Military Laser System Market Report 2026

The military laser system market size has grown strongly in recent years. It will grow from $5.4 billion in 2025 to $5.89 billion in 2026 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to increasing research and development investments in directed-energy weapons, rising need for precision targeting solutions to minimize collateral damage, growth in counter-drone requirements driving early adoption of laser-based systems, advancements in beam control and thermal management improving operational feasibility, expanding military trials and demonstrations validating laser system effectiveness.

The military laser system market size is expected to see strong growth in the next few years. It will grow to $8.25 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to growing deployment of laser-based counter-drone and missile-defense systems across defense forces, increasing demand for modular and scalable laser platforms for diverse mission needs, rising integration of advanced target tracking technologies to enhance accuracy, accelerating development of high-energy laser systems with improved power efficiency, expansion of defense modernization programs supporting procurement of directed-energy solutions. Major trends in the forecast period include proliferation of laser-based counter-uas and counter-drone solutions, power scaling of laser weapons for hard-kill engagement of missiles and rockets, miniaturization and ruggedization of laser systems for man-portable and vehicle-mounted use, growing deployment of non-lethal laser dazzlers for sensor and vision denial, shift toward modular, open-architecture laser payloads for multi-platform integration.

The growing defense budgets are expected to propel the growth of the military laser system market going forward. Defense budgets refer to the total government spending allocated for military personnel, equipment, operations, and related defense activities to ensure national security. These budgets are increasing due to rising geopolitical tensions, prompting nations to enhance military capabilities for deterrence and strategic security. Higher defense budgets support military laser systems by accelerating research and development and enabling the deployment of advanced high-energy weapons. They facilitate precision targeting and rapid threat neutralization, strengthening national security and modernizing armed forces. For instance, in April 2025, according to the Stockholm International Peace Research Institute (SIPRI), a global think tank specializing in conflict and security studies, world military expenditure reached $2.718 trillion in 2024, marking a 9.4% increase from 2023 - the steepest year-on-year rise since at least the end of the Cold War - highlighting that growing defense budgets are driving the expansion of the military laser system market as nations increasingly invest in advanced directed-energy weapons to enhance defense capabilities. Therefore, the growing defense budgets are driving the growth of the military laser system market.

Leading companies in the military laser system sector are focusing on the development of next-generation laser weapons that offer continuous operation as long as power is available. These laser systems use concentrated light energy to deliver high-accuracy strikes with minimal delay, providing a tactical edge in modern combat. For instance, in August 2023, Lockheed Martin Corporation, a US-based aerospace and defense firm, introduced a 500 kW-class laser weapon. Designed with tactical applications in mind, the system follows the U.S. Department of Defense’s Modular Open System Approach, ensuring compatibility and seamless integration across various platforms. It employs advanced beam control and spectral beam combining, which merges multiple fiber lasers into a single, high-power output to improve targeting precision and mitigate atmospheric distortion.

In December 2024, MBDA Inc., a France-based defense company, partnered with Leonardo S.p.A. to develop a laser-based directed energy system specifically designed for naval applications. The collaboration focuses on addressing threats from nano- and micro-drones at sea by deploying scalable laser systems suitable for both existing vessels and new ship builds. The system aims to enhance naval defense capabilities through high-precision targeting and rapid response. Leonardo S.p.A. is an Italy-based defense company with expertise in military laser technologies.

Major companies operating in the military laser system market are RTX Corporation, Boeing Company, Lockheed Martin Corporation, General Dynamics Corp, Northrop Grumman Corporation, BAE Systems Plc, Thales Group, Leidos Holding Inc., Rheinmetall AG, Elbit Systems Ltd., Rafael Advanced Defense Systems Ltd., MBDA Inc., Leonardo S.p.A., CILAS, B.E. Meyers and Co. Inc., Global Laser Ltd., Cutting Edge Optronics Inc., Alpes Lasers SA, Elite Optoelectronics Co. Ltd., Laser Tools Co. Inc., Frankfurt Laser Company, Mundt and Associates Inc.

North America was the largest region in the military laser system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the military laser system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on high-precision optical components, semiconductor laser diodes, power electronics, and advanced materials are increasing production costs and lead times for military laser systems, particularly in complex product types such as laser weapons, LIDAR, range finders, and beam control subsystems. Fixed and mobile installations, as well as high-energy infrared laser systems used in directed energy weapon and defensive countermeasure applications, are most affected in regions that rely heavily on cross-border sourcing, including North America, Europe, and Asia-Pacific. These tariffs can slow procurement and deployment for defense and homeland security end users, but they also encourage localization of manufacturing, investment in domestic supply chains, and long-term partnerships with regional optics and photonics suppliers, which may strengthen resilience and innovation in the market over time.

The military laser system market research report is one of a series of new reports that provides military laser system market statistics, including military laser system industry global market size, regional shares, competitors with a military laser system market share, detailed military laser system market segments, market trends and opportunities, and any further data you may need to thrive in the military laser system industry. This military laser system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A military laser system is a directed-energy weapon that uses concentrated beams of light to damage or destroy enemy targets. These systems are utilized for precision targeting, sensor disruption, or the physical neutralization of threats such as drones, missiles, or vehicles. The primary objective of military laser systems is to deliver rapid, accurate, and cost-effective offensive or defensive capabilities while minimizing collateral damage.

The primary product types of military laser systems include laser designators, light detection and ranging (LiDAR), 3D scanning systems, laser weapons, laser rangefinders, ring laser gyros, laser altimeters, and others. A laser designator, for example, is used to mark targets with a laser beam to enable precision-guided munitions to strike accurately. These systems are available in fixed, mobile, and portable deployment modes and operate across various laser wavelengths such as infrared (IR), ultraviolet (UV), and visible light. Military laser systems are used in applications such as target designation and ranging, munitions guidance, directed-energy weapons, and defensive countermeasures, serving sectors including defense, homeland security, aerospace, and aviation.

The countries covered in the military laser system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The military laser system market consists of sales of laser-based counter-drone systems, beam control subsystems, thermal management systems for lasers, and target tracking systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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