Air-based Military Electro Optics Infrared System Market - By Platform, By Sensor Technology, By Product Type, By Application, By Imaging Technology & Forecast, 2025 - 2034

Air-based Military Electro Optics Infrared System Market Size

The global air-based military electro optics infrared system market was valued at USD 4.9 billion in 2024 and is estimated to grow at a CAGR of 3.4% from 2025 to 2034.
 

Infrared sensor technology advancements have improved electro-optics infrared (EOIR) systems' performance and capabilities. Enhanced sensor resolution, sensitivity, and range improve target detection, tracking, and identification in various conditions, particularly in low-visibility environments. These improvements provide military forces with superior surveillance and targeting capabilities, enhancing defense operations. Increased sensor accuracy and processing speed contribute to real-time threat identification, improving mission success rates across air, land, and naval platforms.
 

For instance, Lockheed Martin's electro-optical targeting system (EOTS) for the F-35 Lightning II is a lightweight, high-performance, multi-function system offering precision air-to-air and air-to-surface targeting. Integrated into the aircraft's fuselage with a durable sapphire window, EOTS provides stealth capabilities and connects to the aircraft's central computer via a high-speed fiber-optic interface, ensuring efficient, real-time targeting and situational awareness.
 

The growing use of Unmanned Aerial Vehicles (UAVs) for military surveillance is driving growth in the EOIR market. UAVs often incorporate EOIR sensors to provide real-time intelligence, surveillance, and reconnaissance (ISR) capabilities. EOIR-equipped UAVs can operate at extended ranges and altitudes, providing situational awareness over enemy territory without risking crewed aircraft. As global military forces expand their UAV fleets for strategic surveillance, demand for EOIR systems is expected to increase. For instance, In October 2024, L3Harris is advancing its next-generation WESCAM MX-Series EO/IR sensor systems, enhancing visual capabilities for military teams worldwide. These high-performance sensors are integrated into emerging autonomous platforms, supporting AI-driven systems for improved mission success. The development of these advanced EO/IR technologies is key to achieving global dominance across air, land, and sea, enabling superior ISR capabilities and informed decision-making in future AI-powered, uncrewed military operations.
 

Air-based Military Electro Optics Infrared System Market Trends

The air-based military EOIR systems market is evolving towards integrated, multi-functional sensors combining thermal imaging, targeting, and laser range-finding in a single unit. This shift is driven by the need for compact, lightweight systems deployable on fighter jets, UAVs, and satellites. The integration of AI and machine learning enhances data processing, threat detection, and predictive analytics. Satellite-based EOIR systems expand long-range surveillance capabilities, providing actionable intelligence for efficient, autonomous military operations across various platforms in air, land, sea, and space.
 

For instance, In September 2024, ISRO's EOS-08 Earth Observation satellite, launched on August 16, 2024, began operations with its advanced electro-optical infrared (EOIR) payload. Developed by SAC-ISRO, the EOIR features mid-wave and long-wave infrared channels, advancing thermal imaging technology alongside the GNSS-R and SiC UV Dosimeter payloads.
 

The development of long-range EOIR sensors with improved low-light performance is becoming a key focus in the market. As military operations expand into challenging environments, such as contested or denied areas, the ability to detect and engage targets at extended ranges is increasingly important. Manufacturers are prioritizing advancements in sensor technology to offer improved thermal resolution, longer detection ranges, and greater operational flexibility. Additionally, there is rising demand for EOIR systems adaptable to helicopters, fighter jets ensuring effective operations in diverse environments, including extreme temperatures, high altitudes, and harsh weather, thereby enhancing mission success across air, land, and sea platforms.
 

For instance,, In March 2023, Elbit Systems Ltd. was awarded four contracts by the Romanian ministry of national defense to provide aircraft upgrades, electronic warfare suites, EOIR payloads, and Brightnite systems for IAR 300 helicopters. As part of the deal, Elbit will integrate the SPECTRO XR™ EOIR payload onto IAR 330 helicopters to enhance the Romanian Navy’s capabilities, with work set to be completed within the year.
 

