Military Electro-optical and Infrared Systems Market Outlook 2031
The global military electro-optical and infrared systems market size was valued at USD 7.48 Billion in 2022 and is likely to reach USD 10.74 Billion by 2031, expanding at a CAGR of 4.1% during 2023 – 2031. The market's growth is attributed to the increasing need for intelligence, surveillance, and reconnaissance (ISR) and rising global tension.
Rising global tension is estimated to fuel the military electro-optical and infrared systems market. This system is widely acceptable in military forces during global tension such as war, as it helps military personnel to save lives by detecting land mines and uncovering the evidence of war crimes by using forward-looking infrared cameras and long wavelength infrared.
Military electro-optical and infrared systems known as EO/IR systems provide awareness during night and day and, even in low-light conditions by using visible spectrum and infrared sensors. The electro-optical sensor converts light into an electric signal. The infrared sensor correctly detects structures in the surroundings, emitting infrared radiation. These systems are primarily mounted on aircraft or military vehicles to identify targets, track moving targets, and assess threats from a distance.
Increasing need for intelligence, surveillance, and reconnaissance (ISR) is anticipated to drive the market. Military forces need ISR for critical information such as terrain, enemy forces, location, and other aspects of the battlefield. Electro-optical and infrared systems are vital elements of ISR as they help determine a course of action for military forces by providing real-time situational awareness through detecting, tracking, and identifying potential threats in the worst weather conditions.
The research report finds that the COVID-19 pandemic propelled the demand for military electro-optical and infrared systems. The increased border tension between neighboring countries led to the adoption of advanced military systems for threat detection, which significantly boosted the demand for military electro-optical and infrared systems. The GDP around the world drastically fell during COVID-19while military spending witnessed a significant percentage hike due to rising global tensions. For instance,
Impact of Artificial Intelligence (AI) on the Military Electro-optical and Infrared Systems
Militaries around the world are constantly working on technological advancement to gain a tactical advantage. Electro-optical and infrared (EO/IR) systems are some of the most technologically advanced and crucial equipment in modern warfare. The introduction of artificial intelligence has opened a new gateway for electro-optical and infrared systems. AI-powered electro-optical and infrared systems combine infrared sensors, optics, and electronics to provide surveillance, and targeting capabilities in crucial situations.
AI-enabled EO/IR systems incorporate laser designators to target objects accurately. AI utilizes advanced image processing algorithms and machine learning to enhance and interpret the captured visual data. AI-based electro-optical and infrared systems detect anomalies, track movements, and assist in identifying potential threats through predictive analytics. Moreover, companies are adopting artificial intelligence to boost the demand for electro-optical and infrared (EO/IR) systems. For instance,
-
On April 24, 2023, Raytheon Technologies a multinational aerospace and defense conglomerate introduced RAIVEN, an electro-optical intelligent-sensing system. RAIVEN uses artificial intelligence (AI) and hyperspectral imaging to offer faster and more precise threat identification to the pilots.
Military Electro-optical and Infrared Systems Market Dynamics
Major drivers
Increasing military expenses are projected to drive the market. Military forces around the globe are increasing their spending on technologically advanced systems such as military electro-optical and infrared systems due to greater geopolitical tensions and conflicts around the world such as the Russia-Ukraine war and tensions in the South China Sea. For instance
-
As per the report published by STOCKHOLM INTERNATIONAL PEACE RESEARCH INSTITUTE on April 24, 2023, World military spending grew for the eighth consecutive year in 2022 to an all-time high of USD 2240 billion with an increase of 13%.
Growing modernization in military equipment is projected to boost the demand for electro-optical and infrared systems. Electro-optical and infrared systems are advanced systems that offer electronic warfare, optical surveillance, and missile warning signals to military forces. Military forces are rapidly adopting these systems to detect, track, and identify potential threats in war zone areas as they provide critical information for military operations.
