Why Laser Beams Are the Hottest New Tech in Defense

Summary of Why Laser Beams Are the Hottest New Tech in Defense

by Bloomberg

53m•September 4, 2026
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Overview of Why Laser Beams Are the Hottest New Tech in Defense

Bloomberg’s Odd Lots explores the rise of directed energy weapons—mainly high-energy lasers and high-powered microwaves—as a potentially transformative but still constrained part of modern air defense. Guest Wayne Sanders, a former U.S. Army colonel and Bloomberg Intelligence defense analyst, explains how these systems work, why militaries are investing in them now, and why they’re best understood as additive layers to existing missile defenses rather than replacements.

What Directed Energy Weapons Are

Lasers vs. microwaves

  • High-energy lasers:
    • Focus energy into a narrow beam
    • Best for single targets
    • Can burn through or disable objects by heating them at the point of impact
  • High-powered microwaves:
    • Affect electronics over a wider area
    • Useful against drone swarms or multiple systems at once
    • Often described as a kind of “electronic shotgun”

How they’re used

  • Lasers are likened to a sniper rifle
  • Microwaves are likened to a shotgun
  • The main goal is to degrade, disable, or destroy incoming threats without using expensive missiles

Why This Tech Matters Now

The cost problem in modern defense

  • Militaries are spending millions of dollars per interceptor to defeat cheap drones and small munitions
  • Directed energy promises a much lower cost per shot
  • This is especially important in conflicts where attackers can launch large numbers of low-cost systems

Real-world pressure points

  • Ukraine, the Red Sea, and Iran-linked drone and missile attacks were cited as examples of the need for cheaper, scalable defenses
  • Israel’s Iron Beam was highlighted as an emerging operational example

Technical and Operational Constraints

Power is the biggest bottleneck

  • These systems need significant power generation and compression
  • Early lasers were so power-hungry they were effectively building-sized
  • Today’s systems still depend heavily on:
    • Shore power
    • Large generators
    • Size/weight/power tradeoffs

Deployment limits

  • A static system can be useful for base defense
  • But forward-deployed forces need something that can be mounted on:
    • Trucks
    • Ships
    • Potentially other mobile platforms
  • Weather also matters:
    • Fog and rain can degrade laser performance
    • Missiles are less affected by atmospheric conditions

Current capability levels

  • U.S. systems are still mostly in the 50-kilowatt range
  • The Pentagon’s longer-term goal is roughly a one-megawatt laser
  • That kind of jump would be needed to engage faster, more advanced threats like hypersonic weapons

Directed Energy as Part of Layered Air Defense

Not a replacement for missiles

Sanders emphasized that lasers and microwaves are not substitutes for high-end interceptors. Modern air defense needs a layered architecture:

  • Exquisite interceptors for the hardest threats
    • Examples: Patriot PAC-3, THAAD, SM-3, SM-6
  • Cheaper mid-tier systems
    • Examples: Coyote, Vampire, APKWS, Skynex
  • Directed energy systems
    • Best for specific drone, boat, or swarm problems

Why layering matters

  • A military can win every engagement and still lose economically
  • The point is to match the right tool to the threat
  • This preserves expensive interceptor stocks for the threats that truly require them

Market Dynamics and Supply Chain Risks

Defense primes vs. disruptors

  • Large contractors are scaling up production of existing missile systems
  • Startups and newer players are more active in the middle layer of cheaper interceptors and directed energy
  • Examples mentioned:
    • Anduril
    • Castilian
    • CoAspire
    • Leidos
    • Zone 5

Critical minerals are a major issue

  • Directed energy systems depend on supply chains involving:
    • Gallium
    • Terbium
    • Dysprosium
    • Neodymium-boron-iron magnets
  • China dominates many of these supply chains
  • The U.S. is trying to onshore more of this capacity through deals and procurement

AI and Safety Concerns

Human-in-the-loop remains the norm

  • AI is being used to:
    • Sort imagery
    • Reduce noise
    • Help identify patterns and alerts
  • But AI is not being trusted to make autonomous kill decisions
  • Final strike authority remains with humans under target execution authority

Main takeaway on AI

  • Current military AI use is mostly about analysis and assistance
  • Fully autonomous weapon targeting is still viewed as too risky
  • Trust, accountability, and rules of engagement are still central

Key Takeaways

  • Directed energy weapons are real and advancing, but still limited by power, deployability, and weather.
  • They are most promising as low-cost, repeatable defensive tools against drones, small boats, and swarm attacks.
  • They do not replace missiles; they fit into a layered defense system.
  • The biggest strategic shift is economic: shifting from scarce, expensive interceptors to more affordable, scalable options.
  • The future of this market depends on:
    • Better power systems
    • Supply chain resilience
    • Continued transition from R&D to procurement
    • Careful human oversight over AI-enabled systems