Military Thermal Imaging Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology Type (Fixed, Portable), By Application Type (Security and Surveillance, Monitoring and Inspection, Target Detection, Others), By End User Type(Army, Navy, Air Force), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.47 Billion
CAGR (2026-2031)	6.34%
Fastest Growing Segment	Portable
Largest Market	North America
Market Size (2031)	USD 7.91 Billion

Market Overview

The Global Military Thermal Imaging Market will grow from USD 5.47 Billion in 2025 to USD 7.91 Billion by 2031 at a 6.34% CAGR. Military thermal imaging comprises optoelectronic technologies that detect infrared radiation to visualize environments in total darkness, smoke, or adverse weather, thereby facilitating effective surveillance, targeting, and reconnaissance. The market is primarily propelled by the critical demand for continuous situational awareness and the ongoing modernization of dismounted soldier systems to maintain tactical superiority. This growth trajectory is further supported by robust industrial performance and sustained defense investment in sensor capabilities. According to the Aerospace Industries Association, the U.S. aerospace and defense industry generated $995 billion in combined sales in 2024, underscoring the substantial financial framework enabling the procurement of these advanced optical technologies.

Despite these favorable conditions, the market faces a significant impediment regarding stringent export regulations and compliance complexities. Governments frequently classify high-performance thermal sensors as sensitive dual-use assets, subjecting them to rigorous controls such as the International Traffic in Arms Regulations. These legal barriers often delay cross-border procurement contracts and restrict the transfer of technology to international allies. Consequently, navigating these restrictive trade frameworks remains a persistent challenge that limits the addressable market and could impede the global proliferation of these critical defense capabilities.

Key Market Drivers

Increasing global defense budgets and soldier modernization initiatives are the primary engines of growth for the military thermal imaging sector. Nations are prioritizing infantry upgrades to ensure operational effectiveness in low-light conditions, focusing on equipping dismounted soldiers with advanced thermal sights. According to the Stockholm International Peace Research Institute (SIPRI), April 2024, in the 'Trends in World Military Expenditure, 2023' fact sheet, total global military expenditure reached $2443 billion in 2023, creating a massive funding pool for these programs. This financial influx directly enables large-scale equipment contracts. For instance, according to Leonardo DRS, in 2024, the company secured a $117 million order for uncooled thermal weapon sights for the U.S. Army, highlighting the sustained momentum in soldier lethality upgrades.

The rapid integration of thermal sensors into Unmanned Aerial Systems (UAS) serves as the second pivotal driver. Modern warfare relies on drones for intelligence and reconnaissance, necessitating thermal payloads that function effectively in obscured environments. This demand extends from strategic UAVs to nano-drones used by squads for immediate situational awareness. Strengthening this trend, according to Teledyne FLIR, October 2024, in the 'Teledyne FLIR Defense Wins $91 Million Contract from U.S. Army for Black Hornet 4 Nano-Drones' announcement, the company was awarded a contract worth up to $91 million for nano-UAS equipped with thermal sensors. These investments underscore the critical role of thermal-equipped drones in enhancing tactical decision-making.

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Key Market Challenges

Stringent export regulations and compliance complexities constitute a primary obstacle restricting the expansion of the Global Military Thermal Imaging Market. Governments classify high-performance infrared sensors as sensitive dual-use technologies, necessitating rigorous oversight under frameworks like the International Traffic in Arms Regulations. These measures impose lengthy licensing procedures and administrative burdens that delay the execution of cross-border contracts. Such bureaucratic friction disrupts supply chains and discourages international allies from procuring advanced thermal solutions, thereby shrinking the potential customer base for manufacturers who rely on foreign markets for growth.

The financial impact of these regulatory bottlenecks is substantial given the industry's heavy reliance on international trade. According to the Aerospace Industries Association, U.S. aerospace and defense exports reached a total value of $138.7 billion in 2024. This significant export volume highlights the magnitude of revenue directly exposed to complex trade compliance frameworks. Consequently, the inability to swiftly navigate these legal barriers prevents companies from capitalizing on global demand, ultimately stifling the market's broader proliferation and revenue potential.

Key Market Trends

The integration of Artificial Intelligence (AI) for Automated Target Recognition (ATR) is fundamentally reshaping the market by enabling thermal sensors to autonomously detect and classify threats, thereby reducing the cognitive burden on operators. This technological shift allows optical systems to process visual data at the edge, identifying targets in cluttered environments faster than human capability permits. Validating this focus on software-defined capabilities, according to DefenseScoop, September 2024, in the 'Anduril integrates AI tech into Army IVAS headsets' article, Anduril Industries announced the integration of its Lattice AI platform into the U.S. Army's Integrated Visual Augmentation System, a program projected to be worth as much as $21.9 billion. This development highlights the industry's pivot toward intelligent thermal solutions that deliver real-time actionable intelligence rather than simple imagery.

