Airborne Optronics Market Report 2025

This Airborne Optronics market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The airborne optronics market size has grown rapidly in recent years. It will grow from $2.06 billion in 2024 to $2.41 billion in 2025 at a compound annual growth rate (CAGR) of 16.7%. The growth in the historic period can be attributed to economic growth, military modernization, rise in defense budgets, increased demand from the commercial sector, extensive r&d activities.

The airborne optronics market size is expected to see rapid growth in the next few years. It will grow to $4.27 billion in 2029 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to geopolitical tensions, rising civilian uavs, rising space exploration, rise in counterterrorism. Major trends in the forecast period include advanced image stabilization, electro-optical (eo) and infrared (ir) fusion, laser technology advancements, ai and machine learning integration, hyperspectral imaging.

The surge in the demand for the expansion of both commercial and military aircraft fleets is anticipated to drive the growth of the airborne optronics market. The expansion of aircraft fleets is crucial for countries to counter potential threats from neighboring nations. Airborne optronics, specialized systems supporting airborne sensors for both manned and unmanned aircraft, play a critical role in commercial and military fleets. Statistics from Ch Aviation show a notable 13% increase in the global aircraft fleet compared to the previous year, reaching a total of 28,289 aircraft by January 2022, of which 22,799 were active and 5,490 were grounded. Notably, North America and Oceania boasted the highest percentages of active aircraft fleets at 86% and 85%, respectively. This increasing need to expand aircraft fleets, both for commercial and military purposes, is a key driver behind the growth of the airborne optronics market.

The significant upsurge in air passenger traffic is set to further propel the airborne optronics market. The rise in air passenger traffic is evidenced by the considerable growth in revenue passenger kilometres (RPKs), indicating the total demand for air travel. According to a report by IATA in June 2022, RPKs displayed a growth of 78.7% from April 2021 to April 2022, slightly surpassing the 76% increase recorded from March 2022. Airborne optronics systems aid in managing air traffic by utilizing SATCOM for verifying satellite-based air traffic services datalink. The surge in air passenger traffic is serving as a driving force behind the growth of the airborne optronics market.

Technological advancements stand as a significant trend gaining momentum in the airborne optronics market. Major companies operating in this sector are introducing cutting-edge technologies to maintain their market positions. For example, in April 2022, Northrop Grumman Corporation introduced the RQ-4D Phoenix Global Hawk, which features advanced sensor technologies. Comprising five aircraft and ground support systems, this technology aims to collect crucial information to assist allied commanders in making rapid and informed decisions for global security during wartime. This specially designed alliance ground surveillance system provides critical Joint ISR (Intelligence, Surveillance, and Reconnaissance) situational awareness to 30 member countries of NATO (North Atlantic Treaty Organization). Such technological advancements play a pivotal role in strengthening the capabilities of airborne optronics for defense and security purposes.

Major companies in the airborne optronics market are concentrating on new technologies to maintain their position in the industry. An airborne electro-optical system (EOS) is a sensor-based technology installed on aircraft that employs optical and infrared imaging to detect, track, and identify targets or environmental features from the air. For example, in October 2022, HENSOLDT South Africa, a defense and security electronics company based in South Africa, launched the ARGOS-8 airborne electro-optical system (EOS). The ARGOS-8 is an 8-inch-class electro-optical system weighing less than 6 kg. It utilizes HENSOLDT’s specialized laser products, which include a laser designator and rangefinder, similar to those found in larger EO systems. Equipped with both visible day and cooled infrared sensors, it allows for operations during both day and night for intelligence, surveillance, and reconnaissance (ISR) as well as intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) missions.

The acquisition of Northrop Grumman's federal IT and mission support services by the US-based private equity firm Veritas Capital represents a significant development. This acquisition was valued at $3.4 billion, and Veritas Capital plans to merge the Northrop Grumman business with Peraton, a company within its portfolio specializing in providing mission-critical technology solutions to government customers. Northrop Grumman is a renowned US-based manufacturer of aerospace and defense intelligence devices and optronics. This strategic move by Veritas Capital aims to consolidate expertise and resources in the field of optronics and mission support services, further enhancing their position in the market.

Major companies operating in the airborne optronics market include Leonardo S.p.A, Thales Group, Teledyne Technologies Incorporated, Safran S.A, Elbit Systems Ltd., Lockheed Martin Corporation, Stark Aerospace Inc., L3Harris Technologies Inc., Hensoldt AG, Collins Aerospace, Israel Aerospace Industries, Rafael Advanced Defense Systems Ltd., Kappa Optronics GmbH, Bae Systems plc, Resonon Inc., Excelitas Technologies Corporation, Osi Optoelectronics Inc., Leidos Holdings Inc., Aselsan A.Ş, Intevac Inc., Ximea GmbH, Headwall Photonics Inc., Cubert GmbH., Maxar Technologies Inc., Northrop Grumman Corporation, RTX Corporation, General Dynamics Corporation, Honeywell Aerospace, Pratt & Whitney, Rolls-Royce Holdings plc, General Electric Aviation, Spirit AeroSystems Inc., GKN Aerospace Services Limited, Triumph Group Inc.

Airborne optronics encompass hardware devices that manipulate light to perform diverse functions, including converting electric energy to light, transforming optical signals into electrical currents for sensing, and more. Integrated into aircraft and other aerial platforms, these devices enhance safety and precision. Airborne optronics serve various purposes in aerial platforms, such as surveillance, identification, intelligence collection, and targeting.

The primary aircraft types in the airborne optronics market include fixed-wing, rotary-wing, urban air mobility, and unmanned aerial vehicles. Fixed-wing aircraft are airplanes with stationary wings, utilizing airborne optronics for tasks such as image capture, threat detection, and countermeasure strikes. Technologies employed encompass multispectral and hyperspectral, involving systems such as reconnaissance, targeting, search and track, surveillance, warning and detection, countermeasure, navigation and guidance, and special mission systems. Applications span commercial, military, and space sectors, with end users including original equipment manufacturers (OEM) and aftermarket.

The airborne optronics market research report is one of a series of new reports that provides airborne optronics market statistics, including airborne optronics industry global market size, regional shares, competitors with an airborne optronics market share, detailed airborne optronics market segments, airborne optronics market trends and opportunities, and any further data you may need to thrive in the airborne optronics industry. This airborne optronics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the airborne optronics market in 2024. North America is expected to be the fastest growing region in the forecast period. The regions covered in the airborne optronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the airborne optronics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The airborne optronics market consists of sales of laser warning receivers, laser countermeasures, laser range finders, sighting systems, AFV fire control and navigation systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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