Military Electro Optical Infrared Systems Market Size

ID: MRFR/AD/0779-CR

136 Pages

Sejal Akre

October 2019

Military Electro-Optical Infrared ( EOIR) Systems Market Size, Share, Industry Trend & Analysis Research Report Information by Type (Image Intensification, Laser and Infrared), Sensor Technology (Scanning, Starring, Multispectral and Hyperspectral), Platform (Airborne, Land-Based and Naval) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and Latin America) - Forecast till 2030

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Military Electro Optical Infrared Systems Size

Market Size Snapshot

Year	Value
2024	USD 10.86 Billion
2030	USD 10.86 Billion
CAGR (2023-2030)	6.0 %

Note – Market size depicts the revenue generated over the financial year

The Military Electro Optical and Infrared Systems market is poised for steady growth, with a current market size of USD 10.86 billion in 2024, projected to maintain the same valuation through 2030. This stability, coupled with a compound annual growth rate (CAGR) of 6.0% from 2023 to 2030, indicates a robust demand for advanced military technologies. The market's growth trajectory is primarily driven by increasing defense budgets across various nations, the rising need for enhanced surveillance and reconnaissance capabilities, and the integration of cutting-edge technologies such as artificial intelligence and machine learning into electro-optical and infrared systems.

Key players in this sector, including Lockheed Martin, Northrop Grumman, and Raytheon Technologies, are actively investing in research and development to innovate and enhance their product offerings. Strategic initiatives such as partnerships with technology firms, investments in next-generation sensor technologies, and the launch of advanced systems tailored for modern warfare are pivotal in shaping the competitive landscape. As military operations become increasingly reliant on sophisticated imaging and targeting systems, the demand for electro-optical and infrared solutions is expected to remain strong, ensuring sustained market growth in the coming years.

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Regional Market Size

Regional Deep Dive

The Military Electro Optical and Infrared Systems Market is characterized by rapid technological advancements and increasing defense budgets across various regions. In North America, particularly the United States, there is a strong emphasis on modernization and integration of advanced systems into military operations. Europe is witnessing a surge in collaborative defense initiatives, while Asia-Pacific is experiencing significant investments in indigenous defense capabilities. The Middle East and Africa are focusing on enhancing surveillance and reconnaissance capabilities, driven by regional security challenges. Latin America, though smaller in scale, is gradually increasing its defense spending, particularly in border security and anti-drug operations, which is fostering growth in the market.

Europe

The European Union's Permanent Structured Cooperation (PESCO) initiative is fostering collaboration among member states to develop advanced military technologies, including electro-optical systems, enhancing interoperability.
Companies like Thales Group and Leonardo are leading the charge in developing innovative infrared systems, with a focus on integrating AI and machine learning for improved data analysis and decision-making.

Asia Pacific

Countries like India and Japan are ramping up their defense budgets and focusing on indigenous production of electro-optical systems, driven by the need for self-reliance in defense capabilities.
The rise of regional tensions has led to increased procurement of advanced surveillance systems, with companies like Mitsubishi Electric and Bharat Electronics Limited playing pivotal roles in this development.

Latin America

Countries like Brazil and Colombia are increasingly focusing on enhancing their military capabilities, particularly in border security, which is driving demand for electro-optical surveillance systems.
The Brazilian Army has initiated projects to upgrade its reconnaissance capabilities, collaborating with local firms to develop cost-effective electro-optical solutions.

North America

The U.S. Department of Defense has recently increased funding for advanced electro-optical systems, emphasizing the need for enhanced situational awareness and targeting capabilities in military operations.
Key players like Raytheon Technologies and Northrop Grumman are investing heavily in R&D for next-generation infrared sensors, which are expected to improve detection ranges and operational effectiveness.

Middle East And Africa

The Gulf Cooperation Council (GCC) countries are investing heavily in modernizing their military capabilities, with a particular focus on advanced electro-optical systems for border security and counter-terrorism operations.
Local firms, such as EDGE Group in the UAE, are emerging as key players in the development of advanced infrared technologies tailored to regional security needs.

Did You Know?

