Infrared and Thermal Imaging Systems Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 6.78 Billion
CAGR (2026-2031)	10.02%
Fastest Growing Segment	Software
Largest Market	North America
Market Size (2031)	USD 12.02 Billion

Market Overview

The Global Infrared and Thermal Imaging Systems Market will grow from USD 6.78 Billion in 2025 to USD 12.02 Billion by 2031 at a 10.02% CAGR. Infrared and thermal imaging systems utilize sensors to detect heat radiation emitted by objects, converting this invisible energy into visible images for analysis in low-light or obscured environments. The market is primarily driven by rising defense expenditures for surveillance and night-vision capabilities, alongside the growing adoption of predictive maintenance in industrial sectors to prevent equipment failure. Furthermore, increasing demand for automotive safety features, such as pedestrian detection in advanced driver-assistance systems, supports sustainable growth.

However, the high manufacturing cost of high-performance detectors, particularly those requiring cryogenic cooling, remains a significant challenge that impedes widespread commercial adoption. Additionally, economic fluctuations in major industrial hubs can negatively impact capital investment in these technologies. According to VDMA Machine Vision, in 2024, sales for the image processing industry in Europe were forecast to decline by 10 percent due to reduced demand from the manufacturing sector. This underscores the market's sensitivity to broader industrial economic cycles.

Key Market Drivers

Escalating Global Defense Expenditures and Military Modernization serve as the foremost driver propelling the Global Infrared and Thermal Imaging Systems Market. As geopolitical tensions intensify, nations are aggressively increasing their budgets to enhance night-vision, surveillance, and target acquisition capabilities. This surge in funding is primarily directed towards modernizing infantry equipment and integrating advanced thermal sensors into unmanned aerial vehicles and ground combat platforms. According to the European Defence Agency, September 2025, in the 'Defence Data report for 2024-2025', defense expenditure by the 27 EU Member States reached an unprecedented €343 billion in 2024, reflecting a critical prioritization of military readiness that directly accelerates the procurement of next-generation thermal imagers.

Simultaneously, the Growing Adoption for Industrial Predictive Maintenance and Quality Control acts as a vital commercial catalyst. Manufacturing facilities are increasingly deploying thermal cameras to monitor equipment health, detect overheating components, and ensure production quality without interrupting operations. This shift towards Industry 4.0 relies heavily on thermal data for real-time decision-making, boosting demand for radiometric cameras and automation sensors. According to Teledyne Technologies, October 2025, in the 'Third Quarter Results' press release, the Digital Imaging segment's net sales reached $785.4 million for the third quarter of 2025, driven partially by the strength of industrial automation imaging systems. Underscoring the sector's financial health, according to Seeking Alpha, October 2025, in the article 'Teledyne raises 2025 outlook', the company now projects full-year 2025 sales of $6.06 billion.

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Key Market Challenges

The growth of the Global Infrared and Thermal Imaging Systems Market is significantly impeded by economic fluctuations within major industrial hubs. As these systems are inextricably linked to manufacturing workflows for predictive maintenance and quality assurance, market demand is highly sensitive to the financial health of the industrial sector. During periods of economic deceleration, manufacturers often curtail capital expenditures to preserve liquidity, resulting in the postponement or cancellation of investments in monitoring technologies. This reduction in spending creates a direct bottleneck for market expansion, as equipment suppliers face delayed project implementation and lower sales volumes, preventing the broader adoption of these imaging solutions.

The impact of this industrial slowdown is substantiated by recent market activity which highlights the vulnerability of the sector to economic cycles. According to VDMA Machine Vision, in July 2024, incoming orders for the machine vision sector in Germany decreased by 4.3 percent compared to the same month in the previous year. This specific decline in orders demonstrates how industrial contraction directly dampens demand for imaging technologies. Such instability not only reduces immediate revenue for thermal imaging providers but also creates uncertainty that discourages long-term strategic planning, thereby restraining the overall progress of the market.

