The global high-energy lasers market size was valued at USD 8.20 billion in 2021. It is expected to reach USD 23.66 billion by 2030, growing at a CAGR of 12.50% during the forecast period (2022–2030).
High Energy Laser (HEL) systems are now a reality in the military. Beam quality, throughput, and dependability are attributes at the system level. SWaP and cost will likely remain at the forefront of discussions regarding the current and upcoming generations of High Energy Laser weapons. The threat is examined by a camera, which frequently offers a better, higher-resolution image than the radar. The decision-maker then determines whether the object poses a threat that needs to be addressed. In order to combat airborne threats like missiles and drones, the navy highly sought-after laser weapon systems all over the world.
The navy's demand for laser weapon systems proliferates worldwide to combat airborne threats like missiles and drones. Lasers are used as the first line of defense against missiles because they have proven effective. Additionally, the ability of laser-based weapons to disable drones is being tested by mounting such weapons on naval vessels. The defense section is increasingly creating and introducing technologies to fend off such threats because navy vassals are vulnerable to attacks from missiles and other airborne threats. The market is anticipated to be affected by the rapid rise in global spending on naval supplies and weapons.
Due to significant R&D expenditures, these solutions still need to be developed and refined, significantly raising their price. Vendors must adhere to strict regulations to build these systems, and industries using them in their operations must follow the same rules. Additionally, the cost of R&D to create these systems and implement them is discouraging governments from choosing these solutions. The development of these weapons as standard solutions is unregulated, restricting the development of these systems. To standardize weapon parts and subsystems for gradual system upgrades and reduce obsolescence, the US DoD investigates the significance of modular open system architecture or MOSA. Additionally, the equipment needs to be significantly modified to accommodate the power source needed for these systems, raising the apparatus’s cost. The cost is further increased by training the personnel operating these systems.
High-energy laser weapons are expected to displace other technologies due to their increased flexibility in the field and growing power. Along with guns, high-energy laser weapons play a crucial role that is anticipated to open new business opportunities for market vendors. Wide-ranging airborne and ground-based weapons with the ability to precisely deliver extensive damage to electronic systems, combat troops, optical devices, high-speed approaching missiles, and even physical installations have been made possible by high-energy laser technology, revolutionizing the entire standard of destructive weapons.
| Study Period | 2018-2030 | CAGR | 12.5% |
| Historical Period | 2018-2020 | Forecast Period | 2022-2030 |
| Base Year | 2021 | Base Year Market Size | USD 8.20 Billion |
| Forecast Year | 2030 | Forecast Year Market Size | USD 23.66 Billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | North America |
Asia-Pacific Dominates the Global Market
By Region, the global high energy lasers market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.
Asia-Pacific is the most significant shareholder in the global high-energy lasers market and is expected to grow at a CAGR of 12.9% during the forecast period. With the market expanding and powerful nations like China, India, and Japan driving it, the Asia-Pacific region is a global leader in adopting high-energy lasers in various fields. High-energy lasers are increasingly being used in defense and military systems in several of the region's nations, including India, due to US-China tensions, border disputes, and the focus on nuclear power. India has adopted and encouraged the use of high-energy lasers in the military as part of the Technology Perspective and Capability Roadmap by the Ministry of Defense, which is part of the Tactical High Energy Laser System for the Army and Air Force of India. The high-energy lasers market is anticipated to gain from technological advances made by China with government-funded investments in research and development due to the focus on space control in terms of military dominance. The missile and defense, manufacturing, and healthcare sectors, among others, are predicted to be significant drivers of its growth.
North America is expected to grow at a CAGR of 12%, generating USD 5.49 billion during the forecast period. Due to the concurrent activities that show the widespread use of high-energy lasers, North America is one of the top regions in the market under study. Strong military spending, ongoing growth in the building sector, and the aerospace and automotive industries are all characteristics of the high-energy laser market. Periodically introduced improvements from vendors round out this picture. The high-energy lasers market is anticipated to experience slow and steady adoption due to the rapid advancement of technology and the widespread use of HEL technology in North American industries of primary importance. The significant businesses operating there are anticipated to continue to support the market's growth through product line expansion and mergers and acquisitions, especially with the assistance of the local governments.
The adoption of high-energy laser technology by nations like Germany and the United Kingdom has accelerated the market's expansion in Europe. High-energy lasers are increasingly being used in missile and defense systems across Europe. Rheinmetall has had a long-standing working relationship with German military establishments and has conducted maritime laser technology testing. Such partnerships between important market participants and the government have accelerated technology uptake in the military and defense sectors. High-energy laser technology is being used more and more by the United Kingdom in its missile and defense systems. The nation is distinguished by the creation of consortiums that have implemented various upgrades and provided new solutions in the market, all of which are supported by government initiatives. The high-energy lasers market is anticipated to expand over the forecast period. It is distinguished by numerous product launches, a gradual shift toward advanced technologies in high-energy lasers, and acquisitions across the continent.
The market has seen notable developments outside North America, Asia-Pacific, and Europe in numerous other regions. The market is characterized by intercontinental alliances between numerous missile firms with regional bases, which have jointly fueled the development of the technology. High-energy lasers are becoming more widely used in Latin American nations like Brazil. Many businesses outside the area actively enter the market to capitalize on the expansion. The high-energy lasers market is anticipated to expand across the economies of the Middle East, Africa, and Latin America with the help of international collaborations, deeper market penetration, and mergers and acquisitions.
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The global high-energy lasers market is segmented by applications.
Based on Application, the global market is bifurcated into cutting, welding and drilling, military and defense, and communications.
The cutting, welding and drilling segment is the highest contributor to the market and is expected to grow at a CAGR of 11.9% during the forecast period. High-power laser welding or cutting application system technology focuses on critical issues like expanding the range of scanning process, accuracy, lightweight, and high long-term processing stability with a goal of the high-speed and high-precision process. High-power laser cutting machines can expand the plastic processing range of plates. The machine's utilization rate also rises at the same time. For instance, a high-power laser cutting device can replace small and medium-power cutting devices.
For example, Quick Laser and Beckhoff continued their collaboration in 2021 to use TwinCAT software as an open computerized numerical control system to maximize the performance of high-end laser cutting machines. Vendors are aiming to improve their software solutions through collaborations. Applications for high-power laser welding have steadily grown in recent years as people realize and take advantage of the many benefits of laser processing to create better products with higher productivity and lower costs.
One of the factors influencing the development of laser diode technology is optical communication. Diode lasers now serve as the foundation of all broadband communication systems. They are used in digital and analog fiber optic networks as high-speed transmitters, to pump lasers in erbium-doped amplifiers (EDFAs), or as high-power pulsed lasers in the test and measurement industry. Lightwave communications are a very appealing way to meet the demand for personal multimedia communication, including text, voice, still images, and video information, in the future due to their quick speed and large bandwidth. Time-division multiplexing (TDM) and wave division multiplexing (WDM) technologies will be the foundation for the high-speed fiber-optic communication system's continued growth. The demand for the use of high-energy laser systems for communication is driven by the need to improve communication technology across various mediums, with the increased importance of faster and more accurate exchange of critical data.
The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.
South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.
The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.
