Counter IED Market Size - By Deployment, By System, and By End Use - Global Forecast, 2025 - 2034

Counter IED Market Size

The global counter IED market size was valued at USD 2.35 billion in 2024 and is estimated to grow at a 3.8% CAGR from 2025 to 2034. The rising number of instances of asymmetric warfare, where insurgent groups and non-state players utilize unorthodox means such as IEDs, has prompted governments and military organizations to invest in Counter-IED systems. This is particularly crucial in areas facing political turmoil, cross-border terrorism, and internal insurgencies.
 

The tariffs and trade policies introduced during Trump's tenure have had a deep impact on the counter IED market. The supply chain is under strain due to increased prices of key raw materials and electronic components, affecting the financials of detection and neutralization system manufacturers. As a reaction, market players are moving towards geo-localized demand and production models, with the aim of creating self-sustaining supply ecosystems that are resilient to political and trade-related risks. These strategic realignments are aimed at protecting capital investments, providing business continuity, and preserving cost-effectiveness in a turbulent world environment.
 

Sustained innovation in surveillance, detection, and explosive ordnance disposal technologies is increasing counter-IED systems reliability and effectiveness. Embedding artificial intelligence, robotics, unmanned systems (UGVs and drones), and advanced sensors speed up identification and neutralization of threats, thereby accelerating adoption. For instance, In February 2022, the U.S. Air Force announced plans to begin deploying the Recovery of Airbase Denied by Ordnance (RADBO) vehicle an advanced platform based on the Cougar Mine-Resistant Ambush Protected (MRAP) vehicle from mid-2022. Developed with an investment of USD 40 million, RADBO is equipped with a robotic arm and a three-kilowatt Zeus III laser, designed specifically to safely detonate unexploded ordnance.
 

Counter-IED manufacturers should integrate AI, robotics, and advanced sensor technologies into unmanned systems to enhance rapid threat detection and neutralization, while also developing laser-based disposal platforms like RADBO for safe and remote ordnance clearance.
 

Rising geopolitical tensions and border security concerns are prompting governments worldwide to increase defense budgets and invest in modernizing their military capabilities. Counter-IED systems are a critical component of force protection and threat mitigation strategies in these modernization efforts. India's Defence Research and Development Organization (DRDO) has also designed and inducted several counter-IED systems like Daksh a remotely operated vehicle employed by the Indian Army for bomb disposal and detection. This is in line with India's larger effort to enhance counter-terror operations in the face of threats from insurgency and cross-border terrorism.
 

Counter-IED manufacturers should focus on developing remotely operated and AI-integrated robotic platforms tailored for bomb detection and disposal, aligning with global military modernization and rising demand for advanced threat mitigation systems driven by geopolitical tensions.
 

Counter IED Market Trends

• The use of unmanned platforms like Unmanned Ground Vehicles (UGVs) and drones is a key trend in the market, as it responds to the requirement to improve operational safety and effectiveness in high-risk environments. These platforms can detect, identify, and neutralize IEDs without putting personnel directly at risk. UGVs, specifically, are equipped with payloads such as sensors, arms, and jamming devices to engage in reconnaissance and disposal missions from a distance. For example, the FLIR Centaur is a multi-mission robotic vehicle designed for the U.S. Army for the purpose of explosive ordnance disposal (EOD). Day/night cameras, sensors, and a manipulator arm allow it to address hazardous devices. In parallel, drones with advanced imaging and infrared capabilities are being deployed for aerial reconnaissance in IED combat theaters. Such unmanned systems are becoming central to contemporary Counter-IED operations through their accuracy and risk avoidance capabilities.
   
• Although historically concentrated on military missions, Counter-IED technologies are now being embraced by civil and homeland security organizations to counter emerging terrorist threats in civilian environments. Airports, public transportation systems, urban infrastructure, and mass events have become top targets for terrorist organizations employing IEDs. Consequently, governments are investing in Counter-IED equipment for police units, bomb squads, and border control units. For instance, the U.S. Department of Homeland Security (DHS) has initiated several programs for the deployment of detection equipment and training first responders in the detection and neutralization of explosive threats. This trend in the industry towards high-end technology is driving the overall market.
   

Counter IED Market Analysis

Based on product type, the counter IED market is divided into vehicle mounted, ship mounted, airborne mounted, handheld.
 

• Vehicle mounted market is projected to grow at a CAGR of 3.1% by 2034. This growth is attributed to increasing investments of the armoured troops globally into acquisition and integration of vehicle-borne counter IED systems into land, sea, and air platforms. For example, the Netherlands Defence Material Organisation (DMO) ordered Saab for the Sea Wasp vehicle procurement. Sea Wasp is an unmanned underwater vehicle that has cameras and sonar systems to identify underwater explosive ordnance disposal (EOD) and the manipulator arm for disruption of the explosive. With this contract, the Netherlands was the first European customer to purchase the Sea Wasp vehicle. Such factors are contributing to the growth of overall counter IED market.
   