Key Market Trends

Integration of AI and Machine Learning Algorithms is rapidly transforming thermal imaging from a passive visualization tool into an autonomous analytic solution. Manufacturers are increasingly embedding neural processing units directly into sensor modules, enabling edge computing capabilities that detect, classify, and track objects in real-time without requiring latency-inducing data transmission to central servers. This shift is critical for applications requiring immediate automated responses, such as unmanned autonomous navigation and complex threat recognition. According to Teledyne FLIR OEM, September 2025, in the 'Teledyne FLIR OEM launches Boson+ IQ thermal imaging development kit at DSEI UK 2025' press release, their new camera module utilizes a processor capable of 50 trillion operations per second to execute advanced AI object detection models directly at the sensor level.

Simultaneously, the Adoption of Short-Wave Infrared (SWIR) in Industry is expanding the market's scope beyond traditional thermal limits. Unlike standard long-wave sensors, SWIR technology utilizes Indium Gallium Arsenide detectors to penetrate obscurants like fog or glass and identify materials based on their chemical properties, facilitating precision sorting and moisture detection in manufacturing. This capability is driving a specialized sub-sector focused on high-fidelity spectral analysis for quality control tasks that were previously impossible with conventional imaging. According to Novus Light Today, August 2025, in the article 'InGaAs Image Sensors Market is expected to reach USD 250.2 million by 2034', the global market for these specialized sensors was valued at USD 142.4 million in 2024, underscoring the growing commercial investment in this distinct spectral technology.

Segmental Insights

The Software segment is recognized as the fastest growing category within the Global Infrared and Thermal Imaging Systems Market. This rapid expansion is primarily driven by the increasing integration of artificial intelligence and machine learning algorithms which automate image analysis and enhance diagnostic accuracy. Industrial sectors are prioritizing predictive maintenance strategies that rely on these digital solutions to interpret thermal data for early fault detection. Consequently, the market focus is shifting from standalone hardware to comprehensive analytics platforms that enable efficient remote monitoring and reporting.

Regional Insights

North America holds a dominant position in the global infrared and thermal imaging systems market, driven largely by substantial investments from the defense and aerospace sectors. The United States Department of Defense actively integrates thermal technologies for surveillance and border security operations, significantly strengthening regional demand. Additionally, the strong presence of key manufacturers supports the widespread adoption of thermal sensors in industrial automation and automotive safety applications. This established infrastructure, combined with continuous government funding for public safety programs, ensures North America remains the leading regional market.

Recent Developments

In October 2024, Lynred announced the development of a prototype 8.5µm pixel pitch thermal imaging sensor, positioning it as a breakthrough in reducing the size of infrared cameras. This new technology allows for a 50% reduction in the volume of thermal imaging modules compared to existing models, facilitating easier integration for original equipment manufacturers. The sensor is specifically targeted at the automotive sector to support future Automatic Emergency Braking and Advanced Driver Assistance Systems. By enabling more compact and efficient thermal solutions, this innovation aims to improve pedestrian detection and vehicle safety in low-light conditions.
In September 2024, HENSOLDT introduced the ARGOS-15, a new airborne imaging system designed for intelligence, surveillance, and reconnaissance missions. Launched at the Africa Aerospace and Defence Expo, this multispectral sensor system features high-definition thermal imaging and image fusion capabilities. The lightweight system is engineered for integration into a variety of airborne platforms, including unmanned aerial vehicles and helicopters. It offers enhanced situational awareness by combining visible and infrared data, allowing operators to detect and identify targets with greater precision across diverse operational environments. The launch underscores the company's focus on advancing optronic technologies for defense applications.
In August 2024, Leonardo DRS received a production order valued at $117 million from the United States Army for next-generation thermal weapon sights. Under the Family of Weapon Sights – Individual contract, the company will deliver uncooled thermal imaging systems that operate as clip-on sights for soldiers. These advanced sights connect wirelessly to helmet-mounted vision systems, enabling rapid target acquisition in both day and night operations. The technology is designed to provide superior imagery in degraded environmental conditions, such as smoke or fog, ensuring enhanced situational awareness and operational effectiveness for military personnel.
In January 2024, Valeo and Teledyne FLIR announced a strategic collaboration to integrate thermal imaging technology into automotive safety systems. The partnership focuses on delivering the first Automotive Safety Integrity Level (ASIL) B thermal imaging technology for advanced driver-assistance systems. This solution aims to enhance night vision capabilities and improve automatic emergency braking performance in low-light and adverse weather conditions. By combining thermal sensors with perception software, the companies intend to create multispectral sensor fusion systems that allow vehicles to detect living objects and obstacles beyond the range of standard headlights.

