Laser Welding Market Size, Share & COVID-19 Impact Analysis, By Mode (Conduction Mode, Deep Penetration Mode), By Technology (Gas Laser (CO2), Solid-state Laser, Fiber Laser, Diode/Semiconductor Laser), By Application (Automotive, Aluminum Alloy Fuselage, Jewelry Industry, Medical, Electronics, Shipbuilding, Others (Oil & Gas)), and Regional Forecast, 2022-2029

The global laser welding market size was valued at USD 1.96 billion in 2021. The market is projected to grow from USD 2.03 billion in 2022 to USD 2.79 billion by 2029, exhibiting a CAGR of 4.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with laser welding experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global laser welding market exhibited a decline of 2.3% in 2020 as compared to 2019.

Laser welding is a method of joining work pieces using a laser beam as a heat source. The laser beam provides a focused heat source with high energy density resulting in narrow affected heat zones and deep welds. This is a high-quality, high-precision, high-speed weld that allows process automation.

Laser or light amplification by stimulated emission of radiation produces light in the form of a laser beam. A laser beam varies from a beam of light in that its rays are a single color, monochromatic coherent (having the same waveform & frequency) and collimated (going in the similar direction). Lasers provide this 'perfect information' and are ideal for applications that require high precision. Lasers contain three major mechanisms:

• The energy source pumps light into the gain medium. It depends on the type of laser. It could be a discharge, electrical, laser diode, a flash bulb, a chemical reaction, or even additional laser.


• A gain medium emits light of a specific wavelength when excited by light. It is the source of optical gain. Lasers are usually named after the gain medium. For example, in a CO2 laser, the gain medium is CO2 gas.


• The resonator intensifies the visual gain that borders the gain medium. These include bulk mirrors in coated facets in laser diodes, Bragg reflectors in solid-state, and fiber lasers.

Laser welding processes are usually carried out in two working modes. Conduction type is the first mode in which heat distribution to the material is by conduction. The second process, keyhole or deep penetration welding, focuses the laser to achieve very high heat densities and forms a hole in a pool of molten metal that absorbs the heat source of the laser beam. The produced vapor influences the formation of plasma clouds. Welding using the first method has less penetration and is bowl-shaped. Welding in keyhole mode is characterized by a moderate Fusion Zone (FZ) and a small Heat Affected Zone (HAZ).

COVID-19 IMPACT

Upsurge in Medical Industry During Pandemic Propelled Market Growth

The unexpected emergence of COVID-19 pandemic has affected the commercial as well as industrial setup. Generally, the key organizations and small & medium scale enterprises witnessed major disruptions and financial losses.

Welding along with metal fabrication and other leading industries across the world placed themselves in the middle of an unforeseen shift. During the pandemic, workers were urged to adapt to new working conditions while maintaining productivity. Also, operating companies altered their manufacturing processes to combat these challenges.

However, these kinds of welding have witnessed a surge during the pandemic owing to increasing application in the medical sector. COVID-19 was diagnosed using laser technology with a technique called Raman spectroscopy. In this method, viruses are identified by shining light on oral swabs or disposable cartridges used to collect samples from people who blow on the device. Once the sample is collected, a spectrometer measures the interatomic vibrations produced when the collected virus is illuminated with light. Each virus has its own characteristic vibrations that act as a kind of optical fingerprint to distinguish between coronaviruses and influenza viruses.

Moreover, major players are now engaging in frequent strategic decisions to develop their profit & market share after COVID-19. Strategic decisions such as acquisitions & mergers and technological innovations are further assisting market players to recover their share, which will aid market growth for laser welding.

LATEST TRENDS

Increasing Utilization of Additive Manufacturing to Bolster Market Expansion

Additive manufacturing can create products with complex geometries that are difficult to achieve with traditional manufacturing techniques. Additionally, this kind of manufacturing can be used to optimize material usage and reduce waste. Traditional manufacturing processes remove excess material and later melt it down for reuse, adding to costs. It eliminates the need for specific manufacturing processes such as bending, cutting, casting, and welding.

