Military Laser Systems Market

^{_{Update: 10/22/2024}}

The Military Laser Systems Market is estimated to be USD 5.0 billion in 2023 and is projected to reach USD 7.5 billion by 2028, at a CAGR of 8.7% from 2023 to 2038. The market is driven by factors such as rising focus on development of high-precision military laser systems.

Military Laser Systems Industry Forecast to 2028

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Military laser systems Market Dynamics:

Drivers: Significant investment by the government on weapon modernization to drive growth

The rising nation security concern with increase in use of unmanned aerial vehicles attacks, warlike situations, and the constant disagreement with neighboring countries are expected to boost the demand and development of high energy laser weapons. These weapons are being increasingly integrated into military platforms such as naval ships, military aircraft, attack helicopters, armored vehicles, and space interceptors among others. In recent years, multiple defense manufacturers and integrators have been researching and developing laser weapons. Manufacturers involved in this market are adopting collaboration and acquisition strategies to successfully complete defense contracts. In December 2022, Lockheed Martin Corporation (US) collaborated with the Israel-based Rafael Advanced Defense Systems, Ltd. to jointly develop, test, and manufacture High Energy Laser Weapon Systems (HELWS) in the US and Israel.

Ongoing research, development, and demonstrations will boost the demand for high-energy laser weapons. The US military doubled its spending on directed energy weapons capability between 2017 and 2019, from USD 535.0 million to USD 1.1 billion. China, India, Israel, France, the UK, and Russia are investing in laser weapons to strengthen their military combat capabilities. Manufacturers, contractors, and integrators in the defense industry, such as Raytheon Technologies (US), Northrop Grumman Corporation (US), and Lockheed Martin Corporation (US), have developed weapon systems that employ high-energy laser systems to counter modern threats.

Drivers: Development of compact military laser systems for UAV platforms

Military systems like laser beams that are used to kill inanimate objects, bombs, and drones are the key reason why the governments are investing in the smart future of aerial protection. These laser systems are designed to make it easier for crowd control and securing buildings. They can help to reduce crime, such as the smuggling of drugs or people. Drones and military laser systems are among the primary tools in the modernization of the security of the world. However, a clear understanding of the subject is necessary for readers to be engaged effectively. Unmanned systems, such as military laser systems, digitally enhanced the defense mechanism. Unmanned aerial vehicles (UAVs) carrying military laser systems can be used for different missions. Fly unmanned aircraft needing the help of only one operator, which in turn, segue into fewer problems and accidents. Because of their many benefits, the US, India, and China have sanctioned heavy budgets to the procurers for their defense forces. The increased deployments of UAVs for defense missions in the sky have resulted in a growing need for lighter and smaller laser-based solutions that are able to be successfully integrated into the UAV platform without spoiling its overall effectiveness. Consequently, the world's most significant weapon suppliers, the Lasers systems market including the companies Leonardo S.p.A. (Italy) and Lockheed Martin Corporation (US)
emphasize the importance of miniaturization ed batteries for UAV battery systems.

Restraints: High development and platform integration costs

The initial cost involved in developing military laser systems is high due to the need for sufficient time for R&D, infrastructure to develop laser systems from scratch, field testing, demonstration, and installation. Moreover, the development and production of military laser systems are complex and require a high technical expertise to design and manufacture, leading to high production costs. In addition, the high level of sophistication and precision required in these systems means that they need to be regularly maintained and upgraded, further adding to the overall cost. For example, military systems based on fiber laser technology cost around USD 20 million per unit. The high-energy military lasers cost more than standard kinetic energy or legacy weapons such as rifles, guns, or bombs. The US Navy has spent USD 40 million in developing a military laser to shoot down drones. Though the cost per shot of the laser weapon system is low, the development cost is very high. These factors limit the entry of new players in the market, in turn restraining the market growth.

Restraints: Regulatory hurdles

The defense industry of the world is affected by a number of different regulations that have been established regarding the usage of weaponized and non-weaponized systems, the latter being especially laser technologies. These regulations not only focus on the production process but also cover the importation and exportation of the military laser systems which must respect certain legal requirements given by the government. For instance, in the US, military lasers must adhere to the Federal Laser Product Performance Standard (FLPPS). A proposal on this topic was made by the US Department of State back in July 2015, the name of which was International Traffic in Arms Regulations (ITAR), and the main thrust was on Category XVII of the US Munitions List (USML). This change was a means of specifying how directed energy weapons, including laser-based systems, should be regulated. Some of the points harping on their patterns of design, usage, and control were covered in the regulation too.

