North America Infrared Search & Track (IRST) System Market By Component (Scanning Head, Processing Unit, Control & Display Unit), By End User (Civil, Defense), By Platform (Airborne, Naval, Land, Others), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview:

North America Infrared Search & Track (IRST) System Market was valued at USD 4.43 Billion in 2024 and is expected to reach USD 6.13 Billion by 2030 with a CAGR of 5.56% during the forecast period. North America Infrared Search & Track (IRST) system market is evolving rapidly as defense forces emphasize advanced detection capabilities to counter stealth aircraft and missile threats. Growth is being propelled by rising investments in next-generation fighter aircraft, the increasing importance of passive surveillance technologies, and the need for systems that enhance survivability in contested airspaces. Drivers include the integration of IRST systems into both manned and unmanned platforms, growing emphasis on multi-sensor fusion to strengthen situational awareness, and demand for precision targeting in complex combat environments. Key trends shaping the market include miniaturization of IRST systems for compatibility with smaller aircraft, development of AI-powered threat detection algorithms for faster decision-making, and the emergence of modular architectures that enable scalable upgrades.

Market Drivers

Growing Defense Spending

Rising defense budgets are one of the most significant forces fueling the demand for IRST systems. With nations placing greater emphasis on strengthening their military capabilities, a substantial portion of these budgets is being allocated to the development and procurement of advanced surveillance and detection technologies. IRST systems are gaining priority because they offer passive tracking solutions, which are highly valuable against stealth aircraft and advanced missile threats that traditional radar systems may struggle to detect. The allocation of funds towards modernization programs allows for large-scale integration of IRST technologies into new and existing fighter jets, helicopters, and naval platforms. This rise in expenditure is also facilitating collaborative projects between defense contractors and research organizations, accelerating innovation in infrared sensor sensitivity, long-range tracking, and target classification. For instance, United States led global military spending in 2023, allocating $916 billion, which accounted for over 40% of the world’s total military expenditure of $2.4 trillion. This represented 3.5% of the U.S. GDP.

Increasing Focus on Air Force Modernization

Air force modernization is another major factor driving the adoption of IRST systems. Modern air combat scenarios require a combination of stealth, agility, and advanced detection tools, and this has placed infrared search and track systems at the core of aircraft upgrade programs. Defense organizations are equipping both existing and new aircraft with IRST technology to enhance situational awareness, enabling pilots to identify and engage threats more effectively in radar-denied environments. This modernization wave is not only about integrating advanced avionics and weapon systems but also about ensuring survivability against adversaries that are deploying stealth platforms. IRST’s ability to operate passively without emitting signals makes it a critical element in securing air superiority while avoiding detection. As air forces replace or upgrade legacy fleets, IRST solutions are being embedded as standard components in next-generation fighters, unmanned aerial vehicles, and reconnaissance aircraft. For instance, the U.S. Air Force’s 2026 budget cuts F-35 purchases to 24, adds 21 F-15EXs, and allocates $3.5 billion to the new F-47 sixth-generation fighter. B-21 production is accelerated, 162 A-10s will retire early, and F-22 upgrades continue. F-35 funds focus on Block 4 upgrades and spares, while F-15EX buys support long-range capabilities.

Rising Demand for Passive Surveillance Technologies

The increasing demand for passive surveillance solutions is significantly boosting the adoption of IRST systems. Unlike radar, which actively emits signals and risks detection by adversaries, IRST operates silently, providing stealthy monitoring capabilities. This passive functionality makes it indispensable in modern warfare scenarios where detection avoidance is critical. With the growing prevalence of stealth aircraft and electronic countermeasures designed to evade radar, IRST systems provide a reliable alternative for tracking and targeting in highly contested environments. Militaries are prioritizing technologies that enhance survivability while maintaining a tactical advantage, and passive surveillance directly supports this objective. The demand for such systems is also linked to the trend of multi-sensor fusion, where data from IRST is combined with radar, electronic warfare tools, and satellite feeds to create a more accurate operational picture.