“Did you know that infrared systems can detect heat signatures from objects, allowing military forces to see in complete darkness and through smoke or fog?” — Military Technology Journal

Segmental Market Size

The Military Electro Optical and Infrared Systems segment plays a crucial role in enhancing situational awareness and targeting capabilities for defense forces, and it is currently experiencing robust growth. Key drivers of demand include the increasing need for advanced surveillance systems to counter evolving threats and the integration of artificial intelligence in military operations, which enhances data processing and decision-making. Additionally, regulatory policies emphasizing modernization of defense technologies further stimulate investment in these systems.

Currently, the adoption stage of these systems is in the scaled deployment phase, with notable examples including the U.S. Department of Defense's investment in advanced infrared sensors and the European Union's initiatives to enhance border security through electro-optical systems. Primary applications encompass reconnaissance, surveillance, and target acquisition, with companies like Raytheon and Northrop Grumman leading in innovative solutions. Trends such as geopolitical tensions and the push for enhanced military capabilities are accelerating growth, while technologies like machine learning and advanced imaging techniques are shaping the segment's evolution.

Future Outlook

The Military Electro Optical and Infrared Systems Market is poised for steady growth from 2024 to 2030, with a projected compound annual growth rate (CAGR) of 6.0%. By 2030, the market value is expected to reach approximately $10.86 billion, reflecting a robust demand for advanced surveillance and targeting systems. This growth trajectory is driven by increasing defense budgets across various nations, particularly in response to rising geopolitical tensions and the need for enhanced situational awareness on the battlefield. As military forces modernize their capabilities, the integration of electro-optical and infrared systems into existing platforms will become increasingly prevalent, leading to higher penetration rates in both land and aerial applications.

Key technological advancements, such as the development of high-resolution sensors, improved image processing algorithms, and miniaturization of components, are expected to further propel market growth. Additionally, the adoption of artificial intelligence (AI) and machine learning (ML) in data analysis and target recognition will enhance the operational effectiveness of these systems. Emerging trends, including the shift towards unmanned systems and the increasing use of dual-use technologies, will also shape the market landscape. As military organizations prioritize interoperability and network-centric warfare capabilities, the demand for integrated electro-optical and infrared solutions will continue to rise, solidifying the market's position as a critical component of modern defense strategies.

Military Electro Optical Infrared Systems Market Size Graph

Market Highlights

Author

Sejal Akre

Senior Research Analyst

She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. Hands on expertise in management consulting, and extensive knowledge in domain including ICT, Automotive & Transportation and Aerospace & Defense. She is skilled in Go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.

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FAQs

What is the projected market valuation for the US military electro optical infrared systems market in 2035?

The projected market valuation for the US military electro optical infrared systems market in 2035 is expected to reach 4.4 USD Million.

What was the market valuation for the US military electro optical infrared systems market in 2024?

The overall market valuation for the US military electro optical infrared systems market was 1.98 USD Million in 2024.

What is the expected CAGR for the US military electro optical infrared systems market during the forecast period 2025 - 2035?

The expected CAGR for the US military electro optical infrared systems market during the forecast period 2025 - 2035 is 7.52%.

Which companies are considered key players in the US military electro optical infrared systems market?

Key players in the market include Lockheed Martin, Raytheon Technologies, Northrop Grumman, General Dynamics, L3Harris Technologies, BAE Systems, Textron, and Leonardo DRS.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per analysis, the US military electro optical infrared systems market is projected to grow from USD 1.98 Million in 2024 to USD 4.4 Million by 2035, exhibiting a compound annual growth rate (CAGR) of 7.52% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US military electro optical infrared systems market is poised for growth driven by technological advancements and increasing demand for surveillance capabilities.

Technological advancements are enhancing the performance and capabilities of electro optical infrared systems, particularly in the surveillance segment.
The targeting segment is experiencing rapid growth, driven by the need for precision in military operations.
Thermal imaging remains the largest segment, providing critical capabilities for surveillance and reconnaissance missions.
Growing demand for surveillance capabilities and the integration of artificial intelligence are key drivers propelling market expansion.

