Amid rising geopolitical instability, infrared technologies, including SWIR, MWIR, and LWIR, are gaining momentum, driven by substantial government investments in defence.
Axel Clouet, PhD, Senior Market & Technology Analyst at Yole Group said: “Cooled MWIR and LWIR sensors are increasingly deployed in long-range surveillance and counter-drone systems, while the SWIR segment, facing delays in consumer adoption, is shifting its focus toward machine vision and surveillance applications.”
Yole Group announces the release of its new SWIR, MWIR and Cooled Infrared Imaging 2025 report. Based on new investigations, the market research and strategy consulting company provides a comprehensive analysis of the infrared imaging industry across the SWIR, MWIR, and LWIR domains. It includes detailed mappings of application areas, market forecasts by volume and value, the market landscape, and the sensor and associated technologies.
With cooled MWIR and LWIR platforms playing a key role in defence, Yole Group’s report explores current trends in this segment amid rising geopolitical tensions. It also addresses the emergence of low-cost SWIR technologies for consumer and automotive applications, offering updated insights and adoption scenarios that build on previous editions from 2022 and 2023. In addition, this report addresses the increasing demand for accurate market data in defence-related technologies.
Florian Domengie, PhD, Principal Analyst at Yole Group said: “Infrared imaging plays a critical role in defence applications due to its ability to deliver long-range vision under demanding conditions. Whether at night, during adverse weather, or in environments obscured by smoke or dust, infrared technology ensures visibility and target detection. These systems are widely integrated across air, sea, and land platforms, including drones and vehicles, and are commonly used by infantry in most modern military forces.”
SWIR is utilised specifically for laser target designation in airborne optronics. It is also gaining traction in long-range surveillance and counter-Unmanned Aerial System (UAS) applications. SWIR’s ability to provide a reflectance-based imaging channel, combined with its high atmospheric penetration, makes it particularly valuable in challenging operational conditions.
Cooled MWIR remains a cornerstone of the defence infrared industry. It supports thermal imaging across a broad spectrum of military systems, from gimbals and targeting pods to missile seekers and air defence platforms. Similarly, Cooled LWIR is used in many of the same systems, particularly in ground vehicle optronics, where its superior performance through smoke and dust is critical. However, LWIR may face increasing competition from uncooled microbolometers, which offer lower costs and are improving their performance levels. LWIR sensors still carry higher price points than MWIR ones.
Since the onset of the war in Ukraine, capital expenditures by defence OEMs have risen significantly, fuelled by increased government budgets and procurement contracts. Alongside this growth, Yole Group’s analysts have identified a surge in mergers and acquisitions (M&A) between 2022 and 2024, reshaping the competitive landscape. These consolidations are driving vertical integration across the industry. For example, Lynred’s acquisition of NIT and Exosens’ acquisition of Xenics have positioned the two companies as direct competitors in the SWIR segment.
Simultaneously, a new generation of ‘software-defined’ defence companies is emerging. Focused on the intersection of AI, drone technology, and counter-UAS systems, firms such as Anduril, Shield AI, and Palantir are attracting significant private investment. This new ecosystem is accelerating innovation in defence, challenging traditional players, and reshaping the industry’s future direction.
The market is far from stabilising because of the unstable geopolitical context which is reinforcing local supply chains. Yole Group’s imaging analysts continue their investigations, tracking innovations, supply chain developments, and strategic moves by the industry leaders.
