Military EO/IR Systems Market Analysis, Trends, Insights, Forecast 2025 to 2034

Military Electro-OpticsInfrared (EOIR) Systems

What Is The Projected Market Size And Growth Rate of the Global Military Electro-Optics/Infrared (EO/IR) Systems Market?
The military electro-optics/infrared (EO/IR) systems market size witnessed strong growth in recent years, surging from $10.29 billion in 2024 to $10.94 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. This steady growth during the historic period was driven by increased global threats and conflicts, modernization of military platforms, heightened border surveillance requirements, prolific search and rescue missions, and urgent counterinsurgency operations.

The military EO/IR systems market is expected to maintain robust growth over the next decade, expected to reach $14.2 billion in 2029 at a CAGR of 6.7%. The forecasted growth is primarily attributed to geopolitical instabilities, growing emphasis on unmanned systems, enhanced targeting and fire control operations, response to natural disasters, and the development of counter-drone capabilities. Key market trends include the integration of command and control (C2) systems, advances in 3D imaging technologies and image processing algorithms, increased focus on cybersecurity for EO/IR systems, and application in urban warfare and asymmetric threat environments.

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What Are The Main Drivers For The Military Electro-Optics/Infrared (EO/IR) Systems Market?
The accelerating demand for intelligence, surveillance, and reconnaissance (ISR) is predicted to significantly propel the growth of the military electro-optics and infrared (EO/IR) systems market. ISR operations, critical for extracting precise, timely information to support military decision-making, make intensive use of EO/IR system sensor technology across airborne, land-based, and naval platforms. For instance, in March 2022, the US-based Defense Intelligence Agency reported a dramatic increase in ISR satellites supporting military activities – from just around 100 a decade ago to 550 in 2022. Furthermore, the Federal Aviation Administration (FAA) registered 855,860 drones in the US as of 2023, with 37% (316,075) of these specifically used for ISR operations. This growing reliance on ISR is a significant driver for the military electro-optics and infrared (EO/IR) systems market.

What Are The Key Factors Shaping The Military Electro-Optics/Infrared (EO/IR) Systems Market?
The military EO/IR systems market discussed in this report is primarily segmented by –

1) Product Type: Handheld Systems, EO/IR Payload
2) Component: Human Machine Interfaces, Stabilization Units, Control Systems, Optics, Sensors, Processors
3) Imaging Technology: Scanning, Staring, Hyperspectral, Multispectral
4) Platform: Land, Airborne, Naval
5) Application: Military Intelligence, Surveillance, Reconnaissance

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Who Are The Major Players In The Military Electro-Optics/Infrared (EO/IR) Systems Market?
Major companies operating in the military electro-optics/infrared (EO/IR) systems market include Raytheon Technologies Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, Thales Group, L3Harris Technologies Inc., BAE Systems PLC, Leonardo SpA, Elbit Systems Ltd., Rheinmetall AG, Ultra Electronics Holdings, amongst others.

What Trending Developments Are Influencing The Military Electro-Optics/Infrared (EO/IR) Systems Market?
One prominent trend in the military EO/IR systems market is the integration of artificial intelligence (AI). In response to market dynamics, companies are integrating AI to improve their competitive position. For instance, in April 2023, Raytheon Technologies Corporation launched RAIVEN, an ‘intelligent-sensing’ capability for EO/IR systems. RAIVEN enhances platform durability and protects warfighters with precise target surveillance and rapid information dissemination. By combining AI, hyperspectral imaging, and LiDAR, RAIVEN strengthens platform survival and gives warfighters a strategic edge against adversaries.

Which Region Holds The Largest Share In The Military Electro-Optics/Infrared (EO/IR) Systems Market?
In 2024, North America held the largest share in the military electro-Optics/Infrared (EO/IR) Systems market. The other regions covered in the EO/IR systems market report include Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.

What Does The Military Electro-Optics/Infrared (EO/IR) Systems Market Report 2025 Offer?
A military electro-optics/infrared (EO/IR) system refers to a technological system that combines both electro-optics and infrared capabilities to gather and process information from the electromagnetic spectrum. It integrates various devices and components to enable the detection, imaging, tracking, and analysis of targets or objects using both visible light and infrared radiation. The Military Electro-Optics/Infrared (EO/IR) Systems Market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.

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