INDUSTRIAL LASER SYSTEMS MARKET ANALYSIS

The global industrial laser systems market size was valued at USD 21,500.0 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.88% from 2023 to 2030. The Industrial Laser Systems market is expected to witness significant growth during the forecast period owing to the growing trend of automation for improved productivity, high efficiency, and accuracy. The market is also driven by the increase in demand for material processing in various industries such as aerospace, automotive, industrial machinery, and electronics.

Global Industrial Laser Systems Market: Regional Insights

The global industrial laser systems market is geographically divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is expected to gain major share in the global industrial laser systems market over the forecast period, owing to technological developments in several industries such as aerospace, manufacturing, automotive, and others. Along with this, growing investment in development of laser technology solutions by companies among SME and startups across the region is also expected to drive growth of the market in this region. For instance, UAVenture Capital Fund, invested in DeUVe Photonics Inc. for improvising the technology, which enables the company to become a key player in developing and existing deep UV laser markets.

Asia Pacific is also expected to drive growth of the global industrial laser systems market over the forecast period. This can be attributed to the increasing growth of industries such as Medical and Automotive, and rise in investment by market players into development and growth of their companies. Along with this, the increasing R&D activities across the region to achieve stable and high-quality results is also driving growth of the market across Asia Pacific region. For instance, Farsoon Technologies created an additive manufacturing process that can print structures made from entirely copper with the use of standard fiber lasers.

Figure 1. Global Industrial Laser Systems Market, Revenue Share (%), By Region, 2022

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Global Industrial Laser Systems Market Drivers:

Improved accuracy and precision over traditional alternatives to drive the market growth

Laser cutting systems are utilized for efficiently and accurately slicing plastic, metal, and other different materials used for manufacturing. This technology offers precision cutting and welding, as it can focus on about 25 microns, which is nearly one fourth of the size of a human hair. Thus, this technology is feasible for removing the minimum amount of material in order to create the cut with high precision and accuracy. A laser cutter system uses computer systems for precisely cutting material within particular cutting tolerance and these are integrated with CAD Software, which guides the laser. Thus, due to such advantages of using industrial laser systems, their demand is increasing over conventional alternatives. This in turn is expected to augment growth of the global industrial laser systems market over the forecast period.

Increasing demand for miniaturization of component parts to fuel the market pace

With increasing technological development in industries such as automobile, consumer electronics, networking and telecom, and healthcare, and computing has created the need for strong and small electronic device. With such demands for portable electronic equipment, the need for precise dimensional accuracy for components such as displays increases. This in turn drive the demand for the fabrication materials required for developing high-performance semiconductor components. Thus, the demand for miniature equipment has increased within highly integrated, high-speed applications such as aerospace and few consumer electronics. This in turn is boosting the demand for industrial laser systems, which is likely to fuel growth of the global industrial laser systems market over the forecast period.

Global Industrial Laser Systems Market Opportunities:

Increasing growth of Industry 4.0, AI, and Big Data is expected to bring multiple growth opportunities in the global industrial laser systems market over the forecast period. With the emergence of Industry 4.0, AI, and Big Data, the applications of laser systems are likely to grow in manufacturing shopfloors along with most sophisticated and technologically developed robotic systems and software. As the AI is making its way to the manufacturing plants, such planning of production in the near future will make them produce novel types of laser processing procedures, which will refine all the steps as they learn more and take over the programming of connected devices. This in turn will provide multiple opportunities to the market.

Increasing transformation of automobile industry to electric vehicles is also expected to create growth opportunities in the global industrial laser systems market over the forecast period. The automobile industry is transitioning from internal combustion engines to electric vehicles, which is creating new applications, where lasers are considered as an important factor for extremely efficient mass production of novel components. Future laser welding systems thus will feature abilities such as to be controlled by a robotic arm, the rugged quality of welds, and fast welding speed. Thus, this in turn is likely to create several business opportunities in the market.

Global Industrial Laser Systems Market Trends:

Increasing semiconductor and consumer electronic applications is a recent trend

Semiconductor and consumer electronics applications, such as treatment of brittle material, like sapphire, ceramics, polymers, glass, and others, are becoming a major market prospects for lasers as well as short-pulse lasers. Due to the miniaturization, delicate materials, or cosmetics, companies in consumer electronics need various types of laser methods for part treatment. Thus, trend is creating strong demand for industrial laser systems, which in turn is likely to drive growth of the global industrial laser systems market over the forecast period.

Emerging quantum technology is a growing trend

The rapidly emerging quantum technology is likely to play an important role in different fields ranging from revolutionary medical sensor systems to self-driving cars, new microscopes and equipment, and new types of data encryption. Some of the companies such as Trumph are already involved in production of industrial solutions with respect to the requirements of Quantum Technology. Thus, this trend is likely to continue in the global industrial laser systems market over the forecast period.

