In this paper, we present an overview of the System Design Analysis carried on for SHARK-NIR, the coronagraphic camera designed to take advantage of the outstanding performance that can be obtained with the FLAO facility at the LBT, in the near infrared regime. Born as a fast-track project, the system now foresees both coronagraphic direct imaging and spectroscopic observing mode, together with a first order wavefront correction tool. The analysis we here report includes several trade-offs for the selection of the baseline design, in terms of optical and mechanical engineering, and the choice of the coronagraphic techniques to be implemented, to satisfy both the main scientific drivers and the technical requirements set at the level of the telescope. Further care has been taken on the possible exploitation of the synergy with other LBT instrumentation, like LBTI. A set of system specifications is then flown down from the upper level requirements to finally ensure the fulfillment of the science drivers. The preliminary performance budgets are presented, both in terms of the main optical planes stability and of the image quality, including the contributions of the main error sources in different observing modes.