As an alternative to investing in different manufacturing processes to create the product in different stages, manufacturers are using additive manufacturing methods to create the entire product. This significantly reduces capital costs, the cost of recovering scrap materials, and raw material costs. Additive manufacturing also helps in rapid design iterations. Further improvements in 3D printing technology and its growing acceptance will lead to a complete transformation of the manufacturing process.

DRIVING FACTORS

Ability to Automate the Welding Process to Elevate Market

One of the key advantages is its ability to automate the fabrication process, which helps in increasing overall production rates. Laser systems are generally more expensive than traditional methods, but the cost savings achieved through increased production and lower scrap rates make the additional cost of purchasing these welding systems almost negligible. Today, it is used in a wide variety of fields, from high-precision micro-welding in medical devices, small-scale manual welding in the dental and jewelry industry, to tool and mold manufacturing and repair, and fully automatic laser welding in automotive and heavy industry.

Some of the main advantages over MIG spot welding & TIG are as follows:

• Weld strength: Laser welds have narrow widths, good depth-to-width ratios, and high strength.


• Heat affected zone: The heat affected zone is limited and the neighboring material is not strengthened owing to rapid cooling.


• Metal: Lasers utilize high-strength steel, welded carbon steel, titanium, aluminum, stainless steel, dissimilar materials & precious metals.


• Precision work: Small, tightly controlled laser beams enable precision micro-welding of small parts.

The aforementioned factors are further driving the laser welding market growth.

RESTRAINING FACTORS

Dearth of Skilled Labor along with Initial High Cost to Hinder Market Expansion

Labor costs are the most expensive components of welding. The shortage of skilled labor is fast becoming a major restraint and the challenge is increasing in countries such as the U.S., India, and China, which are hubs of cheap labor. According to the American Welding Society (AWS), the U.S. manufacturing industry was short of 290,000 skilled welders by 2020, and these skilled labor shortages are not unique to the U.S. The average age of welders in Australia and the U.K. is now over 55. Apart from the U.S., developing countries in Asia will face the same challenges.

Moreover, a welding machine is a capital-intensive piece of equipment that requires careful planning, technical knowledge, high energy or power requirements, and automation before it can be put into operation. This is one of the major factors, which will hinder market growth as it enables end-users to choose cost-effective alternatives. There are many alternatives of laser beam welding, such as oxy-fuel welding, electron beam welding, and resistance welding, which are likely to grow, thus affecting the market negatively.

SEGMENTATION

By Mode Analysis

Conduction Mode to Lead Due to its Ability to Deliver Low Laser Energy

Based on mode, the market is classified into conduction mode and deep penetration mode.

Conduction mode is expected to have the highest share in the coming years. This is attributed to its ability to deliver low laser energy to the metal, resulting in flat welds with less penetration. It is suitable for joints that do not require high strength. Lead welds are smooth and aesthetically pleasing and are usually wider than they are deep.

Furthermore, deep penetration mode is projected to experience major growth during the forecast period. This mode is also known as the keyhole penetration mode and generates narrow & deep welds. The welds produced are typically deeper than stronger and wide conduction mode welds. In this type of LBW welding, a high-power laser vaporizes the base metal, extending a narrow tunnel called a "keyhole" down to the kerf. This "hole" provides a conduit for the laser to penetrate deep into the metal.

By Technology Analysis

Fiber Laser Segment to Grow Owing to its Increasing Demand in Various Applications

Based on technology, the market is divided into gas laser (CO2), solid-state laser, fiber laser, and diode/semiconductor laser

Fiber laser segment is projected to have exponential growth in the forecast period. Fiber laser welders are very advanced compared to other welders. Compared to other welding machines, it is easy to operate and enables high-speed welding. Increasing demand for fiber laser welders in electronics, jewelry, aerospace, automotive & other industries is expected to drive the growth of the segment. These machines use fiber optics to guide and amplify light, ensuring efficient and effective delivery of light at the target location.

In addition, gas laser (CO2) segment is expected to exhibit substantial proliferation over the forthcoming years. It is a laser that produces light by passing an electric current through a gas. A few examples are carbon dioxide (CO2) lasers, argon lasers, helium neon lasers, excimer lasers & krypton lasers. Gas lasers are used in a variety of applications, including barcode scanning, spectroscopy, holography, air pollution measurement, laser surgery & material processing. CO2 lasers are probably the best-known gas lasers and are primarily used for laser marking and laser cutting.

