Laser Processing Market Size 2024-2028
The laser processing market size is forecast to increase by USD 2.33 billion, at a CAGR of 8% between 2023 and 2028.
- The market is experiencing significant growth, driven primarily by the increasing benefits of laser welding over conventional welding methods. This advanced technology offers advantages such as improved joint quality, reduced distortion, and enhanced productivity. Furthermore, technological innovations in laser processing continue to emerge, expanding its application scope and enhancing its efficiency. However, the market faces challenges, including the availability of alternate machine tools for metal cutting applications, which may limit the market's growth potential.
- Companies seeking to capitalize on this market's opportunities must stay abreast of these technological advancements and effectively address the challenges to maintain a competitive edge. By focusing on innovation, efficiency, and adaptability, businesses can navigate the market's dynamics and thrive in this rapidly evolving landscape.
What will be the Size of the Laser Processing Market during the forecast period?
Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by advancements in technology and expanding applications across various sectors. Laser cutting systems, with their precision and versatility, are increasingly utilized in industries such as automotive, aerospace, and construction. Laser engraving, meanwhile, finds widespread use in consumer goods, packaging, and electronics. Laser beam shaping and laser engraving software optimize laser performance, enabling intricate designs and high-quality outputs. Laser safety standards, a critical aspect of the market, are continually updated to ensure safe and efficient operations. Laser drilling and laser welding applications, powered by advanced laser oscillators and laser welding systems, are revolutionizing manufacturing processes.
Laser ablation and laser scribing offer new possibilities for material processing, while laser cleaning and laser micromachining cater to specific industries. Laser mirrors, laser resonators, and laser safety equipment play essential roles in maintaining laser beam quality and ensuring safe working environments. Laser materials processing, encompassing laser cutting, laser etching, and laser marking, is a dynamic field, with ongoing research and development in laser cutting tools, laser amplifiers, and laser cutting materials. Laser pulse duration, laser beam focusing, and laser beam steering are key factors influencing laser processing capabilities. The market's continuous growth is underpinned by the evolving nature of laser technologies and their diverse applications.
How is this Laser Processing Industry segmented?
The laser processing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
- Type
- Gas
- Solid-state
- Others
- Geography
- North America
- US
- Europe
- France
- Germany
- APAC
- China
- Japan
- Rest of World (ROW)
- North America
By Type Insights
The gas segment is estimated to witness significant growth during the forecast period.
In the realm of laser technology, gas lasers have emerged as a significant player in various industrial applications. The core component of a gas laser is a glass tube containing a mixture of gases, serving as the active medium. Notable gas laser types include helium-neon (He-Ne), argon ion, carbon dioxide (CO2), carbon monoxide (CO), and hydrogen gas lasers. The gas laser market experiences growth primarily due to the expanding utilization in cutting and welding processes. Compared to fiber, solid-state, and diode lasers, gas lasers offer advantages such as reliability, efficiency, ease of operation, and robustness. Laser marking applications, engraving, etching, and cleaning also benefit from gas lasers.
Laser mirrors, resonators, oscillators, and beam delivery systems are integral components that ensure optimal laser performance. Safety regulations mandate the use of safety equipment, including laser safety glasses, curtains, and interlocks, to protect operators from laser hazards. The laser beam quality, power density, spot size, and pulse duration are critical factors in determining the suitability of gas lasers for various applications. Gas lasers are employed in cutting processes for materials like metals, plastics, and glass. In welding applications, they offer advantages such as high precision, deep penetration, and minimal heat input. Laser marking materials, such as metals, plastics, and ceramics, are commonly used for creating permanent markings.
Laser marking equipment, including scanners and machines, enable the production of intricate designs and text. Laser beam shaping, focusing, and steering techniques are essential for achieving precise results. Software solutions facilitate the automation and optimization of laser processes. Gas lasers are also used in micromachining, drilling, and ablation processes, expanding their versatility in various industries. The ongoing research and development in laser technology continue to unveil new applications and improvements, ensuring the market's continued growth.
The Gas segment was valued at USD 1.77 billion in 2018 and showed a gradual increase during the forecast period.
Regional Analysis
North America is estimated to contribute 42% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is experiencing significant growth, with the US being the largest contributor to the regional revenue. The automotive industry, currently in the maturity phase, continues to drive demand for laser cutting and welding applications. To ensure the successful implementation of automation and robotics technologies, there is a growing focus on enhancing the technical skills of the workforce. Workforce apprenticeships, popular in Europe, are gaining traction in the US as a means to prepare the workforce for the future. Laser processing technologies, including laser welding, marking applications, engraving, etching, and micromachining, are increasingly being adopted across various industries.
