Visiongain has published a new report entitled Military Electro-Optical and Infrared (EOIR) Systems Market Report 2025-2035: Forecasts by Technology (Multispectral Imaging, Hyperspectral Imaging), by Platform (Airborne EO/IR System, Ground EO/IR System, Naval EO/IR System), by Application (Surveillance and Reconnaissance, Target Acquisition and Designation, Weapon Sighting and Fire Control, Navigation and Guidance), by Component (Optics and Sensors, Control Systems, Human Machine Interfaces, Processor, Other), by Compatibility (Vehicle-Mounted, Soldier System, Aircrafts and Helicopters, Unmanned Aerial Vehicles (UAVs), Combat Ships) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global military electro-optical and infrared (EO/IR) systems market is estimated at US$13,872.0 million in 2025 and is projected to grow at a CAGR of 2.8% during the forecast period 2025-2035.

How will this Report Benefit you?

Visiongain’s 404-page report provides 122 tables and 208 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the military electro-optical and infrared (EO/IR) systems market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Military Electro-Optical and Infrared (EO/IR) Systems. Get financial analysis of the overall market and different segments including technology, platform, application, component, and compatibility, and company size and capture higher market share. We believe that there are strong opportunities in this fast-growing military electro-optical and infrared (EO/IR) systems market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Integration of EO/IR Systems with Network-Centric Warfare (NCW) Strategies

Military forces are increasingly adopting network-centric warfare strategies, where EO/IR systems play a crucial role in enhancing real-time battlefield connectivity. The ability to integrate EO/IR data with other intelligence sources, such as radar, satellite, and communication networks, creates a comprehensive operational picture. This integration allows for quicker decision-making and more effective responses to threats. For example, the U.S. Army’s Integrated Battle Command System (IBCS) leverages EO/IR sensors to provide a unified air and missile defense network, improving target identification and interception accuracy. The shift toward interoperable and networked EO/IR systems reflects the growing importance of data fusion and coordinated military operations.

Geopolitical Tensions and Regional Conflicts Driving Defense Modernization

Rising geopolitical tensions, particularly in Eastern Europe, the Middle East, and the Indo-Pacific, have prompted governments to accelerate defense modernization programs. EO/IR systems are at the core of these efforts, as they enhance reconnaissance, threat detection, and targeting capabilities in both defensive and offensive operations. The conflict in Ukraine has demonstrated the importance of EO/IR technology in precision artillery strikes and battlefield surveillance. Similarly, China’s growing military presence in the South China Sea has led to increased investment in naval EO/IR systems for early threat detection and missile defense.

Where are the Market Opportunities?

Growing Demand for EO/IR Systems in Unmanned and Autonomous Platforms

The increasing adoption of unmanned aerial vehicles (UAVs), unmanned ground vehicles (UGVs), and unmanned surface vessels (USVs) is driving demand for advanced EO/IR systems. Autonomous platforms rely heavily on EO/IR sensors for navigation, threat detection, target acquisition, and surveillance. The rise of swarming technology and AI-driven autonomous operations creates new opportunities for EO/IR integration, as these systems require real-time data processing and target identification. For example, the MQ-9 Reaper drone, equipped with multi-spectral EO/IR sensors, is widely used for long-endurance surveillance and precision strikes. The development of miniaturized, lightweight EO/IR sensors tailored for small autonomous platforms presents a significant growth avenue for defence contractors.

Rising Investment in Space-Based EO/IR Systems

The growing importance of space-based surveillance and missile defence is driving demand for EO/IR satellite payloads. Military and defence agencies are investing in satellite-based EO/IR sensors to provide persistent global coverage, early missile detection, and enhanced battlefield intelligence. For example, the U.S. Space Force’s Next-Generation Overhead Persistent Infrared (Next-Gen OPIR) system is designed to replace existing missile warning satellites with more advanced EO/IR capabilities. The commercialization of space and the rise of private satellite operators further present opportunities for defence contractors to supply EO/IR technology for both military and civilian space-based applications.

Competitive Landscape

The major players operating in the military electro-optical and infrared (EO/IR) systems market are Airbus SE, Corning Incorporated, Elbit Systems Ltd, General Dynamics Corporation, Israel Aerospace Industries, Northrop Grumman, Lockheed Martin Corporation, Raytheon Technologies Corporation, Saab AB (Sweden), Textron Inc., Aselsan A.S, Kollmorgen, Hensoldt AG, Rockwell Collins, Inc., CONTROP Precision Technologies. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.

Recent Developments

• 05-Mar-2025, Saab and ICEYE signed an MoU to integrate advanced space-based radar data into Saab’s Command and Control Systems.

• 20-Feb-2025, Northrop Grumman signed an MoU with Hanwha to support South Korea’s KMCH program, focusing on manufacturing ALMDS hardware.

• 19-Feb-2025, Elbit Systems secured a contract to supply advanced electro-optical/infrared (EO/IR) payloads for the Royal Thai Navy’s offshore patrol vessels (OPVs), enhancing maritime surveillance and threat detection capabilities.

Notes for Editors

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