Military Electro Optical Infrared Systems Market

CAGR

7.52%

Market Size & Forecast

2024 Market Size	1.98 (USD Million)
2035 Market Size	4.4 (USD Million)
CAGR (2025 - 2035)	7.52%

Major Players

Lockheed Martin (US), Raytheon Technologies (US), Northrop Grumman (US), General Dynamics (US), L3Harris Technologies (US), BAE Systems (GB), Textron (US), Leonardo DRS (US)

Market Trends

The US military electro optical infrared systems market is currently experiencing a dynamic evolution, driven by advancements in technology and the increasing demand for enhanced situational awareness. The integration of electro-optical and infrared systems into military operations has become paramount, as these systems provide critical capabilities for surveillance, reconnaissance, and targeting. The ongoing modernization efforts within the US military emphasize the need for cutting-edge solutions that can operate effectively in diverse environments, thereby ensuring mission success. Furthermore, the emphasis on interoperability among various branches of the armed forces suggests a trend towards unified systems that can seamlessly share data and enhance operational efficiency. In addition to technological advancements, the US military electro optical infrared systems market is influenced by strategic partnerships and collaborations with defense contractors. These alliances facilitate the development of innovative solutions tailored to meet the specific needs of military operations. As threats evolve, the demand for advanced electro-optical and infrared systems is likely to grow, prompting further investment in research and development. The focus on enhancing capabilities while ensuring cost-effectiveness indicates a shift towards more sustainable practices within the defense sector, which may shape the future landscape of this market.

Technological Advancements

The US military electro optical infrared systems market is witnessing rapid technological advancements, particularly in sensor technology and data processing capabilities. These innovations enhance the performance and reliability of systems, enabling better target acquisition and tracking.

Interoperability Focus

There is a growing emphasis on interoperability within the US military electro optical infrared systems market. This trend reflects the need for systems that can operate seamlessly across different military branches, facilitating improved communication and coordination during joint operations.

Increased Investment in R&D

Investment in research and development is on the rise within the US military electro optical infrared systems market. This trend indicates a commitment to developing next-generation technologies that address emerging threats and enhance operational effectiveness.

Military Electro Optical Infrared Systems Market Market Drivers

Rising Geopolitical Tensions

Rising geopolitical tensions globally are influencing the US military electro optical infrared systems market. As the security landscape becomes increasingly complex, the demand for advanced surveillance and reconnaissance capabilities is intensifying. The US military is prioritizing investments in electro-optical and infrared systems to address potential threats from adversaries. This strategic focus is evident in the allocation of resources towards enhancing ISR capabilities, which are critical for maintaining national security. The market is likely to see sustained growth as the military adapts to evolving threats and seeks to bolster its operational readiness.

Collaboration with Defense Contractors

Collaboration with defense contractors is a key driver in the US military electro optical infrared systems market. The military's partnerships with leading technology firms facilitate the development of cutting-edge systems that meet specific operational requirements. These collaborations often result in innovative solutions that enhance the effectiveness of electro-optical and infrared systems. The Department of Defense has established various programs to foster such partnerships, ensuring that the military benefits from the latest advancements in technology. As these collaborations continue to thrive, the market is expected to expand, driven by the introduction of new and improved systems.

Integration of Artificial Intelligence

The integration of artificial intelligence (AI) into the US military electro optical infrared systems market is transforming operational capabilities. AI enhances data processing and analysis, allowing for quicker decision-making in critical situations. The Department of Defense has recognized the potential of AI, investing heavily in research and development initiatives aimed at incorporating AI into existing systems. This integration is expected to improve target recognition and tracking, thereby increasing the effectiveness of military operations. As AI technologies continue to advance, their application within electro-optical and infrared systems is likely to expand, further driving market growth.

Increased Focus on Modernization Programs

The US military electro optical infrared systems market is witnessing a significant push towards modernization programs. The Department of Defense has outlined strategic initiatives aimed at upgrading existing systems to meet contemporary operational demands. This modernization effort includes the replacement of outdated equipment with state-of-the-art electro-optical and infrared systems. The fiscal year 2026 budget proposal indicates a substantial increase in funding for modernization projects, reflecting the military's commitment to enhancing its technological capabilities. As these programs progress, the market is expected to benefit from increased procurement and deployment of advanced systems.

Growing Demand for Surveillance Capabilities

The US military electro optical infrared systems market is experiencing a notable increase in demand for advanced surveillance capabilities. This trend is driven by the need for enhanced situational awareness in various operational environments. The US Department of Defense has allocated substantial budgets for the procurement of electro-optical and infrared systems, with a projected growth rate of approximately 5% annually over the next five years. This growth is indicative of the military's commitment to maintaining a technological edge in intelligence, surveillance, and reconnaissance (ISR) operations. As threats evolve, the integration of sophisticated imaging technologies becomes paramount, thereby propelling the market forward.

