In addition to increasing demand in industrial and commercial sectors, thermal imaging devices are also used across several security and surveillance applications. Moreover, increasing adoption of integrated solutions across commercial applications would further fuel the growth of the industry. Furthermore, the use of thermal imaging in high-resolution cameras and smartphones is expected to bolster further the growth of the industry.

Thermal imaging application in commercial segment is also poised to experience growth over the next few years. Growth can be attributed to increasing the use of thermal imaging devices across various applications such as surveillance and security, thermography and transportation systems.

Key take aways from the report:

• Defence & military segment captured the largest revenue share of over 45.7% in 2022 and is expected to grow at the fastest CAGR of 7.7% during the forecast period

• North America was the largest regional market in 2022 and accounted for over 32.2% of the market. Growing industrial and commercial sectors are expected to fuel the market growth over the forecast period. The extensive use of thermal imaging sensors in security products and rising demand for safety and surveillance applications is expected to drive demand in Europe. Asia Pacific is also expected to witness significant growth due to the rising defence budgets in the region.

• The market is highly competitive and is characterised by cost minimization strategies by key industry players. The companies place emphasis on continuous innovation and R&D to outpace the competition. In the industry, there is a high degree of integration between the manufacturers and suppliers. Manufacturers focus on global deployment, technological innovation, and unique products to cater to growing demand. Furthermore, increasing focus on scaling production which leads to reduced product cost due to economies of scale is expected to propel demand over the next few years.

• Key players in the industry include BAE Systems Inc., Flir Systems Inc., Raytheon Company, and DRS Technologies Inc. The researchers suggest that optimising manufacturing throughput along with greater product reliability through vertical integration of production activities is expected to be a key growth driver.