Additionally, the solid-state laser segment is also predicted to experience significant growth due to the utilization of laser medium rather than a gas like gas lasers. Solid-state lasers use minerals such as yttrium, aluminum, garnet (YAG), and yttrium vanadate crystals (YVO4) as the laser medium. Since solid-state lasers have high laser power, high laser power is possible even with small cavities. It can work in both pulsed and continuous mode. Pulse mode operation produces a joint similar to a spot weld but with a deeper weld.

Furthermore, the diode/semiconductor laser segment is estimated to grow substantially. When a current is passed through the semiconductor, laser light is generated, which becomes the heat source for the junction. These devices are compact compared to other laser beam techniques as no lamp is used as the excitation source. In a semiconductor laser, an oscillating laser beam is produced by passing an electric current through the semiconductor. A high-quality laser beam generated in this way has a high conversion efficiency.

By Application Analysis

Automotive Segment to Have Major Expansion Owing to High Accuracy Welding

Based on application, the market is divided into automotive, aluminum alloy fuselage, jewelry industry, medical, electronics, shipbuilding, and others (oil & gas).

Laser welders are highly preferred in the automotive sector as they can weld automotive parts with high precision. This kind of welding is utilized in transmission parts, weld engine parts, magnetic coils, and fuel filters. It is an efficient process for mass production and is therefore increasingly in demand in the automotive industry. Laser welders are becoming more popular in the automotive industry due to their ease of automation. The demand is expected to rise due to recovery in the automotive sector owing to technological advancements. Demand for high-quality finished parts in the automotive segment is expected to further fuel market growth during the forecast period.

In addition, aluminum alloy fuselage is likely to have considerable growth. This kind of welding is being considered by many in the aerospace industry as an alternative to mechanical mounting and joining in airframe and wing manufacturing applications. By simplifying the manufacturing process, there could be an improvement in quality along with cost reduction and weight reduction. One such application involves adding weld reinforcements or stringers to reinforce skin panels.

Additionally, jewelry industry is expected to show a major development during the forecast period. Jewelry laser welders are making an impact on the jewelry industry, making the process more manageable and efficient. This contributed to the machine's great success and use. Notable applications for laser welders for jewelry include resizing rings, re-tipping prongs and repairing bezel settings, reassembly of broken jewelry, repairing miscellaneous jewelry, porosity fix, and custom designs.

Moreover, in electronics, the spot and seam welding of metals with this laser is precise and enables joining of the smallest spot welds and fine weld seams of miniaturized electrical components. Thus, it is projected to have a remarkable increase in the coming years.

Furthermore, laser welding offers significant advantages to shipyards, including faster welding speeds, lower thermal stresses, and less rework. Moreover, the major contribution of welding technology to the shipbuilding industry is its ability to produce smooth hull surfaces. This greatly reduces the resistance and power requirements of tubular hulls.

REGIONAL INSIGHTS

Based on region, the market is segmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

Asia Pacific holds a significant share in the market owing to increasing industrialization and presence of numerous manufacturing bases, which is expected to drive the regional market growth during the forecast period. Growing awareness and adoption of these kinds of welding in various industrial sectors are expected to further accelerate the market growth during the forecast period. Also, the adoption of high-end technology further contributes to expanding the market share of laser welding.

China is expected to become the most important country in the region due to its huge manufacturing sector. The country has the largest number of manufacturing facilities, and the introduction of these welding equipment with an emphasis on improving productivity is essential. Moreover, the automobile industry is one of China's pillar industries and is still the world's largest automobile market. Total vehicle production in 2018 reached 27.8 million units, well ahead of major markets such as the U.S. (11.3 million units), Japan (9.7 million units), and Germany (5.1 million units).

The North America market is expected to exhibit substantial growth in the coming years owing to increasing demand for fabricated metal parts in the heavy machinery industry, which is expected to positively influence market growth in the region. Also, rising automation is also expected to accelerate the market growth during the forecast period. Growing demand for high productivity in the welding operation is expected to surge the demand for welding in North America.

