Laser Weapon Systems Market Report 2025

The laser weapon systems market size has grown strongly in recent years. It will grow from $6.14 billion in 2024 to $6.68 billion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to growing development in military drones, rise in aerial attacks, government initiatives, and increasing investment in military and defense.

The laser weapon systems market size is expected to see strong growth in the next few years. It will grow to $9.37 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to the growing defense budgets, growth in artificial intelligence, increased research and development activities, and the Russia-Ukraine war. Major trends in the forecast period include investing in the integration of artificial intelligence, integrating Helios to provide higher energy capability, producing new laser weapons, integrating high-energy lasers, and developing a laser weapon system demonstrator.

Growing defense budgets are a significant driver of the laser weapon systems market during the forecast period. As governments increase their defense spending, they are better positioned to explore new technologies and invest in innovative products to enhance national security. For example, in March 2023, the U.S. Department of Defense reported a Fiscal Year (FY) 2024 budget request of $842 billion, representing a $26 billion increase from FY 2023 and a $100 billion rise compared to FY 2022. Thus, the increasing defense budgets are fueling the growth of the laser weapon systems market.

The growth of artificial intelligence (AI) is expected to significantly drive the laser weapon systems market during the forecast period. AI refers to the simulation of human intelligence in machines, enabling them to perform tasks that typically require human cognitive abilities. The integration of AI into laser weapon systems can enhance their capabilities and effectiveness in various applications. For example, in March 2023, the International Trade Administration reported that the UK AI market is currently valued at over $21 billion and is projected to exceed $1 trillion by 2035. Thus, the expansion of AI is contributing to the growth of the laser weapon systems market.

The increasing research and development (R&D) activities in laser weapons are significantly shaping the laser weapon systems market. These efforts focus on developing systems that utilize lasers to target and neutralize threats, such as drones and missiles. R&D advancements enhance laser technology, improve targeting precision, and increase energy efficiency. For instance, in July 2024, Hanwha Aerospace, a South Korea-based manufacturing company, initiated production of a new anti-aircraft laser weapon. The Block-I anti-aircraft laser weapon employs fiber-optic laser technology for precise targeting of small UAVs, operates silently without the need for ammunition, and has a firing cost of approximately USD 1.45. Production began in July 2024, with deliveries expected to be completed by 2026. This highlights the pivotal role of R&D in advancing laser weapon systems.

Major companies in the laser weapon systems market are increasingly adopting strategic partnerships to develop innovative high-energy laser weapon systems. These collaborations enable firms to combine resources and expertise, enhancing R&D capabilities, expanding market reach, and accelerating commercialization, thereby driving innovation and growth in the industry. For example, in December 2022, Lockheed Martin, a US-based aerospace and defense company, partnered with Rafael Advanced Defense Systems Ltd, an Israel-based defense technology firm. This partnership aims to jointly develop, test, and manufacture High Energy Laser Weapon Systems (HELWS) to strengthen air defense capabilities. By leveraging the expertise of both companies, the collaboration seeks to deliver advanced, cost-effective solutions to address emerging threats, particularly in the American and Israeli markets.

In June 2022, Lumibird, a France-based laser technology company, acquired a laser rangefinder business from Saab for an undisclosed amount. This acquisition will enable Lumibird to expand its portfolio in the European market, offering a broader range of rangefinders and laser systems. Saab, a Sweden-based firm, specializes in designing advanced systems across various sectors, including aeronautics, weapons, underwater operations, and command and control.

Major companies operating in the laser weapon systems market include Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, Leidos Holdings Inc., Elbit Systems Ltd., General Atomics, Northrop Grumman Corporation, BAE Systems, BlueHalo, Saab, Jilin Ruikd Medical Photoelectric Technology Co. Ltd, Xi'an Lonn M&E Equipment Co. Ltd, Guangzhou Futai Beauty Equipment Co. Ltd, Leonardo, Thales Group, CILAS, MBDA, Kalashnikov Group, Almaz-Antey, United Aircraft Corporation, Tactical Missiles Corporation, Uralvagonzavod, Applied Technology Associates, Alma Lasers Ltd, Laser Ammo, Sarine Technologies Ltd, Meprolight, STI Laser Industries, NeoLaser, Zmed Laser, ARIEL Photonics Assembly, LaserOp, LASER FZCO, Matrix Laser, Trotec laser, Digi Matrix Technologies.

North America was the largest region in the laser weapon systems market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the laser weapon systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the laser weapon systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Laser weapon systems are directed-energy weapons based on lasers, generating high-energy pulses for impacting the target. These weapons operate on the principle of light amplification through stimulated radiation emission (LASER).

The main types of products in laser weapon systems include laser designators, LIDAR (Light Detection and Ranging), 3D laser scanning, laser range finders, ring laser gyros, and laser altimeters. A laser designator is a type of laser weapons system that enables the designation or surveillance squad to target laser-guided munitions. Different technologies employed in these systems include solid-state laser, chemical laser, free-electron laser, chemical oxygen-iodine laser, tactical high-energy laser, and others. Laser weapon systems are used in air-based, ground-based, and sea-based operations.

The market research report is one of a series of new reports that provides laser weapon systems market statistics, including laser weapon systems industry global market size, regional shares, competitors with a laser weapon systems market share, detailed laser weapon systems market segments, market trends and opportunities, and any further data you may need to thrive in the laser weapon systems industry. This laser weapon systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The laser weapon systems market consists of sales of high energy laser weapon systems, and high-powered microwaves. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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