Description

The global laser processing market was valued at USD 4991.2 million in 2020 to USD 8226.87 million by 2027, at a CAGR of 7.4% from 2021 to 2027. Diversified application areas is projected to spur the laser processing market growth over the forecast period. The industry is expected to gain traction in the near future owing to the rising espousal of lasers in the industrial sector for several-material processing applications such as cutting, welding, drilling, and engraving. The material processing segment is expected to witness high growth over the forecast period as an espousal of this technology in manufacturing procedures offers greater speed and smooth industrial processes. Laser technology offers high precision cutting, drilling, welding, and marking & engraving without damaging the material.

The global laser processing value chain analysis comprises raw material, suppliers, manufacturers, distributors, and end-use industries. The various raw materials include crystal & optics, exotic materials, and other electrical and mechanical components. The raw materials or sub-components required in the manufacturing process are sourced from numerous suppliers. Key components & materials, such as crystals & optics and exotic materials used in manufacturing products, are bought from sole or limited source suppliers. The pricing and availability of these raw materials are highly volatile, owing to the domestic and international economic conditions.

The increasing adoption of lasers for material processing is expected to drive the laser processing market growth over the forecast period. The adoption of laser technology in the manufacturing process offers high speed as well as accurate industrial processes. The rapid adoption of lasers for material processing has changed the market scenario in the past few decades. The ability to offer more accurate and high-speed industrial processes than conventional techniques is responsible for adopting laser technology in manufacturing processes.

Global Laser Processing Market Dynamics

Drivers: Increasing Demand in Industrial and Medical Applications

The growing implementation of high-cost laser drilling in oil & gas exploration fields is anticipated to replace the conventional techniques. Furthermore, reducing drilling costs can make the uneconomic oil deposits viable, thereby favorably impacting the laser processing market. The rising need for laser processing in the industrial solar module will drive market growth. The upsurge in demand from the industrial sector will grow the demand for high-power lasers. High power lasers for hardfacing (laser cladding) act as an alternative to methods such as oxy-fuel gas welding, arc welding, and thermal spraying.

Laser processing systems have a more comprehensive range of industrial applications, further segmented into microprocessing and macro processing. Different processes such as marking & engraving, shaping, sizing, and micro-machining the objects employ laser technology. Microprocessing applications include producing printed circuit boards, flat panel displays, semiconductors, and solar cells. Macro processing applications include welding, marking applications, and cutting.

Restraints: High Cost of ownership

In applications such as medical device manufacturing, high-power CO2 and high-pulse-energy are expected to increase demand considerably. With devices becoming more specialized, these lasers are expected to become unsuitable in certain cases. Moreover, with the high cost of ownership associated with these lasers, manufacturers prefer alternatives such as Q-switched Diode-Pumped Solid State Lasers (DPSSLs), which offer better quality for cutting contoured shapes glass processing. High power DPSS lasers replace flash-lamp-pumped lasers and ion lasers because of their efficiency and compactness. Moreover, swerving macroeconomic trends propelled by the Euro crisis, coupled with the lack of technical expertise to implement laser processing, is projected to hinder the market growth. The high cost of ownership, which includes initial funding and execution & maintenance costs, is estimated to hamper the laser processing market growth over the forecast period.

Scope of the Report

The study categorizes the laser processing market based on product, process, application, and regions.

By Product Outlook (Sales, USD Million, 2017-2027)

• Gas Lasers
• Solid-State Lasers
• Fiber Lasers

By Process Outlook (Sales, USD Million, 2017-2027)

• Material Processing
• Marking & Engraving
• Micro-Processing

By Application Outlook (Sales, USD Million, 2017-2027)

• Automotive
• Aerospace
• Machine Tools
• Electronics & Microelectronics
• Medical
• Packaging

By Region Outlook (Sales, USD Million, 2017-2027)

• North America (US, Canada, Mexico)
• South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
• Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
• The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

Gas Lasers, by product, is accounted for the largest market segment during the forecast period

Based on the product, the global laser processing market has been segmented into gas lasers, solid-state lasers, and fiber lasers. Gas lasers is accounted for the largest market share in 2020.

Surging deployment of costlier laser drilling in oil & gas exploration fields is anticipated to substitute the traditional techniques. Curtailing drilling costs is expected to make the uneconomic oil deposits feasible, thereby positively impacting the market growth. Growing demand for this type of processing in the industrial solar module is further expected to fuel industry growth.

Asia Pacific accounts for the highest CAGR during the forecast period in the laser processing market

Based on region, the global laser processing market has been segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. The Asia Pacific has a growth rate of 10.2%. The Asia-Pacific laser processing market is analyzed across Japan, China, India, Australia, and the rest of Asia Pacific. In the Asia Pacific, China is the fastest-growing country during the forecast period. The amalgamation of renewable energy into China’s existing power grid and the process of interconnecting new and existing power transmission lines are presumed to fuel the product demand.

Further, large-scale investments are being made in smart grids to meet the rising electricity demand. The government of India is increasing its focus on intensifying the power generation capacity. The growing energy consumption coupled with several upcoming infrastructure projects is projected to drive the country's electrical components & supplies market demand.

Key Market Players

The global laser processing market is fragmented into a few major players, include Coherent, Trumpf, Han’s Laser, IPG Photonics, Jenoptik, Lumentum, Gravotech, LaserStar, Lumibird, Epilog Laser, Alltec, Alpha Nov Lase, Amada Co., Ltd, Bystronic Laser AG, Coherent, Inc., Eurolaser GmbH, Han’s Laser Technology Co. Ltd, and Epilog Laser, Inc.

Recent Developments

• In February 2010, Alltec GmbH announced the presentation of its fiber and CO2 laser marking solutions at China’s laser technology trade fair.
• In March 2015, Alpha Nov Laser announced a technology transfer agreement with Leukos, a French company specializing in laser sources and instruments. This technological agreement, aiming at pulsed laser modules, will enable Leukos to develop pump systems based on Alpha Nov’s PS platform.
• In February 2013, Amada Group announced the opening of its new manufacturing plant in California, U.S. This plant will manufacture sheet metal processing machines and function as the group’s new production hub in North America.
• In October 2016, Bystronic Laser AG announced the taking over of FMG company, a Switzerland-based specialist for warehouses, material handling, and sorting systems. With this takeover, Bystronic expanded its existing portfolio of warehouse solutions and handling systems.

Key Issues Addressed

• What is the market size by various segmentation of the laser processing by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the laser processing market?
• What are the key opportunities and trends for manufacturers involved in the laser processing supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of laser processing in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.