Rising global geopolitical tensions and government regulations and standards for defense equipment are driving the growth of the Thermal System-level Surveillance Camera Market at a CAGR of 6.6% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Thermal System-level Surveillance Camera Market” that contains the information from 2019 to 2035.

The Global Thermal System-level Surveillance Camera Market is estimated to register a CAGR of 6.6 % during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Thermal System-level Surveillance Camera Market — ASELSAN, Lynred USA, Hensoldt, Elbit Systems, FLIR, Xenics, Thales, Leonardo, SIERRA-OLYMPIA TECH, Excelitas, Infiniti Electro-Optics and others.

The Global Thermal System-level Surveillance Camera Market accounted for registering a CAGR of 6.6 % during the forecast period and is estimated to reach USD 3.46 billion by 2035.

The rising military expenditure worldwide is significantly driving the demand for advanced thermal system-level surveillance camera Markets. Nations are prioritizing border security, modernizing defense systems, and enhancing real-time surveillance through cutting-edge thermal imaging technology. Governments are increasingly investing in high-resolution thermal cameras, UAV-mounted sensors, and long-range imaging solutions to strengthen reconnaissance and threat detection capabilities.

Governments have notably increased its defense budget to enhance border surveillance, Armies has deployed thermal imaging drones and long-range thermal cameras to monitor activity along the Line of Actual Control (LAC). These surveillance copters, capable of operating above sea level, are equipped with day and night cameras to provide real-time intelligence. Their deployment enhances border monitoring, reduces reliance on traditional foot patrols in hostile terrain, and enables faster responses to security threats.

On December 19, 2024, the European Union (EU) reinforced its commitment to military modernization, with NATO member states like Germany and France increasing their military spending to upgrade defense capabilities. The procurement of next-generation thermal surveillance cameras for armored vehicles, UAVs, and perimeter security aligns with their strategic defense objectives. The military budget for 2025 has been allocated at EUR 2.37 billion, emphasizing investments in advanced surveillance and reconnaissance technologies to bolster security infrastructure.

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The Global Thermal System-level Surveillance Camera Market has been segmented based on Type, by Category, by Technology, by Application, by Platform and by End-User.

Based on Type, this segment includes Fixed Cameras and Portable & Handheld Cameras. The Fixed Cameras segment dominated the global market in 2024, while the Portable & Handheld Cameras segment is projected to be the fastest–growing segment during the forecast period. Fixed thermal cameras play a crucial role in 24/7 surveillance across security, industrial, and infrastructure applications. With increasing border tensions, these cameras are widely deployed for perimeter security, ensuring continuous monitoring of critical areas. Smart city initiatives further drive demand as urban planners integrate thermal imaging into traffic management and public safety systems. Additionally, industries like oil & gas and manufacturing rely on fixed thermal cameras for fire detection and operational safety. AI-driven analytics enhance capabilities, enabling automated threat detection and anomaly alerts. Growing investments in airports, railways, and power plants further accelerate adoption, making fixed thermal cameras an essential part of modern surveillance infrastructure.

Based on Category, this segment includes LWIR, MWIR, SWIR. The LWIR segment dominated the global market in 2024, while the SWIR segment is projected to be the fastest–growing segment during the forecast period. LWIR technology is the most commonly used thermal imaging category due to its affordability and effectiveness in various industries. Its passive detection capabilities allow for clear imaging without requiring additional illumination, making it ideal for covert surveillance and military applications. Industries such as automotive, security, and medical diagnostics heavily rely on LWIR for applications like driver assistance systems, perimeter security, and fever detection. Its ability to operate in extreme conditions, such as smoke and fog, enhances its role in fire safety and search-and-rescue missions. With increasing demand in industrial and consumer electronics, LWIR remains a key segment in thermal imaging.

Based on Technology, this segment includes Uncooled Thermal Imaging and Cooled Thermal Imaging. The Uncooled Thermal Imaging segment dominated the global market in 2024, while the Cooled Thermal Imaging segment is projected to be the fastest–growing segment during the forecast period. Uncooled thermal imaging is more cost-effective and practical for widespread commercial and industrial use. These systems require no cryogenic cooling, making them lightweight, energy-efficient, and ideal for handheld and vehicle-mounted applications. The increasing adoption in automotive sectors, particularly in ADAS for night vision and pedestrian detection, is a key growth driver. Additionally, their use in security, building diagnostics, and firefighting enhances operational efficiency and safety. With advancements in sensor technology improving resolution and thermal sensitivity, uncooled thermal imaging is becoming more dominant in consumer-friendly and large-scale applications, expanding its presence in various industries.

Based on Application, this segment includes Surveillance & Targeting and Counter-UAS. The Surveillance & Targeting segment dominated the global market in 2024, while the Counter-UAS segment is projected to be the fastest–growing segment during the forecast period. Thermal surveillance and targeting systems are crucial for military, law enforcement, and border security operations. These systems provide superior visibility in low-light and adverse weather conditions, enhancing threat detection and situational awareness. The adoption of AI-powered analytics enables real-time target identification, reducing false alarms and improving accuracy. Increasing demand for advanced surveillance solutions in aerospace, maritime, and urban security drives market growth. Additionally, improved sensor technology and the integration of multi-spectral imaging expand applications beyond defense to critical infrastructure protection, industrial monitoring, and disaster response.

