Counter-IED Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Capability (Detection, Counter Measures), By Deployment (Vehicle-Mounted, Hand-Held), By Region & Competition, 2021-2031F

The Global Counter-IED Market is projected to expand from USD 2.27 Billion in 2025 to USD 2.67 Billion by 2031, reflecting a compound annual growth rate of 2.74%. This sector involves the creation and implementation of specialized apparatuses-such as electronic jammers, detection sensors, and blast-resistant vehicles-aimed at identifying, mitigating, and neutralizing improvised explosive devices. Growth is chiefly propelled by the prevalence of asymmetric warfare, the imperative to maximize soldier survival in hostile zones, and increasing government defense allocations for border security and counter-terrorism. These elements ensure continued demand as nations focus on acquiring advanced protection for personnel and infrastructure against explosive risks.

Nevertheless, the market faces a substantial hurdle in the form of rapid technological adaptation by insurgents, who frequently modify detonation methods to evade current countermeasures. This continuous evolution demands ongoing, expensive research and development, straining procurement budgets and delaying the deployment of effective solutions. As reported by the Aerospace, Security and Defence Industries Association of Europe, the defense sector saw a 13.8% turnover increase to €183.4 billion in 2024, a rise that highlights the significant financial pressure and resource mobilization needed to tackle these complex security issues within the industrial landscape.

Market Driver

The surge in asymmetric warfare and global terrorism serves as the principal engine for the Global Counter-IED Market. Insurgent groups and non-state actors increasingly deploy improvised explosive devices as a cost-efficient strategy to disrupt operations and cause significant casualties in both military and civilian arenas, requiring the implementation of potent detection and neutralization systems. This unstable security landscape compels nations to prioritize acquiring jamming equipment and blast-resistant vehicles to reduce the lethality of such attacks. According to Action on Armed Violence's January 2025 'Explosive Violence Monitor 2024', civilian casualties from explosive violence rose by 67% in 2024 compared to the prior year, emphasizing the growing threat of explosive weapons in populated areas and the urgent need for enhanced protective capabilities.

Simultaneously, escalating government expenditures on defense and homeland security provide the necessary funding for market growth. Amidst rising geopolitical tensions, major powers are vastly expanding military budgets to modernize forces and bolster protection against advancing explosive threats, facilitating the widespread purchase of electronic warfare tools and mine-resistant vehicles. Data from the Stockholm International Peace Research Institute's April 2025 report indicates that global military spending increased by 9.4% in real terms to a record $2,718 billion in 2024, demonstrating a strong commitment to national security. This financial boost directly fuels procurement; for instance, Investing.com reported in 2025 that Northrop Grumman Systems Corp. received a $48.4 million contract modification for Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare systems, confirming the enduring industrial demand for effective countermeasures.

Market Challenge

A major obstacle impeding the Global Counter-IED Market is the swift technological agility of insurgents, who regularly modify detonation techniques to circumvent existing defenses. This relentless evolution forces defense manufacturers into continuous, high-cost research and development cycles to ensure detection sensors and electronic jammers remain potent against increasingly sophisticated threats. The requirement to frequently re-engineer systems places a heavy strain on the industrial base, often resulting in extended production timelines and elevated unit costs that pressure government procurement budgets.

The challenge of keeping up with innovation is further aggravated by severe labor shortages in the technical workforce essential for such advanced development. According to the Aerospace Industries Association, 76 percent of member organizations in 2025 reported persistent difficulties in recruiting the engineering talent needed for high-tech innovation. This scarcity of skilled professionals directly hinders the capacity of market participants to conduct the rapid R&D necessary to counter insurgent adaptations. Consequently, the deployment of updated solutions faces delays, creating security vulnerabilities and retarding overall market growth as effective protective measures fail to reach end-users promptly.

Market Trends

The integration of Counter-IED and Counter-Drone Electronic Warfare Systems marks a significant operational shift as adversaries increasingly employ unmanned aerial systems to deliver improvised explosive devices. This development necessitates the acquisition of unified electronic warfare suites that can simultaneously detect and jam radio-controlled ground threats and aerial drone signals, establishing a comprehensive defensive shield for convoys and bases. The magnitude of this transition is reflected in substantial defense spending; as reported by GovCon Wire in March 2025, Anduril Industries received a potential $642.2 million contract from the U.S. Navy to implement and maintain Installation-Counter small Unmanned Aircraft Systems at Marine Corps bases globally, highlighting the priority placed on multi-domain threat mitigation within counter-explosive strategies.

At the same time, the rise of Directed Energy and High-Power Microwave Weapons is revolutionizing neutralization tactics by providing cost-efficient, speed-of-light defenses against saturation attacks. In contrast to traditional kinetic interceptors, high-power microwave (HPM) systems have the capacity to disable the electronics of multiple incoming threats at once, effectively countering the escalating risk of drone swarms that can overwhelm standard defenses. This technology is swiftly moving from the prototype stage to active deployment; according to Defence Industry Europe in July 2025, the U.S. Army granted a $43.5 million contract to Epirus for second-generation Leonidas high-power microwave systems, demonstrating the service's dedication to acquiring advanced non-kinetic capabilities for protecting critical assets.

Key Market Players

• Lockheed Martin Corporation
• L3Harris Technologies Inc.
• Elbit Systems Ltd
• Northrop Grumman Corporation
• Thales S.A.
• Saab AB
• Chemring Group PLC
• Allen-Vanguard Corporation
• Israel Aerospace Industries Ltd
• QinetiQ Group PLC

Report Scope

In this report, the Global Counter-IED Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Counter-IED Market, By Capability

• Detection
• Counter Measures

Counter-IED Market, By Deployment

• Vehicle-Mounted
• Hand-Held

Counter-IED Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Counter-IED Market.

Available Customizations:

Global Counter-IED Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).