• Ship mounted market is anticipated to reach USD 1.1 billion by 2034. The ship mounted segment is growing due to the rise in maritime terrorism and the need to secure naval assets and commercial shipping routes, fuelling the demand for ship-mounted Counter-IED systems. Naval forces are increasingly integrating underwater explosive detection and neutralization technologies on warships to safeguard harbors and high-value vessels.

Based on systems, the counter IED market is categorized into unmanned systems, counter-IED vehicles, electronic countermeasures, others.
 

• Unmanned systems market is anticipated to reach USD 1.5 billion by 2034. Increasing pressure to reduce the risk of personnel in conflict environments is a leading factor for unmanned system adoption within the counter IED market. Unmanned Ground Vehicles and Unmanned Aerial Vehicles offer a reduced-risk option for explosive ordnance disposal teams by allowing for remote detection, inspection, and neutralization of IEDs without putting people at risk. Technological innovations in autonomous operations, sensor fusion, and real-time data processing have also enhanced their effectiveness, with rising investments from defense agencies.
   
• Counter-IED vehicles held a market share of 29.02% in 2024. The growing requirement for force protection and the growing danger of IEDs in hostile areas are creating demand for dedicated Counter-IED vehicles. Such vehicles, commonly constructed on armored platforms such as MRAPs, provide increased survivability in the face of IED blasts while incorporating cutting-edge detection and neutralization capabilities. As militaries modernize and invest in state-of-the-art technologies for route clearance and bomb disposal, these vehicles emerge as key tools for mission accomplishment.
   

Based on industry vertical, the counter IED market is categorized into military, homeland security.
 

• Military market accounted for 55.9% market share in 2024. The main growth factor behind the military's adoption of counter-IED technologies is the growing threat of asymmetric warfare, wherein insurgents and terrorist organizations use IEDs regularly to attack military personnel and equipment. Consequently, defense forces globally are investing in sophisticated Counter-IED systems, such as unmanned systems, armored vehicles, and electronic jamming technology. The demand for improved force protection and operational effectiveness in hostile environments, such as war zones, fuels this demand.
   
• The homeland security market is projected to grow at a CAGR of 4% by 2034. The increased threat of domestic terrorism and increasing deployment of IEDs in civilian environments is a key driving factor behind the implementation of Counter-IED technology in homeland security. Law enforcement, border security, and safeguarding critical infrastructure sectors are increasingly investing in detection devices, remote-controlled bomb disposal robots, and surveillance devices to guard public spaces such as airports, transportation systems, and government buildings. The use of transportable IED detection and disabling devices, such as in American airports with X-ray machines and bomb-sniffing canines, is evidence of the mounting need for state-of-the-art technology solutions.

• In 2024, the U.S.  Counter IED market accounted for USD 379.3 million. The U.S. Counter-IED systems market is driven by its extensive defense budget, global military presence, and regular deployment requirements. The U.S. Department of Defense (DoD) consistently invests in sophisticated Counter-IED technology in the form of jammers, ground-penetrating radar, and detection equipment. Strong demand for technologically sophisticated, climate-resistant, and quick-deployment solutions in combating IED threats sustains ongoing innovation and procurement. The U.S. military's focus on enhancing force protection and operational effectiveness in conflict zones, along with its substantial investments in research and development, sustains the country's dominant position in the global market.
   
• The Germany Counter IED market is anticipated to grow at a CAGR of 4.2% during the forecast period. Germany, being an important NATO nation, is intent on updating defense infrastructure, which includes Counter-IED. Rising participation by the country in co-operative NATO operations and peace enforcement missions in the East European region and Africa increasing demand for Counter-IED essential.
   
• The China counter IED market is anticipated to grow at a CAGR of 6.6% during the forecast period. The emphasis of the Chinese government on self-reliance and technological advancement has also encouraged local production and research and development (R&D) in this field. By giving priority to developments in counter-IED and mobile protection systems, the PLA seeks to enhance its defense infrastructure and ensure increased resilience in different operational environments. This transformation is complemented by a high focus on mitigating dependence on overseas suppliers and developing local capacities in Counter-IED technologies to fuel the growth of the Chinese market and larger regional defense planning.
   
