Thermal System-level Surveillance Camera Market Research Report Information by Type (Fixed Cameras and Portable & Handheld Cameras), by Category (LWIR, MWIR, SWIR), by Technology (Uncooled Thermal Imaging and Cooled Thermal Imaging), by Application (Surveillance & Targeting and Counter-UAS), by Platform (Land, Airborne, Naval), by End-User (Military/Defense and Homeland Security) and Region (North America, Europe, Asia-Pacific, South America, Middle East & Africa) - Forecast till 2035

Global Thermal System-level Surveillance Camera Market Overview

The Thermal System-level Surveillance Camera Market was valued at USD 1.38 billion in 2024. The Thermal System-level Surveillance Camera Market industry is projected to grow from USD 1.48 billion in 2025 to USD 3.46 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.6% during the forecast period (2025-2035).

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 are driving the growth of the Thermal System-level Surveillance Camera Market.

As per the Analyst at MRFR, 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.

 FIGURE 1: THERMAL SYSTEM-LEVEL SURVEILLANCE CAMERA MARKET VALUE (2019-2035) USD BILLION

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Thermal System-level Surveillance Camera Market Opportunity

INTEGRATION OF ARTIFICIAL INTELLIGENCE FOR ENHANCED ANALYTICS

The integration of AI in thermal surveillance cameras is transforming security operations, making them smarter and more efficient. AI-enabled thermal cameras are now capable of identifying potential threats with greater accuracy while reducing false alarms, which has been a major issue in traditional surveillance systems. The ability to analyze patterns, differentiate between threats, and automate responses enhances security in high-risk environments such as airports, military zones, and industrial sites.

In 2024, approximately 75,000 AI-enabled thermal cameras were deployed worldwide in high-security zones to automate threat detection. These AI-powered surveillance systems improved operational efficiency by reducing false alarms in industrial applications by 40%, leading to better resource utilization and fewer disruptions. The increasing adoption of AI-driven analytics in thermal imaging is expected to further improve security measures while minimizing manual intervention.

Thermal System-level Surveillance Camera Market Segment Insights

Thermal System-level Surveillance Camera by Type Insights

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.

FIGURE 2: THERMAL SYSTEM-LEVEL SURVEILLANCE CAMERA MARKET SHARE BY TYPE 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Thermal System-level Surveillance Camera by Category Insights

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.

Thermal System-level Surveillance Camera by Technology Insights

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.

Thermal System-level Surveillance Camera by Application Insights

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.

Thermal System-level Surveillance Camera by Platform Insights

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.

Thermal System-level Surveillance Camera by End-User Insights

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.

Thermal System-level Surveillance Camera Regional Insights

Based on the Region, the global Thermal System-level Surveillance Camera are segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The North America dominated the global market in 2024, while the Asia-Pacific is projected to be the fastest–growing segment during the forecast period. 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.

FIGURE 3: THERMAL SYSTEM-LEVEL SURVEILLANCE CAMERA MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Germany, United Kingdom, France, Russia, Italy, Spain, China, Japan, India, Australia, Malaysia, Thailand, Indonesia, Brazil, Mexico, Argentina, GCC Countries, South Africa and others.

Global Thermal System-level Surveillance Camera Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Thermal System-level Surveillance Camera Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are ASELSAN, Lynred USA, Hensoldt, Elbit Systems, FLIR, Xenics, Thales, Leonardo, SIERRA-OLYMPIA TECH, Excelitas, Infiniti Electro-Optics are among others. The Thermal System-level Surveillance Camera Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Thermal System-level Surveillance Camera Market include

• ASELSAN


• Lynred USA


• Hensoldt


• Elbit Systems


• FLIR


• Xenics


• Thales


• Leonardo


• SIERRA-OLYMPIA TECH


• Excelitas


• Infiniti Electro-Optics

Thermal System-level Surveillance Camera Market Industry Developments

JAN 2024: Hikvision launched the HeatPro Series thermal cameras with AI-powered analytics for perimeter protection and early fire detection.

MAR 2024: Teledyne FLIR introduced the Neutrino SX8-ISR, a midwave infrared camera module designed for intelligence, surveillance, and reconnaissance (ISR) applications, offering enhanced resolution and thermal performance.

OCT 2023: Axis Communications introduced the AXIS Q1961-TE, a thermal network camera optimized for perimeter security in challenging environments.

DEC 2023: Dahua Technology unveiled its latest hybrid thermal imaging camera, integrating visible-light and thermal technology for enhanced monitoring accuracy.

Thermal System-level Surveillance Camera Market Segmentation

Thermal System-level Surveillance Camera by Type Outlook

• Fixed Cameras


• Portable & Handheld Cameras

Thermal System-level Surveillance Camera by Category Outlook

• LWIR


• MWIR


• SWIR

Thermal System-level Surveillance Camera by Technology Outlook

• Uncooled Thermal Imaging


• Cooled Thermal Imaging

Thermal System-level Surveillance Camera by Application Outlook

• Surveillance & Targeting


• Counter-UAS

Thermal System-level Surveillance Camera by Platform Outlook

• Land


• Airborne


• Naval

Thermal System-level Surveillance Camera by End-User Outlook

• Military/Defense


• Homeland Security

Thermal System-level Surveillance Camera Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • United Kingdom
  
  
  • France
  
  
  • Russia
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China 
  
  
  • Japan 
  
  
  • India
  
  
  • Australia
  
  
  • Malaysia
  
  
  • Thailand
  
  
  • Indonesia
  
  
  • Rest of the APAC
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of MEA
  
  
  
  

Report Attribute/Metric	Details
Market Size 2024	USD 1.38 Billion
Market Size 2025	USD 1.48 Billion
Market Size 2035	USD 3.46 Billion
Compound Annual Growth Rate (CAGR)	6.6% (2025-2035)
Base Year	2024
Forecast Period	2025-2035
Historical Data	2019-2023
Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Type, By Category, By Technology, By Application, By Platform, By End-User
Geographies Covered	North America, Europe, Asia Pacific, South America, Middle East & Africa
Countries Covered	The US, Canada, Germany, United Kingdom, France, Russia, Italy, Spain, China, Japan, India, Australia, Malaysia, Thailand, Indonesia, Brazil, Mexico, Argentina, GCC Countries, South Africa
Key Companies Profiled	ASELSAN, Lynred USA, Hensoldt, Elbit Systems, FLIR, Xenics, Thales, Leonardo, SIERRA-OLYMPIA TECH, Excelitas, Infiniti Electro-Optics
Key Market Opportunities	·         Integration of artificial intelligence for enhanced analytics ·         Expansion of commercial applications in energy and environmental monitoring ·         Emerging markets investments in infrastructure development ·         Partnerships with technology startups for innovative solutions ·         Growing focus on border security and anti-terrorism measures
Key Market Dynamics	·         Increasing military expenditure ·         Technological advancements in thermal imaging ·         Growing demand for surveillance and security systems ·         Rising global geopolitical tensions ·         Government regulations and standards for defense equipment