The Europe market is projected to have fair growth with a noteworthy upsurge in the coming years. The established automotive sector in Germany, Spain, and France is expected to serve as the engine of the market growth in the region. Technological advancement in the region is the driving force behind the market. Also, rising developments in laser-welding technology, new trends in automation, and increasing government funding are major factors responsible for the growth of the market in the region.

The growth in the Middle East & Africa is attributed to rising automation, continuous development of welding technology, and rapid increase in infrastructure development projects in the region. Market growth in the region is further fueled by rapid urbanization, increasing disposable income, and rising government funding.

Latin America is likely to record moderate growth due to niche opportunities for manufacturing development. The limited presence of global market players and underdeveloped market distribution channels are contributing to slowing industrial growth in Latin America.

KEY INDUSTRY PLAYERS

Manufacturers Focusing on Standard Operational Efficiency with Precision & Accuracy to Strengthen Market Position

The global market is fairly fragmented in nature, with large global players as well as small and medium local players, and a significant number of players accounting for the market share. An analysis of the manufacturing bases of large countries reveals that many global companies have established strong footholds. This market has many prominent players, such as Keepsake Automation LLP, Leister India, AMADA Weld Tech, Vitesco Technologies, Tonggao Advanced Manufacturing Technology Co Ltd, Inrotech, SONICS, JQ Laser, and Extol Laser Plastic Welding, which create the best-in-class welding to improve the global welding sector.

LIST OF KEY COMPANIES PROFILED:

• AMADA Co. Ltd. (Japan)


• Coherent Inc. (U.S.)


• Emerson Electric Co. (U.S.)


• FANUC Corp. (Japan)


• IPG Photonics Corp. (U.S.)


• Jenoptik AG (Japan)


• Huagong Laser Engineering Co., Ltd (China)


• Laserstar Technologies Corp. (U.S.)


• Perfect Laser Co. Ltd. (U.S.)


• TRUMPF GmbH + Co. KG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• November 2019- Lincoln Electric introduced POWER MIG 360MP welder the new MIG welding technology with simple interface with advanced welding capabilities. This equipment is ideal for metalworking, body repair and maintenance, and light industrial applications.


• November 2021 - TRUMPF has presented a new inventive product, TruLaser Weld 1000. It aids small companies to incline toward automated laser welding, suitable for electrical cabinets, welding sheet metal boxes, and covers.


• August 2020 – Amanda Weld Tech launched the new 2 kW Fiber Laser Welder “MF-C2000A” Series.


• November 2019 - AMADA launched the new fiber laser cutting machine, REGIUS-3015AJ, which consists of a 3-axis linear motor drive system.


• October 2022 - Coherent Corp, a company for laser processing services, introduced its next-gen flat sheet cutting laser head with high power ratings reaching to 30 kW.

REPORT COVERAGE

The research report provides a detailed analysis of the type, application, and industries. It provides information about leading companies, their business overview, and the leading applications of their products. Besides, it offers insights into the competitive landscape, SWOT analysis, current market trends, and highlights the key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to market growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD Billion)
Segmentation	By Mode, Technology, Application, and Region
By Mode	Conduction Mode Deep Penetration Mode
By Technology	Gas Laser (CO2) Solid-state Laser Fiber Laser Diode/Semiconductor Laser
By Application	Automotive Aluminum Alloy Fuselage Jewelry Industry Medical Electronics Shipbuilding Others (Oil & Gas)
By Region	North America (By Mode, By Technology, By Application) U.S. (By Technology) Canada (By Technology) Europe (By Mode, By Technology, By Application) U.K. (By Technology) Germany (By Technology) France (By Technology) Italy (By Technology) Rest of Europe Asia Pacific (By Mode, By Technology, By Application) China (By Technology) Japan (By Technology) India (By Technology) Southeast Asia (By Technology) Rest of Asia Pacific Middle East & Africa (By Mode, By Technology, By Application) GCC Countries (By Technology) South Africa (By Technology) Rest of Middle East and Africa Latin America (By Mode, By Technology, By Application) Brazil (By Technology) Mexico (By Technology) Rest of Latin America