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Laser Processing Market

Laser Processing Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

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Industry: Information & Communications Technology | Author Name: Mohit


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Laser Processing Market: Overview

The market size for Laser Processing Market was USD 17.1 billion in 2021, projected to grow at a CAGR of 8.8 percent during the forecast period. In industrial processes, laser processing techniques are used to change the shape and appearance of the industrial material by the requirements. Other applications of laser technology include dentistry, ophthalmology, urology, skin cosmetics, and other fields of medicine.

Over the projection period, it is anticipated that government restrictions on this technology’s use in the marking and engraving of products will favorably impact market growth. Due to the widespread use of this technology in processes including welding, marking, cutting, drilling, and engraving, the market is expected to experience rapid expansion over the coming years. Government regulations governing the use of lasers for marking and engraving, along with the expanding use of lasers in medical equipment and procedures, are expected to drive market expansion shortly. Additionally, technological advancements have enhanced the cutting efficiency and edge quality of laser processing. For instance, Hamamatsu Photonics created the spatial light modulator (SLM), a liquid crystal with the maximum capacity for the pulsed laser power of up to 400 GW/cm2, enabling clients to do high-throughput and high-precision laser processing.

The introduction of technology in the laser processing business necessitated qualified professionals to run the equipment. The biggest market growth obstacle is the lack of qualified specialists. Setting up laser technology for the necessary application is relatively expensive and complicated. The overall expansion of the laser processing industry is being hampered by the vast resources needed to complete the processing of various applications. Although the prices of products processed using laser technology are decreasing, the technology is still relatively expensive. The maintenance costs of conventional plasma cutting are approximately USD 5000 annually, whereas the maintenance costs for laser processing and cutting machines require approximately USD 10,000 annually.

Laser Processing Market: COVID-19 Impact

The expansion of COVID-19 has hurt the laser processing industry's overall growth. Due to the reduction in workforce and the closure of numerous industries due to COVID-19’s strict requirements, output rates have been affected in several industrial verticals. As a result, there has been a sharp decline in the demand for laser processing in recent years. Due to the importance placed on medical problems during the pandemic, the demand for various industrial items has also decreased. Supply chain interruptions and insufficient raw material supply have significantly decreased the manufacture of industrial goods, metals, steel, copper, and automobile parts. According to a recent National Association of Manufacturers poll, the epidemic has caused over 80% of financial difficulties among metal manufacturers. These elements have had an impact on the industry's expansion.

Laser Processing Market: Drivers

Advantages of Laser Material Processing Over Conventional Methods Has Fueled Market Growth

During the forecast period, there is likely to be an increase in the usage of lasers for material processing due to several benefits they offer over more conventional techniques. Laser cutting is rising in acceptance as the need for microelectronics downsizing increases. Laser cutters are the greatest option because they provide exceptionally high precision and accuracy, which is required when under tight constraints. Additionally, it produces goods quickly and without the need for retooling. Additionally, the laser weld provides greater weld strength since it is thin and has a favorable depth-to-width ratio.

Laser Processing Makes It Possible to achieve Greater Accuracy has Helped market to Grow

Comparing laser processing to conventional cutting techniques reveals how precise laser processing is. This is because the laser beam does not wear out during the cutting process and produces a continuous, distortion-free cut. There is a high level of positional precision because the dynamics of each work are pre-recorded. Since the tool used to cut through the material may move and cut in different directions, laser processing can be a far more effective option for irregular or complicated geometries. Furthermore, it frequently completes this task faster than traditional cutting techniques because no instruments are needed.

Laser Processing Market: Restraints

Metal Tube Laser Processing Difficulties Has Been A Major Market Restraint

The workpiece absorbs most of the heat generated by the cutting, and the molten slag sticks to the inner wall of the tube as it is cut (especially for square tubes with small tube diameters). The incision quality is drastically reduced when the cutting intensity is too high because the tube overheats and overturns the corners, which may even prevent the incision. Numerous quality issues with laser tube cutting exist, such as overburning the cutting point and corners of the component, tilt of the cutting surfaces, bending of circular patterns when cutting round components, failure to close, etc. Low cutting efficiency and tube waste are closely connected. Therefore, more extensive research on these subjects is required.

Laser Processing Market: Segment Overview

 Marking & Engraving Had Dominated Market Due to Its Use in Crude Oil Extraction

The market is divided into three categories based on the process: material processing, marking & engraving, and microprocessing. In terms of revenue, the Marking & Engraving segment led the laser processing market in 2021. Laser processing is advantageous for mining and drilling activities, particularly for extracting crude oil. For instance, mechanics, controls, and laser control mechanisms are three of Aerotech's primary development areas. The etching, marking, welding, and cutting procedures are then carried out with the assistance of the OEMs, system integrators, and end-users. A consistent cutting surface with small cuts is another benefit of water jet cutting equipment, which boosts overall process efficiency and market growth.