Existing Restraints
High cost of production of electro-optical and infrared systems is expected to hamper market growth. Moreover, the complexity involved in the installation of electro-optical and infrared systems on standalone platforms such as combat helicopters and armored vehicles is projected to impede market growth.
Emerging Opportunities
Increasing investment in research & development activities by key market players is expected to create lucrative opportunities in the market. Companies are heavily investing in R&D to develop strategies for new product launches and novel technology to improve intelligence surveillance reconnaissance and targeting systems for enhancing mission performance. In addition, the growing integration of electro-optical and infrared systems with traditional military systems creates a potential opportunity in the market. For instance,
-
On June 19, 2023, Leonardo a US-based defense contractor launched a multi-sensor electro-optical and infrared system payload gimbal for medium to small unmanned light fixed-wing aircraft and helicopters. It is designed to improve intelligence surveillance reconnaissance and targeting mission performance.
Scope of the Military Electro-optical and Infrared Systems Market Report
The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Military Electro-optical and Infrared Systems Market- Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Platform (Air-Based, Naval-Based, and Ground-Based), Technology (Infrared, Laser, and Thermal Imaging), and Application (Military Intelligence, Surveillance, and Reconnaissance)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
Northrop Grumman; RTX; L3Harris Technologies, Inc.; Thales; Elbit Systems Ltd; ASELSAN A.Ş.; BAE Systems; Lockheed Martin Corporation.; Leonardo S.p.A.; Ultra.; Saab AB; Rheinmetall AG; IAI; Teledyne FLIR LLC; Safran S.A.; and Bharat Electronics Limited (BEL).
|
Military Electro-optical and Infrared Systems Market Segment Insights
Platform Segment Analysis
Based on platform segment analysis, the military electro-optical and infrared systems market is categorized into air-based, naval-based, and ground-based. The ground-based segment accounted for a major market share in 2022, due to detecting the movement of enemy forces and identifying potential threats. Ground military forces use infrared systems to track the movement of enemy forces by detecting the differences in temperature between enemy forces and inanimate objects and aware military forces.
Electro-optical and infrared systems provide terrain information by creating an image of the terrain through the collected infrared radiation in the camera's field of vision. These benefits of electro-optical and infrared systems are propelling military forces to adopt these systems on ground-based platforms.
The naval-based segment is estimated to witness a high CAGR growth during the forecast period, owing to detect potential threats. Electro-optical and infrared systems detect signals in the visible and infrared portions of the electromagnetic spectrum and assist Navy ships in avoiding detection and becoming targets themselves. Moreover, key companies in the market are introducing naval-based electro-optical and infrared systems to automatically detect and track symmetric and asymmetric targets which is encouraging naval forces to adopt electro-optical and infrared systems. For instance,
- On October 18, 2022, Leonardo introduced the new electro-optical system called the DSS-IRST system. DSS-IRST system automatically detects and tracks symmetric and asymmetric targets for the protection of modern naval units.
Technology Segment Analysis
On the basis of technology, the global market is segregated into infrared, laser, and thermal imaging. The thermal imaging segment dominated the market share in 2022 and is projected to continue its dominance through the projection period, due to its ability to improve the visibility of objects in a low-visibility environment. Thermal imaging is widely used by military forces for navigation purposes to avoid collision during the night and for monitoring the areas to curb any unlawful activities. Companies are introducing new technologies in thermal imaging for military applications in close combat situations. For instance,
-
On June 30, 2022, Excelitas Technologies launched a thermal imaging solution, PHOENIX-H for military applications at the close combat symposium. PHOENIX-H is a thermal Imaging surveillance sight for a variety of ground-based surveillance and target location operations applications.
The infrared segment is expected to grow at a quick pace over the projected period, owing to its potential to defend and scan the operational areas. Infrared technology is widely deployed in military usage such as infrared-guided missiles and infrared-powered night vision goggles. Infrared save the life of soldiers by detecting land mines in low light and bad weather conditions.
