Electro-Optical Infrared (EO/IR) Systems Market Overview:
Electro Optical Infrared (EO/IR) Systems Market Size was estimated at 6.76 (USD Billion) in 2022. The Electro Optical Infrared (EO/IR) Systems Industry is expected to grow from 7.15 (USD Billion) in 2023 to 11.9 (USD Billion) by 2032. The Electro Optical Infrared (EO/IR) Systems Market CAGR (growth rate) is expected to be around 5.83% during the forecast period (2024 - 2032).
Key Electro Optical Infrared (EO/IR) Systems Market Trends Highlighted
The demand for Electro-Optical Infrared (EO/IR) systems is expected to continuously increase over the years, which can be attributed to the development of sensor technologies and the increased need for surveillance, reconnaissance and threat detection systems.
The key market drivers are the increase in security invasions and the emergence of unmanned combat aerial vehicles (UCAVs), which need sophisticated EO/IR systems for navigation and target acquisition. Also, inventions in AI and ML technologies are aiding in the growth of EO/IR systems with better target observation and threat detection capabilities.
The growth opportunities are presented by the growing use of EO/IR systems in commercial markets such as self-driving cars, biomedical imaging, and factory automation. The coupling of EO/IR sensors with systems like radar and LIDAR-is also offering opportunities for the advancement of multi-sensor systems with better efficiency and dependability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electro-Optical Infrared (EO/IR) Systems Market Drivers
Growing Demand for Enhanced Situational Awareness and Surveillance
Real-time situational awareness and surveillance capabilities are essential today for a variety of military, homeland security, and commercial applications. The increased demand for enhanced situational awareness and surveillance systems is significantly triggered by the growing terrorism, border protection challenges, and the need to monitor critical infrastructure effectively.
In this context, electro-optical infrared systems appear to be the solutions with superior imaging capacity during both day and night conditions, identifying and tracking target objects more accurately.The need to supply real-time data on the existing situation and data on surveillance is crucial and directly related to the process of making decisions on the one hand. Also, it is essential for effective threat detection and prompt response on the other hand. That is why the increasing demand for these systems characterizes the chosen industry.
Advancements in Sensor Technology and Image Processing
The Electro Optical Infrared (EO/IR) Systems Market Industry has witnessed significant advancements in sensor technology and image processing algorithms. The development of high-resolution sensors, thermal imaging cameras, and advanced image processing techniques has enhanced the capabilities of EO/IR systems to detect and identify targets with greater accuracy and clarity. These advancements have led to improved target detection ranges, enhanced image quality, and reduced false alarm rates.The continuous improvement in sensor technology and image processing algorithms is expected to drive further the adoption of EO/IR systems in various applications.
Increasing Adoption in Commercial Applications
Apart from military and homeland security applications, EO/IR systems are increasingly being used in commercial applications such as industrial automation, environmental monitoring, and non-destructive testing. The worldwide growing need for data/information on a real-time basis and supporting other factors is driving the market for these systems. For example, they are used in industrial automation for quality control, process monitoring, and predictive maintenance.In environmental monitoring, they are used to detect pollution, monitor wildlife, and assess their habitats. In general, the growth of their commercial application is likely to drive the growth of the Electro Optical Infrared (EO/IR) Systems Market Industry.
Electro-Optical Infrared (EO/IR) Systems Market Segment Insights:
Electro-Optical Infrared (EO/IR) Systems Market System Type Insights Â
The System Type segment of the Electro Optical Infrared (EO/IR) Systems Market is segmented into Imaging Systems, Non-Imaging Systems, and Thermal Imaging Systems. Imaging Systems accounted for the majority of the market share in 2023 and is projected to dominate the market over the forecast period. The growth of this segment can be attributed to high-resolution imaging systems' increasing demand in the application of surveillance, reconnaissance, and target acquisition. Led by the wide applications in industrial automation, process control, and medical imaging, Non-Imaging Systems are expected to experience a high growth rate over the forecast period.
