Enjoy complimentary customisation on priority with our Enterprise License!
The laser marking equipment market size is forecast to increase by USD 1.23 billion, at a CAGR of 7.29% between 2022 and 2027. The market's expansion hinges on several factors, notably the rising adoption of automation within laser marking equipment, an increasing emphasis on metal additive manufacturing, and the surging demand for coding and marking applications across the packaging industry. These trends underscore a significant shift towards advanced technology solutions, driving efficiency, accuracy, and versatility in marking processes. The integration of automation streamlines operations, while the growing interest in metal additive manufacturing reflects a broader trend towards innovative production methods. Additionally, the expanding applications of coding and marking in packaging highlight the industry's continuous evolution towards enhanced product identification, traceability, and compliance with regulatory standards.
To learn more about this report, Download Report Sample
This report extensively covers market segmentation by product (fiber laser machines, CO2 laser marking equipment, and others), application (machine tool, electronics and microelectronics, automotive, medical, and aerospace, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is propelled by automation processes across various industries, particularly in the medical, defense, and aerospace sectors. The demand for high-quality, non-contact marking solutions drives the adoption of UV laser technology, ensuring precise and durable markings on polypropylene tubes and other materials. Integration of sensors and barcode readers enhances production line efficiency, while the evolution towards integrated machines offers streamlined operations. Challenges include maintaining industry standards and minimizing material damage during marking processes, necessitating continuous innovation to meet evolving market demands and regulatory requirements. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing coding and marking applications in the packaging industry are the key factors driving the market growth. The market is projected to grow at nearly double-digit growth rates during the forecast period. The rapidly growing healthcare and food and beverage industries in developing countries such as China and India are creating a huge demand for coding and marking. Various codes and software have been developed to create a unique mark for each product to facilitate tracking during transit. Moreover, APAC and Europe were the two dominant regions in the market in 2022. These regions are expected to remain dominant during the forecast period. Several Asian countries such as India, China, Japan, and South Korea have witnessed a significant increase in the use of liquid packaging in the food and beverage industry, increasing the demand for reliable and efficient packaging technology.
Moreover, demand for coding and marking continues to grow due to increased demand from the pharmaceutical industry. As the production volume in the industry increases, the need for packaging and labeling increases. In Europe, rising demand for packaged and convenience food will drive the demand for the fresh food packaging market, thereby leading to the growth of the coding and marking market in the region. Therefore, increasing coding and marking applications in the packaging industry are expected to drive the growth of the market during the forecast period.
The rising investments in research and development for laser marking equipment will fuel the market growth. US government agencies, with the support of an organization, called the National Network for Manufacturing Innovation, are beginning to invest heavily in key scientific disciplines. The organization was established primarily to coordinate and encourage public and private investment in future manufacturing technologies and research and development. It also fosters growing partnerships with governments to foster innovation in manufacturing and accelerate commercialization.
Moreover, IP-IMI (now renamed AIM Photonics) has announced plans to accelerate the state-of-the-art design, assembly, testing, and packaging of photonic integrated circuits. An international photonics program supports the laser industry by raising awareness of light-based technologies among potential end users. The program also helps improve funding for established players and small and medium enterprises (SMEs). Such R&D activities within the photonics industry will impact the market during the forecast period as technological innovations will be developed in all forms of laser applications including laser marking. Hence, increasing investments in research and development will boost the growth of the market during the forecast period.
The lack of skilled operators for laser marking equipment can majorly impede the growth of the market. CNC-based laser marking machines are widely used in the industry. These machines use computer or microprocessor-based control systems to translate digital data into desired motion controllers to carry out the metal sheet cutting process. Control systems are responsible for operating each component of equipment during various related processes. Although the machine has a microprocessor-based control system, marking operations require the services of an experienced operator. Because the operator has to fulfill various duties. This may involve loading the part file into the controller and aligning the bed to the marking metal plate. Operators also need to fine-tune various parameters to improve marking accuracy. Operators should spend at least 15-20 minutes to reach the final level of accuracy.
Moreover, a Computer Numerical Control (CNC) is a highly complex system consisting of hundreds of buttons used to set the entire process. Therefore, it is imperative that the machine operator has a good knowledge of the operation of the complex system to ensure that the final product is marked and processed accurately. Minor operational errors in control systems can result in inferior products, lack in quality and finish, and wasted resources. Therefore, the market is facing challenges due to the lack of skilled and experienced operators who can control CNC laser marking machines during the forecast period.
The report includes the adoption lifecycle of the market, 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 growth strategies.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies companies based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
In the market segmentation, automation processes drive adoption across various industrial verticals, including the medical, defense, and aerospace sectors. Polypropylene tubes and other materials benefit from precise marking facilitated by UV laser technology, ensuring compliance with industry standards in the healthcare and medical devices industries. Sensors enable quality control and process improvement along the production line, while barcode readers streamline product branding with non-contact precision. Traditional laser markers are evolving into integrated machines with advanced capabilities like flat planar field marking, etching, and annealing, catering to the diverse needs of the electronics industry. The market addresses concerns about material damage with the non-contact nature of laser marking, offering efficient solutions without compromising on consumables.