The laser weapons are not globally defined under any international law, and neither are they the subject of due attention during discussions within international legal frameworks. Still, there are several legal systems that could overlap in relation to these machineries. The concept of laser-based systems in the field raises legal questions, particularly international laws that regulate the use of armed forces. The weapons that use directed energy are classified as non-lethal most of the time or less lethal, which distinguishes them from the traditional lethal ones. This area of classification is one of the main sides of the ongoing damasking about their role in warfare.

Opportunities: Growing adoption of UAVs for military applications

Recently, the demand for unmanned aerial vehicles has increased due to their growing use by military forces of different countries for target tracking, battle management, ISR, and combat operations, among others. The new-generation UAVs are used for various combat and tactical missions. Some common examples of military drones or UAVs are MQ-4 Reaper, MQ-1B Predator, QF-4 Aerial Target, RQ-4 Global Hawk, AeroVironment Wasp AE, RQ-1 Predator, BQM-155 Hunter, and CL-289 Piver. UAVs, such as the Predator and the Heron, have been developed by the US and Israel, respectively. Military expenditure for UAV technology is anticipated to grow with increase in military budgets, offering growth opportunities to specialized drone manufacturers and software developers. Approximately 95 countries across the world already have some form of military drone. Various drones are being designed solely for surveillance operations. However, some drones have been designed for critical operations, such as carrying munitions. Countries such as China, India, Germany, and Azerbaijan use remotely piloted UAVs designed for carrying munitions for dense forces. Drones are also used as loitering munitions. Loitering munitions are defined as weapons or flying bombs that contain high-resolution cameras and infrared systems for conducting surveillance activities. They hover over the targets, search for the location of targets, and attack them when the targets are visible. With this increase in the use of UAVs, the concern for aerial threat also increases. Therefore, to destroy UAVs, the demand for laser technology-enabled military systems is increasing. The rise in UAV adoption will create significant growth opportunities for the military laser systems market in the upcoming years.

Opportunities: Increasing investment in R&D to design next-generation military laser systems

The aerospace and defense industry is a major user of laser systems for various applications, such as laser communication systems, laser-based weapon systems, laser rangefinders, laser-guided missiles, and laser sensors. The industry is expected to witness significant growth opportunities for laser systems in the coming years. The defense industry is constantly looking for high-end systems to enhance the capabilities of military aircraft and defense systems. Laser systems offer high precision, speed, and reliability, making them an ideal choice for a wide range of applications. Many governments around the world are increasing their investment in military research and development to enhance their defense capabilities. Laser systems are likely to play a key role in these efforts, leading to further growth opportunities for the industry.

Improved system reliability is a crucial factor in selecting a military laser system by any country. The defense systems are deployed in harsh environments. Hence, such systems require the incorporation of advanced hardware units to help gather critical data. Military laser systems are deployed in strategic locations to increase detection rates. The development of state-of-the-art military laser systems with high accuracy has led countries with border disputes and regional threats to rely on these advanced military laser systems for their border protection. Overall, the rising investment in R&D will provide opportunities for market players to design advanced laser systems for military applications.

Challenges: Integration of military laser systems with various platforms

The integration between conventional and modern devices is difficult, which adversely affects the efficiency of military laser systems. In some cases, new devices have different protocols that make military systems difficult to adopt. Integration of legacy systems with new technologies is time and effort-consuming and may distract an organization from its core business activities.

Integrating a laser system with standalone solutions to the desired level has always been a complex task. Integrating laser-based systems with other platform-based systems, such as communications systems, target tracking systems, and navigation, guidance, and control systems, requires deep R&D, prototype designing, compatibility testing, and field testing. The level of complexity increases with the decrease in the amount of space available on platforms. Thus, combat helicopters have the highest complications in integration, followed by armored vehicles and ships. This integration can be challenging and may require significant customization and testing to ensure compatibility and optimal performance.

Challenges: Increased barriers to designing high-energy military laser systems

High-energy military lasers require a large amount of energy to power them, presenting a major challenge in their development. Due to atmospheric absorption, scattering, and other losses that occur, a laser requires as much as 100 mW to ultimately deliver 1 mW to a target. The development of high-energy lasers poses a challenge considering the total size, weight, and power requirements of these systems.

In addition to the above, the complexity in the design of military laser systems used by the defense industry has increased, resulting in increased complications of the weapon systems. The need for laser system components offering parallel operations with lower power consumption, as well as the size and weight reduction, in the defense industry has resulted in increased complexity of the design of military laser systems. Continuous upgrades in laser systems, such as the development of 300 kW and above high-energy lasers, require other compatible laser sources and associated high-end components to match the design requirements of military electronic equipment and systems. Vendors need to keep pace with the changing processes and technological developments and be on par with technological breakthroughs to design advanced and complex architectures suitable for military systems and associated equipment. Failure to do so might reduce the number of contracts, agreements, and licenses and affect the overall performance of military laser systems in terms of efficiency and reliability.