Based on Platform, this segment includes Land, Airborne, Naval. The Land segment dominated the global market in 2024, while the Naval segment is projected to be the fastest–growing segment during the forecast period. Land-based thermal surveillance and targeting systems are crucial for military, border security, and urban surveillance applications. These systems enhance threat detection, vehicle-mounted reconnaissance, and perimeter monitoring in low-visibility conditions. Governments are heavily investing in smart surveillance systems integrated with AI-powered analytics for real-time situational awareness. Law enforcement agencies are deploying these systems for crime prevention, traffic monitoring, and infrastructure protection. Additionally, increasing geopolitical tensions and terrorist threats are fueling the demand for advanced land-based thermal imaging solutions.

Based on End-User, this segment includes Military/Defense and Homeland Security. The Military/Defense segment dominated the global market in 2024, while the Homeland Security segment is projected to be the fastest–growing segment during the forecast period. The military and defense sector are the largest end-users of thermal surveillance systems, using them for reconnaissance, targeting, and perimeter security. Advanced infrared imaging is critical for night operations, enhancing situational awareness on the battlefield. With rising global defense budgets, countries are investing in AI-powered thermal imaging solutions to improve threat detection and decision-making. Additionally, the increasing use of UAVs and autonomous warfare platforms has driven demand for compact and high-resolution thermal sensors. The continuous evolution of next-generation infrared technologies ensures military forces maintain a tactical advantage in diverse combat environments.

Regional Analysis

Geographically, the Global Thermal System-level Surveillance Camera Market has been segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.

Major demand factors driving the North America market are the increasing military expenditure and technological advancements in thermal imaging and growing demand for surveillance and security systems and rising global geopolitical tensions and government regulations and standards for defense equipment. The North American thermal system-level surveillance camera market is driven by increasing defense spending, rising security concerns, and advancements in thermal imaging technology. The U.S. Department of Defense (DoD) and law enforcement agencies are investing heavily in next-generation thermal surveillance systems to enhance border security, critical infrastructure protection, and military operations. Growing geopolitical tensions and the need for advanced situational awareness have further accelerated the demand for high-performance thermal cameras.

The thermal system-level surveillance camera market in Europe is experiencing significant growth, driven by rising security concerns, advancements in infrared technology, and increasing adoption in military and civilian applications. The growing demand for enhanced surveillance and monitoring systems is fueling investments in thermal imaging solutions across defense, homeland security, and commercial sectors. One of the primary drivers of the market is increasing defense and border security spending. With heightened geopolitical tensions, European nations are prioritizing advanced surveillance technologies to strengthen border security and defense operations.

The Asia-Pacific thermal system-level surveillance camera market is experiencing significant growth due to rising security concerns, technological advancements, and increasing defense expenditures. Governments, defense agencies, and commercial sectors are heavily investing in thermal imaging solutions for surveillance, security, and industrial applications. Several key drivers are fueling this market expansion across the region. One of the primary drivers is the growing defense and military modernization programs in countries like China, India, Japan, and South Korea. With increasing border tensions, regional disputes, and national security threats, these countries are allocating substantial budgets to enhance their surveillance capabilities.

The South American thermal system-level surveillance camera market is driven by several key factors, including growing security concerns, increasing defense modernization programs, and the rising adoption of thermal imaging in industrial and commercial applications. Countries like Brazil, Argentina, and Colombia are strengthening their defense infrastructure by integrating thermal surveillance systems into military and law enforcement agencies to improve real-time monitoring in remote and high-risk areas. Additionally, the rising threat of terrorism and cross-border tensions has encouraged nations to deploy advanced thermal cameras for enhanced situational awareness.

The Middle East and Africa (MEA) region is witnessing a surge in demand for thermal system-level surveillance cameras, driven by security concerns, military modernization, and technological advancements. One of the primary drivers is the growing defense and homeland security budgets across MEA nations, particularly in the Gulf Cooperation Council (GCC) countries and North Africa. Governments are investing in advanced surveillance technologies to enhance border security, counter-terrorism efforts, and critical infrastructure protection. Countries like Saudi Arabia, the UAE, and Egypt are expanding their military surveillance capabilities, integrating AI-powered thermal imaging into border monitoring and unmanned aerial vehicles (UAVs).

Key Findings of the Study

• The Global Thermal System-level Surveillance Camera Market is expected to reach USD 3.46 billion by 2035, at a CAGR of 6.6% during the forecast period.


• The North America region accounted for the fastest-growing global market.


• Based on the Type, the Fixed Cameras segment was attributed to holding the largest market in 2024.


• ASELSAN, Lynred USA, Hensoldt, Elbit Systems, FLIR, Xenics, Thales, Leonardo, SIERRA-OLYMPIA TECH, Excelitas, Infiniti Electro-Optics are some of the players in the market.