Counter-IED Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Capability (Detection, Counter Measures), By Deployment (Vehicle-Mounted, Hand-Held), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.27 Billion
CAGR (2026-2031)	2.74%
Fastest Growing Segment	Vehicle mounted
Largest Market	North America
Market Size (2031)	USD 2.67 Billion

Market Overview

The Global Counter-IED Market will grow from USD 2.27 Billion in 2025 to USD 2.67 Billion by 2031 at a 2.74% CAGR. The Global Counter-IED Market encompasses the development and deployment of specialized systems designed to detect, mitigate, and neutralize improvised explosive devices, including electronic jammers, detection sensors, and blast-resistant vehicles. The primary drivers supporting this market's growth are the increasing prevalence of asymmetric warfare, the critical necessity for enhanced soldier survivability in conflict zones, and rising government defense budgets allocated for counter-terrorism and border security. These factors collectively ensure sustained demand as nations prioritize the acquisition of advanced protective measures to safeguard personnel and critical infrastructure against volatile explosive threats.

However, a significant challenge impeding market expansion is the rapid technological adaptation by insurgents, who frequently alter detonation mechanisms to bypass existing countermeasures. This constant evolution necessitates continuous and costly research and development, which can strain procurement budgets and delay the fielding of effective solutions. According to the Aerospace, Security and Defence Industries Association of Europe, in 2024, the defense sector’s turnover increased by 13.8% to €183.4 billion, a surge that underscores the immense financial pressure and resource mobilization required to address such complex security challenges within the industrial base.

Key Market Drivers

Escalating incidences of asymmetric warfare and global terrorism constitute the primary catalyst driving the Global Counter-IED Market. Non-state actors and insurgent groups are increasingly utilizing improvised explosive devices (IEDs) as a low-cost tactic to disrupt operations and inflict mass casualties in both combat and civilian zones, necessitating the deployment of robust detection and neutralization technologies. This volatile security environment has forced nations to prioritize the procurement of jamming systems and blast-resistant vehicles to mitigate the lethality of these threats. According to Action on Armed Violence, January 2025, in the 'Explosive Violence Monitor 2024', global civilian casualties from explosive violence increased by 67% in 2024 compared to the previous year, highlighting the intensifying danger posed by explosive weapons in populated areas which compels defense forces to enhance their protective capabilities.

Concurrently, rising government defense and homeland security expenditure is providing the essential financial framework for market expansion. As geopolitical tensions mount, major powers are significantly increasing their military budgets to modernize armed forces and enhance force protection capabilities against evolving explosive threats. This fiscal growth enables the widespread acquisition of electronic warfare systems and mine-resistant ambush-protected vehicles. According to the Stockholm International Peace Research Institute, April 2025, in the 'Trends in World Military Expenditure, 2024', global military spending grew by 9.4% in real terms to reach a record $2,718 billion in 2024, reflecting a robust commitment to strengthening national security postures. This surge in funding directly translates into tangible procurement programs; according to Investing.com, in 2025, Northrop Grumman Systems Corp. secured a $48.4 million contract modification to provide Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare systems, reinforcing the sustained industrial demand for effective countermeasures.

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Key Market Challenges

The primary challenge hampering the growth of the Global Counter-IED Market is the rapid technological adaptation by insurgents, who frequently alter detonation mechanisms to bypass existing countermeasures. This continuous evolution compels defense manufacturers to engage in perpetual and costly research and development cycles to ensure that detection sensors and electronic jammers remain effective against increasingly complex threats. The necessity to constantly re-engineer systems creates a substantial burden on the industrial base, often leading to longer production lead times and higher unit costs that strain government procurement budgets.

This difficulty in maintaining the pace of innovation is exacerbated by acute labor shortages within the technical workforce required for such advanced development. According to the Aerospace Industries Association, in 2025, 76 percent of member organizations reported sustained challenges in hiring the engineering talent necessary for high-technology innovation. This critical shortage of skilled personnel directly impedes the ability of market players to execute the rapid R&D required to match insurgent adaptation. Consequently, the fielding of updated solutions is delayed, leaving security gaps and slowing the overall expansion of the market as effective protective measures fail to reach end-users in a timely manner.

Key Market Trends

The Convergence of Counter-IED and Counter-Drone Electronic Warfare Systems represents a critical paradigm shift as adversaries increasingly utilize unmanned aerial systems as delivery vectors for improvised explosive devices. This trend drives the procurement of integrated electronic warfare suites capable of simultaneously detecting and jamming radio-controlled ground threats and aerial drone communication links, thereby creating a unified defensive umbrella for bases and convoys. The scale of this operational transition is evident in major defense outlays; according to GovCon Wire, March 2025, Anduril Industries was awarded a potential $642.2 million contract by the U.S. Navy to install and sustain Installation-Counter small Unmanned Aircraft Systems at Marine Corps bases worldwide, reflecting the urgent prioritization of multi-domain threat mitigation within the broader counter-explosive architecture.