Air-based Military Electro Optics Infrared System Market Analysis

The air-based military Electro-Optical/Infrared (EOIR) systems market faces constraints including high development and maintenance costs, as well as technical challenges in ensuring reliability in extreme environments. However, opportunities arise from the increasing adoption of Unmanned Aerial Vehicles (UAVs), advanced satellites, and AI-driven technologies, which enhance operational efficiency and intelligence gathering capabilities. Regulatory factors, such as strict defense procurement standards and export controls, significantly influence market dynamics. Concurrently, government investments in military modernization and technological advancements create avenues for growth and innovation in EOIR system capabilities across global defense sectors.
 

Based on sensor technology, the market is segmented into infrared, laser, imaging. In 2024, the infrared segment accounted for the largest market share with 49.5% share.
 

Infrared (IR) sensor technology is crucial in air-based military electro-optical/infrared (EOIR) systems, providing improved target detection and imaging in low-visibility conditions. Mid-wave infrared (MWIR) and long-wave infrared (LWIR) sensors are increasingly utilized for their high-resolution thermal imaging capabilities. These sensors are essential for surveillance, reconnaissance, and precision targeting in various weather conditions, enabling the identification of heat signatures and tracking of targets at extended ranges.
 

Advancements in sensor technology focus on enhancing the sensitivity and range of infrared sensors to improve threat detection and engagement. Manufacturers are developing advanced IR materials and cooling technologies to boost sensor performance in challenging environments. This progress is driving the integration of IR sensors into unmanned aerial vehicles (UAVs), satellites, and helicopters. As a result, the operational capabilities of military platforms are expanding, enabling real-time intelligence gathering across diverse combat scenarios.
 

Based on product type, the air-based military electro optics infrared system market is divided into camera, laser, thermal imaging, and others. In 2024, the thermal imaging segment is the fastest-growing segment with a CAGR of 4% during the forecast period.
 

Thermal imaging technology is a crucial product type in the air-based military electro-optical/infrared (EOIR) systems market. It provides essential capabilities for target detection and surveillance in low-light or no-light environments. These systems detect heat signatures, enabling military forces to identify targets such as vehicles, personnel, and aircraft, even in adverse weather conditions. Thermal imaging is vital for both offensive and defensive operations, offering enhanced situational awareness for commanders.
 

The increasing demand for advanced military platforms is driving the development of high-resolution thermal imaging systems. New thermal imaging products offer improved sensitivity, extended detection ranges, and faster response times, enhancing real-time decision-making capabilities. Furthermore, the integration of artificial intelligence and machine learning algorithms enables automated threat detection and improved tracking accuracy. This technological advancement is promoting the adoption of thermal imaging systems across various platforms, including fighter jets, unmanned aerial vehicles (UAVs), and helicopters.
 

In 2024, the North America air-based military electro optics infrared system market held the largest share of 32.5%, and it is predicted that it will hold its dominant position throughout the forecast period. North America, particularly the U.S., is driven by significant defense budgets and technological advancements. The U.S. military’s focus on modernizing its platforms, including fighter jets, UAVs, and satellites, has accelerated the demand for advanced EOIR solutions. With a strong emphasis on enhancing ISR capabilities and operational readiness, the region is a key driver for innovation in thermal imaging, infrared sensors, and autonomous defense systems.
 

China is advancing in the development of air-based military EOIR systems, focusing on defense technology modernization. The country's increasing defense budget supports the integration of advanced EOIR capabilities, particularly in UAVs and satellite platforms. These systems enhance surveillance, reconnaissance, and targeting in complex operational environments. China is also investing in advanced infrared sensors and thermal imaging systems to improve its military's situational awareness and strategic planning.
 