Machine Tools Has Dominated Market Due To Variety of Uses

Machine tools, Electronics and Microelectronics, Automotive, Medical, Packaging, Aerospace, and Others are the market segments based on application. In terms of revenue, the machine tools sector dominated the laser processing market in 2021. The manufacturing industry's growing use of lasers for various material processing applications, including cutting, welding, drilling, and engraving. The medical industry and microelectronics devices are anticipated to lead the laser processing market, which is anticipated to expand. During production, welding is widely used with medical devices. Key medical applications for ultra-fine wires and non-porous, sterile surfaces for cardiac procedures include pacemakers, implanted devices, and surgical tools.

Laser Processing Market: Regional Landscape

Asia-Pacific has Dominated Worldwide Due to Rising OEMs in Region

Asia Pacific took the top spot with a market share of more than 40% in revenue in 2021. As more OEMs are in this area, it is anticipated to increase significantly. Furthermore, it is projected that China will become the main market for industrial lasers and micro- and material processing systems. Due to several variables, including an increase in the number of OEMs and the growth of the automobile industry, countries like India, South Korea, Japan, and China are predicted to have substantial growth. The region's expanding use of laser systems in various application fields is another factor that is anticipated to drive market expansion. The adoption of laser processing technology is expected to increase across numerous regions due to government laws relating to permanent and visible markings on consumer items. Additionally, it is anticipated that increased usage in the automobile industry will increase demand in the European market. Countries like the United States, China, Japan, and Canada estimated that the market would be worth more than USD 2.5 billion in 2020. Additionally, the rising demand for the gas segment is anticipated to enhance the market's overall worth. Furthermore, the strict rules put on the laser processing sector in North America are anticipated to fuel the sector's total expansion.

Laser Processing Market: Competitive Landscape

Jenoptik and 4JET, a maker of tire machines, partnered in February 2021. The businesses collaborated to bring a cooperative laser prototyping technology to market. Additionally, the technology's more precise laser material processing would enable manufacturers to sample automobile tires quickly. Additionally, this procedure involves cutting distinct forms and patterns onto a whole soft track and unbiased walls using a laser. Dec. 2020: American manufacturer of semiconductors and optical materials II-VI Incorporated and Coherent struck a supply deal. This arrangement makes the companies' swift action progress and simplified production services for automotive laser welding function possible. Additionally, the agreement calls for enormous production of copper welding for electrification and durability alloy welding for car body-in-white function.

Few of the players in the Laser Processing Market include Trumpf (Germany), Coherent (US),  Han’s Laser (China), Jenoptik (Germany), Lumibird (France),  Lumentum (US), Gravotech (France), LaserStar (US), IPG Photonics (US), and Epilog Laser (US).

The laser Processing Market is Segmented as Below:

By Laser Type:

  • Gas Lasers
  • CO2 Lasers
  • Excimer/Diode Lasers
  • Argon Lasers
  • Chemical Lasers
  • He–Ne Lasers
  • Solid Lasers
  • Yttrium Aluminum Garnet (YAG) Lasers
  • Semiconductor Lasers
  • Thin-disk Lasers
  • Ruby Lasers
  • Fiber Lasers
  • Liquid Lasers
  • X-ray Lasers
  • Dye Lasers
  • Others

By Configuration:

  • Laser Processing Configuration
  • Fixed Beam
  • Moving Beam
  • Hybrid
  • Laser Cutting and Engraving Configuration
  • Raster Mode
  • Vector Mode

By Revenue:

  • Laser Revenue
  • System Revenue

By Application:

  • Cutting
  • Fusion Cutting
  • Flame Cutting
  • Sublimation Cutting
  • Drilling
  • Single-pulse Drilling
  • Percussion Drilling
  • Trepanning Drilling
  • Helical Drilling
  • Welding
  • Marking & Engraving
  • Direct Laser Engraving
  • Direct Photopolymer Laser Imaging
  • Subsurface Laser Engraving
  • Microprocessing
  • Advanced Processing
  • Others

By End-user Industry:

  • Microelectronics
  • Flat-panel Display (FPD)
  • Advanced Packaging and Interconnects
  • Semiconductor Manufacturing
  • Micromachining
  • Aerospace & Defense
  • Laser Defense System Technology
  • Laser Radar (LiDAR)
  • Medical & Life Sciences
  • Laser Vision Correction
  • Confocal Microscopy
  • Optogenetics
  • Others
  • Automotive
  • Architecture
  • Machine Tools
  • Others (Glass, Wood, Plastics, and Tobacco)

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

 Key Elements Included In The Study: Global Laser Processing Market

  • Laser Processing Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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  • The segmentation/company profiles/countries depicted above may vary in the actual report.

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