Industrial Laser Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Industrial Laser Market Size 2024-2028 

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 market's growth trajectory hinges on a multitude of factors. One primary driver is the increasing demand for industrial lasers across various industries, where they play pivotal roles in cutting-edge and laser marking  applications.

Additionally, the ascent of additive manufacturing, also known as three-dimensional printing, has gained significant traction, further fueling market expansion. Laser technology's versatility and precision have become instrumental in modern production processes. Another crucial factor propelling Industrial Laser market growth is the escalating requirement for efficient material processing solutions along with laser projection. These trends collectively underscore the market's dynamic landscape and the imperative for advanced technologies that can cater to diverse industrial needs efficiently.

The Industrial Laser market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including, 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 . Additionally,   Active Fiber Systems GmbH offers industrial lasers such as high-power ultrafast Ytterbium laser, compact ultrafast Ytterbium laser, high-power ultrafast Thulium laser and others.

What will be the Size of the Industrial Laser Market During the Forecast Period?

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Industrial Laser Market Dynamics 

The market is driven by automation trends, catering to diverse industries with high efficiency and accuracy in laser processing. The market witnesses growth in the industrial laser source market with multiple secondary sources, offering optimum flexibility and personalization for varied applications across different materials. Challenges include ensuring high precision processing in complex product processing, especially in sectors like automotive, aerospace, and construction. Overcoming challenges related to time-efficiency and material processing remains crucial for sustained growth in industrial lasers adoption. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Industrial Laser Market Driver

The growing popularity of additive manufacturing or three-dimensional printing is notably driving Industrial Laser 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.

Significant Industrial Laser Market Trends

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.

Major Industrial Laser Market Restrain

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 such as automotive laser headlight system, 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.

Industrial Laser Market Segmentation 

The market has been witnessing significant growth in market revenue due to the rapid expansion of the industrial laser source market. This growth is driven by the demand for high accuracy and precision processing in various industries where laser processing is a critical component. These lasers offer optimum flexibility and personalization in their varied applications across different materials, particularly in laser engraving applications and complex product processing. The market also caters to the needs of the automotive sector, where high power laser cutting and welding applications are crucial for automation and material processing. Similarly, in the aerospace and construction industries, laser systems are utilized for enhanced flexibility and improved productivity, ensuring time-efficiency in operations.

The Industrial Laser market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Type Outlook
  • Macro processing
  • Micro processing

• Power Output Outlook
  • More than 1.1 kW
  • Less than 1 kW

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Type

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.

Market Segmentation By Power Output

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.

Regional Overview

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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 an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. APAC 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.

Market Customer Landscape

The Industrial Laser 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 Industrial Laser market industry 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

Market Companies

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.

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.

Market Analyst Overview

The market is experiencing a significant surge driven by factors such as automation, high efficiency, and laser processing capabilities. As the demand for precision and flexibility rises, industrial lasers find varied applications across industries, working with different materials and ensuring optimum flexibility and personalization. The market sees extensive use in laser engraving applications and is witnessing growth in industrial laser source market revenue due to its contributions to high precision processing and complex product processing.

Moreover, with advancements in laser processing machines and industrial machinery, including those used in construction, laser systems offer enhanced flexibility and productivity, leading to time-efficiency gains. This is particularly crucial in sectors like e-mobility where government initiatives and foreign investment restrictions play a role in shaping the market for special purpose and new energy applications, especially in commercial vehicles and passenger cars manufacturing. Improved productivity, faster Time-To-Market, and waste reduction are key priorities, prompting laser manufacturers to delve into 3D manufacturing and technologies like laser metal deposition, selective laser melting, and CO2, solid state, diode/excimer, and fiber lasers. The market also caters to high-power fiber lasers, 3D micro milling, blind hole machining, and micro cutting needs, ensuring long life expectancy, energy efficiency, and compact marking solutions across various sectors like defense and aerospace, semiconductor, and macro material processing industries, where high-power laser cutting applications and marking & engraving are critical for operations amid political uncertainties.

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What are the Key Data Covered in this Industrial Laser Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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