Military Electro-Optics/Infrared (EO/IR) Systems: A Leading Driver Behind Increasing Demand For Intelligence, Surveillance, And Reconnaissance (ISR) Drives Growth Of Military Electro-Optics And Infrared (EO/IR) Systems Market Market Expansion in 2025

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What Will the Military Electro-Optics/Infrared (EO/IR) Systems Industry Market Size Be by 2025?
The size of the military electro-optics/infrared (EO/IR) systems market has witnessed a considerable expansion lately. The valuation is forecasted to expand from $10.29 billion in 2024 to $10.94 billion in 2025, attaining a compound annual growth rate (CAGR) of 6.3%. The substantial growth during the historic period can be explained by a surge in threats and disputes, updates to military platforms, counterinsurgency undertakings, demands for border surveillance, and the necessity for search and rescue missions.

What's the Long-Term Growth Forecast for the Military Electro-Optics/Infrared (EO/IR) Systems Market Size Through 2029?
In the coming years, the market size for military electro-optics/infrared (EO/IR) systems is projected to experience substantial growth, reaching "$14.2 billion by 2029 with a compound annual growth rate (CAGR) of 6.7%. This expansion during the predicted period is due to factors such as geopolitical uncertainties, increased focus on unmanned systems, counter-drone capabilities, improved targeting, and fire control, as well as responses to natural disasters. The forecast period will see pivotal trends such as integration with command and control (c2) systems, the evolution of 3D imaging technologies, progression in image processing algorithms, emphasis on cybersecurity for EO/IR systems, and their application in urban warfare and asymmetrical threat scenarios.

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What Are the Key Growth Drivers Fueling the Military Electro-Optics/Infrared (EO/IR) Systems Market Expansion?
The increasing demand for intelligence, surveillance, and reconnaissance (ISR)-an essential military activity involving the acquisition, organisation, and delivery of accurate, timely knowledge to aid decision-making-is anticipated to promote the growth of the military electro-optics and infrared (EO/IR) systems market. EO/IR system sensor technology facilitates distributed ISR operations across air, land, and sea platforms. For instance, the Defense Intelligence Agency, a US-based agency supporting intelligence and combat, reported that 550 ISR satellites meant to aid military operations were set for 2022, showing a significant rise from about 100 ISR satellites a decade earlier. Moreover, the Federal Aviation Administration (FAA) had registered 855,860 drones in the US by 2023, according to Skykam Technical Inspection, a UK-based firm that provides unmanned aerial vehicle (UAV) building inspection services. Of these registrations, 37% (amounting to 316,075) were for commercial activities associated with ISR procedures. Therefore, the surge in demand for ISR activities propels the growth of the military electro-optics and infrared (EO/IR) systems market.

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What Are the Key Trends Driving Military Electro-Optics/Infrared (EO/IR) Systems Market Growth?
Artificial intelligence integration is becoming a significant trend in the military electro-optics/infrared (EO/IR) systems market. In April 2023, US-based Raytheon Technologies Corporation introduced RAIVEN, a smart sensing technology that enhances EO/IR systems. By combining AI, hyperspectral imaging, and LiDAR, RAIVEN allows operators to detect targets more accurately and from farther distances, improving warfighter protection and platform survivability.

How Is the Military Electro-Optics/Infrared (EO/IR) Systems Market Segmented?
The military electro-optics/infrared (EO/IR) systems market covered in this report is segmented -

1) By Product Type: Handheld System, EO/IR Payload.
2) By Component: Human Machine Interfaces, Stabilization Units, Control Systems, Optics, Sensors, Processor.
3) By Imaging Technology: Scanning, Starring, Hyperspectral, Multispectral.
4) By Platform: Land, Airborne, Naval.
5) By Application: Military Intelligence, Surveillance, Reconnaissance.

Subsegments:
1) By Handheld System: Portable Thermal Imaging Devices, Night Vision Goggles, Handheld Multi-Sensor Systems, Tactical Thermal Monoculars
2) By EO Or IR Payload: UAV Payloads, Ground Vehicle Mounted Systems, Maritime EO Or IR Systems, Aerial Surveillance Payloads

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Which Companies Are Leading the Charge in Military Electro-Optics/Infrared (EO/IR) Systems Market Innovation?
Major companies operating in the military electro-optics/infrared (EO/IR) systems market include Raytheon Technologies Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, Thales Group, L3Harris Technologies Inc., BAE Systems PLC, Leonardo SpA, Elbit Systems Ltd., Rheinmetall AG, Ultra Electronics Holdings, Theon Sensors SA, Safran SA, Excelitas Technologies Corp., General Dynamics Corporation, PVP Advanced EO Inc., Textron Inc, Teledyne FLIR, Leidos Holdings Inc., Logos Technologies, Moog Inc., Apie Group, The Boeing Co., CONTROP Precision Technologies, Alpha Design Technologies, SPI Corp, Tonbo Imaging, UTC Aerospace Systems, Zhejiang Dali Technology Co. Ltd., Luminator Technology Group, Curtiss-Wright Corporation

Which Regions Are Leading the Global Military Electro-Optics/Infrared (EO/IR) Systems Market in Revenue?
North America was the largest region in the military electro-Optics/Infrared (EO/IR) Systems market in 2024. The regions covered in the military electro-optics/infrared (EO/IR) systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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