Market Trends of Military Laser Systems Industry
Directed Energy Weapons Segment Projected to Exhibit the Highest CAGR During the Forecast Period
Directed energy weapons (DEWs) offer a more cost-effective, high-speed, highly accurate method of countering aerial threats compared to using a highly expensive missile to destroy moderate-level threats, like small drones. The existing DEWs are focused on defensive functions such as safeguarding critical facilities against missiles, drones, and boats. Defense firms and organizations are investing in R&D to expand the current applications of DEWs.
The directed energy weapons segment will see a surge in the future owing to the arms race between the global military powerhouses. DEWs are expected to be equipped with combat platforms and deployed along with conventional weapons by 2025. The US gradually began to install the laser defense weapon system HELIOS (High Energy Laser and Integrated Optical-Dazzler with Surveillance) on its destroyers in 2021. These systems will enhance the defense against hypersonic projectiles that can evade even the AEGIS missile defense system, thereby strengthening the aerial defense capabilities of the military.
Additionally, in September 2021, the UK's Ministry of Defence (MoD) awarded three contracts to deploy directed energy weapons, including radio-frequency systems and high-power lasers, with the Royal Navy and the British Army. The UK MoD planned to spend up to GBP 130 million (USD 165 million) on the development of three directed energy weapons, with initial deployment in 2023. The deliveries are currently underway. The armed forces are investing in the integration of advanced weapon systems, such as directed energy weapons on board the vehicles, which is driving the growth of the market. Such developments are expected to propel the growth of the segment during the forecast period.
North America to Dominate the Market During the Forecast Period
North America is anticipated to show remarkable growth during the forecast period. The region's defense industry is mature and strongly supported by a robust R&D infrastructure. The US Department of Defense (DoD) requested around USD 669 million in FY2023 for unclassified research, testing, and evaluation and another USD 345 million for unclassified procurement.
The country put forth several programs in recent years aimed at developing laser-based weapon technologies. The military is currently aiming to install various laser-based weapon and defense systems on ground vehicles, ships, as well as aircraft. In September 2022, the US Army tested its first high-energy laser weapon from defense contractors Northrop Grumman Corporation and RTX Corporation. It was to validate short-range air defense (SHORAD) against a series of simulated threats and combat scenarios.
Additionally, the US Army is also developing the most powerful laser weapon to date under the Indirect Fires Protection Capability-High Energy Laser (IFPC-HEL) program. The US military is already using 100kW-150kW laser weapons and is developing more poerful 300kW laser weapons to counter supersonic cruise missiles. Such developments are expected to boost the market growth of North America during the forecast period.