The fiber laser machines segment will contribute a major share of the market, due to its ease of use and efficiency in different industries. Fiber lasers contain an optical fiber as an active gain medium to transmit the laser light from the source to the target. A laser light/beam is generated and confined within an optical fiber core doped with ions such as praseodymium, neodymium, erbium, dysprosium, thulium, holmium, ytterbium and pumped by a diode laser. A fine spot creates high-quality codes and marks on the surface of the material. Fiber lasers can be used to print small parts or print different information in small areas. A variety of materials can be permanently marked, including metals, rubbers, plastics, and packaging films.
Get a Customised Report as per your requirements for FREE!
The fiber laser machines segment showed a gradual increase in market share with USD 1.48 billion in 2017 and continued to grow by 2021. Moreover, fiber laser machines use a series of diodes to generate fiber laser light. Fiber laser light is amplified through fiber optic cables similar to those used for data transmission. As this amplified light emerges from a fiber optic cable, it is directed (collimated) and focused onto the material to be marked. Fiber lasers produce more efficient light compared to CO2 lasers. Unlike traditional CO2 cavities and disk lasers, fiber lasers allow light to reach desired locations on the material without the use of expensive optical mirrors or other moving parts. Additionally, fiber laser machines are immune to back reflections that commonly occur when marking reflective materials such as copper, brass, and aluminum, which can damage the machine. Therefore, fiber lasers can easily engrave these materials. Overall, fiber laser machines offer longer maintenance intervals and lower maintenance costs than CO2 laser machines. Therefore, the advantages of fiber laser machines over other types of machines will spur the growth of this segment during the forecast period.
Machine tools are a subset of the market application for laser marking machines in manufacturing. These devices are used in industries such as aerospace, automotive, medical, and electronics to mark a variety of materials such as metals, polymers, and ceramics with high precision. Laser markers for machine tools have several advantages over traditional marking methods such as stamping and engraving. Machine tools produce high-quality, permanent markings that are easy to read and can mark a wide variety of materials without damaging the surface. Rising demand for automation in the manufacturing industry and the need for high-quality, permanent marking on various industrial components are likely to boost the demand machines during the forecast period.
APAC is estimated to contribute 48% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
Market growth in the region is primarily driven by the introduction of improved manufacturing technology in the Chinese machine tool industry and the flourishing aerospace and military industries. The region is projected to capture the majority of the market share by 2027 due to excessive overseas investment and many companies shifting manufacturing bases to countries such as India and China. For example, the Belt and Road Initiative (BRI) and the Make in India Initiative are attracting investments in infrastructure development. This will strengthen the manufacturing sector and create demand for such machines. In the APAC region in 2022, over 2000 companies and over 4000 hubs were connected in electronics and microelectronics, automotive, aerospace, and more. This market includes electronic and microelectronic devices and equipment such as transistors, capacitors, coils, engine blocks, and various materials, mainly manufactured in China, India, and Japan. Digitization and innovative design and manufacturing processes in Asia-Pacific countries are increasing demand for electronics and microelectronics, automotive, aerospace, and other devices. Also, the aging population and access to advanced technology are other factors driving the growth of this market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
In the market, industries such as the medical sector, healthcare sector, defense sector, and aerospace sectors leverage galvo laser marking for surgical and medical inventory control, ensuring product quality validation. The UV and YAG laser segments facilitate precise marking of batch numbers, 1D & 2D bar codes, and alphanumeric inscriptions on inclined planes and cylindrical surfaces. With applications in the pharmaceutical and packaging sectors, laser marking offers improved functionality, operational excellence, and ecological integrity. Despite limited budgets, startups and small businesses benefit from the flexible and permanent process, ensuring durability and protection against forgery. In the automobile sector, laser marking ensures traceability and identification solutions for components subjected to high temperatures and exposure to fluids like oil and gasoline
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.29% |
Market growth 2023-2027 |
USD 1.22 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.83 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, Germany, and the UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alpha Laser US Inc., AMADA Co. Ltd., EMAG GmbH and Co. KG, Emerson Electric Co., Epilog Corp., FANUC Corp., II VI Inc., IPG Photonics Corp., Jenoptik AG, Jinan Xintian Technology Co. Ltd, Laser Marking Technologies LLC, Laserline GmbH, Laserstar Technologies Corp., Morn Laser, Perfect Laser Co. Ltd., Precitec GmbH and Co. KG, Shenzhen HeroLaser Equipment Co. Ltd., Trotec Laser GmbH, TRUMPF SE Co. KG, and Videojet Technologies |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.