Thermal Imaging Systems are also to experience a significant growth rate owing to the aspect of detecting and measuring temperature variations in applications such as firefighting, search and rescue operations, and medical diagnostics. In 2023, the Imaging Systems segment of the Electro Optical Infrared (EO/IR) Systems Market was valued at USD 3.2 billion and is expected to land at USD 5.4 billion by 2032, expanding at a CAGR of 5.9%.
Non-Imaging Systems at USD 2.1 billion in 2023 are projected to rise to USD 3.6 billion by 2032, growing at a CAGR of 6.1%.Thermal Imaging Systems at USD 1.8 billion in 2023 are expected to reach USD 2.9 billion by 2032, expanding at a CAGR of 5.7%. The Electro Optical Infrared (EO/IR) Systems Market is mainly driven by the concern of high demand for advanced imaging and sensing technologies across various industries and applications.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electro-Optical Infrared (EO/IR) Systems Market Application Insights Â
The Electro Optical Infrared (EO/IR) Systems Market is segmented by Application into Defense and Security, Aerospace and Aviation, Industrial and Infrastructure, Medical and Healthcare, Commercial and Consumer. The Defense and Security segment is expected to hold the largest market share in 2023, accounting for more than 40% of the market. This is due to the increasing demand for EO/IR systems for surveillance, target acquisition, and other military applications.
The Aerospace and Aviation segment is expected to be the second-largest segment and is expected to account for over 30% of the market.This is attributed to the increasing use of EO/IR systems for navigation, situational awareness, and other applications in the aerospace and aviation sectors. The Industrial and Infrastructure segment is expected to be the third-largest segment, accounting for over 20% of the market. This is due to the increasing use of EO/IR systems in inspection, monitoring, and other applications in the industrial and infrastructure sectors.
The Medical and Healthcare segment is expected to be the fourth-largest segment, accounting for over 5% of the market.This is due to the increasing use of EO/IR systems in medical imaging, diagnostics, and other applications in the medical and healthcare sectors. The Commercial and Consumer segment is expected to be the smallest segment, accounting for less than 5% of the market. This is because EO/IR systems are not commonly used in commercial and consumer applications.
Electro-Optical Infrared (EO/IR) Systems Market Technology Insights Â
The technology segment of the Electro-Optical Infrared (EO/IR) Systems Market is segmented into Electro-Optical Systems, Infrared Systems, Multispectral Systems, Hyperspectral Systems, and Lidar Systems. In 2023, the Electro-Optical Systems segment held the largest market share of 40% and is projected to reach a market value of USD 4.7 billion by 2032, exhibiting a CAGR of 5.6%. Infrared Systems segment is expected to reach a market value of USD 3.2 billion by 2032, growing at a CAGR of 6.1%.
The Multispectral Systems segment is anticipated to have the highest CAGR of 7.2%, reaching a market value of USD 1.8 billion by 2032.Hyperspectral Systems and Lidar Systems segments are also expected to contribute significantly to the market growth, with market values of USD 1.2 billion and USD 1.0 billion by 2032, respectively.
Electro-Optical Infrared (EO/IR) Systems Market Regional Insights Â
The regional segmentation of the Electro Optical Infrared (EO/IR) Systems Market offers valuable insights into the market's geographical distribution and growth patterns. North America is expected to maintain its dominance in the market, accounting for a significant share of the Electro Optical Infrared (EO/IR) Systems Market revenue in 2024 and beyond. The region's strong defense spending, technological advancements, and presence of key industry players contribute to its leading position.
Europe is another major market for Electro Optical Infrared Eo IR systems, driven by increasing demand from defense and security sectors.The Asia-Pacific (APAC) region is poised for significant growth, fueled by rising defense budgets and modernization programs in countries like China and India. South America and the Middle East and Africa (MEA) regions are expected to witness steady growth in the coming years, driven by increased investments in defense and infrastructure development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electro-Optical Infrared (EO/IR) Systems Market Key Players And Competitive Insights:
Major players in the Electro Optical Infrared (EO/IR) Systems Market industry are continuously developing and introducing new Electro Optical Infrared (EO/IR) Systems Market solutions to meet the evolving needs of customers. Leading Electro Optical Infrared (EO/IR) Systems Market players are investing heavily in research and development to gain a competitive edge in the market. The Electro Optical Infrared (EO/IR) Systems Market is expected to witness significant growth over the forecast period due to increasing demand from various end-use industries. The Electro Optical Infrared (EO/IR) Systems Market Competitive Landscape is characterized by the presence of several well-established players.
These players are focusing on expanding their footprint through strategic partnerships and acquisitions.Among the notable players in the Electro Optical Infrared (EO/IR) Systems Market, Raytheon Technologies is a leading provider of defense and aerospace solutions. The company offers a wide range of Electro-Optical Infrared (EO/IR) Systems Market solutions, including sensors, detectors, and imaging systems. Raytheon Technologies has a strong presence and serves customers in over 100 countries. Another prominent player in the market is Leonardo, an Italian company that specializes in the design, development, and production of aerospace, defense, and security systems.
Leonardo's Electro Optical Infrared (EO/IR) Systems Market offerings include surveillance systems, targeting systems, and laser designators. The company has a strong presence in Europe and is expanding its operations in other regions. In addition to these major players, several other companies are operating in the Electro Optical Infrared (EO/IR) Systems Market. These companies include Northrop Grumman, Safran, BAE Systems, and Thales. These companies offer a range of Electro Optical Infrared (EO/IR) Systems Market solutions and are focusing on meeting the specific needs of their customers.
The Electro Optical Infrared (EO/IR) Systems Market Competitive Landscape is expected to remain competitive over the forecast period due to the presence of several well-established players and the continuous introduction of new products and technologies.
Key Companies in the Electro Optical Infrared (EO/IR) Systems Market Include:
- Israel Aerospace Industries
Electro Optical Infrared Systems Industry Developments
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Q2 2024: Elbit Systems Wins $150 Million Contract to Supply EO/IR Systems to European Air Force Elbit Systems announced it secured a $150 million contract to deliver advanced electro-optical infrared (EO/IR) systems for fighter aircraft to a major European air force, with deliveries scheduled through 2026.
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Q2 2024: Raytheon Technologies Launches Next-Generation EO/IR Sensor Suite for Military Drones Raytheon Technologies unveiled a new EO/IR sensor suite designed for integration with unmanned aerial vehicles, offering enhanced target detection and tracking capabilities for defense customers.
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Q3 2024: Lockheed Martin Opens New EO/IR Systems Manufacturing Facility in Florida Lockheed Martin inaugurated a state-of-the-art manufacturing facility dedicated to the production of advanced EO/IR systems for military and commercial applications, expanding its U.S. footprint.
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Q2 2024: Thales Group Partners with Leonardo to Develop Next-Gen Infrared Surveillance Systems Thales Group and Leonardo announced a strategic partnership to co-develop next-generation infrared surveillance systems for border security and defense, targeting European and Middle Eastern markets.
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Q1 2024: Northrop Grumman Secures $80 Million U.S. Army Contract for EO/IR Targeting Pods Northrop Grumman was awarded an $80 million contract by the U.S. Army to supply advanced EO/IR targeting pods for rotary-wing aircraft, supporting modernization efforts.
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Q2 2024: Teledyne FLIR Launches New High-Resolution Thermal Imaging Camera for Industrial and Defense Markets Teledyne FLIR introduced a new high-resolution thermal imaging camera, expanding its EO/IR product portfolio for both industrial inspection and military surveillance applications.
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Q3 2024: BAE Systems Acquires U.S. EO/IR Sensor Manufacturer for $400 Million BAE Systems completed the acquisition of a leading U.S.-based EO/IR sensor manufacturer, strengthening its position in the global defense electronics market.
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Q2 2024: Leonardo Wins Contract to Supply Infrared Search and Track Systems to Asian Navy Leonardo announced a contract win to deliver infrared search and track (IRST) systems for a major Asian navy's new fleet of surface combatants, with deliveries beginning in late 2024.