Laser optics play a crucial role in delivering high-quality laser beams for various applications. The laser oscillators, resonators, and amplifiers are essential components that determine the power density and pulse duration of the laser beam. Laser safety regulations are stringent, and safety equipment, such as laser safety glasses and barriers, are mandatory to ensure safe operation. Laser marking equipment is gaining popularity due to its ability to provide permanent, high-quality marks on various materials. Laser cleaning is another emerging application that offers significant benefits, such as reducing production downtime and improving product quality. Laser cutting systems are widely used in industries such as automotive, aerospace, and construction, where precision and efficiency are critical.
Laser cutting materials include metals, plastics, and ceramics. Laser engraving applications include marking identification codes, serial numbers, and logos on various materials, such as metals, glass, and wood. Laser beam shaping and focusing are essential for achieving high-precision results in various applications. Laser lenses and scanners are used to shape and focus the laser beam, while laser engraving software and machines enable automated and efficient production. Laser safety standards are continuously evolving to ensure safe and efficient operation. Laser drilling and laser welding applications offer significant benefits, such as increased productivity and reduced production costs. Laser ablation and laser scribing are emerging applications that offer unique benefits in various industries.
Laser welding materials include metals, plastics, and ceramics, while laser cutting tools are essential for efficient and precise cutting. In conclusion, the market is witnessing significant growth, driven by the adoption of laser processing technologies across various industries. The focus on enhancing technical skills and workforce development is a major trend in the US market. Laser processing technologies offer numerous benefits, including increased productivity, improved product quality, and reduced production costs. The market is expected to continue growing, driven by the increasing demand for high-precision and efficient manufacturing processes.
Market Dynamics
Our researchers analyzed the data with 2023 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.
What are the key market drivers leading to the rise in the adoption of Laser Processing Industry?
- The significant advantages of laser welding over conventional welding techniques are the primary factors fueling market growth in this sector.
- Laser processing, specifically laser welding, presents numerous technical advantages over traditional welding methods. These benefits include the creation of deep, narrow welds with minimal distortion, and the ease of automation, resulting in increased production rates. Although the initial investment for laser welding systems is higher than conventional methods, the cost savings from increased production and lower reject rates offset this expense. Laser welding is employed in various industries, from micro-welding in medical devices to manual welding in dentistry and jewelry, as well as tool and die manufacturing, and fully automated processes in automotive and heavy manufacturing.
- Laser resonators, amplifiers, and scanners facilitate the process, while laser safety equipment ensures safe operation. Laser micromachining and engraving applications utilize laser beam focusing and engraving techniques, while laser cutting materials require appropriate laser cutting tools and pulse durations. Laser lenses play a crucial role in beam shaping and focusing.
What are the market trends shaping the Laser Processing Industry?
- The trend in the market is leaning towards technological innovations in laser processing. This sector is experiencing significant growth due to its advanced capabilities and efficiency.
- The market is experiencing significant growth due to the increasing demand for laser cutting systems in various industries, particularly in metal fabrication for electronic and electrical, and medical device manufacturing. The versatility of laser processing technologies, such as laser engraving, drilling, welding, ablation, and scribing, allows for the use of different materials, including metals, plastics, and glass. This flexibility and the need for efficient production processes have led manufacturers to invest in robust laser processing machines that minimize process change and machine setup times, ensuring higher returns on investment. companies are responding to this demand by offering compact laser processing machines with 3D profiling capabilities and small installation spaces.
- However, the development of small CNC machines for laser cutting remains a complex and costly endeavor. Laser safety standards are also a crucial consideration in the market, with the need for advanced safety features and software solutions for laser beam shaping and engraving. Overall, the market is poised for continued growth as manufacturers seek to optimize production processes and increase efficiency in their operations.
What challenges does the Laser Processing Industry face during its growth?
- The metal cutting industry's growth is significantly influenced by the limited availability of alternative machine tools, posing a substantial challenge.
- Laser processing, which includes laser welding, marking applications, engraving, etching, and cutting, has gained significant traction in materials processing due to its precision and versatility. Laser optics play a crucial role in ensuring the quality of laser beams, which is essential for various applications. However, the heat generated during some laser processing methods, such as cutting, can limit their application for heat-sensitive and heat-resistant materials. Laser cutting processes, which use laser beams to melt and vaporize materials, are commonly used for metals. However, the excessive heat generated during these processes can lead to deformation of heat-sensitive materials like plastic, foam products, wood, rubber, and heat-resistant materials such as stainless steel, alloy steel, titanium, Inconel, and Hastelloy.
- In contrast, laser marking and engraving applications do not generate heat and are suitable for a wide range of materials, including metals, plastics, and ceramics. Laser safety regulations are essential in the implementation and operation of laser processing systems. Ensuring adherence to these regulations is crucial for maintaining a safe working environment and preventing potential hazards. The spot size of the laser beam is another critical factor that influences the efficiency and quality of laser processing. Smaller spot sizes enable finer details and higher precision, making them suitable for intricate applications. Overall, the market continues to grow, driven by advancements in technology and the increasing demand for high-precision and efficient manufacturing processes.
Exclusive Customer Landscape
The laser processing market forecasting 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 laser processing market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, laser processing market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Access Laser Co. - This company specializes in advanced laser cutting and drilling solutions, capable of processing a diverse range of materials including metals, plastics, composites, paper, ceramics, and wood. Our system's precision and versatility enable efficient production processes and high-quality output for various industries. By utilizing cutting-edge laser technology, we ensure optimal accuracy and minimal waste, enhancing overall productivity and cost savings. Our commitment to innovation and excellence sets us apart as a trusted provider in the field.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Access Laser Co.
- Amada Co. Ltd.
- Coherent Corp.
- Corning Inc.
- Epilog Corp.
- eurolaser GmbH
- Focuslight Technologies Inc.
- Gravotech Engineering Pvt. Ltd.
- Hans Laser Technology Industry Group Co. Ltd.
- IPG Photonics Corp.
- Jenoptik AG
- Laserstar Technologies Corp.
- Lumentum Holdings Inc.
- LUMIBIRD SA
- MKS Instruments Inc.
- OREE LASER
- Prima Industrie
- TRUMPF SE Co. KG
- Universal Laser Systems Inc.
- Wuhan HGLaser Engineering Co.Ltd.
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 industry 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.
Recent Development and News in Laser Processing Market
- In February 2024, Trumpf, a leading laser processing solutions provider, introduced its new TruLaser Cell 7040 fiber, the world's most powerful fiber laser system for sheet metal processing, according to the company's press release. This innovation significantly expands the company's product portfolio and strengthens its position in the high-performance the market.
- In May 2024, Coherent, Inc. And LUMENIS, a global leader in the field of minimally-invasive solutions for the eye, announced a strategic partnership to develop and commercialize advanced laser processing technologies for ophthalmology applications. This collaboration combines Coherent's laser expertise with LUMENIS' medical knowledge, paving the way for groundbreaking advancements in laser eye surgery.
- In August 2024, IPG Photonics Corporation, a global leader in high-power fiber lasers, completed the acquisition of DIAPIXEL, a Japanese manufacturer of industrial laser marking and engraving systems. This strategic move strengthens IPG's presence in the growing laser marking and engraving market and provides access to DIAPIXEL's advanced technologies and customer base.
- In November 2025, the European Union (EU) approved the Horizon Europe research and innovation program, which includes a significant focus on the development and implementation of advanced laser processing technologies. This initiative, with a budget of â¬95.5 billion, aims to boost Europe's competitiveness and drive innovation in various industries, including manufacturing, healthcare, and energy.
Research Analyst Overview
- In the dynamic the market, fiber lasers continue to dominate the landscape of laser fabrication, offering superior cutting speed and efficiency. Laser process monitoring and optimization are crucial for enhancing the durability and precision of laser marking. Co2 lasers, while traditional, remain competitive due to their cost-effectiveness in laser engraving applications. Laser process control and automation are essential for laser manufacturing, driving down costs through laser process simulation and modeling. Ultrafast lasers and diode lasers provide enhanced resolution and depth in laser engraving, while solid-state lasers offer increased welding strength and cost-effectiveness. Laser cutting optimization and laser welding optimization are key areas of focus, with ongoing research in process design and modeling to improve efficiency and reduce costs.
- Femtosecond lasers offer unprecedented resolution in laser marking and engraving, while laser cutting speed and accuracy are continually being pushed to new limits. Laser welding cost remains a significant factor, with ongoing efforts to optimize the process and improve strength. Overall, the market is characterized by constant innovation and advancements in technology, driving growth and competition.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Laser Processing Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
140 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
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Market growth 2024-2028 |
USD 2328.6 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.3 |
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Key countries |
US, Germany, China, France, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Laser Processing Market Research and Growth Report?
- CAGR of the Laser Processing industry during the forecast period
- Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
- Accurate predictions about upcoming growth and trends and changes in consumer behaviour
- Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
- Thorough analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the laser processing market growth of industry companies
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