Global Military Electro-Optics/Infrared (EO/IR) Systems Market Size study & Forecast, by Product Type, Platform, Component, Cooling Technology, Sensor Technology, Imaging Technology, Point of Sale and Regional Forecasts 2025-2035

The Global Military Electro-Optics/Infrared (EO/IR) Systems Market is valued approximately at USD 8.11 billion in 2024 and is poised to grow at a CAGR of 4.00% during the forecast period 2025-2035. EO/IR systems are advanced imaging and targeting technologies utilized by modern defense forces to enhance situational awareness, reconnaissance capabilities, and precision targeting in diverse combat environments. These systems integrate electro-optical sensors and infrared technology to capture high-resolution imagery, identify targets under all lighting conditions, and support real-time surveillance. As the nature of modern warfare evolves—becoming increasingly asymmetric and technology-driven—the demand for compact, agile, and multi-functional EO/IR systems across handheld, airborne, land, and naval platforms has surged exponentially.

Fueled by global defense modernization programs, the proliferation of unmanned systems, and a growing emphasis on precision-strike capabilities, EO/IR systems have emerged as indispensable assets on the battlefield. Militaries around the world are equipping their fleets with next-generation targeting pods, sensor suites, and multi-spectral vision systems capable of operating across varied atmospheric and combat conditions. The incorporation of advanced technologies such as AI-powered object recognition, fused imagery, and thermal detection has significantly elevated the operational effectiveness of these systems. Moreover, the shift from cooled to uncooled infrared sensors in portable solutions has driven cost efficiency and widespread adoption across tactical units. With rising security threats and increasing demand for ISR (Intelligence, Surveillance, Reconnaissance) superiority, the EO/IR systems market is witnessing sustained investments and technology collaborations.

Regionally, North America holds a commanding share in the global EO/IR systems market, driven by the U.S. Department of Defense’s continued push for next-gen ISR and targeting systems across platforms such as drones, fighter jets, armored vehicles, and naval vessels. The U.S. military's focus on enhancing multi-domain operations has catalyzed EO/IR upgrades in manned and unmanned systems alike. Meanwhile, the Asia Pacific region is poised to witness the fastest growth over the forecast period due to rising defense expenditures in nations such as China, India, Japan, and South Korea. The region's intensifying cross-border tensions, military modernization plans, and increasing indigenous development of surveillance technologies are major contributors. Additionally, Europe is reinforcing its defense readiness by investing in sensor fusion technologies and cross-border EO/IR integration initiatives under NATO frameworks.

Major market player included in this report are:
• Leonardo S.p.A
• FLIR Systems Inc.
• L3Harris Technologies Inc.
• Thales Group
• BAE Systems plc
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Elbit Systems Ltd.
• Lockheed Martin Corporation
• Rheinmetall AG
• Hensoldt AG
• ASELSAN A.S.
• Teledyne Technologies Inc.
• Safran Group
• Collins Aerospace

Global Military Electro-Optics/Infrared (EO/IR) Systems Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period – 2025-2035
• Report Coverage – Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope – North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players.

The detailed segments and sub-segments of the market are explained below:

By Product Type:
• Handheld Systems
• EO/IR Payloads

By Platform:
• Air
• Naval
• Ground

By Component:
• Sensors
• Processors
• Displays
• Cameras
• Others

By Cooling Technology:
• Cooled
• Uncooled

By Sensor Technology:
• Staring Sensor
• Scanning Sensor

By Imaging Technology:
• Multispectral Imaging
• Hyperspectral Imaging

By Point of Sale:
• OEM
• Aftermarket

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional level analysis for each market segment.
• Detailed analysis of geographical landscape with Country level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of competitive structure of the market.
• Demand side and supply side analysis of the market.

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