The market for infrared cameras is slated to grow at a 8.7% CAGR through 2026, reaching $1.37 billion, according to a report by Allied Market Research titled "Infrared Camera Market by Technology (Cooled IR Camera and Uncooled IR Camera), and End Use (Defense & Military, Industrial, Commercial Surveillance, Automotive, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026."
The report said a surge in end use cases of security and surveillance along with increase in adoption in quality control and inspection, drive the growth of the global infrared camera market. While high initial costs for acquisition and maintenance may be limiting factor, the increasing adoption for short-wave infrared and the rise in prominence in commercial end use cases will create new opportunities for the next few years.
Based on technology, the uncooled IR cameras segment accounted for the largest market share in 2019, contributing to more than three-fifths of the global infrared camera market, and is expected to maintain its lead status throughout the forecast period. This is attributed to its lower cost, fewer moving parts and longer service life as compared to cooled alternatives. However, the cooled IR cameras segment is expected to grow at the highest CAGR of 10.6% from 2019 to 2026, owing to superior image quality provided by these cameras.
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Based on end use, the defense and military segment contributed to the highest market share in 2019, contributing to more than one-fourth of the global infrared camera market, and is estimated to maintain its dominance in terms of revenue by 2026. This is due to surge in government initiatives for usage of infrared cameras in this sector for gaining superior visual range for identifying targets in different lighting and weather conditions. Moreover, the commercial surveillance segment is estimated to maintain the fastest CAGR of 12.6% during the forecast period, due to implementation in long range and mid-range surveillance.
Based on region, Asia-Pacific held the major market share, comprising nearly one-fourth of the total market share of the global infrared camera market in 2019, and it is estimated to maintain its leading share throughout the forecast period. This region is expected to grow at a CAGR of 9.9% from 2020 to 2026, largely due to accessibility of high-end enhanced technologies and rise of manufacturing industries. North America held the second-highest share in terms of revenue in 2019 and will maintain its position by 2026.