Germany's military modernization efforts are increasing demand for advanced EOIR systems, especially in air and land surveillance. The country is upgrading its fleet of fighter jets, helicopters, and UAVs with EOIR sensors to improve reconnaissance and precision targeting. Germany's focus on enhancing defense capabilities within NATO and the EU is promoting the adoption of integrated EOIR solutions. These systems are essential for maintaining security and operational effectiveness in complex environments.
 

Japan is increasing investment in air-based EOIR technologies as part of its military modernization strategy. Considering regional security concerns, the country is integrating advanced EOIR systems into air and maritime platforms, enhancing real-time intelligence, surveillance, and reconnaissance (ISR) capabilities. Japan is improving its defensive capabilities through high-performance infrared sensors and thermal imaging systems, which are crucial for monitoring and responding to potential threats in its airspace and maritime borders.
 

South Korea is expanding its use of EOIR systems to strengthen defense capabilities, particularly for surveillance and reconnaissance in the Korean Peninsula. The country is integrating EOIR payloads into UAVs, helicopters, and other military platforms to enhance real-time intelligence gathering and target identification. Given the region's security dynamics, South Korea's military prioritizes advanced EOIR technologies to ensure operational readiness, improve defensive measures, and respond effectively to emerging threats in both air and ground operations.
 

Air-based Military Electro Optics Infrared System Market Share

Northrop Grumman, Lockheed Martin, and BAE Systems are heavily involved in advancing air-based EOIR systems for military applications. Northrop Grumman focuses on integrating advanced infrared sensors and thermal imaging technologies into its defense platforms, enhancing ISR and targeting capabilities. Lockheed Martin develops multi-functional EOIR systems for fighter jets and UAVs, improving mission effectiveness. BAE Systems combines cutting-edge sensor technologies with AI to enhance situational awareness and precision targeting, offering solutions for air, land, and naval platforms, while supporting global defense modernization efforts.
 

Air-based Military Electro Optics Infrared System Market Companies

Major players operating in the industry are:

• BAE Systems plc
• CONTROP Precision Technologies Ltd.
• Elbit Systems Ltd.
• Excelitas Technologies Corp.
• Israel Aerospace Industries
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman
• Raytheon Technologies Corporation
• Rheinmetall AG
• Saab AB
• Safran SA
• Teledyne FLIR LLC
• Thales Group
• Ultra Electronics Holdings plc
   

Air based Military Electro Optics Infrared System Industry News

• In April 2024, L3Harris highlighted its advanced airborne EO/IR sensor systems, deployed globally for continuous surveillance of critical assets like borders, airfields, and forward operating bases. These systems offer overlapping fields-of-view for uninterrupted monitoring. Designed to withstand high air speeds, altitudes, and harsh weather conditions, L3Harris' ruggedized and stabilized sensors are capable of performing in extreme environments, including fog, dust, moisture, and temperature fluctuations, ensuring reliable operation in challenging air domains.
   
• In January 2024, Rheinmetall signed a contract with the Norwegian Defence Material Agency (NDMA) to modernize the MSP500 Multi Sensor Platform, replacing it with the more powerful MSP600digital. The upgrade will begin in summer 2025. The MSP600digital will enhance the National Advanced Surface-to-Air Missile System (NASAMS) with improved HD capabilities and modernized features.
   

This air-based military electro optics infrared system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2021 to 2034, for the following segments:

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Market, By Platform

• Attack helicopters       
• Military aircrafts          
  • Fighter aircraft
  • Transport aircraft
  • Special mission aircraft
• Unmanned Aerial Vehicles (UAVs)     

Market, By Sensor Technology

• Infrared
• Laser
• Imaging

Market, By Product Type

• Camera
• Laser
• Thermal imaging
• Others

Market, By Application

• ISR
• Targeting
• Situational awareness
• Navigation
• Others

Market, By Imaging Technology

• Multi-spectral
• Hyper-spectral

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa