Military and Defense Sensors

Global Military and Defense Sensors Market to Reach US$12.3 Billion by 2030

The global market for Military and Defense Sensors estimated at US$9.4 Billion in the year 2024, is expected to reach US$12.3 Billion by 2030, growing at a CAGR of 4.5% over the analysis period 2024-2030. Software, one of the segments analyzed in the report, is expected to record a 5.4% CAGR and reach US$8.0 Billion by the end of the analysis period. Growth in the Hardware segment is estimated at 3.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.6 Billion While China is Forecast to Grow at 8.4% CAGR

The Military and Defense Sensors market in the U.S. is estimated at US$2.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$2.6 Billion by the year 2030 trailing a CAGR of 8.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.8% and 3.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.6% CAGR.

Global Military and Defense Sensors Market – Key Trends & Drivers Summarized

Why Are Sensors Becoming Strategic Enablers in Next-Generation Defense Capabilities?

Military and defense sensors are the cornerstone of situational awareness, target acquisition, threat detection, and systems automation in modern warfare. These sensors, deployed across land, air, sea, and space domains, enable armed forces to monitor enemy movements, detect chemical or biological threats, enhance weapon guidance, secure borders, and protect personnel through real-time data acquisition and processing. In an era where multi-domain operations and information superiority define battlefield advantage, sensors form the neural backbone of military intelligence, surveillance, and reconnaissance (ISR) networks.

These include radar, infrared, LiDAR, electro-optical, sonar, seismic, magnetic, nuclear detection, and electronic warfare (EW) sensors integrated into unmanned systems, fighter jets, naval vessels, satellite constellations, and soldier-worn gear. The demand for sensor platforms that are miniaturized, networked, AI-enabled, and hardened against jamming or spoofing is driving continuous technological evolution. As conflicts increasingly rely on rapid data fusion, multi-target tracking, and beyond-visual-range (BVR) engagement, sensors are emerging as force multipliers that underpin modern defense strategy.

How Are Technologies Such as AI, MEMS, and Sensor Fusion Enhancing Tactical Intelligence and Mission Execution?

Technological advancements in miniaturization, materials science, and embedded intelligence are redefining the performance benchmarks of defense sensors. Micro-electromechanical systems (MEMS) have enabled the production of lightweight, ruggedized sensors for unmanned aerial vehicles (UAVs), missiles, and soldier systems. AI and machine learning algorithms are being deployed at the edge—within the sensors themselves—to facilitate real-time signal processing, anomaly detection, and adaptive targeting in contested environments.

Sensor fusion is another critical development, combining data from multiple sensor types (e.g., radar and infrared) to provide more accurate threat detection, reduce false positives, and enable autonomous decision-making. Quantum sensors, under development for gravimetry and magnetometry, promise stealth detection of submerged submarines or underground facilities. Passive radar systems are leveraging commercial signals (e.g., TV or cellular transmissions) to detect aerial threats without emitting detectable signals, enhancing survivability. These advancements are turning sensors into intelligent, self-correcting systems capable of functioning independently across diverse battlefield environments.

Which Platforms, Applications, and Global Theaters Are Driving Sensor Deployment and Procurement?

Defense sensors are deployed across a vast range of platforms, including ground-based radars, UAV payloads, missile seekers, underwater sonar arrays, space-based ISR satellites, and soldier-wearable health and situational monitors. Key application areas include early-warning systems, missile defense, perimeter intrusion detection, threat classification, counter-drone operations, and battlefield medical triage. In naval operations, sensors are vital for mine detection, underwater navigation, and antisubmarine warfare. In air combat, active electronically scanned array (AESA) radars and infrared search and track (IRST) systems enable stealth detection and air superiority.

The geopolitical landscape is influencing sensor deployment across critical regions. In the Indo-Pacific, rising tensions are driving naval and aerial sensor upgrades for maritime domain awareness. Europe is investing in counter-UAV and border surveillance systems amid shifting threat profiles. The Middle East continues to prioritize radar and chemical detection systems due to asymmetric threats, while North America is focused on missile defense, space-based ISR, and AI-integrated command and control systems. Across all theaters, unmanned systems integration is a key driver, necessitating lightweight, autonomous sensor solutions.

What Is Fueling Long-Term Growth in the Military and Defense Sensors Market?

The growth in the military and defense sensors market is propelled by rising defense expenditures, the digitization of battlefield infrastructure, and a global push for multi-domain command-and-control (MDC2) capabilities. Strategic modernization programs in the U.S., China, India, NATO, and Middle Eastern countries are emphasizing electronic warfare readiness, autonomous ISR, and cyber-resilient sensor networks. The demand for persistent surveillance, precision strike support, and agile threat detection is translating into expanded procurement of cutting-edge sensor systems across land, air, sea, and space domains.

Defense R&D investments in quantum sensing, AI-on-chip platforms, low-SWaP (size, weight, and power) devices, and sensor networking protocols are further accelerating innovation. Joint defense programs, interoperability mandates, and increasing complexity of hybrid warfare are reshaping how sensors are selected, deployed, and integrated into command architectures. The convergence of space-based surveillance, hypersonic threat detection, and next-gen signal intelligence (SIGINT) is also expanding market scope.

As the battlespace becomes increasingly sensor-driven, military and defense forces are transforming their operational doctrines to harness real-time, distributed sensor intelligence—positioning sensor technologies at the forefront of future warfare strategy and capability development.

SCOPE OF STUDY:

The report analyzes the Military and Defense Sensors market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Software, Hardware); Platform (Land, Naval, Airborne); Application (Combat Operations, Target Recognition, Electronic Warfare, Communication & Navigation, Command & Control, Surveillance & Monitoring, Intelligence & Reconnaissance)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 33 Featured) -

• Analog Devices Inc.
• BAE Systems plc
• Curtiss-Wright Corporation
• Elbit Systems Ltd.
• FLIR Systems, Inc.
• General Atomics
• HENSOLDT AG
• Honeywell International Inc.
• Imperx, Inc.
• Kongsberg Gruppen ASA
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Lynred
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Rheinmetall AG
• Safran Electronics & Defense
• Senstar Corporation
• TE Connectivity Ltd.
• Thales Group

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