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Key Market Challenges

High Development and Integration Costs

One of the major challenges facing the IRST system market is the significant cost associated with research, development, and integration. These systems require highly sensitive infrared sensors, advanced algorithms for threat identification, and complex hardware designed to operate across a wide range of environmental conditions. The process of engineering, testing, and certifying such technologies demands heavy financial investment, which can slow down procurement cycles and limit adoption to well-funded programs. Integration is another cost-intensive aspect, as IRST systems must be seamlessly embedded into diverse platforms, including fighters, helicopters, and naval vessels, each requiring specialized modifications. Maintaining accuracy across varying conditions such as high-speed maneuvers, weather interference, and thermal clutter further adds to the development expense.

Competition with Advanced Radar and Electronic Warfare Systems

Despite their unique advantages, IRST systems face stiff competition from advanced radar and electronic warfare solutions that continue to evolve at a rapid pace. Radars are being developed with enhanced stealth detection capabilities, greater range, and improved resistance to countermeasures, reducing the gap between active and passive detection technologies. At the same time, electronic warfare systems are offering dynamic threat detection and suppression features, providing militaries with highly versatile solutions. This technological rivalry can sometimes shift procurement preferences toward radar or electronic warfare platforms, especially when cost-efficiency and multi-functionality are considered. Another issue is interoperability, as defense forces often prioritize systems that can integrate smoothly into existing command-and-control networks, where radar and electronic warfare systems already dominate.

Key Market Trends

Integration of AI and Machine Learning

The integration of artificial intelligence and machine learning into IRST systems is emerging as a defining trend in the market. Modern air combat environments are characterized by high-speed maneuvers, cluttered thermal signatures, and rapidly evolving threats, which demand faster and more accurate decision-making. AI-powered algorithms enable IRST systems to filter out irrelevant signals, distinguish between real threats and false positives, and prioritize multiple targets with unprecedented speed. This advancement significantly enhances situational awareness, reduces pilot workload, and improves the accuracy of targeting in dynamic environments. Machine learning allows these systems to continuously adapt and improve their detection capabilities through exposure to diverse scenarios, making them increasingly reliable over time. The push for AI integration is also being supported by parallel developments in high-performance computing and miniaturized processors, which allow sophisticated analytics to be performed in real time. For instance, U.S. Air Force has awarded Boeing a $20 billion contract to develop the F-47, its next-generation manned fighter under the NGAD program, designed for stealth, long-range penetration, and coordination with drone fleets. The fighter will surpass current capabilities of the F-35 and F-22, serving as a key platform in potential conflicts with China. Early prototypes have been in test flights for five years, with a future unmanned version planned to integrate advanced AI.

Miniaturization and Modular Architectures

Miniaturization and the development of modular architectures are shaping the evolution of IRST systems. Modern defense platforms are demanding compact and lightweight solutions that can be integrated into a wide variety of aircraft, including unmanned aerial vehicles and smaller fighter jets. Advances in infrared sensor technology and microelectronics are making it possible to reduce the size and weight of IRST units without compromising performance. Modular designs are equally transformative, allowing defense forces to customize IRST systems based on mission requirements and enabling easier upgrades when new capabilities are developed. This flexibility ensures that militaries can adapt quickly to emerging threats without overhauling entire platforms. Miniaturization also expands opportunities for deployment across naval and land-based systems, extending the operational reach of IRST technology.

Multi-Sensor Fusion for Enhanced Situational Awareness

Another key trend is the growing emphasis on multi-sensor fusion, where IRST data is combined with inputs from radar, electronic warfare systems, and satellite-based tracking to create a comprehensive picture of the battlespace. Modern combat environments require rapid and precise decision-making, and no single system can provide complete coverage against all threats. By integrating IRST into multi-sensor networks, defense forces can leverage the strengths of passive infrared detection alongside the range and versatility of other surveillance systems. This fusion not only reduces blind spots but also minimizes the chances of false positives and improves target tracking accuracy. It is particularly important in contested environments where adversaries employ stealth tactics and electronic countermeasures to disrupt conventional detection. Multi-sensor fusion is also enabling greater interoperability between manned and unmanned platforms, creating connected ecosystems where IRST plays a vital supporting role.

