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The industrial laser market size is projected to increase by USD 2.89 billion, at a CAGR of 7.58% between 2023 and 2028. The growth rate of the market depends on several factors, including the growing demand for industrial lasers from several industries, the growing popularity of additive manufacturing or three-dimensional printing, and the increasing need for material processing.
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The growing popularity of additive manufacturing or three-dimensional printing is notably driving the market growth. Additive manufacturing involves building 3D objects by layering materials based on a digital model, such as plastic, metal, or ceramic. Laser-based 3D printing is gaining popularity because it offers high precision and control in the manufacturing process. The adoption of laser-based 3D printing has grown significantly in recent years, leading to an increase in demand. Laser-based 3D printers offer high precision and accuracy, making them ideal for manufacturing complex and intricate parts.
In addition, printing offers a more sustainable and eco-friendly manufacturing solution, as it reduces waste and requires fewer raw materials than traditional manufacturing methods. Laser-based 3D printing offers improved efficiency, productivity, customization, and sustainability, making it an attractive option for various industries. Therefore, the demand for industrial lasers is expected to grow, and the growing popularity of additive manufacturing or 3D printing will drive the growth of the market during the forecast period.
Government support and initiatives associated with industrial lasers are an emerging trend shaping the market development. Governments across the world are providing increased funding for research and development in the field of industrial lasers. For instance, in 2021, the EU announced funding of USD 2.39 billion for the development of advanced technologies, including technologies, under its Horizon Europe program. Governments are providing financial incentives to encourage the adoption of industrial lasers. In addition, governments are implementing regulations and standards to ensure the safe and efficient use of industrial lasers.
For instance, in the US, the Occupational Safety and Health Administration (OSHA) has developed standards for the use of lasers in the workplace, while the International Electrotechnical Commission (IEC) has developed safety standards for equipment. Therefore, due to the increase in government support and initiatives, the market is expected to grow during the forecast period.
The high cost of installation of industrial lasers is a significant challenge hindering market development. The cost of purchasing industrial lasers can be a significant barrier for many companies, particularly for those operating in industries where profit margins are low. For example, in the automotive industry, where laser cutting is widely used, smaller manufacturers may not have the financial resources to invest in laser technology, which can cost hundreds of thousands of dollars. In addition to the cost of purchasing industrial lasers, there are significant costs associated with installation and maintenance.
Moreover, industrial lasers require specialized facilities and equipment and trained technicians to install and maintain them. These costs can be particularly high for businesses that do not have existing infrastructure in place to support technology. Therefore, the high cost of installation might create a challenge for the growth of the market during the forecast period.
The market share growth by the macro processing segment will be significant during the forecast period. This segment refers to industrial lasers that are used for large-scale processing of materials, such as cutting, welding, and drilling of thick and heavy materials. This segment includes a range of different laser types, including CO2, fiber, and solid-state lasers, and they are used in a wide range of industrial applications, from automotive and aerospace manufacturing to shipbuilding and heavy machinery production.
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The macro processing segment was the largest and was valued at USD 2.98 billion in 2018. Furthermore, macro processing lasers can be used in a wide range of industrial applications, from shipbuilding to automotive manufacturing, and they can handle various materials, including metals, plastics, and composites. This makes them an essential tool for many industrial manufacturers who require precision, speed, and accuracy in their manufacturing processes. Thus, due to the extensive usage of a wide range of industrial applications with powerful and versatile lasers, the macro processing segment is expected to contribute toward the growth of the market during the forecast period.
The more than 1.1 kW segment includes a range of different laser types, including CO2, fiber, and solid-state lasers, and they are used in a wide range of industrial applications, from aerospace and automotive manufacturing to metal fabrication and welding. More than 1.1 kW laser machines can easily cut and weld thicker and stronger materials, such as steel and aluminum, that lower-powered lasers cannot handle. However, one of the main drawbacks of high-powered lasers is their cost. These lasers can be significantly more expensive than lower-power lasers, which can make them inaccessible to smaller businesses and startups. Thus, due to the ability to cut and weld thick and strong materials quickly and accurately, more than 1.1 kW segment will contribute to the growth of the market during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. PAC is a manufacturing hub, with countries like China, Japan, South Korea, and India being major contributors to the manufacturing industry. The growth of manufacturing activities, particularly in industries such as automotive, electronics, and machinery, significantly boosts the demand for industrial lasers. Countries in the APAC region, such as India and China, are undergoing rapid industrialization. This industrial growth leads to increased adoption of advanced manufacturing technologies, such as industrial lasers, to improve efficiency, precision, and overall productivity. The automotive industry in APAC is one of the largest in the world. Industrial lasers are widely used in automotive manufacturing processes for cutting, welding, and marking. The expansion of the automotive sector directly contributes to the market trends and analysis of the regional market.
Furthermore, in 2021, the Japanese company Hamamatsu Photonics (HAMAMATSU Group) launched a new series of ultrafast fiber lasers for scientific research and industrial applications in APAC. These lasers are designed to offer high stability, reliability, and ease of use and are expected to cater to the growing demand for advanced laser technologies in the region. Such factors are expected to boost the growth of the regional market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AISIN CORP. - The company offers industrial lasers such as Fiber Lasers with femto-second pulse that minimally causes heat damage to the peripheral area and micro-fabrication of transparent and ultra-hard materials.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The global industrial lasers market is thriving, driven by automation and laser processing advancements. Industrial laser market revenue is buoyed by applications such as laser engraving, marking, and cutting across various industries like construction, e-mobility, and electronics. Laser systems, including CO2, solid state, and diode/excimer lasers, cater to complex product processing needs. Government initiatives bolster growth, encouraging adoption in sectors like aerospace and medical. Laser manufacturers focus on high-power fiber lasers, offering solutions for 3D micro milling, blind hole machining, and deep marking. Notably, energy-efficient and compact marking solutions ensure longevity and sustainability amid political uncertainties and trade traffic disruptions. Industries benefit from precision and efficiency in product segmentation, driving industrial machinery and machine tools components.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Industrial Laser Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.58% |
Market Growth 2024-2028 |
USD 2.89 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.23 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Active Fiber Systems GmbH, AdValue Photonics Inc, AISIN CORP., Amonics Ltd., Calmar Laser Inc., Coherent Inc., FANUC Corp., Hamamatsu Photonics KK, Hans Laser Technology Industry Group Co. Ltd., IPG Photonics Corp., Jenoptik AG, Laserglow Technologies, Laserline GmbH, Lumentum Holdings Inc., MKS Instruments Inc., nLIGHT Inc., Nuphoton Technologies Inc., Photonics Industries International Inc., Precitec GmbH and Co. KG, TroGroup GmbH, TRUMPF SE Co. KG, and VYDENCE Medical |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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