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Airborne Target Acquisition Systems Market on Track for Strong Growth, Estimated to Grow at 4.1% CAGR Through 2029

08-21-2025 10:07 AM CET | Aerospace & Defense

Press release from: The Business Research Company

Airborne Target Acquisition Systems

Airborne Target Acquisition Systems

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What Is the Expected CAGR for the Airborne Target Acquisition Systems Market Through 2025?
The market size for airborne target acquisition systems has been on a consistent rise in the past few years. The market, which stood at $15.00 billion in 2024, is projected to increase to $15.66 billion in 2025, reflecting a compound annual growth rate (CAGR) of 4.4%. The notable growth during the historical period can be traced back to several factors. These include the escalated integration of AI in target detection, increased usage of unmanned aerial vehicles, breakthroughs in sensor fusion technology, heightened focus on battlefield situational awareness, and substantial investments in electronic warfare systems.

What's the Projected Size of the Global Airborne Target Acquisition Systems Market by 2029?
Steady expansion is projected for the airborne target acquisition systems market in the coming years, with a predicted size of $18.36 billion in 2029 and a compound annual growth rate (CAGR) of 4.1%. This growth during the forecast period can be linked to the escalating adoption of multi-sensor systems, the growing demand for automated threat recognition, an upswing in investments for cutting-edge radar technologies, an increased emphasis on network-centric warfare capabilities, and a rise in the integration of machine learning for target analytical purposes. Key trends for the forecast period include the progression of compact radar systems, the advent of AI-facilitated target identification, breakthroughs in stealth detection technologies, enhancement in real-time data processing, and the evolution of integrated sensor networks.

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Top Growth Drivers in the Airborne Target Acquisition Systems Industry: What's Accelerating the Market?
The growth of the airborne target acquisition systems market is anticipated to be driven by the rising demand for border surveillance. This involves using sophisticated technology to oversee border areas in real time, with the goal of identifying, discouraging, and responding to unauthorized border crossings or possible hazards. The escalating security challenges are contributing to the expansion of border surveillance, leading to increased use of sophisticated systems to detect risks and unlawful entries. Airborne target acquisition systems aid border surveillance by providing real-time aerial identification, tracking, and threat determination. Their superior sensors and broad-area coverage facilitate fast reactions in remote or challenging-to-survey border areas. For example, in November 2022, the Department of Homeland Security (DHS), a US government agency, reported that encounters by the U.S. Border Patrol (USBP) soared by 139% during the 2022 fiscal year, jumping to 497,681 from 208,567 in the 2021 fiscal year. Thus, the escalating demand for border surveillance is stimulating the expansion of the airborne target acquisition systems market.

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What Trends Will Shape the Airborne Target Acquisition Systems Market Through 2029 and Beyond?
Leaders in the aerial target acquisition systems market, such as AI-integrated airborne targeting systems, are focusing on the development of revolutionary solutions to increase operational effectiveness in intricate combat environments. This advanced airborne system employs artificial intelligence to autonomously detect, categorize, and track down targets with improved speed and precision. This technology enhances situational cognition, threat evaluation, and targeting proficiency in fluctuating combat and observation scenarios. For example, in 2024, Hensoldt, a German defense electronics firm, presented the ARGOS-15 at the Africa Aerospace and Defense Expo 2024. This 15-inch gimbal technology incorporates AI-fueled object recognition, categorization, and tracking abilities, thereby improving real-time choices and mission productivity. The ARGOS-15 is engineered for both manned and unmanned flying platforms, offering unmatched performance for intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) operations.

What Are the Main Segments in the Airborne Target Acquisition Systems Market?
The airborne target acquisition systems market covered in this report is segmented -

1) By Platform: Fixed-Wing Aircraft, Helicopters, Unmanned Aerial Vehicles (UAVs)
2) By Technology: Radar, Electro-Optical Or Infrared (EO Or IR) Systems, Electronic Support Measures (ESM)
3) By Range: Short Range (0-8 Kilometers (Km)), Medium Range (8-250 Kilometers (Km)), Long Range (Above 250 Kilometers (Km))
4) By Applications: Air-To-Air Combat, Air-To-Ground Surveillance, Maritime Surveillance, Electronic Warfare
5) By End-User: Military, Homeland Security

Subsegments:
1) By Fixed-Wing Aircraft: Fighter Aircraft, Transport Aircraft, Maritime Patrol Aircraft, Surveillance Aircraft, Reconnaissance Aircraft
2) By Helicopters: Attack Helicopters, Reconnaissance Helicopters, Transport Helicopters, Maritime Helicopters
3) By Unmanned Aerial Vehicles (UAVs): Tactical Unmanned Aerial Vehicles (UAVs), Strategic Unmanned Aerial Vehicles (UAVs), Combat Unmanned Aerial Vehicles (UAVs), Mini Or Micro Unmanned Aerial Vehicles (UAVs), Medium Altitude Long Endurance Unmanned Aerial Vehicles (UAVs), High Altitude Long Endurance (HALE) Unmanned Aerial Vehicles (UAVs)

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Which Top Companies are Driving Growth in the Airborne Target Acquisition Systems Market?
Major Companies operating in the airborne target acquisition systems market are Raytheon Technologies Corporation, The Boeing Company, Lockhee Martin Corporation, Airbus, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Safran SA, Thales Group, L3Harris Technologies Inc., Leidos Holdings Inc., Rheinmetall AG, Saab AB, Hensoldt AG, Aselsan A.S., Kratos Defense & Security Solutions Inc., Teledyne FLIR, Kearfott Corporation, Thermoteknix Systems Ltd., Blighter Surveillance Systems Limited

Which Regions Will Dominate the Airborne Target Acquisition Systems Market Through 2029?
North America was the largest region in the airborne target acquisition systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the airborne target acquisition systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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