Segmental Insights

Component Insights

In 2024, the scanning head emerged as the dominant component in North America Infrared Search & Track (IRST) system market, driven by its critical role as the primary sensor element responsible for detecting and tracking infrared signatures. The scanning head serves as the foundation of the entire system, capturing thermal emissions from aircraft, missiles, and other threats, and feeding accurate data to the processing unit for analysis. Its dominance is attributed to the increasing focus on advanced detection capabilities in modern combat environments, where stealth technology and radar-evading platforms have become more prevalent. Continuous advancements in infrared sensor resolution, cooling technologies, and wide field-of-view scanning mechanisms have enhanced the performance and reliability of scanning heads, making them indispensable for both air and naval applications.

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Country Insights

In 2024, the United States dominated North America Infrared Search & Track (IRST) system market, supported by extensive investments in defense modernization and the strong focus on integrating advanced surveillance systems into next-generation aircraft. The country has prioritized the deployment of IRST technology across multiple platforms, including fighter jets, naval ships, and unmanned systems, to counter stealth threats and enhance situational awareness in contested environments. The scale of procurement programs, coupled with ongoing upgrades of existing fleets, has ensured that the United States leads the market. The adoption of advanced scanning heads and processing units has further reinforced its position, with defense strategies emphasizing passive detection as a critical element of modern warfare.

The second-largest market in 2024 was Canada, where IRST adoption is being driven by efforts to enhance aerospace and defense capabilities through fleet upgrades and advanced detection solutions. The emphasis on equipping aircraft with passive surveillance technologies has supported steady growth, with focus on interoperability and long-range threat detection. Investments in modernization initiatives have also contributed to the expansion of IRST applications, allowing Canada to strengthen its position as a significant contributor to the regional market. For instance, Canada’s 2024-25 defence spending is projected at 1.37% of GDP, with 18.6% for major equipment. The five-year average is forecasted at 1.44%, peaking at 1.49% in 2025-26. While the ONSAF target of 1.76% may not be met, NATO’s 20% equipment allocation is expected.

Recent Developments

• ​In 2024, Taiwan signed a USD 345.5 million deal with the US to equip its 66 F-16V fighter jets with advanced IRST systems, boosting target detection and tracking against China’s fifth-generation aircraft by identifying their heat signatures despite low visibility.
• In 2024, the US Navy completed initial flight testing of the Northrop Grumman LITENING targeting pod on F/A-18 E/F Super Hornet aircraft, advancing its integration into fleet operations. The electro-optical and infrared pod supports precision targeting and surveillance with a modular design for upgrades, while features like digital video and autonomous tracking improve situational awareness and effectiveness in maritime missions.
• In 2024, the U.S. Air Force’s F-22 Raptor is set to gain advanced IRST capability with Lockheed Martin’s TacIRST sensors, enhancing detection of stealth threats without electronic warfare. The Infrared Defensive System (IRDS) will use a distributed array of compact sensors embedded in the aircraft, though exact details remain undisclosed.
• In 2025, the U.S. Navy declared Initial Operational Capability for Lockheed Martin’s IRST Block II on F/A-18E/F Super Hornets, enabling long-range passive detection and tracking of airborne threats even in radar-challenged environments, enhancing situational awareness and survivability.

Key Market Players

• Leonardo S.P.A.
• Thales Group
• Rheinmetall AG
• Aselsan A.S.
• Safran S.A.
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• HGH Systèmes Infrarouges
• Tonbo Imaging Private Limited
• Raytheon Technologies Corporation 

Report Scope:

In this report, North America Infrared Search & Track (IRST) System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           North America Infrared Search & Track (IRST) System Market, By Component:

o    Scanning Head

o    Processing Unit

o    Control & Display Unit

•           North America Infrared Search & Track (IRST) System Market, By End User:

o    Civil

o    Defense

•           North America Infrared Search & Track (IRST) System Market, By Platform:

o    Airborne

o    Naval

o    Land

o    Others

•           North America Infrared Search & Track (IRST) System Market, By Country:

o    United States

o    Canada

o    Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in North America Infrared Search & Track (IRST) System Market.

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North America Infrared Search & Track (IRST) System Market report with the given market data, TechSci Research offers customizations according to the 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).