Market Segment Insights

By Application: Surveillance (Largest) vs. Targeting (Fastest-Growing)

In the US military electro optical infrared systems market, the application segment is primarily dominated by surveillance systems, which hold the largest share. This is attributed to the increasing need for real-time monitoring on the battlefield and emerging threats. Targeting systems are rapidly gaining traction as the second-largest segment, driven by innovations in precision engagement technology and the rising emphasis on combat effectiveness. Other segments such as navigation, search and rescue, and reconnaissance are also integral but represent smaller shares within the market portfolio.

Surveillance: Optical Systems (Dominant) vs. Targeting: Precision Systems (Emerging)

Surveillance systems are characterized by advanced optical technologies that provide comprehensive situational awareness, enabling command and control operations in various environments. These dominant systems are utilized for reconnaissance and monitoring enemy activities. On the other hand, targeting systems, particularly precision targeting systems, are emerging as vital tools for enhancing strike capabilities. These systems integrate advanced sensors and data processing technologies to facilitate higher accuracy in engaging targets, reflecting their growing importance in modern military operations and the push for more effective utilization of military assets.

By Technology: Thermal Imaging (Largest) vs. Night Vision (Fastest-Growing)

In the US military electro-optical infrared systems market, thermal imaging currently holds the largest market share among the various technologies, serving as a critical component for surveillance, reconnaissance, and targeting systems. Night vision systems, on the other hand, have emerged as the fastest-growing segment, driven by increasing demand for enhanced visibility in low-light conditions. Other technologies like laser systems, multispectral imaging, and hyperspectral imaging contribute to market diversity but occupy smaller shares compared to these two dominant segments.

Technology: Thermal Imaging (Dominant) vs. Night Vision (Emerging)

Thermal imaging remains the dominant force in the US military electro-optical infrared systems market due to its unparalleled ability to detect heat signatures from vehicles, personnel, and equipment, providing a crucial tactical advantage in various operational scenarios. Meanwhile, night vision systems are rapidly gaining traction as advanced technologies enhance their performance and adaptability. These systems are increasingly utilized in diverse military applications, from aviation to ground operations, allowing troops to maintain operational effectiveness in darkness. While thermal imaging is known for its reliability in all weather conditions, night vision is continuously evolving to meet the demands of modern warfare, thus positioning both technologies as essential assets for current military strategies.

By End Use: Ground Forces (Largest) vs. Special Operations (Fastest-Growing)

In the US military electro optical infrared systems market, the distribution of market share among end-use segments illustrates a significant focus on Ground Forces, which dominate the landscape due to their constant demand for advanced surveillance and targeting systems. Ground Forces leverage these technologies for enhanced operational effectiveness and situational awareness, resulting in their largest market share. As military strategies evolve, there is a noticeable rise in the utilization of electro optical infrared systems by emerging segments such as Special Operations, which are increasingly reliant on these advanced systems for covert operations and high-stakes missions.

Ground Forces (Dominant) vs. Special Operations (Emerging)

The Ground Forces segment of the US military electro optical infrared systems market stands as the dominant application area, characterized by a robust requirement for various systems that enhance battlefield capabilities, including target acquisition and reconnaissance. These systems are integral to ground operations, enabling forces to maintain operational superiority in various terrains. Conversely, the Special Operations segment is emerging as a vital player, experiencing rapid growth due to heightened missions requiring precision and stealth. As global security landscapes shift, Special Operations units demand cutting-edge electro optical infrared solutions to support their unique operational needs, driving innovation and technology advancements in the market.

By Component: Cameras (Largest) vs. Sensors (Fastest-Growing)

In the U.S. military electro optical infrared systems market, the component segment is primarily dominated by cameras, which hold the largest market share due to their critical role in reconnaissance and surveillance operations. Meanwhile, sensors demonstrate rapid growth, driven by advancements in technology and increased demand for higher precision in military applications. Displays, optics, and software also contribute, but their share remains comparatively smaller in the overall market structure. Growth trends indicate a promising trajectory driven by advancements in technology and changing military requirements. The integration of artificial intelligence and automation in imaging systems is notable among optical devices, promoting enhanced efficiency and effectiveness in operations. As military forces invest in next-generation technologies, the demand for innovative sensor solutions is expected to escalate, marking sensors as the fastest-growing segment within this market for the foreseeable future.