Simultaneously, the market is witnessing a decisive adoption of multi-sensor fusion, specifically the combination of thermal imaging with image intensification (night vision) to provide superior situational awareness in diverse lighting conditions. This architecture overlays thermal signatures onto standard night vision feeds, allowing soldiers to detect heat sources through smoke or camouflage while maintaining the textural detail of the environment. A notable example of this demand is evident in recent procurement activities; according to Army Technology, April 2024, in the 'L3Harris wins $256m order to continue ENVG-B production for US Army' report, L3Harris Technologies received a $256 million order for its Enhanced Night Vision Goggle-Binocular, which directly leverages this fused sensing capability. Such contracts underscore the transition from standalone thermal sights to integrated, multi-spectral vision systems.

Segmental Insights

Based on recent industry analysis, the Portable segment is recognized as the fastest-growing category within the Global Military Thermal Imaging Market. This rapid expansion is primarily fueled by extensive soldier modernization initiatives undertaken by defense ministries globally to enhance the situational awareness of dismounted infantry. Technological advancements in uncooled thermal sensors have significantly reduced the size, weight, and power requirements of these devices, facilitating their integration into handheld and helmet-mounted systems. Consequently, military forces are increasingly adopting these lightweight solutions to ensure superior target acquisition and surveillance capabilities in diverse operational environments.

Regional Insights

North America maintains a dominant position in the global military thermal imaging market, largely attributed to significant defense budget allocations within the United States. The U.S. Department of Defense actively drives market growth through extensive procurement initiatives aimed at enhancing situational awareness for ground troops and aerial vehicles. This leadership is further reinforced by the concentration of established defense contractors in the region who focus on research and development. Consequently, the continuous integration of thermal sights and surveillance systems into military operations secures North America's status as the primary revenue generator in this sector.

Recent Developments

• In January 2025, L3Harris Technologies secured a contract valued at $263 million from the U.S. Army to continue the full-rate production of the Enhanced Night Vision Goggle – Binocular (ENVG-B). This order marked the second delivery under the program's production contract and underscored the military's ongoing demand for advanced vision systems. The ENVG-B system features fused white phosphor and thermal imaging technologies, which provide soldiers with improved situational awareness and target detection capabilities in low-light and obscured environments. The company highlighted that these systems also function as communication hubs, driving connectivity within the Army's broader integrated tactical network.
• In November 2024, Teledyne FLIR announced a collaboration with Red Cat Holdings to supply advanced thermal imaging technology for the U.S. Army’s Short Range Reconnaissance program. Under this agreement, the company was selected to integrate its Hadron 640R+ longwave infrared camera module into Red Cat’s Black Widow small unmanned aircraft system. This dual thermal-visible imaging payload was designed to provide soldiers with high-performance nighttime reconnaissance capabilities in a compact form factor. The partnership aimed to enhance the operational effectiveness of the Black Widow drone by equipping it with industry-leading thermal sensitivity and resolution for day and night missions.
• In October 2024, Thales was awarded a contract by the Government of Canada to supply Sophie Ultima handheld thermal imagers to the Canadian Armed Forces. This acquisition was part of the nation’s Night Vision Systems Modernization project, which aims to equip troops with high-performance sensing capabilities for complex operational environments. The Sophie Ultima device features a high-performance infrared channel that enables the recognition of tanks at ranges of up to six kilometers. The company noted that these units would be manufactured and maintained at its facility in Montreal, reinforcing the local defense industrial base while providing soldiers with critical tactical advantages.
• In September 2024, HENSOLDT launched the ARGOS-15, a new generation airborne imaging system, during the Africa Aerospace and Defence Expo. The system was designed to offer advanced multispectral sensor capabilities for intelligence, surveillance, and reconnaissance missions on both manned and unmanned platforms. It features a thermal imaging camera combined with daylight sensors and unique image fusion technology, allowing for optimal visibility in challenging light and weather conditions. The company stated that the ARGOS-15 was developed to meet the rigorous demands of modern defense applications, providing operators with detailed aerial video analysis and improved situational awareness.

Key Market Players

• Teledyne Technologies Incorporated
• L3Harris Technologies, Inc
• BAE Systems plc
• Leonardo S.p.A
• RTX Corporation
• Thales SA
• Safran S.A.
• HGH Infrared Systems
• Excelitas Technologies Corp
• Lockheed Martin Corporation

By Technology Type	By Application Type	By End User Type	By Region
Fixed Portable	Security and Surveillance Monitoring and Inspection Target Detection Others	Army Navy Air Force	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Military Thermal Imaging Market, By Technology Type:

• Fixed
• Portable

• Military Thermal Imaging Market, By Application Type:

• Security and Surveillance
• Monitoring and Inspection
• Target Detection
• Others

• Military Thermal Imaging Market, By End User Type:

• Army
• Navy
• Air Force

• Military Thermal Imaging 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