Directed Energy Weapons Market Research Report and Outlook by 2028

The Directed Energy Weapons (DEW) market is projected to expand from US$ 1,780.61 million in 2022 to US$ 5,737.45 million by 2028, reflecting a compound annual growth rate (CAGR) of 21.5% during this period.

Countries facing border conflicts and regional threats are increasingly recognizing the importance of advanced directed-energy weapons. These systems offer remarkable accuracy and enhance border security. The Missile Defense Agency's initiative to develop directed energy demonstrators aims to mitigate technical challenges while advancing high-powered strategic lasers, beam control, lethality, and associated technologies. In the fiscal year 2021, the US Department of Defense allocated $42 million to this program. Researchers in China have indicated that upcoming directed-energy weapon systems are anticipated to surpass current capabilities, leveraging advanced klystron amplifier technology. For instance, a team in Shanghai is developing a DEW system capable of delivering 100-petawatt laser shots by 2023. Such innovations are driving substantial growth in the directed energy weapons market.

In 2022, Europe is expected to secure the second-largest share of the directed energy weapons market, with continued robust growth anticipated throughout the forecast period. Various European entities are actively developing and deploying directed energy weapon capabilities in response to escalating threats from missiles, rockets, and unmanned aerial vehicles (UAVs). Numerous European nations are integrating counter-UAV laser systems into their military forces, which could evolve into comprehensive air defense solutions. The market for directed energy weapons is likely to benefit from potential geopolitical tensions among European countries. Additionally, MBDA, a prominent European defense contractor, is advancing a new laser weapon system named "Dragonfire," designed for installation on UK Royal Navy vessels. This system utilizes several thousand-kilowatt lasers to counter enemy drones and other aerial threats.

In September 2021, the British government awarded a military contract worth $100 million to companies like Thales and Raytheon for the development of directed energy weapon systems. The progress of the Dragonfire system represents a significant opportunity for the regional directed energy weapons market. Furthermore, Germany's Federal Office for Bundeswehr Equipment, Information Technology, and In-Service Support (BAAINBw) has contracted MBDA Deutschland GmbH and Rheinmetall Waffe Munition GmbH to design, integrate, and test a laser weapon demonstrator in maritime settings. The fabrication and testing of this demonstrator were completed by the end of 2021, with trials on the German Navy frigate F-124 Sachsen anticipated in 2022.

Impact of the COVID-19 Pandemic on the Directed Energy Weapons Market

The COVID-19 pandemic adversely affected several Asia Pacific nations, including China, South Korea, and India. However, these countries, along with Japan and others in the region, are increasingly prioritizing the enhancement of their military and defense capabilities. While the pandemic did impact the directed energy weapons market, the effect was less pronounced than in other regions due to the ongoing operations of defense contractors. Nonetheless, the growth rate for product and technology development saw a year-on-year decline due to workforce shortages. China, the leading military spender in the region, faced significant challenges during the first quarter of 2020, resulting in a nationwide shutdown and supply chain disruptions. Consequently, Chinese defense electronics and equipment manufacturers reported annual sales declines. Despite being the foremost developer and manufacturer of DEW systems in the Asia Pacific, the pandemic has limited advancements in the directed energy weapons sector across the region.

North America, particularly the United States, stands as the most advanced market for directed energy weapons, showcasing a high adoption rate for innovative technologies. The US is experiencing more rapid advancements in directed energy weapons compared to other nations. An increasing number of collaborations and partnerships between the US government and leading firms such as Lockheed Martin Corporation, Raytheon Technologies Corporation, and Boeing are propelling market growth. The US government's endorsement of advanced weapon systems encourages manufacturers of laser weapon systems to innovate further. Given the strong presence of directed energy weapons companies and significantly higher military spending year-on-year, North America is expected to capture the largest share of the directed energy weapons market during the forecast period. These dynamics are likely to sustain the market's growth trajectory in the region.

The directed energy weapons market is primarily led by key players such as Lockheed Martin Corporation, Thales Group, L3Harris Technologies, Elbit Systems, Raytheon Technologies Inc, BAE Systems Plc, Moog Inc, Honeywell Aerospace Inc, Boeing, and Rheinmetall AG. The analysis also includes several other participants in the directed energy market, such as MBDA, Kratos Defense, Aselsan, Leonardo SpA, Cilas (Ariane Group), General Atomics, Vision4CE, IPG Photonics, Epirus, and EDGE Group, among others. These companies have employed various organic and inorganic growth strategies to enhance their product offerings and global reach, contributing to the overall growth of the directed energy weapons market. A comprehensive understanding of the market has been achieved by examining the strategies of these companies alongside the major market players.

The overall size of the directed energy weapons market has been determined through both primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the directed energy weapons market size. This approach also aims to provide an overview and forecast of market growth across all segments. Additionally, numerous primary interviews have been conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this process include VPs, business development managers, intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the global directed energy weapons market.