Industrial Lasers Market Size, Share & Industry Analysis, By Product (CO2 Laser, Solid State Laser, Diode/Excimer Laser, Fiber Laser and Others), By Application (Macro Processing, Micro Processing, Marking & Engraving), and Regional Forecast, 2019-2032

The global industrial laser market size was valued at USD 1.64 billion in 2018 and is projected to reach USD 9.00 billion by 2032, exhibiting a CAGR of 11.9% during the forecast period.

The increasing automation in the industries for high efficiency and accuracy is expected to result in the growth of the industrial lasers market. Rise in laser processing is expected to attract high industrial laser market revenue. This is attributed to the need for high precision processing for varied applications and on different materials. Furthermore, the increasing demand for optimum flexibility and personalization in laser engraving applications is resulting in the growth of laser machines, and is further promoting the industrial laser source market growth. The surge in demand for complex product processing with high accuracy is resulting in the increasing demand for laser processing machines.

This, in turn, is likely to increase the high industrial laser market size in the near future. Moreover, the integration of lasers in machine tools is driving the industrial lasers market. For instance, the Laserline’s LDM diode lasers are integrated in five axis milling machines. This helps in the production of overhanging contours without any support structure, thus, opening up new opportunities in varied applications and geometries. 

KEY MARKET DRIVERS

“Increasing Demand for Material Processing is Driving Industrial Lasers Market” 

The rising demand for material processing across various applications including automotive, industrial machinery, aerospace, and construction is driving the industrial lasers market. The increasing adoption of laser systems for material processing owing to its various benefits including enhanced flexibility, improved productivity and time-efficiency is likely to result in the high demand for industrial laser sources in the market. Based on multiple secondary sources the laser systems for material processing reached approximately USD 19.8 billion in 2018, with an annual growth of around 17%. This is attributed to the increase in demand for high power laser cutting and welding applications. The rise in demand for welding applications is owing to increasing automotive applications. The transition of the automotive industry towards e-mobility is expected to result in the growth of the automotive sector. Furthermore, evolving government initiatives are driving the automotive industry growth. For instance, in 2018, the Chinese government announced a large-scale relaxation of foreign investment restrictions in the automotive industry. The removal of foreign investment restrictions on the special purpose and new energy will be followed by commercial vehicles and passenger cars in 2022. Therefore, the above-mentioned government initiatives are expected to bring in high investments and thus are expected to drive the automotive industry. This is further anticipated to promote the overall industrial laser market growth in the forecast duration.

“Laser Integration in Additive Manufacturing is Expected to Propel Market”

The increasing demand for additive manufacturing owing to its benefits including customization, improved productivity, and faster Time-To-Market is resulting in greater profitability for laser manufacturers. Furthermore, 3D manufacturing is gaining popularity owing to the increasing need for high efficiency, waste reduction, customization, reduced costs, and errors. The 3D printing in machine tools component through laser metal deposition and selective laser melting is likely to result in increasing the industrial lasers market size. The rise in the need for optimization in the production process is likely to result in the growth of the additive manufacturing sector. Although the initial investment is high, the operational cost has reduced significantly over the period of time.

SEGMENTATION

By Product Analysis

“Increasing Adoption of Fiber Laser is Resulting in High Demand of Industrial Lasers”

Based on product, the global market is segmented into CO2 laser, solid state laser, diode/excimer laser, fiber laser and others.

The fiber laser is anticipated to earn high industrial lasers market share and remain dominant over the forecast period. The increasing demand for high power fiber lasers owing to the growing laser applications in material processing is resulting in the industrial lasers market growth. The complex laser applications such as 3D micro milling, blind hole machining, micro cutting and additive manufacturing are resulting in the popularity of the industrial lasers market. Moreover, the long life expectancy of the fiber laser is more than other laser solutions therefore, it is more preferred as compared to the other laser products. According to multiple secondary sources, the diode module of fiber laser lasts approximately three times longer than other laser solutions and last for more than 30,000 hours which rounds up to about 15 years of use. In addition, the increasing demand from deep marking solutions owing to the high power delivery efficiency is expected to result in the growth of the fiber lasers market. Besides, the energy efficiency of fiber lasers is gaining popularity among energy saving solutions. The compact marking solutions are readily being adopted in various industries including automotive and aerospace.

Carbon dioxide (CO2) laser holds the second largest industrial laser market share owing to its high penetration in different industries including communication, automotive, and manufacturing applications. The lucrative penetration of solid state lasers in the defense and aerospace sector is expected to drive the industrial laser source market. The increasing demand for excimer lasers from the electronic sector is resulting in high industrial lasers market revenue.

By Application Analysis 

“Increasing Demand for Micro Processing is Expected to Propel Market”

Based on application, the market is broken down into micro processing, macro processing, marking & engraving.

The micro processing is the fastest growing application, owing to its increasing application across various industries such as medical, automotive, electronics, aerospace, and communications. The rising demand for micro machining in the fabrication sector is expected to result in industrial lasers market growth. Besides this, the development of microelectronic components in the semiconductor industry is further expected to drive the industrial laser source market.

Macro material processing continues to be the dominant segment and is expected to grow at a steady rate over the forecast period. This is attributed to the slump in the growth of high-power laser cutting applications. Besides this, the political uncertainties are resulting in the slowdown of macro processing applications. For instance, the trade traffic by China and U.S. against each other is expected to impact the manufacturing sector.

REGIONAL ANALYSIS

Based on region, the scope of study is segmented into North America, Europe, Asia Pacific, the Rest of the world which is further drilled down into countries.

Asia Pacific holds the major share of the industrial lasers market owing to the high laser penetration in China. This is attributed to the increase in manufacturing and adoption of fiber laser equipment in the manufacturing sector. The rising demand for consumer electronics is further expected to drive the industrial lasers market in the near future.  The metal processing industry in North America, positively contributed to the industrial lasers market growth. The increasing demand from widespread applications such as metal cutting, welding, and marking sectors is likely to result in the growth of the industrial lasers market in Europe. Moreover, the rise in demand from the semiconductor industry is driving the industrial lasers market in the Rest of the World.

INDUSTRY KEY PLAYERS

“Leading Players are performing Mergers and Acquisition to strengthen their product portfolio”

The industrial lasers market manufacturers are strengthening their product portfolio through mergers and acquisition. Furthermore, the key manufacturers are continuously focusing on innovative product development through continuous research. For instance, in December 2019, the FOBA AG developed the smallest and lightest fiber laser head for laser marking applications.

List of Key Companies Profiled:

• Calmar Laser


• Amonics Ltd. 


• TRUMPF


• Coherent Inc.


• Newport Corporation.


• IPG Photonics Corporation


• Bystronic Laser AG


• JENOPTIK AG


• Lumentum Operations LLC


• nLight, Inc.

REPORT COVERAGE

The report presents a comprehensive assessment of the global industrial lasers market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market.

Report Scope and Segmentation

INDUSTRY DEVELOPMENT:

• December, 2018: TRUMPF acquired the Photonics GmbH from Philips. This acquisition is expected to strengthen TRUMPF’s product portfolio with addition of high-power diode lasers.


• November 2019: nLIGHT, Inc., introduced its welding fiber laser portfolio, ranging from 3kW to 15kW with an integrated fiber coupler for robotic, cladding and welding applications.