Directed Energy Weapons (DEW) Market
Visiongain has published a new report entitled Directed Energy Weapons (DEW) Market Report 2025-2035 (Including Impact of U.S. Trade Tariffs): Forecasts by Operational Mode (Continuous Wave, Pulsed Beam/Ultra-Short Pulse), by Range Capability (Long-Range (>20 km), Short-Range (<5 km), Medium-Range (5–20 km)), by System (Anti-Satellite (ASAT) DEW, Electromagnetic Railgun Systems, Counter-Drone DEW Systems, Other), by Technology Type (High-Energy Lasers (HEL), High-Power Microwave (HPM), Particle Beam Weapons, Hybrid DEW Systems, Other), by Application (Ground-based DEW for Military Bases, Airborne DEW for Aircraft Defence, Naval DEW for Ship Defence, Homeland Security, Critical Infrastructure Defence, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.
The global directed energy weapons (DEW) market is estimated at US$9,184.7 million in 2025 and is projected to grow at a CAGR of 19.8% during the forecast period 2025-2035.
Impact of US Trade Tariffs on the Global Directed Energy Weapons (DEW) Market
The imposition of U.S. tariffs has a notable impact on the global Directed Energy Weapons (DEW) market, primarily because the U.S. is the largest investor and developer in this field. Tariffs on critical raw materials such as rare earth elements, advanced semiconductors, and optical components directly increase production costs for DEW systems. Since these materials are often sourced from international suppliers, particularly China, higher import duties can lead to supply chain disruptions and elevated procurement costs for U.S. defense contractors. This, in turn, creates ripple effects across allied nations that depend on U.S. technology and exports for their defense modernization programs.
Additionally, U.S. tariffs can strain global defense collaborations, as partner countries may face higher costs when acquiring American DEW systems. While tariffs aim to promote domestic manufacturing and reduce reliance on foreign supply chains, they also risk slowing down international joint ventures and technology transfers. For example, programs such as U.S.-Israel collaboration on the Iron Beam laser system or U.S.-U.K. work on DragonFire could experience cost escalations due to tariff-driven price hikes in key components.
On the other hand, tariffs may encourage diversification and localized production, pushing U.S. allies and global defense firms to invest in indigenous DEW capabilities. This could create opportunities for emerging markets like India, Australia, and European nations to accelerate domestic R&D and reduce dependency on U.S. supply chains. Ultimately, while tariffs strengthen the U.S. industrial base in the long term, they introduce near-term challenges of cost inflation, supply delays, and increased competition in the global DEW market.
Operational Proof—Lasers & HPM Have Now “Worked in the Wild”
After years of development, directed energy weapons have moved beyond lab demonstrations to prove their effectiveness in real-world operational environments. In 2024, the U.S. Navy’s HELIOS system, aboard the USS Preble, successfully engaged an airborne target during testing, validating its use in a maritime setting and providing crucial data for future Navy DE roadmaps. This was followed by a major milestone in 2025, when the Israeli Ministry of Defense and Rafael publicly confirmed the first-ever combat interceptions by their high-power Iron Beam laser, demonstrating real-world lethality against drones and short-range threats and immediately amplifying demand signals worldwide. Concurrently, the U.S. Army has deployed DE M-SHORAD prototypes overseas since early 2024 and is maintaining momentum toward higher-power systems with Lockheed Martin under the IFPC-HEL program. This accumulation of successful, live engagements has de-risked the technology and provided tangible proof of concept to a global audience.
How will this Report Benefit you?
Visiongain’s 438-page report provides 129 tables and 220 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the directed energy weapons (DEW) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for directed energy weapons (DEW). Get financial analysis of the overall market and different segments including operation mode, range capability, system, technology type, and application, and capture higher market share. We believe that there are strong opportunities in this fast-growing directed energy weapons (DEW) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
Counter-Drone Swarms: HPM Emerges as a Complement to Lasers
The proliferation of drone swarms and dense air raids has created a new challenge that traditional missile-based defenses struggle to address effectively. High-power microwave (HPM) weapons, with their ability to instantaneously disable the electronics of multiple drones at once, have emerged as a unique and essential complement to lasers. In 2024, Epirus delivered four of its Leonidas HPM systems to the U.S. Army for the IFPC-HPM program and secured a follow-on contract for its Gen II system in 2025. Other significant HPM programs include the U.S. Air Force Research Laboratory’s THOR/Mjölnir and Raytheon’s Phaser, both of which demonstrate parallel government investment in the technology. The ability of HPM to defeat swarms at scale with non-kinetic effects and negligible per-engagement costs has become a primary driver of demand for these systems, filling a critical gap in multi-layered air defense.