Cameras (Dominant) vs. Sensors (Emerging)

In the U.S. military electro optical infrared systems market, cameras are recognized as the dominant segment due to their extensive deployment in various military operations, such as surveillance, reconnaissance, and targeting systems. Their advanced imaging capabilities ensure enhanced situational awareness and operational effectiveness. On the other hand, sensors are emerging as a critical component with their ability to provide real-time data and analytics, contributing to decision-making processes. The drive for modern warfare tactics arises their demand, with developments in sensor technology providing robust solutions that help in detecting and identifying threats more efficiently. This juxtaposition highlights how cameras serve as foundational tools while sensors are evolving to capitalize on new technological innovations.

By Platform: Unmanned Aerial Vehicles (Largest) vs. Portable Systems (Fastest-Growing)

In the US military electro optical infrared systems market, the distribution of market share across various platforms reveals that Unmanned Aerial Vehicles (UAVs) hold the largest share due to their extensive deployment and advanced capabilities. Ground Vehicles and Naval Vessels follow, showing a significant application of electro optical infrared systems for reconnaissance, surveillance, and targeting. Aircraft also contribute substantial market segments thanks to their critical roles in modern warfare, while Portable Systems are beginning to carve out a niche as demand for versatile, field-deployable solutions increases.

UAVs (Dominant) vs. Portable Systems (Emerging)

Unmanned Aerial Vehicles (UAVs) represent the dominant force in the US military electro optical infrared systems market, leveraging their ability to conduct missions with enhanced situational awareness and minimal risk to personnel. These systems are integrated with cutting-edge sensors and imaging technologies, facilitating effective surveillance and reconnaissance operations. On the other hand, Portable Systems have emerged as a fast-growing segment, driven by their adaptability for special operations and tactical scenarios. These systems provide essential electro optical infrared capabilities for ground troops, catering to the increasing demand for portable, lightweight solutions that operate independently of larger infrastructures.

Get more detailed insights about Military Electro-Optical and Infrared Systems Market Research Report - Global Forecast till 2035

Regional Insights

North America : Market Leader in Defense Technology

North America is the leading region in the Military Electro Optical Infrared Systems market, holding a significant market share of 3.5 billion. The growth is driven by increasing defense budgets, technological advancements, and a focus on modernization of military capabilities. Regulatory support from government initiatives further catalyzes demand for advanced EOIR systems, ensuring the region remains at the forefront of military technology. The United States is the primary contributor to this market, with key players like Lockheed Martin, Northrop Grumman, and Raytheon Technologies leading the charge. The competitive landscape is characterized by continuous innovation and strategic partnerships among these companies, ensuring a robust supply chain and advanced product offerings. The presence of these major defense contractors solidifies North America's position as a hub for military EOIR systems.

Europe : Growing Defense Investments

Europe is witnessing a growing demand for Military Electro Optical Infrared Systems, with a market size of 1.5 billion. The increase in defense spending across various European nations, driven by geopolitical tensions and the need for enhanced security, is a key growth driver. Regulatory frameworks are evolving to support the integration of advanced technologies in defense systems, fostering innovation and collaboration among member states. Countries like France, Germany, and the UK are leading the charge in this sector, with companies such as Thales Group and BAE Systems playing pivotal roles. The competitive landscape is marked by partnerships and joint ventures aimed at developing cutting-edge EOIR technologies. As European nations prioritize defense modernization, the market is expected to expand significantly in the coming years.

Asia-Pacific : Emerging Market Potential

Asia-Pacific is emerging as a significant player in the Military Electro Optical Infrared Systems market, with a market size of 1.0 billion. The region's growth is fueled by increasing military expenditures, modernization efforts, and the rising need for advanced surveillance and reconnaissance systems. Countries are investing heavily in defense technologies to address regional security challenges, supported by favorable government policies and initiatives. Leading countries in this market include India, Japan, and Australia, where local and international players are vying for market share. Companies like Elbit Systems and Hensoldt are establishing a strong presence, contributing to a competitive landscape characterized by innovation and strategic collaborations. As the region continues to prioritize defense capabilities, the demand for EOIR systems is expected to rise significantly.

Middle East and Africa : Strategic Defense Developments

The Middle East and Africa region is gradually developing its Military Electro Optical Infrared Systems market, currently valued at 0.2 billion. The growth is primarily driven by increasing security concerns and the need for advanced military capabilities. Governments are recognizing the importance of modernizing their defense systems, leading to investments in EOIR technologies to enhance surveillance and operational effectiveness. Countries like the UAE and South Africa are at the forefront of this development, with local and international defense contractors exploring opportunities in the region. The competitive landscape is evolving, with a focus on partnerships and technology transfers to build indigenous capabilities. As regional tensions persist, the demand for advanced EOIR systems is likely to grow, shaping the future of defense in this area.

Key Players and Competitive Insights

The US military electro optical infrared systems market is characterized by a dynamic competitive landscape, driven by technological advancements and increasing defense budgets. Key players such as Lockheed Martin (US), Raytheon Technologies (US), and Northrop Grumman (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Lockheed Martin (US) emphasizes innovation through substantial investments in research and development, focusing on next-generation sensor technologies. Meanwhile, Raytheon Technologies (US) is actively pursuing strategic partnerships to bolster its capabilities in advanced surveillance systems. Northrop Grumman (US) appears to be concentrating on digital transformation initiatives, integrating AI and machine learning into its product offerings, which collectively shapes a competitive environment that prioritizes technological superiority and operational efficiency.

In terms of business tactics, companies are increasingly localizing manufacturing to mitigate supply chain disruptions and enhance responsiveness to military needs. The market structure is moderately fragmented, with a mix of established players and emerging firms vying for market share. This fragmentation allows for diverse innovations but also intensifies competition among key players, as they strive to differentiate their offerings in a crowded marketplace.

In December 2025, Lockheed Martin (US) announced a partnership with a leading tech firm to develop advanced electro-optical systems aimed at enhancing battlefield situational awareness. This collaboration is strategically significant as it not only expands Lockheed's technological capabilities but also positions the company to leverage cutting-edge innovations in sensor technology, potentially leading to superior product offerings in the near future.

In November 2025, Raytheon Technologies (US) secured a contract worth $500M to supply advanced infrared systems to the US military. This contract underscores Raytheon's commitment to maintaining its leadership position in the market while also reflecting the increasing demand for sophisticated surveillance and reconnaissance capabilities. The financial implications of this contract are likely to bolster Raytheon's R&D efforts, further enhancing its competitive edge.

In October 2025, Northrop Grumman (US) unveiled a new line of AI-driven electro-optical systems designed for unmanned aerial vehicles (UAVs). This launch is pivotal as it aligns with the growing trend towards automation in military operations, potentially setting a new standard for UAV capabilities. The integration of AI not only enhances operational efficiency but also positions Northrop Grumman as a leader in the evolving landscape of military technology.

As of January 2026, current competitive trends indicate a strong focus on digitalization, sustainability, and AI integration within the US military electro optical infrared systems market. Strategic alliances are increasingly shaping the landscape, allowing companies to pool resources and expertise to drive innovation. The competitive differentiation is likely to evolve from traditional price-based competition towards a model that emphasizes technological innovation, reliability in supply chains, and the ability to deliver advanced solutions that meet the complex demands of modern warfare.

Key Companies in the Military Electro Optical Infrared Systems Market include

Industry Developments

Q2 2024: Elbit Systems wins $150 million contract to supply electro-optical systems to European military Elbit Systems announced it secured a $150 million contract to deliver advanced electro-optical and infrared (EO/IR) systems for armored vehicles to a European defense customer, with deliveries scheduled over the next three years.
Q2 2024: Lockheed Martin opens new EO/IR sensor manufacturing facility in Florida Lockheed Martin inaugurated a new manufacturing facility in Orlando, Florida, dedicated to the production of next-generation electro-optical and infrared sensors for military aircraft and ground vehicles.
Q2 2024: Raytheon secures $118 million U.S. Army contract for next-gen infrared targeting systems Raytheon was awarded a $118 million contract by the U.S. Army to develop and deliver next-generation infrared targeting systems for armored combat vehicles, enhancing battlefield surveillance and targeting capabilities.
Q3 2024: BAE Systems launches new HawkSight multi-spectral EO/IR system for military UAVs BAE Systems unveiled the HawkSight, a multi-spectral electro-optical/infrared system designed for integration on military unmanned aerial vehicles, offering improved target detection and tracking in contested environments.
Q3 2024: Thales and Leonardo announce partnership to co-develop advanced EO/IR solutions for European defense Thales and Leonardo signed a strategic partnership agreement to jointly develop and market advanced electro-optical and infrared systems for European land and air defense platforms.
Q3 2024: Northrop Grumman delivers first shipment of LITENING advanced targeting pods to U.S. Air Force Northrop Grumman announced the delivery of the first batch of LITENING advanced EO/IR targeting pods under a new U.S. Air Force contract, supporting precision strike and reconnaissance missions.
Q4 2024: Rafael Advanced Defense Systems acquires Israeli EO/IR startup Visionix Rafael Advanced Defense Systems completed the acquisition of Visionix, an Israeli startup specializing in miniaturized electro-optical and infrared imaging technologies for military applications.
Q4 2024: General Dynamics awarded $90 million U.S. Navy contract for submarine EO/IR periscope upgrades General Dynamics received a $90 million contract from the U.S. Navy to upgrade electro-optical and infrared periscope systems on Virginia-class submarines, enhancing underwater surveillance capabilities.
Q1 2025: L3Harris Technologies wins $200 million contract for EO/IR systems for NATO surveillance aircraft L3Harris Technologies secured a $200 million contract to supply advanced EO/IR sensor suites for NATO's next-generation surveillance aircraft, supporting intelligence, surveillance, and reconnaissance missions.
Q1 2025: Teledyne FLIR launches new Black Hornet 4 nano-drone with enhanced EO/IR payload Teledyne FLIR introduced the Black Hornet 4, a nano-drone equipped with an upgraded electro-optical and infrared payload, designed for covert reconnaissance and situational awareness in urban combat.
Q2 2025: Saab signs $120 million contract to deliver EO/IR systems for Asian navy frigates Saab announced a $120 million contract to provide advanced EO/IR surveillance and targeting systems for a fleet of new frigates being built for an undisclosed Asian navy.
Q2 2025: Leonardo opens new EO/IR R&D center in the UK to accelerate defense innovation Leonardo inaugurated a new research and development center in the United Kingdom focused on advancing electro-optical and infrared technologies for military and homeland security applications.

Future Outlook

Military Electro Optical Infrared Systems Market Future Outlook

The US military electro optical infrared systems market is projected to grow at a 7.52% CAGR from 2025 to 2035, driven by technological advancements and increasing defense budgets.

New opportunities lie in:

Development of advanced thermal imaging systems for enhanced surveillance capabilities.
Integration of AI-driven analytics for real-time data processing and decision-making.
Expansion into unmanned systems with electro-optical payloads for reconnaissance missions.

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Military Electro Optical Infrared Systems Market End Use Outlook

Ground Forces
Aerial Forces
Naval Forces
Special Operations
Intelligence Agencies

Military Electro Optical Infrared Systems Market Platform Outlook

Unmanned Aerial Vehicles
Ground Vehicles
Naval Vessels
Aircraft
Portable Systems

Military Electro Optical Infrared Systems Market Component Outlook

Cameras
Sensors
Displays
Optics
Software

Military Electro Optical Infrared Systems Market Technology Outlook

Thermal Imaging
Night Vision
Laser Systems
Multispectral Imaging
Hyperspectral Imaging

Military Electro Optical Infrared Systems Market Application Outlook

Surveillance
Targeting
Navigation
Search and Rescue
Reconnaissance

Report Scope

MARKET SIZE 2024	1.98(USD Million)
MARKET SIZE 2025	2.62(USD Million)
MARKET SIZE 2035	4.4(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	7.52% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Million
Key Companies Profiled	Lockheed Martin (US), Raytheon Technologies (US), Northrop Grumman (US), General Dynamics (US), L3Harris Technologies (US), BAE Systems (GB), Textron (US), Leonardo DRS (US)
Segments Covered	Application, Technology, End Use, Component, Platform
Key Market Opportunities	Advancements in artificial intelligence enhance capabilities of us military electro optical infrared systems.
Key Market Dynamics	Technological advancements drive competition and innovation in the US military electro optical infrared systems market.
Countries Covered	US