Thermal imaging and sensing sector hits $7 billion milestone, driven by China

28 Aug 2025

Yole highlights regional market dynamics; new event at CIOE 2025 to focus on thermal imaging developments.

Tech market analysis firm Yole Group has announced the publication of its latest photonics technologies-related report Thermal Imaging & Sensing 2025. It is billed as providing “a detailed review of the global infrared imaging ecosystem, its evolving applications, and the competitive environment shaped by geopolitical and regional shifts”. Yole Group has been investigating imaging technologies for several years.

The report is part of Yole Group’s imaging collection. Combined with SWIR, MWIR, and Cooled Infrared Imaging 2025, it offers a comprehensive overview of the infrared imaging industry. Its stated highlights include:

• The thermal imaging and sensing market generated more than $7 billion in 2024, supported by a diverse ecosystem.
• Chinese players produced 60% of the thermal image sensors sold worldwide in 2024. The defense & aerospace segment is projected to reach nearly $4 billion by 2030, with a significant demand for integration in light UAVs.
• Automotive market growth is driven by new U.S. AEB regulations and rising adoption of night vision in Chinese high-end cars.

Axel ClouetPhD, Senior Analyst, Imaging at Yole Group, commented, “The infrared imaging industry is supported by a diverse ecosystem of players and technology platforms that span short-, medium-, and long-wave infrared radiation. Infrared technologies are now used across defense, surveillance, industrial, and automotive markets, making them a strategic technology heavily dependent on political decisions. Among these, uncooled long-wave infrared imaging, the focus of this last report, represented the largest volume and generated more than seven billion dollars in revenue.”

While western countries are placing strong expectations on automotive adoption, Yole Group’s analysts observe that most of the growth in volumes is coming from China, where industrial and consumer segments remain dynamic. In contrast, Western players are concentrating their efforts on defense, surveillance, and other high-value applications.

‘Regional decoupling’

In the new report, Yole Group’s analysts detail market opportunities across defense, aerospace, automotive, industrial, and consumer segments:

• Defense & aerospace will reach almost $4 billion by 2030, driven by new light UAV procurement cycles and their strategic importance highlighted by ongoing conflicts.
• Automotive is on the rise, with revenues expected to hit $285 million by 2030, supported by U.S. AEB regulations and increasing deployment of night vision in Chinese high-end vehicles.
• Industrial & consumer markets are slowing in Europe and North America but remain highly attractive in China, where local manufacturers have established large production capacities.

Yole Group’s analysts also highlight the impact of regional decoupling: although Chinese players Hikmicro and Raytron expanded rapidly in 2024, Western companies faced saturated local markets. Hikmicro and Raytron will present their vision of this industry and detail their expertise with a dedicated presentation at the Yole Group Forum on September 10. This decoupling underscores the strategic role of thermal imaging in global supply chains and its direct link to political and defense agendas.

Dedicated program at CIOE 2025

Yole has also announced a dedicated Thermal Imaging & Sensing program at CIOE 2025, due to take place in Shenzhen, China, between 10–12 September, 2025). Developed in partnership with CIOE, the program will bring together leading players, innovators, and analysts to discuss market dynamics, technology roadmaps, and future opportunities in thermal imaging.

The Yole Group Forum will be held on September 10, at 2 pm. Speakers will include: Haley Hu, Director of Infrared Division at Raytron; Yueji Liu, President of Overseas Channel Management and Technical Support at Hikmikro; Jedrzej Mijas, Application Engineer at Vigo Photonics; Yuxuan Liu, CEO at Wuhan InRight Technology; Ruihao Li, Executive Assistant to the Chairman at Union Optech; as well as Florian Domengie, PhD. Principal Analyst, Imaging, and Axel Clouet, PhD. Senior Analyst, Imaging, at Yole Group.