Application Segment Analysis
Based on application, the military electro-optical and infrared systems market is divided into military intelligence, surveillance, and reconnaissance. The surveillance segment held a large market share in the previous year, due to its ability to offer night vision capabilities. Military forces use infrared sensors as they allow night vision capabilities to forces, which makes them ideal for 24/7 surveillance operations. Moreover, electro-optical sensors capture visible light and provide high-resolution images during the day, which encourages military forces to adopt electro-optical and infrared systems. Additionally, increasing product launches in these systems for surveillance is boosting the segment growth. For instance,
-
On February 17, 2021, Israel Aerospace Industries (IAI), introduced a new electro-optical system known as MegaPOP. This system is designed for a mission that requires especially lengthy surveillance performance and surveillance of sensitive facilities.
The reconnaissance segment is expected to grow at a considerable pace during the assessment period, owing to providing situational awareness in low-light conditions. The electro-optical and infrared system is utilized in reconnaissance as it covers a long range and detects small inflatable boats. These benefits are propelling military forces to adopt electro-optical and infrared systems for reconnaissance.
Regional Outlook
In terms of region, the electro-optical and infrared systems are divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2022, due to technologically advanced military equipment and the presence of established market players such as Northrop Grumman, RTX, and L3Harris Technologies, Inc. Additionally, the region has the largest military spending around the globe which is expected to boost the demand for electro-optical and infrared systems. For instance,
-
According to a published report, on August 29, 2023, the US spent around USD 877 billion on its military in 2022 which is 40% of the total military spending worldwide.
Asia Pacific is anticipated to witness rapid growth of the market in the coming years, owing to increasing modernization of military equipment and rising border tension. Rising border tension between India and China, Pakistan and India is propelling the need for electro-optical and infrared systems as these systems help military personnel in intelligence, surveillance, and reconnaissance. Moreover, increasing research and development activities for developing electro-optical and infrared systems are expected to drive market growth. For instance,
- On February 16, 2023, DRDO a premier agency under the Ministry of Defense of the Government of India introduced the electro-optical infrared system for surveillance from naval, land, and air-based platforms.
Segments
The military electro-optical and infrared systems market has been segmented on the basis of
Platform
- Air-Based
- Naval-Based
- Ground-Based
Technology
- Infrared
- Laser
- Thermal Imaging
Application
- Military Intelligence
- Surveillance
- Reconnaissance
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Northrop Grumman
- RTX
- L3Harris Technologies, Inc
- Thales
- Elbit Systems Ltd
- ASELSAN A.Ş
- BAE Systems
- Lockheed Martin Corporation
- Leonardo S.p.A
- Ultra
- Saab AB
- Rheinmetall AG
- IAI
- Teledyne FLIR LLC
- Safran S.A
- Bharat Electronics Limited (BEL)
Competitive Landscape
Key players competing in the global market are Northrop Grumman; RTX; L3Harris Technologies, Inc.; Thales; Elbit Systems Ltd; ASELSAN A.Ş.; BAE Systems; Lockheed Martin Corporation.; Leonardo S.p.A.; Ultra.; Saab AB; Rheinmetall AG; IAI; Teledyne FLIR LLC; Safran S.A.; and Bharat Electronics Limited (BEL).
These companies adopted development strategies including collaboration, product launches, mergers, acquisitions, partnerships, and production expansion to expand their consumer base worldwide. For instance,
-
On September 14, 2023, BAE Systems a multinational arms, security, and aerospace company launched TWV640 thermal camera core. This thermal camera core is designed for makers of thermal imaging solutions for defense and space. This thermal camera core is used in security surveillance and firefighting vision systems.
-
On September 1, 2021, Northrop Grumman an aerospace and defense technology company introduced V-BAT unmanned aircraft system. V-BAT includes an electro-optical and infrared (EO/IR) system to carry a range of interchangeable payloads.
Request For Customization
Enquiry Before Buying
Speak With Analyst
