IFF System Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Identification Friend or Foe (IFF) System Market Share is Segmented by Platform (Terrestrial, Airborne, and Naval) and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa).

IFF System Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Identification Friend or Foe System Market Size

Identification Friend Or Foe Systems Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 2.13 Billion
Market Size (2030) USD 3.24 Billion
CAGR (2025 - 2030) 8.73 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Identification Friend Or Foe Systems Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Identification Friend or Foe System Market Analysis

The Identification Friend Or Foe Systems Market size is estimated at USD 2.13 billion in 2025, and is expected to reach USD 3.24 billion by 2030, at a CAGR of 8.73% during the forecast period (2025-2030).

The market for identification systems for defense is propelled by several key drivers, reflecting the growing need for advanced and secure identification technologies in military applications. One significant driver is the increasing emphasis on enhancing situational awareness and preventing friendly fire incidents. Advanced identification systems enable military forces to accurately distinguish between friend and foe on the battlefield, reducing the risk of unintended engagements. The integration of biometric technologies, such as facial recognition and fingerprint scanning, contributes to the development of more robust and reliable identification systems. These systems provide military personnel with real-time information about the identity and status of individuals, enhancing decision-making processes and overall mission effectiveness. Additionally, the integration of identification systems with command and control (C2) systems supports seamless coordination and communication among military units, leading to improved operational efficiency.

One significant restraint is the potential ethical and privacy concerns associated with the use of advanced biometric technologies. Striking a balance between military necessity and individual rights raises challenges, especially as identification systems become more intrusive. Addressing these concerns is crucial to gaining public acceptance and regulatory approval.

Technological advancements and the convergence of various technologies, including artificial intelligence (AI) and machine learning, drive innovation in identification systems. AI algorithms enhance the accuracy and speed of identification processes, adapting to evolving threat landscapes. Moreover, the integration of identification systems with unmanned systems, such as drones and autonomous vehicles, enhances the overall capabilities of military forces.

Identification Friend or Foe System Industry Overview

The identification friend or foe systems market is semi-consolidated with major players, such as RTX Corporation, Leonardo S.p.A, BAE Systems plc, ASELSAN A.S., and THALES, occupying a significant share of the market. The growing demand for IFF systems is fostering R&D for advanced IFF components. Meanwhile, companies are trying to expand their geographical presence in both mature and emerging markets. In addition to major defense contractors, there are innovative technology companies making significant strides in the identification systems market. For instance, Cognitec Systems GmbH, a Germany-based company, specializes in facial recognition technologies and biometric solutions, offering advanced identification tools for military and security applications. For instance, in July 2022, ELTA Systems Ltd. awarded a contract worth USD 11 million to HENSOLDT AG to deliver MSSR 2000 ID and MSR 1000I secondary radars including test equipment. HENSOLDT's IFF systems are Mode 5, which uses encryption techniques to block signal manipulation. HENSOLDT AG also has contracts to upgrade German, French, and UK IFF systems to Mode 5.

Identification Friend or Foe System Market Leaders

  1. BAE Systems plc

  2. RTX Corporation

  3. THALES

  4. Leonardo S.p.A.

  5. ASELSAN A.S.

  6. *Disclaimer: Major Players sorted in no particular order
Identification Friend Or Foe Systems Market Concentration
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Identification Friend or Foe System Market News

In July 2023, BAE Systems plc received a USD 15 million contract from the US Navy to deliver next-generation digital interrogator for maritime vessels. The interrogator has advanced capabilities – providing time-critical insights that will reduce friendly fire incidents and support mission success in hostile environments. BAE Systems plc modernized AN/UPX-50(C) Digital Interrogator will offer common modular design and open system architecture. BAE Systems designs enable the rapid integration of new technology within the existing footprint through software updates instead of hardware configuration. 

In January 2022, ASELSAN introduced its Identification, Friend or Foe (IFF) system. The project is part of comprehensive modernization project of the Turkish Naval Forces Command, and the national friend-foe identification system is being integrated into many naval platforms. In this context, sea and port acceptance tests have been completed on Yavuz class frigates, Kilic-II class fast boats and Tuzla class patrol ships and integration activities will be intensified.

