According to the new market research report from Marketsandmarkets on thermal imaging to 2023, the market is expected to be worth USD 4.04 billion by 2023 from USD 2.72 billion in 2017, at a CAGR of 6.73% between 2018 and 2023. Reduction in the price of thermal imaging products, the increasing adoption of thermal imaging in perimeter security, and penetration in machine vision applications are driving the growth of this market.
Owing to the increase in need for thermal inspections and monitoring in residential and commercial sectors, the use of thermal imaging cameras is on the rise. A thermal imaging camera provides insights into home insulation systems, locates air leaks, spots inadequate insulation, and so on. Additionally, these cameras have been used in perimeter security and tracking applications in most countries around the globe. Cameras accounted for the largest share of ~52% of the overall thermal imaging market in 2017.
The market for the monitoring and inspection application is expected to grow at the highest CAGR owing to the penetration of low-cost and high-quality thermal imaging cameras in home automation, medical, food processing, and ADAS.
The thermal imaging market is dominated by the aerospace and defence vertical owing to the growing need for border security for law enforcement. Moreover, thermal imaging scopes and defence solutions conform to the strictest military standards for deployment (land, sea, and air). These solutions are used for thermal scopes, weapon sights and stations, gimbals, UAVs, naval observation, IR sensors, and driver vision enhancers (DVEs) for tanks and military vehicles.
North America is likely to continue to lead the thermal imaging market; it accounted for the largest share of the global thermal imaging market in 2017. Growing demand for smartphone-based devices and the increasing adoption of thermal imaging in commercial and home automation are driving the growth of the thermal imaging market in the region. Owing to the presence of thermal imaging product manufacturers and R&D centres in the region, demand for thermal imaging is high in North America.
The report profiles the most prominent and promising players in the thermal imaging market. The competitive landscape of the market presents an interesting picture of the strategies adopted by a large number of players. The key players in this industry are Flir Systems, Fortive, Axis Communications, Leonardo, BAE Systems, L3 Technologies, United Technologies, Sofradir, Testo, Xenics, and Seek Thermal, amongst others.