The global targeting pod market was valued at USD 2,598.3 million in 2024 and is projected to expand from USD 2,709.6 million in 2025 to USD 3,624.2 million by 2032, registering a CAGR of 4.24% throughout the forecast period. North America held the highest market share in 2024, accounting for 35.18%, primarily driven by growing defense modernization programs and adoption of advanced aerial warfare systems.
The targeting pod market is on a trajectory of steady growth due to a global push for precision targeting and enhanced situational awareness across air-based platforms. Governments worldwide are investing in upgraded electro-optical and infrared systems to enhance their air forces’ operational efficiency and targeting capabilities.
A notable example includes the U.S. Air Force’s USD 1.3 billion contract awarded to Northrop Grumman in January 2019 for supplying Litening Advanced Targeting Systems and related support services.
The ongoing Russia–Ukraine conflict has further intensified the urgency for aerial platform upgrades, pushing many nations to incorporate high-end targeting pods capable of functioning effectively in complex and extreme operational conditions.