How laser-guided missiles changing economics behind modern combat

Over the past year, laser-guided 70mm APKWS II rockets — originally designed to transform unguided rockets into precision air-to-surface weapons — have become the US Air Force’s primary tool against small, inexpensive aerial threats. What began as an improvised solution has now evolved into standard doctrine: fighters and attack aircraft are routinely equipped with volleys of guided rockets to counter drone swarms and slow-moving cruise missiles.

The air war in the Middle East is being “quietly re-armed with inexpensive precision,” as an article published by the Geopolitical Monitor phrases it.

The logic behind this shift is straightforward: High-end air-to-air missiles are both expensive and limited in number, with an AMRAAM costing roughly $1 million and the AIM-9X Sidewinder several hundred thousand dollars. In contrast, the APKWS II guidance section is priced at just $15,000–$20,000.

“This converts an unguided rocket into an inexpensive precision intercept. In skies increasingly saturated with loitering munitions and small UAVs, the cost-exchange decisively favours defenders who can unleash many accurate shots instead of a handful of million-dollar interceptors,” the article explains.

Initially deployed only on F-16 fighter jets, the APKWS II was later integrated onto F-15Es, A-10 Thunderbolt IIs, and AH-64 Apache helicopters. Although UH-60 and MH-60 variants tested the system for precision strikes over a decade ago, modern integration efforts continue to focus on fixed-wing aircraft and attack helicopters.

According to the article, the APKWS II fills a critical tactical gap. During the April 2024 Iranian missile and drone barrage against Israel, fighter aircraft reportedly exhausted missile stockpiles attempting to intercept waves of low-cost drones. Commanders faced a stark dilemma: either expend high-value missiles or attempt makeshift strikes using bombs ill-suited for agile airborne targets. The laser-guided rockets provided a middle-ground solution — precision strikes against small, manoeuvrable threats at a fraction of the cost, with greater ammunition depth and simpler logistics.

However, the system’s laser guidance requires a line-of-sight or external designator, limiting effectiveness at long range or in poor weather conditions. Current development efforts, including dual-mode seekers with infrared sensors, aim to expand the rocket’s engagement envelope and reduce reliance on forward laser designators. Yet even with upgrades, the rockets remain short-range weapons, and traditional missiles combined with networked sensor systems will continue to be essential for countering beyond-visual-range (BVR) threats.

Increasing access by dramatically cutting costs

The article’s author highlights that the success of the APKWS II accelerates the broader democratization of air defence, offering affordable precision-guided munitions that make layered, distributed defence architectures more attainable for US allies and partners. This trend carries major export and interoperability implications. As several allied air forces observe US practice — with multiple platforms already being considered for integration — they are expected to follow suit, raising the collective defensive standard and reshaping adversarial threat calculations.

Still, the weapon’s adoption introduces new operational and legal challenges. Employing air-to-ground ordnance in an air-to-air role raises questions of certification, collateral risk, and safe use, particularly in crowded airspaces where civilian and noncombatant infrastructure may be nearby. As such, training programs, command structures, and air-defence networks will need to adapt in parallel.

Ultimately, the APKWS II phenomenon illustrates a broader military lesson drawn from recent conflicts: asymmetric aerial threats demand creative adaptation. As adversaries deploy cheap and disruptive technologies, defenders face a choice — spend millions per intercept or innovate with affordable alternatives. The article argues that the APKWS II represents the latter: a cost-effective, rapidly fielded solution that reshapes operational thinking and buys time for more comprehensive advancements — from better sensors to layered interceptor networks and resilient defence architectures.

By Nazrin Sadigova