Day-night working capability of thermal imaging camera makes it popular device in defense and military sector for performing security and surveillance applications. This is increasing the uptake of thermal imaging technology in this sector. Also, increasing spending by defense and military on modernization of armed forces is boosting growth of the thermal imaging market. Fall in price of thermal imaging cameras and broadening application area of thermal imaging technology is expected to fuel growth of the market. However, budgetary cuts by defense and military especially in developed countries is posing challenge to growth of the market.