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Directed Energy Weapons Market Transformation: Key Market Size Changes in Recent Years
The market size for directed energy weapons has seen a substantial increase in recent years. The market which was worth $7.01 billion in 2024 is projected to rise to $8.76 billion in 2025, making for a compound annual growth rate (CAGR) of 25.1%.
Factors that fueled this growth during the historic period include the rise of new threats and security challenges, heightened military modernization and defense budgets, geopolitical tensions, amplified need for drone and missile defense, as well as non-lethal crowd control measures.
Predictions for the directed energy weapons market size indicate a surge in the coming years. The market is set to expand to $20.07 billion by 2029, with a compound annual growth rate (CAGR) of 23.0%.
The surge during the forecast period is linked to factors such as cybersecurity needs, electromagnetic spectrum defense, growth in non-lethal civilian use, the need for hypersonic threats defense, and commercial and civilian market broadening. Also, energy efficiency and reduced costs contribute to this growth.
Key trends in the forecast period encompass international arms control accords, technological advancements, inventive solutions, strategic collaborations, and evolution in energy weapon tech.
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What’s Behind the Consistent Growth of the Directed Energy Weapons Industry?
Modernization and escalating investments in military platforms are propelling the market for directed energy weapons. A global power struggle necessitates technological advancements and significant investments in defense and military services.
The adoption of advanced weaponry, such as directed energy weapons, is important for countries wanting to sustain their power and contend with adversaries. For instance, Truthout, a non-profit organization based in California, reported in April 2024 that global military expenditure hit a record-breaking $916 billion in 2023, marking a 2.3 percent increase from the prior year.
China significantly contributed to this expenditure with an estimated $296 billion investment in its military. Furthermore, data from 2023 reveals that militarized programs consumed 62% of the U.S.
federal discretionary budget, leaving less than half for domestic needs such as health care, housing, nutrition support, and education. As a result, such substantial military and defense investments are driving the directed energy weapons market forward.
Top Revenue-Generating Segments in the Directed Energy Weapons Market
The directed energy weapons market covered in this report is segmented –
1) By Product: Lethal Weapons, Non-Lethal Weapons
2) By Technology: High Energy Laser, High Power Microwave, Electromagnetic Weapons, Sonic Weapons
3) By End-User: Land, Airborne, Naval
Subsegments:
1) By Lethal Weapons: High-Energy Laser Weapons, Particle Beam Weapons, Kinetic Energy Weapons
2) By Non-Lethal Weapons: High-Power Microwave Weapons, Acoustic Weapons, Electromagnetic Pulses (EMP), Non-Lethal Laser Systems
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What Technological Trends Are Set to Revolutionize the Directed Energy Weapons Market?
Major firms in the directed energy weapons sector are centering their strategies around forming strategic collaborations to ramp up market revenues. Such alliances permit these firms to avail of synergistic technologies and enlarge their market penetration, while promoting ingenuity and business competition.
To illustrate, in 2023, BAE Systems PLC, a security and aerospace firm located in the UK, teamed up with Thales UK, another UK-based Aerospace and defense company, to create the Laser Directed Energy Weapon (LDEW) capability under the MOD’s Novel Weapons Program. This partnership, known as Project Tracey, is aimed at formulating and scrutinizing advanced prototypes for the Royal Navy, with user trials on a Type 23 frigate set to begin in 2023.
The goal of the LDEW system is to detect, trace, engage, and defend against Unmanned Aerial Vehicles (UAVs). The consortium accountable for the laser technology in this campaign includes BAE Systems, Chess Dynamics, Vision4CE, and IPG.
BAE Systems is set to provide assistance to Thales UK as the platform and battle system integrator, utilizing their proficiency in synthetic training, modeling, combat systems, and platform integration to put the Royal Navy ahead of the curve in integrating these ground-breaking weapons.
How Are Different Regions Contributing to the Directed Energy Weapons Market’s Growth?
North Americawas the largest region in the directed energy weapons market share in 2024. Asia-Pacificis expected to be the fastest-growing region in the forecast period.
The regions covered in the directed energy weapons market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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Which Firms Are Setting the Benchmark in the Global Directed Energy Weapons Market?
Major companies operating in the directed energy weapons market include Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Company, Boeing Co., BAE Systems PLC, L3Harris Technologies Inc., Rheinmetall AG, Thales Group, Leonardo S.p.A., QinetiQ, General Atomics, Rafael Advanced Defense Systems Ltd., Dynetics Inc., Kord Technologies Inc., Applied Research Associates Inc., BlueHalo LLC, Radiance Technologies Inc., Saab AB, Textron Inc., Moog Inc., Elbit Systems Ltd., Kratos Defense & Security Solutions Inc.
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