Concurrently, the Emergence of Directed Energy and High-Power Microwave Weapons is transforming neutralization strategies by offering cost-effective, speed-of-light solutions against saturation attacks. Unlike traditional kinetic interceptors, high-power microwave (HPM) systems can disable the electronic circuitry of multiple incoming threats simultaneously, effectively addressing the growing danger of drone swarms that overwhelm conventional defenses. This technological leap is moving rapidly from prototyping to deployment; according to Defence Industry Europe, July 2025, the U.S. Army awarded a $43.5 million contract to Epirus for the delivery of second-generation Leonidas high-power microwave systems, underscoring the service's commitment to fielding advanced non-kinetic capabilities for critical asset protection.

Segmental Insights

The Vehicle mounted segment is recognized as the fastest growing division in the Global Counter-IED Market, propelled by the critical necessity to secure military convoys against remote-controlled explosive threats. Defense ministries are actively directing funds toward modernizing armored fleets, necessitating the installation of integrated jamming and detection capabilities on platforms such as Mine-Resistant Ambush Protected vehicles. This approach provides essential mobile protection for troops operating in asymmetric warfare zones. Consequently, the continuous procurement of combat vehicles equipped with built-in counter-measure systems is significantly accelerating the expansion of this market segment.

Regional Insights

North America maintains a dominant position in the global counter-IED market, driven primarily by extensive defense spending and a strong focus on homeland security. The United States Department of Defense heavily invests in research and procurement programs to address asymmetric threats and protect military personnel. Additionally, the region benefits from a robust industrial base that develops effective detection and neutralization technologies. Government initiatives led by the Department of Homeland Security further bolster market growth by deploying counter-IED measures to safeguard critical infrastructure. These strategic priorities ensure the region leads in the adoption and development of counter-explosive solutions.

Recent Developments

• In June 2025, ELTA North America, a U.S.-based defense industry leader, announced the acquisition of the Explosive Hazard Detection business from Chemring Sensors and Electronic Systems. This transaction included the Husky Mounted Detection System, a critical ground-penetrating radar technology used for route clearance and counter-IED operations. The acquisition was described as a significant expansion of the company's combat engineering and mobility solutions, positioning it to better support U.S. and allied forces in detecting buried threats. The company stated that integrating these battle-proven detection capabilities would establish a new center of excellence dedicated to advancing technologies that safeguard personnel and ensure operational mobility in contested zones.
• In January 2025, Northrop Grumman Systems Corp. was awarded a $39.7 million contract modification by the U.S. Navy to exercise options for the Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare (JCREW) Increment One Block One system. The agreement covered engineering and sustainment support, as well as other direct costs for the dismounted, mounted, and fixed-site variants of the system. Work for this contract was scheduled to be performed in San Diego, California, with an expected completion date in February 2026. This award highlighted the continued reliance on the company's advanced electronic warfare capabilities to protect warfighters from the persistent threat of radio-controlled explosive devices in various operational environments.
• In September 2024, BAE Systems completed the acquisition of Kirintec, a UK-based company specializing in cyber and electromagnetic activities. This strategic move was intended to enhance the company's portfolio in the Global Counter-IED Market by integrating Kirintec’s open architecture technology, which is designed to protect military platforms and personnel from improvised explosive devices and hostile drones. The acquisition allowed the defense giant to address the increasing demand for multi-domain electromagnetic spectrum dominance capabilities. The newly acquired business was set to join the company's Digital Intelligence division, ensuring continued investment in product development to meet the evolving requirements of armed forces and security agencies.
• In February 2024, Allen-Vanguard, a global leader in providing customized solutions for defeating radio frequency-based threats, announced that it had secured a significant contract to supply 68 SCORPION Electronic Countermeasure (ECM) systems to a NATO ally. This agreement included the delivery of accessories, spares, and a "Train the Trainer" package to ensure the customer could operate the equipment autonomously. The SCORPION system is a versatile, man-portable platform designed to protect troops and static locations from Radio Controlled Improvised Explosive Devices (RCIEDs) and unmanned aerial vehicle threats. The company emphasized that this contract reinforced its commitment to supporting allied nations with effective, life-saving technology in complex threat environments.

Key Market Players

• Lockheed Martin Corporation
• L3Harris Technologies Inc.
• Elbit Systems Ltd
• Northrop Grumman Corporation
• Thales S.A.
• Saab AB
• Chemring Group PLC
• Allen-Vanguard Corporation
• Israel Aerospace Industries Ltd
• QinetiQ Group PLC

By Capability	By Deployment	By Region
Detection Counter Measures	Vehicle-Mounted Hand-Held	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Counter-IED Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Counter-IED Market , By Capability:

• Detection
• Counter Measures

• Counter-IED Market , By Deployment:

• Vehicle-Mounted
• Hand-Held

• Counter-IED Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE