Global Air-based Military Electro-optical and Infrared Systems Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

In this report, the Air-based Military Electro-optical and Infrared Systems Market has been segmented by Type, Component Type, Platform Type, Application, and Geography.

Air-based Military Electro-optical and Infrared Systems Market, Segmentation by Type

the Air-based Military Electro-optical and Infrared Systems Market has been segmented by type into Airborne System, and Pilot Portable System.

Airborne System

The Airborne System segment dominates the market, accounting for nearly 65% of the total share, driven by the increasing integration of EO/IR sensors in military aircraft and UAVs. These systems enhance target acquisition, surveillance, and reconnaissance capabilities, making them essential for modern aerial warfare. Advanced features such as high-resolution imaging and multi-spectral detection further boost adoption across air forces globally.

Pilot Portable System

The Pilot Portable System segment is gaining traction with a growing focus on mobility and field operability, contributing to over 35% of the market share. These systems are crucial for enhancing situational awareness during pilot egress or dismounted operations. The lightweight, rugged design and thermal imaging capability make them ideal for both combat and search-and-rescue missions.

Air-based Military Electro-optical and Infrared Systems Market, Segmentation by Component Type

the Air-based Military Electro-optical and Infrared Systems Market has been segmented by Component Type into Hardware and Software.

Hardware

The Hardware segment accounts for nearly 72% of the market share, driven by the increasing deployment of EO/IR sensors, thermal cameras, and laser rangefinders in military aircraft and UAVs. This segment plays a critical role in enabling high-resolution imaging and multi-spectral detection under all weather conditions. Ongoing advancements in sensor miniaturization and integration technologies continue to fuel demand.

Software

The Software segment contributes to around 28% of the market and is gaining prominence due to the rising need for advanced image processing, data analytics, and real-time threat detection. These software platforms are essential for converting raw sensor input into actionable intelligence. Growth in AI-powered analytics and mission-specific customization is accelerating software adoption in defense operations.

Air-based Military Electro-optical and Infrared Systems Market, Segmentation by Platform Type

the Air-based Military Electro-optical and Infrared Systems Market has been segmented by Platform Type into Unmanned Aerial Vehicles (UAVs) and Combat Aircraft.

Unmanned Aerial Vehicles (UAVs)

The Unmanned Aerial Vehicles (UAVs) segment holds approximately 54% of the market share, driven by their expanding use in surveillance, intelligence gathering, and target tracking. UAVs equipped with advanced EO/IR systems offer extended operational reach and real-time imagery, making them indispensable for asymmetric warfare and border monitoring. The rising deployment of MALE and HALE UAVs continues to boost segment growth.

Combat Aircraft

The Combat Aircraft segment represents around 46% of the market and remains crucial for high-intensity missions requiring precision targeting and threat detection. Integration of cutting-edge infrared sensors and laser designators enables enhanced targeting accuracy and night-fighting capability. Continuous modernization programs across global air forces are propelling the demand for upgraded EO/IR systems in combat platforms.

Air-based Military Electro-optical and Infrared Systems Market, Segmentation by Application

the Air-based Military Electro-optical and Infrared Systems Market has been segmented by Application includes Military, National Defense, and Others.

Military

The Military segment accounts for approximately 58% of the market share, driven by the increasing use of EO/IR systems in combat operations, surveillance, and reconnaissance missions. These systems provide critical target identification and night vision capabilities, enabling armed forces to operate effectively in diverse and challenging environments. Rising military budgets and cross-border tensions further strengthen this segment’s growth.

National Defense

The National Defense segment contributes nearly 32% to the market, with rising investment in homeland security and airspace monitoring technologies. Governments are increasingly integrating EO/IR solutions into national defense programs for improved threat detection, border surveillance, and emergency response coordination. Advancements in sensor integration and real-time imaging are key drivers in this space.

Others

The Others segment, holding about 10% market share, includes applications such as search and rescue operations, disaster response, and environmental monitoring. EO/IR systems are increasingly used in non-combat scenarios due to their ability to provide clear visual data in low-visibility conditions. Their role is expanding beyond defense into specialized civilian and humanitarian missions.

Air-based Military Electro-optical and Infrared Systems Market, Segmentation by Geography

In this report, the Air-based Military Electro-optical and Infrared Systems Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Air-based Military Electro-optical and Infrared Systems Market Share (%), by Geographical Region

North America

North America dominates the market with over 40% share, led by the U.S. Department of Defense’s consistent investments in advanced EO/IR technologies. The presence of key industry players and ongoing modernization of airborne military platforms continue to drive demand. The region benefits from strong R&D capabilities and widespread adoption of next-generation surveillance systems.

Europe

Europe holds approximately 23% of the global share, fueled by increasing defense budgets and cross-border intelligence-sharing initiatives. Countries like the UK, France, and Germany are focusing on upgrading their combat aircraft fleets with multi-spectral imaging solutions and targeting systems. The growth is further supported by joint defense programs across EU nations.

Asia Pacific

Asia Pacific accounts for around 21% of the market, driven by rising regional tensions and rapid military modernization, especially in China and India. There’s a strong push for deploying UAV-based surveillance and EO/IR-enabled aircraft to strengthen national security. Indigenous development and defense procurement programs significantly support regional expansion.

