Global Market Size, Forecast and Trend Highlights Over 2025-2037
Decoy Flares Market size was valued at USD 2 billion in 2024 and is expected to secure a valuation of USD 12.8 billion in 2037, expanding at a CAGR of 15.4% during the forecast period, i.e. 2025-2037. In 2025, the industry size of decoy flares is evaluated at USD 2.3 billion.
Modern military defense technology is focusing on creating lightweight, compact decoy flare designs. The reduced weight and space requirements of countermeasures are enabling military aircraft naval vessels, and land platforms to achieve better efficiency, while securing additional defensive systems within their operational profile. The new approach to decoy flare design enhances operational mobility and extends the duration of warfare missions while keeping military forces agile and adaptable in combat zones. Several companies are developing advanced decoy flares with state-of-the-art features. For instance, Elbit Systems developed a breakthrough in flares with its SPARC-2 Dual Flare device. The SPARC-2 Dual Flare system uses two half-sized pellets that fit inside a single flare casing, enabling the existing dispensers to carry their former capacity in half-size flares.
The focus on compact and efficient designs reflects the defense industry's commitment to modernizing countermeasure technologies. These advancements are providing improved protection as well as maximized storage capacity while maintaining high-performance infrared decoy capabilities. The ability to carry more decoy flares without exceeding weight restrictions allows mission flexibility, ensuring continuous protection in high-risk zones. As infrared-guided threats are becoming more sophisticated, innovations like SPARC-2 are setting a precedent for future flare systems, ensuring military forces remain equipped with cutting-edge defensive solutions.
Decoy Flares Market: Growth Drivers and Challenges
Growth Drivers
- Proliferation of heat-seeking weapons: The proliferation of heat-seeking missiles, including Man-Portable Air Defense Systems, is posing a threat to military aircraft as well as civilian aircraft. These missiles are finding targets by tracking the infrared signatures radiated by aircraft engines, making them highly effective and difficult to evade. Countermeasure systems, including decoy flares are witnessing a significant rise in demand due to the increasing threats.
Defense forces and manufacturers are increasingly investing in advanced infrared countermeasures to mitigate these threats. For instance, in January 2024, the U.S. Department of Defense awarded Chemring Australia a USD 31 million contract modification to deliver 19,570 MJU-68/B infrared decoys for the F-35 Joint Strike Fighter aircraft fleet supporting different defense forces. The specially designed decoy flares from Chemring Australia are creating infrared signatures that divert heat-seekers away from targeted aircraft, leading to increased survivability during high-risk combat zones.
- Integration with advanced defensive suits: The integration of decoy flares defensive systems with technologies, including directed energy weapons and radar jammers are highlighting a significant advancement in modern military strategies. The comprehensive defense approach is developing a multi-layered defense mechanism to boost resistance against missile risks. Companies are introducing integrated countermeasure technologies that are allowing defense platforms to recognize threats while deceiving and neutralizing them, thereby boosting their ability to survive attacks. For instance, in May 2024, BAE Systems was selected by the U.S. Navy to build the Dual Band Decoy (DBD), which stands as an advanced radio frequency self-protection jammer against enemy threats.
Companies are emphasizing developing modernized systems that integrate towed units with a fiber-optic cable, allowing connection to aircraft electronic warfare suite to disable enemy radars and deflect enemy missile threats. These systems are activated through pilot command and become operational automatically in case of detected threats to ensure fighter jet survivability in highly contested airspace. Defense agencies are increasing their investment in flares with advanced jamming systems due to the requirement for cutting-edge countermeasures.
Challenges
- Advancements in missile counter-countermeasures: Modern heat-seeking missiles are being advanced with the development of counter-countermeasure (CCCM) technologies, that are diminishing the effectiveness of traditional decoy flares. Modern missile systems are using imaging infrared seekers together with a dual-guidance system that pairs AI-powered target identification capabilities to detect aircraft versus flares successfully. Adaptive tracking algorithms built into new missile designs are modifying flight operations to disregard decoy flare signals. The cost of decoy flare manufacturing is rising while military program adoption is delayed as manufacturers are required to invest in multi-spectral flares and advanced infrared countermeasures.