Identification Friend or Foe System Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.4.1 Threat of New Entrants
    • 4.4.2 Bargaining Power of Buyers/Consumers
    • 4.4.3 Bargaining Power of Suppliers
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 By Platform
    • 5.1.1 Terrestrial
    • 5.1.2 Airborne
    • 5.1.3 Naval
  • 5.2 By Geography
    • 5.2.1 North America
    • 5.2.1.1 United States
    • 5.2.1.2 Canada
    • 5.2.2 Europe
    • 5.2.2.1 Germany
    • 5.2.2.2 United Kingdom
    • 5.2.2.3 France
    • 5.2.2.4 Russia
    • 5.2.2.5 Rest of Europe
    • 5.2.3 Asia-Pacific
    • 5.2.3.1 China
    • 5.2.3.2 India
    • 5.2.3.3 Japan
    • 5.2.3.4 South Korea
    • 5.2.3.5 Rest of Asia-Pacific
    • 5.2.4 Latin America
    • 5.2.4.1 Brazil
    • 5.2.4.2 Rest of Latin America
    • 5.2.5 Middle-East and Africa
    • 5.2.5.1 United Arab Emirates
    • 5.2.5.2 Saudi Arabia
    • 5.2.5.3 Egypt
    • 5.2.5.4 Rest of Middle-East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 ASELSAN A.S.
    • 6.2.2 BAE Systems plc
    • 6.2.3 General Dynamics Corporation
    • 6.2.4 HENSOLDT AG
    • 6.2.5 Indra Sistemas, S.A.
    • 6.2.6 Leonardo S.p.A.
    • 6.2.7 Northrop Grumman Corporation
    • 6.2.8 RTX Corporation
    • 6.2.9 THALES
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Identification Friend or Foe System Industry Segmentation

An identification friend or foe (IFF) system is a radar-based system that uses a transponder to listen for an interrogation signal and then sends a response to identify the broadcaster. An IFF system enables the civil and military air traffic control systems to identify aircraft, vehicles, or forces as friendly and determine their bearing and range from the interrogator. The scope of the report encompasses the several types of IFF systems used by airborne, terrestrial, or naval assets. The technological developments and induction of IFF systems components are also under the purview of the study.

The Identification Friend or Foe Systems Market is segmented by platform and geography. By platform, the market has been segmented into airborne, terrestrial, and naval. The report also covers the market sizes and forecasts in fourteen countries across major regions. For each segment, the market sizing has been done in terms of value (USD).

By Platform Terrestrial
Airborne
Naval
By Geography North America United States
Canada
Europe Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America Brazil
Rest of Latin America
Middle-East and Africa United Arab Emirates
Saudi Arabia
Egypt
Rest of Middle-East and Africa
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Identification Friend or Foe System Market Research FAQs

How big is the Identification Friend Or Foe Systems Market?

The Identification Friend Or Foe Systems Market size is expected to reach USD 2.13 billion in 2025 and grow at a CAGR of 8.73% to reach USD 3.24 billion by 2030.

What is the current Identification Friend Or Foe Systems Market size?

In 2025, the Identification Friend Or Foe Systems Market size is expected to reach USD 2.13 billion.

Who are the key players in Identification Friend Or Foe Systems Market?

BAE Systems plc, RTX Corporation, THALES, Leonardo S.p.A. and ASELSAN A.S. are the major companies operating in the Identification Friend Or Foe Systems Market.

Which is the fastest growing region in Identification Friend Or Foe Systems Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Identification Friend Or Foe Systems Market?

In 2025, the North America accounts for the largest market share in Identification Friend Or Foe Systems Market.

What years does this Identification Friend Or Foe Systems Market cover, and what was the market size in 2024?

In 2024, the Identification Friend Or Foe Systems Market size was estimated at USD 1.94 billion. The report covers the Identification Friend Or Foe Systems Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Identification Friend Or Foe Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

IFF System Industry Report

Statistics for the 2025 Identification Friend Or Foe Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Identification Friend Or Foe Systems analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.