Military Laser Systems Market Ecosystem

Prominent companies in this market include well-established, financially stable providers of laser systems for military purpose. Major players operating in the military laser systems companies include Northrop Grumman(US), Raytheon Technologies Corporation(US), BAE Systems plc (US), Lockheed Martin Corporation (US), Thales Group(France), and Coherent Corp. (US).

Based on application, the weapons segment is projected to grow at the highest CAGR in the military laser systems market during the forecast period

Based on application, the military laser systems market has been segmented into weapons and non-weapons. Growing concern over nation security to boost the procurement of modern weapon systems.

Based on platform, the naval segment is projected to grow at the highest CAGR in the military laser systems during the forecast period

Based on platform, the military laser systems have been segmented into land, airborne, naval, and space. The naval segment is expected to grow at a higher CAGR during the forecast period. The increasing development of shipboard laser weapons is driving this segment of the market.

Based on technology, the fiber laser technology is expected to grow at the highest CAGR during the  forecast period

The technology segment has been segmented into solid-state laser, fiber laser, semiconductor laser, gas laser, liquid laser, and free-electron laser. Among these, fiber laser witness strong growth during the forecast period. Fiber lasers are highly compact, robust, efficient, low maintenance, reliable, and long-lasting high-energy lasers. It is widely used in directed energy weapons. The applications of fiber lasers typically include tactical directed energy and power beaming. Electrical fiber lasers can be spectrally combined to produce a high-power, weapon-grade beam, as demonstrated by Lockheed Martin Corporation (US).

Based on end use, the directed energy weapons (DEWs) segment is estimated to lead the market during the forecast period

The End use segment has been classified into target designation and ranging; navigation, guidance, & control; defensive countermeasures; communication systems; and directed energy weapons. Among these, the directed energy weapons (DEWs) segment is estimated to lead the market during the forecast period. The growth of this segment can be attributed to the easy installation and low power consumption of high-energy laser weapons. Compared to conventional ordnance, DEWs have next to zero time of flight, which allows for a longer decision time and a quicker reaction time.

Europe is anticipated to grow at highest CAGR during 2023-2028

The fastest growth of Europe is due to the growing demand and development of military laser weapons in European countries such as UK, Russia, Germany, and France. Investment in R&D activities, and the increasing defense budget by the Germany and France government for the development of modern weapons is driving the growth of this region.

Military Laser Systems Market by Region

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North America accounted for the largest market share, followed by Asia Pacific in 2022. This market's growth is primarily driven by cross-border disputes and terrorist attacks in different parts of the world, along with advancements in technologies such as high-energy lasers. Rising investment in developing, testing, and demonstrating 300+ kW high-energy laser systems will boost the military laser systems market during the forecast period.

Key Market Players

Major players operating in the military laser systems market include Northrop Grumman Corporation (US), Raytheon Technologies Corporation (US), Lockheed Martin Corporation (US), Thales Group (France), Elbit System Ltd. (Israel), and BAE System plc (UK).

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Scope of the Report

Military Laser Systems Market Highlights

This research report categorizes the military laser systems market based on application, platform, technology, end use, output power, and region.

Recent Developments

• In March 2023, Raytheon Technologies Corporation received a USD 230 million contract from the US Air Force to produce and deliver 1500 StormBreaker smart weapons. The Stormbreaker is a network-enabled weapon system that provides unprecedented capability against moving targets, regardless of all weather conditions, using its tri-mode seeker and multi-effects warhead.
• In March 2023, Northrop Grumman Corporation received an initial production and operations contract from the US Marine Corps to develop a laser-based Next Generation Handheld Targeting System (NGHTS). NGHTS is a device that would help Marines to improve their target identification and designation capabilities.
• In February 2023, Bharat Dynamics Limited (BDL) (India) signed a Memorandum of Understanding with Thales Group to provide support in establishing a manufacturing facility in India. This facility will boost the development of precision-strike 70mm laser-guided rockets (FZ275 LGR).
• In September 2022, BAE Systems plc introduced a cost-effective, compact laser weapon system that provides precise and advanced air defense capabilities for war fighters against unmanned aerial systems.
• In July 2022, Northrop Grumman Corporation completed the preliminary design review of a high-energy laser using coherent beam-combining technology. This technology allows the combination of high-power laser beams into a single beam that can be scaled for maximum power.

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