Global Industrial Laser Systems Market Restraints:

Stringent regulations around usage of laser to hamper the market growth

Enterprises who adopt laser solutions have to adhere to several safety regulations imposed by governments. Countries such as the U.S., Canada, and EU have imposed regulations regarding use of laser and safety surrounding it. Due to these regulations buyers also have to invest in training, protective gear, and medical checkups for the employees regularly. Moreover, the cost of equipment is higher as compared to traditional counterparts. Due to these factors, the adoption of laser in the industrial space is affected adversely. This in turn is expected to hamper growth of the global industrial laser systems market over the forecast period.

High cost of laser systems to impede its adoption

The initial cost of installing laser systems in industrial settings is comparatively high. Along with this, buyers are required to invest also in the safety gears used while operating these systems, which along with the timely maintenance adds into the overall cost of industrial laser systems. Moreover, operating these systems require knowledge and information. Several vendors lack skilled professionals to operate these systems. Thus, the aforementioned factors are thus expected to hinder growth of the global industrial laser systems market over the forecast period.

Figure 2: Global Industrial Laser Systems Market, Revenue Share (%), By Type of Laser, 2022

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Global Industrial Laser Systems Market Segmentation:

The global industrial laser systems market report is segmented into Type of Laser, Application, and End-User Industry.  

Based on Type of Laser, the market is segmented into Fiber, Solid-state CO2, and Other Types. Out of which, Fiber is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for fiber lasers for use in automotive and electronics industry. Fiber lasers are utilized is all industries such as automotive, aerospace, electronics, dental, mobility, medical, jewelry, semi-conductors, solar, sensors and others. Thus, the growing demand for fiber laser systems among these industries is expected to drive growth of the market.

Solid-State segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for refractive eye-surgeries in both underdeveloped and developing countries is leading to rising investments in research and healthcare. This in turn is expected to impact the solid-state lasers growth for non-invasive surgeries use, which in turn will positively impact the market growth.

Based on Application, the market is segmented into Cutting, Welding, Marking, Drilling, and Other Applications. Out of which, Cutting is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption of factory automation among several companies leading to increase in investment in technological development, partnerships and mergers among market players. This in turn is driving the demand for laser systems for cutting, which in turn is expected to augment growth of the global industrial laser systems market over the forecast period.

Marking segment is also expected to witness significant growth in the near future and this is owing to the growing demand for laser markers in programmed robotics or complex 5 axis machines due to rise in complex-shaped surfaces in manufacturing. For instance, in September 2020, Panasonic Industry Europe launched the Panasonic V-Series: 20W LP-RV short pulse fiber laser marker with ability of marking different materials from illuminated switches for electronic devices, automotive, resin molds, or medical applications to metal parts. With the launch of such products, the segment is likely to witness strong growth.

Based on End-User Industry, the market is segmented into Semiconductor and Electronics, Automotive, Aerospace and Defense, Medical, and Other End-user Industries. Out of which, Semiconductor and Electronics is expected to dominate the global market over the forecast period and this is attributed to current shortage of chips in industries such as automotive leading to rise in demand for industrial laser systems in semiconductor and electronics industry. Along with this, the demand for electronics is increasing, which is also driving growth of this segment.

Automotive segment is also expected to witness significant growth in the near future and this is owing to the high adoption of industrial laser systems in automotive industry. Several vendors in the market are focusing on offering industry specific solutions and expansion of their offerings. For instance, in December 2020, Coherent and II-VI entered into agreement for creating a collaboration for enabling faster process development and streamlined production services for automotive applications. Thus, these factors are driving segment’s growth.

Global Industrial Laser Systems Market: Key Developments

In February 2021, the Light & Production Division of Jenoptik AG collaborated with 4JET Group for driving the commercialization of innovative new laser prototyping technology together.

In July 2021, MKS Instruments Inc., a leading provider of technologies enabling improved productivity and advanced processing, completed the acquisition of Photon Control Inc.

In February 2021, Trumpf Group, received investments for its state-of-the-art Trumpf 5030 12kW Laser by ATACO Steel Products Corporation. The ability of this laser to gain excellent feed rates and cutting speeds are the reason for this investment by ATACO.

Global Industrial Laser Systems Market: Key Companies Insights

The global industrial laser systems market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global industrial laser systems market are Jenoptik AG, Han's Laser Technology Co. Ltd., Newport Corporation, nLIGHT Inc., TRUMPH GmbH, ACSYS Lasertechnik Inc., Coherent Inc., and IPG Photonics Corporation, II-VI Incorporated

*Definition: Industrial Laser Systems are used for applications such as marking, cutting, welding, and non-metal processing. There are many types of industrial lasers, with some being more suitable than others for certain applications and processes. They can range from low-power laser pointers and leveling tools for medical use, to high-powered systems for material fabrication.