Laser Weapon Systems Market Size, Trends and Growth Analysis by 2027

The laser weapon systems market was valued at approximately US$ 1,342.17 million in 2020 and is anticipated to grow significantly, reaching US$ 5,123.18 million by 2028. This growth represents a compound annual growth rate (CAGR) of 18.8% from 2021 to 2028.

Manufacturers of laser weapons are at the forefront of developing cutting-edge and technologically sophisticated armaments for military and defense applications. These advancements are aimed at enhancing the capabilities of land, air, and naval forces, thereby safeguarding nations from various threats, including unmanned aerial vehicles (UAVs), mortar rounds, artillery shells, and rockets. The role of laser weapon systems is crucial for immediate offensive actions and for providing protection to soldiers in combat zones, prompting countries worldwide to prioritize their development.

The economic growth observed in developing nations is further propelling the advancement of defense weapon systems. Key players in the market are consistently upgrading their technologies to address emerging requirements, offering systems with enhanced range and power. For example, Lockheed Martin is making strides in delivering the High-Energy Laser and Integrated Optical-Dazzler with Surveillance (HELIOS) for the US Navy. This system integrates long-range intelligence, surveillance, reconnaissance (ISR), laser weaponry, and counter-UAS capabilities to improve situational awareness and provide a multi-layered defense approach. In a similar vein, Raytheon Technologies has secured contracts worth US$ 15.5 million to develop an upgraded laser weapon system mounted on a buggy, capable of neutralizing drones or small UAVs within a range of 3 kilometers, operated via a game-style controller and laptop. Such innovations are significantly contributing to the market's expansion.

The COVID-19 pandemic had a profound impact on the global economy, leading to delays in component deliveries across various sectors. Although the military aerospace industry continued operations, it did so at a reduced pace due to health precautions. This slowdown affected production targets, as workforce limitations and social distancing measures hindered output. The disruption in the supply chain posed challenges for defense equipment manufacturing in 2020. However, the recovery trajectory for the defense sector is expected to be more rapid compared to other industries, as defense forces are actively awarding contracts for various weapon systems, both operational and in the prototype stage, to manufacturers.

The laser weapon systems market can be categorized based on type and application. In terms of type, the market is divided into chemical lasers, solid-state lasers, free electron lasers, and fiber lasers. Notably, the fiber laser segment dominated the market share in 2020. Regarding application, the market is segmented into air-based, ground-based, and sea-based systems, with the ground-based segment also holding the largest market share in the same year.

The overall size of the laser weapon systems market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach not only provided a comprehensive overview but also facilitated forecasts for the laser weapon systems market across all segments. Additionally, the analysis includes a global market overview segmented by four major regions: North America, Europe, Asia Pacific, and the rest of the world.

To further validate the data and gain deeper analytical insights, primary interviews were conducted with industry participants and commentators. This group included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the laser weapon systems market.

Some of the prominent players in the laser weapon systems market include Applied Technology Associates, Boeing, Elbit Systems Ltd., General Atomics, L3Harris Technologies, Inc., Lockheed Martin Corporation, MBDA, Northrop Grumman Corporation, Raytheon Technologies Corporation, and Rheinmetall AG.