Middle East and Africa

The Middle East and Africa region contributes nearly 10%, driven by the need for border surveillance, anti-terrorism operations, and aerial reconnaissance. Countries like Israel, Saudi Arabia, and the UAE are investing in airborne EO/IR systems to enhance situational awareness in both conventional and asymmetric warfare scenarios.

Latin America

Latin America represents about 6% of the market, with growing interest in airborne security operations, drug trafficking surveillance, and disaster response. Although spending is relatively moderate, nations like Brazil and Colombia are gradually adopting EO/IR technologies to bolster their air-based defense and internal security frameworks.

This report provides an in depth analysis of various factors that impact the dynamics of Global Air-based Military Electro-optical and Infrared Systems Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Enhanced Situational Awareness
• Increasing Demand for Intelligence, Surveillance, and Reconnaissance

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Restraints:

• Budgetary Constraints
• Export Control and Regulatory Compliance
• Environmental and Operational Limitations

• Cybersecurity Concerns - As air-based Electro-optical and Infrared (EO/IR) systems evolve, their increasing reliance on digital technologies raises significant cybersecurity concerns, posing a notable restraint in their widespread adoption. The interconnected nature of these systems makes them susceptible to various cyber threats, including hacking attempts and electronic warfare. Cybersecurity risks not only jeopardize the integrity of sensitive data but also compromise the functionality and security of the EO/IR systems, potentially impacting mission success and overall operational effectiveness. Recognizing these vulnerabilities, industry stakeholders, defense agencies, and technology developers are compelled to address cybersecurity challenges as an integral part of ensuring the reliability and resilience of air-based EO/IR systems.

  Effectively addressing cybersecurity concerns necessitates continuous investments in robust measures designed to safeguard critical military assets. Secure communication protocols and encryption technologies play a pivotal role in fortifying the resilience of air-based EO/IR systems against cyber threats. By implementing advanced encryption methods, the confidentiality and integrity of data transmitted and received by these systems can be preserved. Additionally, comprehensive cybersecurity measures must be integrated into the design and operation of EO/IR systems, encompassing firewalls, intrusion detection systems, and regular vulnerability assessments. Such proactive steps contribute to minimizing the risk of cyber attacks and fortifying the overall cybersecurity posture of air-based EO/IR systems.

  To navigate these restraints successfully, collaborative efforts are imperative. Industry stakeholders, defense agencies, and technology developers must work in concert to develop and implement cybersecurity solutions that strike a balance between technological advancements, operational requirements, and budgetary constraints. Establishing industry standards, sharing threat intelligence, and fostering collaboration across sectors are essential components of a comprehensive approach to address the evolving landscape of cybersecurity challenges. By pooling expertise and resources, stakeholders can develop resilient and adaptive cybersecurity frameworks that ensure the continued effectiveness and security of air-based EO/IR systems in an increasingly interconnected and digitally driven environment.

Opportunities:

• Modernization Programs and Defense Procurements
• Rising Demand for Unmanned Aerial Vehicles (UAVs)
• Integration with Network-Centric Warfare

• Increasing Focus on Border Surveillance and Maritime Security - The increasing emphasis on border surveillance and maritime security presents significant opportunities for the deployment of air-based Electro-optical and Infrared (EO/IR) systems. Coastal and border regions often pose unique security challenges due to their expansive and diverse terrain. Robust surveillance capabilities are essential to monitor and secure these vast areas effectively. Airborne platforms equipped with advanced EO/IR sensors provide a strategic advantage in addressing these challenges. These systems offer the capability to conduct comprehensive surveillance, identify potential threats, and respond swiftly to unauthorized activities, contributing to enhanced maritime domain awareness and border security.

  The versatility of air-based EO/IR systems makes them particularly well-suited for specialized applications in border and coastal surveillance. These systems can operate from a safe distance, cover large areas quickly, and provide real-time, high-resolution imagery, day or night. The deployment of EO/IR-equipped airborne platforms supports not only threat detection but also rapid response capabilities, allowing authorities to address potential security incidents promptly. As nations prioritize strengthening their border and maritime security, the demand for air-based EO/IR systems is expected to rise, creating opportunities for suppliers and manufacturers in this niche market.

  In the evolving global security landscape, companies strategically aligning themselves with these opportunities in the air-based military EO/IR systems market can play a crucial role in advancing and enhancing defense capabilities worldwide. By developing and providing cutting-edge solutions tailored to border surveillance and maritime security needs, these companies contribute to the overall effectiveness and efficiency of military operations. The ability to offer specialized capabilities in these critical areas positions them as key partners in addressing contemporary security challenges, reinforcing the significance of air-based EO/IR systems in the broader context of modern defense strategies.

Key players in Global Air-based Military Electro-optical and Infrared Systems Market include

• Elbit Systems Limited
• Saab AB
• L3Harris Technologies
• General Dynamics Corporation
• Leonardo SpA
• Wuhan Guide Infrared
• Aselsan
• Thales Group
• Northrop Grumman Corporation
• FLIR Systems
• Rafael Advanced Defense Systems Limited
• HENSOLDT Inc
• Raytheon Technologies Corporation
• Israel Aerospace Industries

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis