment. The country is extending its expenditure on weapon systems to counter enemies on the battlefield. The increasing involvement of the U.S. Armed Forces in many international conflicts heavily influenced the growing purchase of ISR equipment that improves the military's situational awareness.

Military Electro-optics/Infrared (EO/IR) Systems Market Share

Major companies operating in the military Electro-optics/Infrared systems market include

• BAE Systems plc
• CONTROP Precision Technologies Ltd
• Elbit Systems Ltd
• Excelitas Technologies Corp
• Israel Aerospace Industries
• L3Harris Technologies, Inc
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman
• Raytheon Technologies Corporation
• Rheinmetall AG
• Saab AB, Safran SA
• Teledyne FLIR LLC
• Thales Group
• Ultra Electronics Holdings plc. 

Military Electro-optics/Infrared Systems Industry News

• In February 2023, Northrop Grumman Company received the initial manufacturing & operations contract for the Next Generation Handheld Targeting System (NGHTS) from the U.S. Marine Corps. NGHTS is a mobile targeting system that provides highly accurate targeting and can work without GPS.
• In October 2022, L3Harris Technologies Inc. presented its WESCAM MX-25D, which serves as an imaging asset for the heavy ground-attack aircraft as part of the U.S. Air Force Special Operations Command's AC-130J Ghostrider modernization program. It is equipped with electro-optical/infrared capabilities for ISR applications.

This military Electro-optics/Infrared (EO/IR) systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032, for the following segments

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By Platform

• Airborne
• Naval
• Ground-based

By Sensor Technology

• Infrared
• Laser
• Imaging

By Product Type

• Camera
• Laser
• Thermal imaging
• Others

By Application

• Intelligence, Surveillance, and Reconnaissance (ISR)
• Targeting
• Situational awareness
• Navigation
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Russia
  • Turkey
  • Poland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • Qatar
  • UAE
  • Saudi Arabia
  • Israel
  • South Africa

• BAE Systems plc
• CONTROP Precision Technologies Ltd
• Elbit Systems Ltd
• Excelitas Technologies Corp
• Israel Aerospace Industries
• L3Harris Technologies, Inc
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman
• Raytheon Technologies Corporation
• Rheinmetall AG
• Saab AB, Safran SA
• Teledyne FLIR LLC
• Thales Group
• Ultra Electronics Holdings plc.