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Q1 2025: General Dynamics Awarded $120 Million U.S. Navy Contract for EO/IR Surveillance Systems General Dynamics received a $120 million contract from the U.S. Navy to provide advanced EO/IR surveillance systems for maritime patrol aircraft.
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Q2 2025: L3Harris Technologies Launches Compact EO/IR Payload for Small UAVs L3Harris Technologies introduced a new compact EO/IR payload designed for small unmanned aerial vehicles, targeting defense and homeland security customers.
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Q1 2025: Elbit Systems Expands EO/IR Production Capacity with New Facility in Israel Elbit Systems opened a new manufacturing facility in Israel to increase production capacity for its EO/IR systems, supporting growing global demand.
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Q2 2025: Thales Group Secures Multi-Year Contract for EO/IR Systems with Middle Eastern Defense Ministry Thales Group announced a multi-year contract to supply advanced EO/IR systems to a Middle Eastern defense ministry, with deliveries scheduled through 2028.
Electro Optical Infrared (EO/IR) Systems Market Segmentation Insights
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Electro Optical Infrared (EO/IR) Systems Market System Type Outlook
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Electro Optical Infrared (EO/IR) Systems Market Application Outlook
- Industrial and Infrastructure
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Electro Optical Infrared (EO/IR) Systems Market Technology Outlook
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Electro Optical Infrared (EO/IR) Systems Market Regional Outlook
| Report Attribute/Metric |
Details |
| Market Size 2022 |
6.76 (USD Billion) |
| Market Size 2023 |
7.15 (USD Billion) |
| Market Size 2032 |
11.9 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.83% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Leonardo , L3Harris Technologies ,BAE Systems ,Safran ,Airbus ,Northrop Grumman ,Kongsberg ,FLIR Systems ,Jenoptik ,HGH Infrared Systems ,Thales ,Israel Aerospace Industries ,Raytheon Technologies ,Elbit Systems ,Leonardo DRS |
| Segments Covered |
System Type ,Application ,Technology ,Regional |
| Key Market Opportunities |
Growing defense expenditure. Increasing demand for surveillance systems. Rise in homeland security concerns. Technological advancements. Expanding applications in various industries |
| Key Market Dynamics |
Increasing demand for filtration applications, Growth in the automotive and construction sectors, Advance ments in lectro Optical Infrared (EO/IR) Systems technology, Rising awareness of sustainability, Expanding lectro Optical Infrared (EO/IR) Systems Market |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ):
The Electro Optical Infrared (EO/IR) Systems Market is expected to be worth USD 7.15 billion in 2023.
The Electro Optical Infrared (EO/IR) Systems Market is expected to be worth USD 11.9 billion in 2032.
The Electro Optical Infrared (EO/IR) Systems Market is expected to grow at a CAGR of 5.83% from 2023 to 2032.
North America is the largest market for Electro Optical Infrared Eo Ir Systems, accounting for over 35% of the market share.
The defense and security segment is the largest market for Electro Optical Infrared Eo Ir Systems, accounting for over 60% of the market share.
The key competitors in the Electro Optical Infrared (EO/IR) Systems Market include L3Harris Technologies, Lockheed Martin, Northrop Grumman, Raytheon Technologies, and Thales Group.
The key factors driving the growth of the Electro Optical Infrared (EO/IR) Systems Market include the increasing demand for advanced surveillance and security systems, the growing adoption of unmanned aerial vehicles (UAVs), and the rising need for enhanced situational awareness in military and law enforcement applications.
The challenges facing the Electro Optical Infrared (EO/IR) Systems Market include the high cost of development and production, the stringent regulatory environment, and the intense competition from established players.
The opportunities for growth in the Electro Optical Infrared (EO/IR) Systems Market include the development of new technologies, the expansion into new markets, and the increasing adoption of EO/IR systems in commercial applications.
The key trends in the Electro Optical Infrared (EO/IR) Systems Market include the increasing integration of EO/IR systems with other sensors, the development of multi-spectral and hyperspectral EO/IR systems, and the growing adoption of artificial intelligence (AI) in EO/IR systems.
