Military Embedded Systems

ISR market to grow to $76.5 billion by 2035, study predicts

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February 12, 2026

Lisa Daigle

Assistant Managing Editor

Military Embedded Systems

U.S. Army photo by Capt. Bailey Buhler

NEWARK, Del. The market for intelligence, surveillance, and reconnaissance (ISR) solutions is expected to expand from $44.4 billion in 2025 to $76.5 billion by 2035, notching a combined annual growth rate of 5.6%, according to a study by Future Market Insights, "Intelligence Surveillance Reconnaissance (ISR) Market." 

The study authors found that growth in the ISR market is being propelled by rising defense budgets, increasing adoption of uncrewed systems, satellite-based surveillance, and advanced sensor technologies. They also noted that operational effectiveness across ISR deployments is increasing due to continued progress in artificial intelligence (AI), real-time analytics, and data fusion. 

FMI's outlook stated that the ISR market is expanding due to rising defense modernization programs, increasing border security requirements, and the growing adoption of unmanned systems. The mix of deployment includes, said the study authors, airborne ISR (40%), ground-based ISR (30%), naval ISR (20%), and space-based ISR (10%).

In terms of region, North America leads with 38% market share, Europe accounts for 27%, and Asia Pacific holds 25%, which the study authors said reflects broad operational deployment across defense forces worldwide.

For more information, visit the Future Market Insights website

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