Key Market Players

Teledyne Technologies Incorporated
Tech Imaging Services, Inc.
L3Harris Technologies, Inc.
Leonardo S.p.A.
Exosens
Opgal Ltd.
BAE Systems plc
Thermoteknix Systems Ltd
Testo SE & Co. KGaA
Fluke Corporation

By Solutions	By Application	By Region
Hardware Software Services	Industrial Security Research & Development Construction Maritime Transportation Law Enforcement Agencies Surveillance Systems Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Infrared and Thermal Imaging Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Infrared and Thermal Imaging Systems Market, By Solutions:

Hardware
Software
Services

Infrared and Thermal Imaging Systems Market, By Application:

Industrial
Security
Research & Development
Construction
Maritime
Transportation
Law Enforcement Agencies
Surveillance Systems
Others

Infrared and Thermal Imaging Systems 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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Infrared and Thermal Imaging Systems Market.

Available Customizations:

Global Infrared and Thermal Imaging Systems Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Infrared and Thermal Imaging Systems Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Infrared and Thermal Imaging Systems Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Solutions (Hardware, Software, Services)

5.2.2. By Application (Industrial, Security, Research & Development, Construction, Maritime, Transportation, Law Enforcement Agencies, Surveillance Systems, Others)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Infrared and Thermal Imaging Systems Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Solutions

6.2.2. By Application

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Infrared and Thermal Imaging Systems Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Solutions

6.3.1.2.2. By Application

6.3.2. Canada Infrared and Thermal Imaging Systems Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Solutions

6.3.2.2.2. By Application

6.3.3. Mexico Infrared and Thermal Imaging Systems Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Solutions

6.3.3.2.2. By Application

7. Europe Infrared and Thermal Imaging Systems Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Solutions

7.2.2. By Application

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Infrared and Thermal Imaging Systems Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Solutions

7.3.1.2.2. By Application

7.3.2. France Infrared and Thermal Imaging Systems Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Solutions

7.3.2.2.2. By Application

7.3.3. United Kingdom Infrared and Thermal Imaging Systems Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Solutions

7.3.3.2.2. By Application

7.3.4. Italy Infrared and Thermal Imaging Systems Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Solutions

7.3.4.2.2. By Application

7.3.5. Spain Infrared and Thermal Imaging Systems Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Solutions

7.3.5.2.2. By Application

8. Asia Pacific Infrared and Thermal Imaging Systems Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Solutions

8.2.2. By Application

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Infrared and Thermal Imaging Systems Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Solutions

8.3.1.2.2. By Application

8.3.2. India Infrared and Thermal Imaging Systems Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Solutions

8.3.2.2.2. By Application

8.3.3. Japan Infrared and Thermal Imaging Systems Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Solutions

8.3.3.2.2. By Application

8.3.4. South Korea Infrared and Thermal Imaging Systems Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Solutions

8.3.4.2.2. By Application

8.3.5. Australia Infrared and Thermal Imaging Systems Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Solutions

8.3.5.2.2. By Application

9. Middle East & Africa Infrared and Thermal Imaging Systems Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Solutions

9.2.2. By Application

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Infrared and Thermal Imaging Systems Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Solutions

9.3.1.2.2. By Application

9.3.2. UAE Infrared and Thermal Imaging Systems Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Solutions

9.3.2.2.2. By Application

9.3.3. South Africa Infrared and Thermal Imaging Systems Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Solutions

9.3.3.2.2. By Application

10. South America Infrared and Thermal Imaging Systems Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Solutions

10.2.2. By Application

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Infrared and Thermal Imaging Systems Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Solutions

10.3.1.2.2. By Application

10.3.2. Colombia Infrared and Thermal Imaging Systems Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Solutions

10.3.2.2.2. By Application

10.3.3. Argentina Infrared and Thermal Imaging Systems Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Solutions

10.3.3.2.2. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Infrared and Thermal Imaging Systems Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Teledyne Technologies Incorporated

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Tech Imaging Services, Inc.

15.3. L3Harris Technologies, Inc.

15.4. Leonardo S.p.A.

15.5. Exosens

15.6. Opgal Ltd.

15.7. BAE Systems plc

15.8. Thermoteknix Systems Ltd

15.9. Testo SE & Co. KGaA

15.10. Fluke Corporation

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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