Directed Energy Weapons Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020
Albany, NY -- (SBWIRE) -- 10/05/2016 -- Original equipment manufacturers involved in the manufacturing of directed energy weapons are striving to gain an edge over established manufacturers through government contracts, states Transparency Market Research (TMR) in a new report. Established players have a stronghold in the global market for directed energy weapons due to the reliability, price, and quality standards of their weapons. Competitive rivalry in the market is expected to intensify owing to growing investments in research and development projects to roll out more advanced products. The five leading companies in the global directed energy weapons market, Lockheed Martin, Raytheon Missile Systems, Northrop Grumman Corp., Boeing, and Rafael Advanced Defense Systems, accounted for a share of over 81% in 2013.
The global directed energy weapons market was worth US $1.38 bn in 2013 and is likely to touch US$5.21 bn by the end of 2020. The market is projected to witness a strong CAGR of 20.8% from 2014 to 2020. Among the key technology segments in the directed energy weapons market, high energy laser has emerged at the forefront.
According to TMR analysts, the high energy laser segment held a share of 52.2% in 2013 and will possibly account for more than 57.4% of the global directed energy weapons market by the end of 2020. The growth of the high energy laser segment can be attributed to the fact that such weapons can be deployed in a ship, aircraft, or land-based platform in a warzone. High energy weapons are further gaining popularity owing to the amount of incendiary and structural damage they can cause in lighting speed. As a result of this, it is expected that the deployment of high energy laser weapons will rise among military forces over the coming years.
Economic Development to Encourage Investments in Weapon Advancement Projects in North America
Based on geography, North America is likely to emerge as the most prominent region in terms of deployment of directed energy weapons. According to a TMR analyst, "The market for directed energy weapons in North America is likely to expand at a 20.0% CAGR between 2014 and 2020 to touch a projected valuation of US$2.75 bn by 2020." Factors such as burgeoning focus on modernization of military and development of high-end weapons to combat anti-national threats are likely to contribute to the growth of the directed energy weapons market in North America. Moreover, the rising expenditure on defense by the United States coupled with the expansion of army is anticipated to encourage manufacturers of directed energy weapons to set up production units in the U.S. and other countries in the North America region.
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Low Cost per Shot Feature to Drive Large Scale Adoption of Directed Energy Weapons
Several directed energy weapons are have inexpensive target and shoot features. For instance, directed energy missile defense systems use more than one power beam to shoot the target at one go. The cost of every shot is only a few dollars as compared to the conventional missile defense systems. The inexpensive nature of directed energy weapons qualifies them as a potential solution for countries with a low defense budget. Moreover, directed energy weapons have a better accuracy when aiming at a target in comparison to that of conventional weapons.
Defense Budget Cut Downs to Negatively Impact Growth of Directed Energy Weapons Market
Developed countries such as the U.S. have recently cut down on their defense budgets as a measure to decrease economic pressure. The U.S. maintains the leading army in the world and defense expenditure cut down of the country is expected to impede the growth of the global directed energy weapons market. However, it is expected that the downturn in the U.S. defense sector can be combated owing to the rising defense expenditure of developing countries in Asia Pacific and Latin America such as China, India, South Korea, and Brazil.