- Short operational lifespan and storage concerns: Decoy flares have a limited operational lifespan, due to their composition, including materials such as pyrotechnics and magnesium that degrade with time. Poor storage conditions, along with temperature changes and high humidity levels, are also diminishing the operational capability of decoy flares by causing unanticipated misfires as well as reduced infrared signature strength. Military forces require standard procedures for storage as well as climate-controlled buildings and scheduled inspections to uphold the reliability of their platforms. Operational expenses in defense agencies are rising with increased costs of logistics and maintenance as these challenges lead to frequent replacement requirements.
Decoy Flares Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
15.4% |
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Base Year Market Size (2024) |
USD 2 billion |
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Forecast Year Market Size (2037) |
USD 12.8 billion |
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Regional Scope |
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Decoy Flares Segmentation
Type (Pyrotechnic Flares, Pyrophoric Flares)
In decoy flares market, pyrotechnic flares segment is poised to dominate revenue share of around 54.6% by the end of 2037, attributed to their widespread adoption in military helicopters, aircraft, and ships for diverting heat-seeking missiles. Defense organizations are preferring pyrotechnic flares owing to their ability to provide high cost-effectiveness alongside reliability. For instance, in September 2023, the German Bundeswehr conducted tests on helicopter-integrated pyrotechnic decoys which demonstrated infrared-guided missile-resisting capabilities for modern military strategies.
In addition, various countries supporting military investments are surging the demand for pyrotechnic flares. Pyrotechnic flares, known for their reliability in diverting infrared-guided missiles, are being integrated into next-generation aircraft and naval fleets. The increasing focus on developing flares with improved burn time and spectral matching capabilities is further accelerating their adoption, ensuring enhanced protection against evolving missile threats.
By Application (Fixed Wing, Rotary Wing)
The fixed wing segment in decoy flares market is expected to witness steady growth attributed to government investments in new and improved military aircraft acquisitions. Governments across the globe are increasingly investing in advanced fighter jets and bombers equipped with sophisticated countermeasure systems in order to address evolving threats. For instance, in April 2023, the U.S. Department of Defense awarded Lockheed Martin a USD 7.8 billion contract to modify 126 F-35 multi-role aircraft, highlighting the emphasis on integrating advanced decoy flares to enhance aircraft survivability.
The increasing decoy flares market demand for multi-role fighter aircraft is also becoming a force behind the segmental growth. Modern fighter aircraft and stealth aircraft are receiving improved countermeasure systems that incorporate advanced anti-missile defense equipment such as pyrotechnic flares. Globally, countries are strengthening their air force capabilities, leading to increased procurement of fixed-wing military aircraft integrated with enhanced defense systems.
Our in-depth analysis of the global decoy flares market includes the following segments:
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Type |
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Application |
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Customize this ReportDecoy Flares Industry - Regional Scope
North America Market
In decoy flares market, North America region is expected to capture over 46.2% revenue share by 2037. This growth is attributed to the increasing focus on enhancing military aircraft survivability. The strategic defense of fighter jets bombers and transport aircraft is prompting the military forces in the region, to increase the adoption of advanced countermeasure systems including infrared and radar-guided decoy flares.
The modernization efforts of military programs are supporting the adoption of advanced flare technology systems that combat new missile threats. The decoy flares market’s growth is receiving additional support from Joint research and development efforts in the region. Defense contractors, government agencies, and military organizations are collaborating for research and development to produce improved reliable decoy flare systems. The partnerships between companies are also leading to improved technology development while making countermeasures streamlines within contemporary aircraft systems.
The decoy flares market in the U.S. is anticipated to increase at a fast pace, owing to the integration of AI and advanced technologies in defense systems. The U.S. Department of Defense is investing significantly in AI-driven countermeasure systems that are strengthening decoy flare capabilities against modern missile threats. The advancements in technology are ensuring enhanced aircraft protection through modern decoy flare systems, stimulating the market growth in the country.
Unmanned aerial systems are posing increasing security risks, driving the U.S. military to upgrade its ability to counter these threats. For instance, in March 2025, Anduril secured a USD 642 million defense contract from the U.S. Marine Corps to develop anti-drone defense systems due to rising asset vulnerability to drone threats. The decoy flares market is also fueling in the country, attributed to counter-UAS measures of robust defense strategies.
The Canada decoy flares market is expanding at a significant pace due to the modernization of the country’s air defense capabilities. As the local Air Force upgrades its fleet with advanced fighter jets and military transport aircraft, there is an increasing demand for effective countermeasure systems. Decoy flares play a crucial role in enhancing aircraft survivability by diverting heat-seeking missiles, making them a critical component of defensive strategies for the evolving military aviation infrastructure in the country.
