Laser Micromachining Tools Market Size, Share & COVID-19 Impact Analysis, By Application (Drilling, Cutting & Milling, Marking & Engraving, Scribing, Texturing & Patterning, Structuring, and Others), By Process (Additive and Subtractive), By End-User (Automotive, Aerospace and Defense, Medical and Pharmaceutical, Electronic Products, Optoelectronics and Photonics, and Others), and Regional Forecast, 2023-2030

The global laser micromachining tools market size market was valued at USD 324.06 million in 2022. The market is projected to grow from USD 332.13 million in 2023 to USD 476.92 million by 2030, exhibiting a CAGR of 5.3% during the forecast period.

Laser micromachining is a process that involves generating fine structures ranging from a few microns to a few hundred microns. These machines are utilized for various applications, including drilling, cutting, milling, marking, texturing, and structuring. Due to their broad range of applications across diverse sectors such as automotive, consumer electronics, aerospace and defense, optoelectronics, and photonics, there is an expected increase in the demand for laser micromachining tools.

• For instance, according to the International Energy Agency, the demand for electric cars has tripled between 2020 and 2022 and is projected to witness strong sales in the future.

Similarly, electronic products such as mobile devices and industrial robots are significant contributors to the market growth of laser micro-machining tools due to precise material processing in various applications.

Micromachining systems utilizing laser technology are strongly propelled by their innovative and emerging applications across various sectors. The increasing adoption of industrial automation and the demand for robotics across various end-use industries are boosting the demand for laser-based micromachining tools. This is expected to further enhance the laser micromachining tools market share across diverse industry sectors. The ongoing trend of miniaturization of systems and components such as solar cells and PCBs is increasing the need for precise components, consequently driving the growth of laser technology for microstructures. Several projects and substantial investments are directed toward emerging technologies such as solar and other environmentally friendly sectors.

• For instance, the U.S. government initiated approximately 19 projects related to the solar supply chain with an investment of about USD 80 million in 2023. These projects were funded to strengthen the domestic solar power supply, supporting the manufacturing of solar panels and other technologies.

Ultimately, this will contribute to the growth of this market across different regions.

COVID-19 IMPACT

Temporary Halt in Manufacturing Facilities Negatively Impacted Market amid Pandemic

The outbreak of the pandemic resulted in a slowdown in manufacturing processes, subsequently decreasing the demand for laser micromachining tools. The rapid spread of the COVID-19 virus across various regions disrupted the supply chain due to trade barriers among countries. Temporary closures in manufacturing processes led to delays in material supplies, and manufacturers faced issues related to the supply chain, causing a slowdown in the market.

However, the market is expected to exhibit positive growth in the future due to the expanding range of applications in medical devices, automotive products, consumer electronics, watches, jewelry, and optical devices. Manufacturing companies are focusing on providing an extensive range of micromachining tool solutions with shorter cycle times and faster material processing.

• For instance, In August 2021 BOLD Laser Automation introduced its new series of laser micromachining tools, named LMM500, designed for medical and 3D printing applications. These laser cuts are used for the drilling or milling of materials. The precise micromachining of various materials is driving the growth of laser micro-machining tools across different regions.

LATEST TRENDS

Precise Applications in Automation and Robotics are Surging Market Growth for Micromachining Tools

Industry 4.0 is poised for substantial growth due to the increasing trend toward smart factories, enhanced production capacities, and process optimization. Manufacturing facilities are driving the demand for IoT (Internet of Things) devices and other hardware solutions, creating a strong need for precise material processing. According to the International Federation of Robotics, the demand for service sector robots grew by 37% in 2021 worldwide and is projected to continue showing strong market growth. Rising robotics applications across a wide range of industries are generating demand for miniaturized products and smaller components for the machining process.

The need for smaller components and hardware solutions in automation and robotics applications is creating a significant demand for material drilling, cutting, texturing, and structuring. The adoption of new technologies and the evolving landscape of material types, such as hard alloys and others, are expected to further boost the market. Key market players are consistently introducing innovations to the market, increasing the output and reducing the cycle times of the machines. Additionally, ultrafast lasers are gaining a strong market presence in industrial applications for laser micromachining.

DRIVING FACTORS

Consumer Electronics is Surging the Demand for Laser Micromachining Tools

Consumer electronic products and devices, such as mobile phones, television sets, radios, telephones, and other electronic devices, are experiencing growth across various regions. According to industry experts, the revenue generated from consumer electronic devices is expected to grow by approximately 12% over the next five years. Furthermore, the pandemic has further boosted the usage of electronic appliances, and this trend is projected to continue at a rapid pace.

