What Does the Historical and Current High Energy Lasers Market Size Trend Indicate?
The high energy lasers market has seen considerable growth due to a variety of factors.
• The market size for high energy lasers has experienced swift expansion in the past few years. The projections predict an increase from $17.04 billion in 2024 to $20.07 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 17.8%.
The surge during the historical period can be attributed to heightened military use, augmented demand from the aerospace and defense sector, and an escalation in research and development, particularly in laser fusion.
How Will the High Energy Lasers Market Size Evolve over the Forecast Period?
The high energy lasers market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, the high energy lasers market is predicted to experience swift expansion, with its size predicted to reach $37.49 billion in 2029, growing at a compound annual rate of 16.9%.
Various factors contributing to this predicted growth during the forecast period include escalated usage in industrial and materials processing, an increase in renewable energy and environmental sensing, a rise in cybersecurity and data communication, fiber lasers, and beam control. Some of the key trends projected for this period include directed energy weapons (dew), space-based lasers, industrial laser cutting, laser weapon miniaturization, and solid-state lasers.
What Are The Core Factors Supporting Growth In The High Energy Lasers Market?
The escalation of defense budgets is predicted to fuel the expansion of the high-energy laser market. Governments around the world set aside monetary resources for defense budgets to finance their military-related activities. Factors such as geopolitical tensions, modernization agendas, economic development, and public and political backing contribute to an increase in defense budgets. These budgets are vital for funding research and development in high-energy laser technologies, which in turn drive advancements that enhance their performance and use. Furthermore, these budgets make it possible for military institutions to purchase these systems, which are essential for modern warfare and provide prolonged cost benefits compared to conventional weapons. For instance, the US Department of Defense reported that in August 2024, the DOD allocated $1.94 trillion in FY 2024, an increase from $1.52 trillion in FY 2023. Therefore, the upward trend in defense budgets is a key driver for the high-energy laser market's growth.
What Are The Major Segments Within The Global High Energy Lasers Market?
The high energy lasers market covered in this report is segmented –
1) By Product Type: Gas Laser, Fiber Laser, Solid State Laser, Excimer Laser
2) By Application: Cutting, Welding and Drilling, Military and Defense, Communications
Subsegments:
1) By Gas Laser: CO2 Lasers, Argon Lasers, He-Ne Lasers
2) By Fiber Laser: Continuous Wave Fiber Lasers, Pulsed Fiber Lasers, Specialty Fiber Lasers
3) By Solid State Laser: Nd Lasers, Yb Lasers, Ti Lasers
4) By Excimer Laser: ArF Lasers, KrF Lasers, XeCl Lasers
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Which Trends Are Expected To Transform The High Energy Lasers Market?
The rising prominence of artificial intelligence (AI) is a significant trend in the high energy laser market, with numerous industry players making AI-based product development their priority for gaining a competitive edge. In April 2022, for example, the US Navy successfully trialed the Layered Laser Defense (LLD), an innovative laser weapon engineered by Lockheed Martin, a leading US firm specializing in aerospace, arms, defense, information security, and technology. The Layered Laser Defense (LLD) employs a high-powered laser to neutralize unmanned aerial systems and quick-attack boats, and also to track incoming aerial threats, assist in combat identification, and examine battle damage assessment for engaged targets. Incorporating specialist optics for target observation and optimal laser beam direction, and utilizing AI for enhanced tracking and aiming efficiency, the LLD system is both compact and powerful, yet more efficient than its predecessors.
Who Are the Key Players in the High Energy Lasers Market?
Major companies operating in the high energy lasers market include:
• Northrop Grumman
• Lockheed Martin
• Raytheon Technologies
• Boeing
• BAE Systems
• L3Harris Technologies
• Elbit Systems
• Thales Group
• Leonardo S.p.A.
• General Dynamics
• SAAB
• Kratos Defense & Security Solutions
• Amentum
• TRUMPF
• Coherent
• Optical Society
• QinetiQ
• Rheinmetall
• Han's Laser Technology
• Kongsberg Gruppen
• Energetics Technologies
• INFINITUM
• Hypertherm
• GSI Group
• Lasertec
• IPG Photonics
• Solid State Laser
• EdgeWave
What Is The Most Dominant Region In The High Energy Lasers Market?
North America was the largest region in the high energy lasers market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the high energy lasers market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
