The global Identification Friend or Foe market size was valued at USD 614.5 million in 2024. It is projected to grow from USD 639.9 million in 2025 to USD 849.7 million by 2032, exhibiting a CAGR of 3.60% during the forecast period.

IFF systems play a critical role in modern combat and aviation environments, enabling armed forces and air traffic controllers to differentiate between friendly and potentially hostile aircraft, vehicles, or personnel. These systems support enhanced situational awareness, reduce friendly fire incidents, and ensure operational efficiency. Increasing defense budgets, modernization programs, and the adoption of advanced communication and radar technologies are key factors accelerating market growth.

List of Key Players Mentioned in the Report:

  • BAE Systems plc (U.K.)
  • Raytheon Technologies Corporation (U.S.)
  • Thales Group (France)
  • Leonardo S.p.A. (Italy)
  • ASELSAN A.Ş. (Turkey)
  • Northrop Grumman Corporation (U.S.)
  • HENSOLDT AG (Germany)
  • Indra Sistemas S.A. (Spain)
  • General Dynamics Corporation (U.S.)
  • Elbit Systems Ltd. (Israel)
  • Saab AB (Sweden)
  • L3Harris Technologies Inc. (U.S.)
  • Textron Inc. (U.S.)
  • General Atomics (U.S.)

Information Source:

https://www.fortunebusinessinsights.com/identification-friend-or-foe-market-112306

Segmentation: Identification Friend or Foe Market

Electronic IFF Segment Leads Due to Advanced Integration with Modern Combat Systems

By technology, the market is divided into Electronic IFF, Infrared IFF, and Radio Frequency IFF. The electronic IFF segment dominated in 2024 due to its wide adoption in military and civil applications. These systems are integrated with advanced radar and communication technologies, enabling accurate and secure identification.

Military Platforms Held Dominant Share Owing to Modernization Initiatives

By application, the market includes Military Platforms, Civilian Air Traffic Control, and Defense Systems. The military platforms segment held the highest share in 2024 due to continued global defense modernization programs and the need for secure identification in multi-domain operations.

Airborne Platforms Dominate Due to High Usage in Aerial Combat and Surveillance

By platform, the market is segmented into Airborne, Land-Based, Naval, and Space-Based. Airborne IFF systems are in high demand, particularly for fighter jets, drones, and surveillance aircraft, contributing to the segment's market dominance.

Transponders Lead in System Type with Critical Role in IFF Operations

By system type, the market is categorized into Transponders, Interrogators, and Control Panels. Transponders represent the largest segment due to their key function in responding to interrogation signals to confirm identity.

Ultra High Frequency (UHF) Segment Dominated Due to Superior Data Transmission

By frequency range, the market is divided into Low Frequency (Below 30 MHz), High Frequency (3–30 MHz), and Ultra High Frequency (300–3000 MHz). The UHF segment led the market due to its reliable performance in high-speed data communication and real-time identification applications.

Defense Forces Account for Majority Market Share Driven by Global Security Needs

By end user, the market is split into Defense Forces and Commercial Airlines. The defense forces segment dominated due to the urgent need for secure identification systems in tactical environments and joint operations.

Drivers and Restraints:

Rising Military Modernization and Airspace Surveillance to Fuel Growth

Growing investments in next-generation radar systems, joint operations, and combat aircraft are driving the demand for IFF systems. Mode 5 and Mode S upgrades are being rapidly adopted to enhance identification accuracy and cybersecurity. Increasing threats from unmanned aerial vehicles (UAVs) and missiles also highlight the need for advanced IFF capabilities.

Integration Complexities and Cybersecurity Concerns Pose Challenges

Despite growth potential, interoperability issues with legacy platforms and concerns over data spoofing and electronic warfare present challenges. Regulatory compliance and standardization across allied forces add to development complexity and cost.

Regional Insights:

North America to Maintain Dominance Due to Strategic Defense Investments

North America held the largest market share of 35.23% in 2024. The U.S. military's focus on upgrading legacy systems to Mode 5/S, along with key contracts with BAE Systems and Raytheon, contribute significantly to regional market strength.

Europe Investing in Cross-Border Air Defense Upgrades

European nations are enhancing their regional defense architecture, with Spain, France, and Germany implementing IFF upgrades in air and missile defense systems. In June 2024, Indra signed a framework deal with the Spanish Ministry of Defence to modernize GBADS systems using Mode 5/S radar capabilities.

Asia Pacific to Witness Fastest Growth with Indigenous Programs and Procurement

Rising border conflicts, increased defense budgets in China and India, and the development of regional airborne platforms are expected to accelerate the adoption of advanced IFF technologies.

Competitive Landscape:

Players Focus on System Upgrades, Military Contracts, and Secure Technologies

Leading companies are investing in R&D, product enhancement, and strategic partnerships with defense ministries. Emphasis is being placed on multi-mode IFF systems with advanced encryption and anti-spoofing capabilities.

Key Industry Developments:

  • June 2024 – BAE Systems received a USD 9.1 million contract from the U.S. Navy to supply 18 AN/UPX-50(C) digital IFF interrogators for naval warships and land-based platforms. These support Mode 5 Level 1 and 2 and Mode S operations.
  • June 2024 – Indra signed a framework agreement with the Spanish Ministry of Defence to upgrade Spain's Ground-Based Air Defence System (GBADS) with Mode 5/S IFF radar systems, enhancing secure identification in NATO-aligned operations.