Laser technology-based micromachining tools find extensive applications in microdevices and materials due to their flexibility and accuracy. The growing demand for smaller-sized products is creating a need for miniaturized products, driving the demand for micro-drilling, marking, cutting, welding, and engraving. The increasing demand for the Internet of Things (IoT) is exponentially boosting the market for electronic components, especially in emerging economies. These factors are expected to contribute to the laser micromachining tools market growth over the projected period.

RESTRAINING FACTORS

Higher Initial Cost and Complex Technology Hinders Market Growth  

Laser micromachining necessitates a substantial initial investment in equipment and other components, potentially acting as a barrier for medium and small-scale manufacturing companies. The process involves a higher number of fabrication steps, thereby increasing the initial investment cost. Furthermore, operating laser micromachining tools requires adherence to safety protocols and a skilled workforce to prevent accidents and maintain a safe working environment.

SEGMENTATION

By Application Analysis

Cutting & Milling Cater to More Than One-Third of the Market Owing to its Rising Application in Various Sectors  

Based on application, the market is categorized into drilling, cutting and milling, marking and engraving, scribing, texturing and patterning, structuring, and others. Other segments include gratings and contouring.

Cutting and milling application dominates the market growth for micromachining tools. Advancements in technology and across several industries, micro hole, and cut parts are largely used in sectors including automotive, medical, aviation, electronics, and other sectors. With the increasing miniaturization of hardware components, there is an increasing trend towards the micromachining process by laser technology, creating significant demand for laser micromachining tools for cutting and milling applications. Cutting and milling applications contribute to about 36.0% of the total market revenue.

Applications such as marking and engraving, scribing, texturing and patterning, and others are further gaining traction because of an increasing trend for the manufacturing of microelectronics, semiconductors, and medical devices. Growing production of semiconductor devices and solar cells is anticipated to create market growth for laser micromachining tools.

By Process Analysis

Subtractive Manufacturing Segment Favored for Fine Finishes and Wide Applications in Part Fabrication

Based on the process, the market is categorized into subtractive and additive. The subtractive segment is expected to dominate the market by catering to a larger market share compared to additive manufacturing. Subtractive manufacturing provides fine surface finishes and high-speed material processing, enhancing the overall efficiency of the manufacturing process. It finds extensive applications in fabricating finished parts, making it a preferred choice for manufacturers. The subtractive process enables higher volume production and increased flexibility for manufacturing products like jigs, tooling, fixtures, molds, and brackets.

On the other hand, the additive process offers high accuracy and detailed resolution for a wide range of materials such as steel, titanium, and gold. Due to its wide range of applications in industrial manufacturing, including the medical device industry, jewelry, and watchmaking, the demand for the additive process is expected to remain steady over the forecast period.

By End-User Analysis

Electronic Products Segment Paces Market Growth, Fueled by Technological Advancements

By end-user, the market is segmented into automotive, aerospace and defense, medical and pharmaceutical, electronic products, optoelectronics and photonics, and others. Electronic products are projected to lead market growth, followed by the automotive sector. The electronic products segment dominated the market in 2022. Electronics manufacturing is expected to witness steady growth in both industrial and personal domains. Several trends in the manufacturing of electronic products, such as the Internet of Things, virtual reality, augmented reality, 3D printing, and industrial robotics, are among the prominent driving factors for precise manufacturing and the micromachining process. These growing trends are all contributing to the demand for laser micromachining tools utilizing laser technology for precise and accurate surface finishing of materials.

Electrification of the automobile is gaining market trends across geographies. An increase in sales of electric vehicles, e-mobility, and connectivity is creating a strong market growth for vehicle components and battery production. Laser welding is a crucial process for battery cell production, module creation, and battery assembly as it aids in improving battery efficiency. Therefore, high demand for EVs is further estimated to create a strong market for vehicle components, impacting the market growth for the micromachining tools market.

These tools find applications in sectors such as medical devices, optical devices, the aviation and defense sector, as well as watches and jewelry. With the steady growth of these sectors, the demand for these tools is expected to show moderate growth.

REGIONAL INSIGHTS

The market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America led the market share in 2022, followed by Europe, where there is a rising demand for smart vehicles and consumer electronic devices across emerging and developed countries of the region. North America dominates the market growth owing to the rise in manufacturing plants and domestic manufacturing of batteries and electric vehicles. Several automotive manufacturing companies are investing in new manufacturing facilities to meet the increasing customer needs. Along with EV production facilities, strong market growth is observed in electronics manufacturing across developed and emerging countries. For instance, due to political challenges and trade complications with China, manufacturing companies are shifting their production facilities to Mexico due to the logistics advantage, availability, and reduced cost of the workforce. This shift is creating significant market growth in the region.