Industrialization & Power Scaling (100–300 kW-class) is Real
The directed energy sector has moved from building prototypes to industrializing and scaling power levels to address a wider range of threats. The U.S. Department of Defense’s High Energy Laser Scaling Initiative (HELSI) and the U.S. Army’s IFPC-HEL program, with awards to Lockheed Martin, represent coherent investment in pushing laser technology from low-power lab demos to fieldable 300-kilowatt-class systems capable of engaging rockets, artillery, mortars, and even cruise missiles. In Europe, a similar trajectory is underway, with Rheinmetall and MBDA completing a one-year sea campaign with the German Navy, which involved over 100 successful laser firings from the F124 Sachsen frigate. These programs are critically derisking key challenges such as power scaling, thermal management, and beam-control integration, paving the way for the broader and more rapid adoption of high-power laser systems across military platforms.
Where are the Market Opportunities?
Naval Area Defense: From Trials to Programs of Record
Navies represent one of the most immediate and high-budget markets for directed energy weapons. With the U.S. Navy’s HELIOS proving its capability to engage airborne targets at sea and the U.K.’s DragonFire slated for naval deployment by 2027, maritime forces are rapidly moving from trials to establishing formal programs of record. The strong economic case for lasers, which can offload expensive missile inventories, is a primary motivator. Germany’s sea-trial success with Rheinmetall and MBDA also positions them for a potential pre-series production order. For vendors, this presents a clear opportunity to prioritize naval bids with solutions that feature stabilized beam directors and robust thermal management, which are critical for shipboard integration.
Fixed-Site/Base Defense & Critical Infrastructure
There is a significant and growing demand for robust counter-UAS solutions at military installations and critical civil assets, such as power plants and data centers. As U.S. legal authorities evolve to permit broader deployment, integrators can seize this opportunity by offering comprehensive solutions that pair AI-enabled sensing and C2 systems, like Anduril’s Lattice, with HPM systems such as Epirus Leonidas or HEL weapons like BlueHalo’s P-HEL. The U.S. Marine Corps’ 2025 base-protection award to Anduril demonstrates that these multi-site rollouts are a tangible and expanding market. This sector offers a stable, high-value customer base with a clear and defined need for persistent and effective protection.
Competitive Landscape
The major players operating in the directed energy weapons (DEW) market are BAE Systems, BlueHalo, Elbit Systems Ltd, Honeywell International Inc, Israel Aerospace Industries Ltd. (IAI), L3Harris Technologies, Inc, Leonardo SpA, Lockheed Martin Corporation, Moog, Inc., Northrop Grumman Corporation, QinetiQ Limited, Raytheon Technologies (RTX), Rheinmetall AG, Textron Aviation Inc., Thales SA, These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.
Recent Developments
06-Aug-25, BAE Systems is advancing the U.S. Army’s Armored Multi-Purpose Vehicle (AMPV) program with a new series of rapid capability kits and mission-ready effectors. Leveraging the AMPV’s modular chassis and internal investment, the company is developing prototypes that integrate technologies such as counter-drone systems, ground autonomy, and unmanned turrets.
01-Aug-25, BAE Systems and Kongsberg have expanded their collaboration with a new Memorandum of Understanding (MoU) signed in July 2025, building on an earlier agreement from May. The partnership will focus on both maritime and air domains, covering areas such as advanced vessel systems, frigate support, strike missiles, maritime surveillance, and future combat air technologies.
15-Jul-25, At the British Army Counter-UAS Expo, Moog showcased its RIwP® turret with the 30x173mm Bushmaster Mk44 gun for the first time in the UK. The system has undergone live fire with the U.S. Army and highlights RIwP’s modularity and C-UAS applications.
17-Jun-25, Thales and Boreal, a subsidiary of France’s MISTRAL Group, have partnered to produce sovereign long-range loitering munitions for France and NATO forces. The MTO-LP1 system, capable of ranges of several hundred kilometres, can be deployed by two operators in under 30 minutes, with up to 10 munitions launched simultaneously.
Notes for Editors
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