In addition, the strengthening of domestic defense manufacturing is fueling market expansion. The country’s focus on bolstering its defense supply chain and supporting local production of key military technologies is leading to increased investments in countermeasure solutions, including decoy flares. This shift toward domestic development is ensuring greater self-sufficiency and security in defense operations.
Asia Pacific Market Analysis
The Asia Pacific decoy flares market is experiencing rapid growth due to the increasing procurement of advanced military aircraft in the region. Countries including India, China, and Japan are increasingly investing in modern fighter jets and transport aircraft equipped with advanced countermeasure systems to enhance their defense capabilities. As regional security concerns are continually rising, the demand for effective missile defense solutions, including decoy flares, is growing to ensure the survivability of military assets in potential conflict zones.
The expanding indigenous defense production in the region is accelerating the development and deployment of decoy flares. Various countries are strengthening their defense industry through technology partnerships between international entities and local businesses. Self-reliant defense production is boosting research and development, as well as large-scale production of decoy flare systems designed specifically for regional security requirements.
The China decoy flares market is experiencing steady growth due to the increasing efforts to enhance air defense and electronic warfare capabilities. The local military is investing in upgrading countermeasure technologies for its air fleet, owing to evolving missile defense requirements. The advancement of new fighter jets and bombers alongside transport aircraft is establishing an intensive need for superior decoy flares that resist heat-seeking missile attacks. The defense configuration supports the country’s plan to improve aircraft survivability during dangerous combat operations.
China is witnessing new advancements in military-industrial self-sufficiency, driving its domestic production of decoy flares. Government efforts to reduce reliance on foreign suppliers are resulting in major investments in countermeasure system development and production and research activities. Defense manufacturers throughout China are boosting their production capabilities by adding modern electronic warfare capabilities to their integrated flare systems to achieve better operational results. Indigenous manufacturing growth within the country’s defense sector is enhancing defense capability through steady supplies of technologically improved decoy flares for domestic and international markets.
The decoy flares market in India is experiencing a significant expansion, owing to the continually expanding defense budget in the country. In the fiscal year 2025-2026, India allocated nearly USD 78.70 billion to defense, marking a 9.5% increase from the previous year. This substantial investment highlights the government's commitment to modernizing its armed forces, leading to increased procurement of advanced countermeasure systems, including decoy flares, to enhance aircraft survivability against evolving threats.
India is strengthening domestic decoy flare production abilities through its Make in India defense manufacturing initiative. The government is implementing policy actions to boost domestic manufacturing together with decreasing imports of equipment through various reforms. Defense sector growth through local manufacturing is fueling, owing to the strategic push for self-reliance, which is simultaneously encouraging innovation and defense technological developments.
Companies Dominating the Decoy Flares Market
- Armtec Defense Technologies
- Company Overview
- Business Strategy
- Key Technology Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Mil-Spec Industries Corporation
- LACROIX
- Ordtech
- Owen International
- Premier Explosives Limited
- Rheinmetall AG
- Rosoboronexport
- Elbit Systems Ltd.
- TARA Aerospace AD
The decoy flares market is highly competitive, driven by key players such as Armtec, Mil-Spec, and LACROIX, among others. These companies are focusing on innovations in the decoy flare technologies to enhance their efficiency in the war zones. Strategic partnerships, acquisitions, and product launches are shaping market competition with the increased adoption of AI-driven solutions. Regional players in North America and Asia Pacific are intensifying competition, leveraging cost-effective solutions and customized offerings. Here are some key players operating in the global decoy flares market:
In the News
- In January 2024, the Bundeswehr awarded Rheinmetall a contract worth nearly USD 54.0 million for over 470,000 Birdie infrared decoy flares to protect military aircraft. The contract ensures enhanced defense for helicopters, transport planes, and jets against infrared-guided missiles.
- In March 2022, Leonardo unveiled BriteCloud, an advanced countermeasure system designed to protect aircraft from radar-guided missile threats. BriteCloud operates as a self-contained unit that emits powerful signals to deceive and mislead incoming missiles, enhancing aircraft survivability.
Author Credits: Dhruv Bhatia
- Report ID: 7465
- Published Date: Apr 04, 2025
- Report Format: PDF, PPT