U.S. Holds a Strong Market Share Owing to Increasing Investment in the Automotive Sector

The U.S. is primarily focusing on expanding its manufacturing plants for vehicles and batteries as the demand for electric vehicles rises across other economies. OEM manufacturers are making substantial investments in production facilities, supported by favorable regulations and incentives, which are driving the demand for EVs. For instance, companies such as Ford, Hyundai, and Rivian collectively invested about USD 33 billion in EV and battery manufacturing in 2022.

Industry experts predict that electronics manufacturing will show strong growth prospects over the forecast period due to increasing investments in technologies such as robotics, Augmented Reality, and other electronic devices. Additionally, the pandemic and political pressures are encouraging the growth of domestic production activities, generating significant demand for micromachining tools. Several market participants, including IPG Photonics, Coherent Inc., Makino, and AMADA Weld Tech, are striving to gain a larger market share.

Europe is expected to lead the market growth after North America, with demand anticipated to remain steady during the forecast period. Laser micromachining tools find applications in PCBs, integrated circuit packaging, lithography masks, and sensor trimming. These specialized activities are expected to show moderate growth in European countries, driving market growth for these tools.

Laser micromachining is gaining a significant presence and replacing conventional micromachining techniques, such as Electrical Discharge Machining (EDM), to produce sharp and fine-surfaced materials. Asia Pacific shows high growth prospects due to increasing demand for consumer electronics, optoelectronics, and electric vehicle manufacturing. Asian countries such as China, India, and Japan are moving toward the electrification of the automotive and other sectors such as optoelectronics and consumer electronics. Companies are establishing semiconductor-based device manufacturing facilities for industrial utility applications. For instance, STMicroelectronics and Sanan Optoelectronics signed an agreement in September 2023 to produce silicon carbide devices in Chongqing, China. The increasing preference toward EV manufacturing and optoelectronics device production across emerging economies such as India and Indonesia is projected to generate demand for micromachining tools with laser technology.

The Middle East & Africa is expected to show significant market growth due to rising investments and a focus on the establishment of manufacturing facilities. South American countries such as Brazil are constantly focusing on expanding their electronics manufacturing to boost the economy. Several multinational companies are looking to establish their manufacturing facilities to gain a competitive advantage over other key participants.

KEY INDUSTRY PLAYERS

Global Market Witnesses Fierce Competition as Key Players Ramp up Product Portfolio Expansion

Key market participants are striving to introduce new products in a competitive market to penetrate the global market. Domestic startup companies are increasing their funding to enhance their market presence. AMADA Weld Tech, Coherent Inc., IPG Photonics, 3-D Micromac, and GF Machining Solutions are a few of the prominent players focusing on expanding their product portfolios through product launches and collaboration strategies. Several manufacturing companies are making efforts to enter the market with their wide range of product offerings.

LIST OF KEY COMPANIES PROFILED:

• 3D-Micromac AG (Germany)


• IPG Photonics (U.S.)


• SIL Lasers (India)


• AMADA Weld Tech (Japan)


• MKS Instruments, Inc. (U.S.)


• GF Machining Solutions (Switzerland)


• Coherent Inc. (U.S.)


• Makino (Japan)


• Femtika (Lithuania)


• Meera Lasers (India)

KEY INDUSTRY DEVELOPMENTS:

• September 2022: The LASEA Group acquired a France-based organization, CHEVAL, which specializes in designing and manufacturing products and solutions for laser micro-cutting applications. The LASEA Group expects to expand its product portfolio and increase its market reach.


• May 2021: 3-D Micromac AG launched a new product named microCETI, a laser micromachining platform that aids in D laser processes in microLED display manufacturing with accurate and high-precision material processing.


• December 2020: Aerotech US introduced its multi-axis laser micromachining system for manufacturing processes for its applications in a wide range of industries. The laser micro-machine provides micro-cutting for medical devices and electronic products.


• July 2019: 3D-Micromac introduced its laser micromachining systems named microSHAPE laser systems for processing and flat substrates at the Laser World of Photonics held in Germany


• January 2019: LASEA launched a 7 axis laser micromachining solution based on a femtosecond laser for its applications in a wide range of sectors, such as optoelectronics and medical device manufacturing.

REPORT COVERAGE

The report offers detailed information regarding various insights into the market. Some of these include growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further provides an analytical depiction of the market, current laser micromachining tools market trends, and estimations to illustrate the forthcoming investment opportunities. The market is quantitatively analyzed from 2023 to 2030 to provide financial competency insights. The information gathered in this report has been sourced from several primary and secondary sources.

Report Scope & Segmentation