• Japan is anticipated to account for a share of 15.2% of the counter IED market in Asia Pacific. The Japan Self-Defense Forces (JSDF) are also increasingly embracing cutting-edge detection and neutralization technology, such as unmanned vehicles and electronic jamming technology, to protect troops during overseas deployments and humanitarian operations. Japan's technological focus, as well as its defense budget priorities and diplomatic ties with Western countries, is propelling demand for higher-end and more resilient Counter-IED solutions, keeping the country ahead of threat developments in the region.
   
• India’s counter IED market is expected to grow at a CAGR of 7.5% during the forecast period. India's market is growing consistently, driven by border tensions, disaster relief requirements, and modernization of the military. The Indian army increasingly needs Counter IED for employment in remote and high-altitude locations like Ladakh and Arunachal Pradesh. Initiatives like "Make in India" from the government are fostering indigenous production of high mobility Counter IED capable of tackling varied terrains and climates.
   

Counter IED Market Share

The market is highly competitive and fragmented with the presence of established global players as well as local players and startups. The top five companies in the market Northrop Grumman Corporation, BAE Systems plc, Lockheed Martin Corporation, L3Harris Technologies, Inc., and Thales Group accounted for a market share of over 20.5%. These firms are proactively investing in the embedding of next-generation detection technologies, electronic jamming capabilities, and sensor fusion functions that improve operational performance against IED threats evolving continuously.
 

The market is witnessing the accelerating adoption of threat analysis through AI, multi-sensor fusion-based platforms, and autonomous ground-based systems for perimeter surveillance and route clearance. Requirements for rapidly deployable, ruggedized, lightweight equipment are mounting, particularly in the case of troop convoys and mobiles in asymmetric warfare scenarios. Concomitantly, counter-IED technologies are being incorporated within unmanned systems, vehicle-borne sensor suites, and soldier-wearable systems in order to deliver networked real-time response capabilities.
 

In addition, interoperability and modularity are emerging as principal procurement parameters as the militaries look for multi-mission deployable plug-and-play solutions. The increasing prominence of force protection in forward operating bases (FOBs), urban combat areas, border patrol operations, and humanitarian missions is validating the value proposition of end-to-end counter-IED systems. Continual defense modernization activities, particularly in NATO and Indo-Asia-Pacific nations, are additionally driving investment in next-generation C-IED solutions that can counter both legacy and new threat environments.
 

Counter IED Market Companies

Some of the prominent market participants operating in the industry include:

• BAE Systems plc
• Northrop Grumman Corporation
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Lockheed Martin Corporation
   

BAE Systems plc is a major Counter IED market player, providing advanced armored vehicles, detection systems, and electronic countermeasures to protect soldiers against improvised explosive devices (IEDs). BAE Systems provides solutions such as the RG33 and M-ATV mine-resistant vehicles, utilized for massive troop mobility and protection from IEDs. BAE's scalable and modular defence systems innovation and continuous innovation enable its leadership in the market because it responds to increasing demand for rugged deployable solutions within theatre of operations.
 

Northrop Grumman Corporation is a leading Counter-IED solution provider with a broad spectrum of products and services that include state-of-the-art surveillance platforms, ground sensors, electronic warfare technologies designed to detect, defeat, and deter improvised explosive devices (IEDs). Major offerings are the Vehicle and Dismount Exploitation Radar (VADER) and CREW systems, which offer persistent ISR (intelligence, surveillance, reconnaissance) and electronic jamming capabilities. The firm also invests in AI-driven threat analysis and multi-domain fusion to enable real-time decision-making in high-threat environments. Northrop Grumman's ongoing R&D on autonomous systems and electronic countermeasures further cements its role as a strategic partner for military forces looking for agile and scalable defense against asymmetric IED threats in contested operational spaces.
 

Counter IED Industry News

• In January 2025, Cambodia and Japan agreed to a mutual joint agreement providing grant financing for projects aimed at Cambodia's mine action. The signing ceremony held at the Ministry of Economy and Finance concluded the grant agreement, which involves the implementation of four significant projects. Two of the projects are aimed at supporting the Cambodian Mine Action Centre (CMAC), with a grant of 1.466 million yen (approximately $11 million).  
   
• In February 2022, DroneShield Partners with Allen-Vanguard to Enhance Counter-Drone and Counter-IED Capabilities. The collaboration aims to combine their product development and marketing efforts to offer integrated solutions for military, law enforcement, and security sectors. The partnership will explore synergies in addressing both drone and IED threats, with shared customers including the U.S. Department of Defense.
   

The counter IED market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in (USD Million) & from 2021 to 2034, for the following segments:

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By Deployment       

• Vehicle mounted
• Ship mounted
• Hand-held
• Others

By System    

• Unmanned systems
• Counter-IED vehicles
• Electronic counter measures
• Others

By End Use

• Military
• Homeland security

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE