Decoy Flares Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Type (Pyrotechnic Flares, Pyrophoric Flares, Others), By Application (Fixed Wing, Rotary Wing), By Distribution Channel (OEM and Aftermarket), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.39 Billion
CAGR (2026-2031)	6.51%
Fastest Growing Segment	Pyrophoric Flares
Largest Market	North America
Market Size (2031)	USD 3.49 Billion

Market Overview

The Global Decoy Flares Market will grow from USD 2.39 Billion in 2025 to USD 3.49 Billion by 2031 at a 6.51% CAGR. Decoy flares are pyrotechnic countermeasures designed to protect military aircraft and naval platforms by deploying intense heat sources that deceive infrared-homing missiles. The global market for these expendables is fundamentally driven by escalating geopolitical instability and the urgent necessity for nations to replenish munitions stocks depleted during recent high-intensity conflicts. Additionally, the widespread modernization of aerial defense fleets supports sustained procurement, as newer aircraft platforms require compatible and reliable defensive suites to ensure survivability in contested airspace.

However, market expansion faces a substantial challenge regarding supply chain volatility, specifically the scarcity of specialized raw materials and chemical binders essential for consistent pyrotechnic performance. These logistical constraints may limit the ability of manufacturers to rapidly surge production capacity despite rising orders. The scale of this sector's financial prioritization is reflected in broader industrial growth; according to the Aerospace, Security and Defence Industries Association of Europe (ASD), in 2025, the defense sector generated a turnover of €183.4 billion for 2024, a 13.8% increase that underscores the intensified capital allocation toward combat readiness and force protection.

Key Market Drivers

Increasing Global Defense Budgets and Military Expenditure constitutes a primary catalyst for the Global Decoy Flares Market, as nations prioritize fiscal allocations to enhance combat readiness. Governments are systematically expanding defense outlays to address evolving security threats, directly facilitating the procurement of expendable airborne countermeasures required for fleet protection. This trend is quantified by the sheer scale of recent investments; according to the Stockholm International Peace Research Institute (SIPRI), April 2024, total global military expenditure reached $2,443 billion in 2023, marking a 6.8% increase in real terms from the previous year. Such elevated spending enables defense ministries to sustain long-term contracts for pyrotechnic decoys, ensuring that air forces can maintain high operational availability and platform survivability in an era of renewed state-on-state competition.

Simultaneously, Escalating Geopolitical Tensions and Regional Conflicts are necessitating the rapid replenishment of decoy flare inventories depleted by high-intensity engagements. The proliferation of hostilities has accelerated the consumption rate of infrared countermeasures, compelling manufacturers to ramp up production to meet urgent operational requirements. This surge is evident in industrial performance; according to Rheinmetall, August 2024, in the 'Financial report for first half of 2024', the Weapon and Ammunition division achieved sales of €1,054 million, a 93% increase driven largely by orders for Ukraine and Germany. This volatility specifically bolsters the countermeasures sector; according to Chemring Group, June 2024, in the 'Interim Results for the Six Months to 30 April 2024', the Countermeasures & Energetics order book stood at £883 million, underscoring the sustained global demand for defensive expendables.

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Key Market Challenges

The primary challenge hampering the "Global Decoy Flares Market" is supply chain volatility, specifically the acute scarcity of specialized raw materials and chemical binders required for pyrotechnic production. This logistical bottleneck directly impedes market growth by restricting the ability of manufacturers to convert rising order backlogs into realized revenue. Despite the surge in demand for defensive countermeasures, the unavailability of essential inputs forces production lines to operate below optimal capacity, extending lead times and delaying the replenishment of critical munitions stocks. Consequently, the gap between geopolitical demand and industrial output widens, stalling the actual expansion of the market despite strong funding.

The severity of this operational constraint is quantified by recent industry data. According to the National Defense Industrial Association (NDIA), in 2025, 54% of private sector respondents identified supply chain challenges as one of the most pressing issues facing the defense industrial base. This statistic highlights that a majority of manufacturers are grappling with material shortages that prevent them from meeting the aggressive delivery schedules required by modern defense contracts. Until these supply chain pressures alleviate, the market's potential for growth remains capped by the physical limitations of manufacturing inputs rather than a lack of capital or requirements.

Key Market Trends

The Emergence of Kinematic and Trajectory-Mimicking Decoys is fundamentally altering the market, moving beyond traditional passive heat sources to active, programmable expendables. These advanced countermeasures utilize digital radio frequency memory and aerodynamic designs to simulate the flight profile of the host aircraft, effectively luring sophisticated missiles away from the platform. Air forces are increasingly prioritizing these intelligent expendables to defeat modern seekers capable of distinguishing simple pyrotechnics from the target. This shift is evidenced by industrial activity; according to The Defense Post, December 2024, in the article 'Leonardo UK to Provide Missile-Luring EW Decoys for US F-35s', the U.S. Navy awarded a $33 million contract to supply BriteCloud active decoys for the F-35 fleet, validating the reliance on these next-generation solutions.

Simultaneously, the Integration with Smart and Autonomous Dispensing Systems is optimizing decoy effectiveness through sensor fusion. Modern defensive suites autonomously detect threats and calculate the precise timing of flare deployment, conserving munitions and maximizing survivability in saturated environments. This trend toward automated management is driving significant capital commitment as nations upgrade legacy fleets with intelligent electronic warfare capabilities. According to Saab, November 2025, in the press release 'Saab receives orders for Arexis system for German Eurofighter', the company secured orders valued at €549 million to equip German aircraft with the Arexis suite, a system designed to integrate AI-driven sensor data to autonomously manage self-protection measures.

Segmental Insights

Based on recent industry analysis, the Pyrophoric Flares segment is identified as the fastest-growing category within the Global Decoy Flares Market. This rapid expansion is primarily driven by the superior operational capabilities of pyrophoric materials, which ignite spontaneously upon contact with air to produce an intense, regulated heat signature. Unlike traditional pyrotechnic countermeasures, these flares offer extended burn durations and optimal spectral coverage while minimizing visible smoke trails. These distinct characteristics make them highly effective against advanced infrared-seeking missile systems, prompting increased procurement by defense agencies for fleet modernization initiatives globally.

Regional Insights

North America maintains a dominant position in the Global Decoy Flares Market, primarily driven by the United States' extensive defense budget and strategic focus on fleet modernization. This regional leadership is underpinned by the continuous upgrading of military aircraft, which necessitates the integration of advanced countermeasure systems to ensure aircrew survivability. The U.S. Department of Defense actively supports this expansion through consistent procurement initiatives aimed at mitigating evolving infrared-guided threats. Additionally, the presence of established defense manufacturers fosters continuous innovation in flare technologies, further solidifying North America’s status as the primary hub for market development and production.

Recent Developments

• In November 2024, a French pyrotechnics manufacturer entered into a strategic partnership with Abu Dhabi Ship Building to equip the Rabdan FA-400 Fast Attack vessel with advanced decoy systems. The collaboration focused on integrating the company’s Sylena LW decoy launching system, which deploys corner reflector and infrared decoy munitions to provide anti-ship missile defense. The agreement was formalized during the Euronaval exhibition in Paris, aiming to merge European countermeasure technology with regional naval platform capabilities to address multifaceted maritime threats.
• In May 2024, a British aerospace and defense company was selected by the U.S. Navy to develop a next-generation airborne decoy countermeasure. The new system, designated as the Dual Band Decoy, is intended to expand on the capabilities of the company's existing fiber-optic towed decoy technology. It incorporates custom integrated circuits to deliver higher performance with reduced size, weight, and power, aimed at disrupting enemy radars and luring missiles away from the platform. This development represents a strategic effort to enhance the survivability of fighter jets in increasingly contested airspaces.
• In February 2024, an international defense electronics company unveiled its latest aerial protection solutions at the Singapore Airshow. The manufacturer highlighted its advanced SPARCS-FLARES, a spectral infrared decoy designed to counter both modern and legacy heat-seeking missiles. These countermeasures were described as a "one-flare solution" featuring low luminance and reduced smoke visibility to enhance aircraft survivability without visually revealing the platform’s position. The showcase emphasized the product's compatibility with a wide range of fixed-wing aircraft and helicopters operating in high-threat environments.
• In January 2024, a German defense contractor secured a significant contract to supply aircraft decoy flares to the country's armed forces. The agreement, valued at nearly €50 million, involved the delivery of the Bispectral Infrared Decoy Improved Efficiency (Birdie) product line. These pyrotechnic countermeasures are designed to simulate the heat signature of aircraft engines, effectively distracting infrared-homing guided missiles. The contract, which covers deliveries through 2029, includes specific flare variants for helicopters, transport planes, and jet fighters, ensuring the continued self-protection of the military's air fleet against surface-to-air and air-to-air threats.

Key Market Players

• Milspec Industries, inc.
• Rheinmetall AG
• Premier Explosives Limited
• Rosoboronexport
• ETIENNE LACROIX TOUS ARTIFICES S.A.
• Owen International
• TARA Aerospace AD
• Armtec Defense Technologies
• Ordtech Military Industries S.A.
• Elbit Systems Ltd.

By Type	By Application	By Distribution Channel	By Region
Pyrotechnic Flares Pyrophoric Flares Others	Fixed Wing Rotary Wing	OEM and Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Decoy Flares Market, By Type:

• Pyrotechnic Flares
• Pyrophoric Flares
• Others

• Decoy Flares Market, By Application:

• Fixed Wing
• Rotary Wing

• Decoy Flares Market, By Distribution Channel:

• OEM and Aftermarket

• Decoy Flares 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