LASER AUTOMATION MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global laser automation market size is projected to reach US$ 10.41 billion by 2030, from US$ 6.48 billion in 2023, at a CAGR of 7% during the forecast period. The increasing demand for laser automation in various industries, such as automotive, electronics, and healthcare, is driving the growth of the market. Laser automation is the use of lasers to automate various manufacturing processes, such as cutting, welding, and marking. Lasers offer a number of advantages over traditional manufacturing methods, such as high precision, high speed, and flexibility. As a result, laser automation is increasingly being adopted by manufacturers across a wide range of industries.

The automotive industry is one of the major drivers of the laser automation market. Lasers are used in the automotive industry for a variety of applications, such as cutting and welding of sheet metal, marking of components, and 3D printing. The increasing demand for lightweight and fuel-efficient vehicles is driving the adoption of laser automation in the automotive industry.

Laser Automation Market Regional Insights

• Asia Pacific is the largest market for laser automation, with a share of 45% in 2022. The region is expected to continue to dominate the market in the coming years, driven by the growth of the automotive, electronics, and packaging industries.
• North America is the second largest market for laser automation, with a share of 30% in 2022. The region is expected to grow at a CAGR of 8.5% during the forecast period, driven by the increasing adoption of laser automation in the aerospace, defense, and medical industries.
• Europe is the third largest market for laser automation, with a share of 18% in 2022. The region is expected to grow at a CAGR of 7.7% during the forecast period, driven by the increasing adoption of laser automation in the machine tool, automotive, and electronics industries.

Figure 1. Global Laser Automation Market Share (%), by Region, 2023

Laser Automation Market Drivers

• Increasing Industrial Automation: The growing trend of industrial automation across various sectors, such as manufacturing, automotive, electronics, healthcare, and aerospace, is a significant driver for the laser automation market. Laser automation offers precise, efficient, and flexible solutions for tasks such as cutting, welding, marking, engraving, and additive manufacturing, thereby enhancing productivity and reducing operational costs.
• Advancements in Laser Technology: Continuous advancements in laser technology, including improvements in power, precision, and beam quality, have expanded the scope of laser automation applications. The development of fiber lasers, diode lasers, and ultrafast lasers has enabled new possibilities in various industries, leading to increased demand for laser automation solutions.
• Demand for High-Precision Manufacturing: Many industries require high-precision manufacturing processes to achieve accurate and intricate results. Laser automation provides exceptional precision and control, enabling manufacturers to produce complex parts, micro-components, and fine details with minimal material waste. The demand for high-quality products and the need for precision manufacturing are driving the adoption of laser automation systems.
• Cost and Time Efficiency: Laser automation systems offer advantages in terms of cost and time efficiency compared to traditional manufacturing methods. They enable faster processing speeds, reduce manual labor, and minimize material waste. Laser automation also facilitates quick changeovers, allowing manufacturers to adapt to varying production requirements more efficiently. These factors contribute to overall cost reduction and improved productivity.

Laser Automation Market Opportunities

• Emerging Industries: The laser automation market has significant opportunities in emerging industries such as renewable energy, electric vehicles, and advanced electronics. As these industries continue to expand, there is a growing demand for laser automation solutions for processes like solar cell manufacturing, battery production, and electronics assembly.
• Medical and Healthcare Applications: The healthcare industry offers promising opportunities for laser automation. Laser systems are used in medical device manufacturing, surgical procedures, dermatology, ophthalmology, and dental applications. The demand for minimally invasive procedures, precision surgeries, and personalized medical devices is likely to drive the adoption of laser automation in the healthcare sector.
• Integration with Robotics and AI: The integration of laser automation with robotics and artificial intelligence (AI) technologies presents significant opportunities. Combining lasers with robotic systems enables autonomous operations, increased flexibility, and improved process control. AI algorithms can optimize laser parameters, monitor quality in real-time, and enable adaptive control, leading to enhanced efficiency and productivity.
• Micro and Nano Manufacturing: Laser automation offers unique opportunities in the field of micro and nano manufacturing. Laser systems with ultrafast pulses and high precision capabilities are well-suited for fabricating micro-components, integrated circuits, micro-electromechanical systems (MEMS), and other miniature structures. As demand grows for smaller and more intricate devices, laser automation becomes a key enabling technology.

Laser Automation Market Trends

• Adoption of Fiber Lasers: Fiber lasers have gained significant popularity in laser automation applications. These lasers offer high power, excellent beam quality, and efficient energy consumption. Compared to traditional solid-state lasers, fiber lasers provide enhanced reliability, longer operational lifetimes, and lower maintenance requirements. The adoption of fiber lasers is increasing across various industries, including automotive, aerospace, electronics, and metal fabrication.
• Integration of Intelligent Features: Laser automation systems are becoming smarter and more intelligent. Integration with advanced technologies such as artificial intelligence (AI), machine learning, and computer vision enables real-time monitoring, process optimization, and predictive maintenance. Intelligent features allow laser automation systems to adapt to changing conditions, optimize parameters, and improve overall efficiency and productivity.
• Growth in Additive Manufacturing: Additive manufacturing, or 3D printing, is experiencing rapid growth, and lasers play a crucial role in this technology. Laser-based processes such as selective laser melting (SLM) and stereolithography (SLA) are widely used in additive manufacturing for melting and solidifying materials. As additive manufacturing continues to advance and find applications in various industries, the demand for laser automation systems for 3D printing is expected to increase.
• Rise of Ultrafast Lasers: Ultrafast lasers, which generate extremely short laser pulses in the femtosecond or picosecond range, are gaining traction in laser automation applications. Ultrafast lasers enable precise and controlled material processing with minimal heat-affected zones and negligible damage to surrounding areas. They find applications in micromachining, surface texturing, and high-precision material processing, particularly in industries such as electronics, medical devices, and aerospace.

Laser Automation Market Restraints

• High Initial Investment: Laser automation systems often require a significant initial investment, including the cost of laser equipment, associated infrastructure, and integration with other machinery. The upfront capital expenditure can be a barrier for small and medium-sized enterprises (SMEs) or companies with limited financial resources, limiting their ability to adopt laser automation technologies.
• Skilled Workforce Requirement: Operating and maintaining laser automation systems require specialized skills and knowledge. The need for trained operators and technicians proficient in laser technology and safety practices can be a restraint. Companies may face challenges in finding and retaining skilled personnel, which can impact the widespread adoption of laser automation.
• Safety Concerns: Laser safety is a critical consideration in laser automation applications. Laser beams can cause eye injuries and skin burns if proper safety precautions are not followed. Ensuring compliance with safety regulations, implementing safety features, and providing comprehensive training for operators is essential. The stringent safety requirements and associated costs can be a restraint for some companies.
• Material Limitations: Laser automation systems are suitable for a wide range of materials, including metals, plastics, ceramics, and composites. However, certain materials may have limitations in terms of their ability to interact with lasers. Some materials may be difficult to process or may produce undesired results, such as thermal damage or excessive debris. These limitations can restrict the application of laser automation in specific industries or material-dependent processes.

Recent Developments

New product launches

• Coherent Feature DL HPSi: This multi-kilowatt modern diode laser offers upgraded welding capacity for high-temperature metals, and lines up with welding requirements for e-mobility, energy efficiency, and other innovative applications.
• Han's Laser HLD-A3A: This fiber laser cutting machine is designed for high-precision cutting of a wide range of materials, including steel, stainless steel, aluminum, and plastics.
• Trumpf TruLaser Cell 7040: This laser cutting and marking machine is a versatile solution for a wide range of applications, including sheet metal fabrication, aerospace, and automotive.

Acquisition and partnerships

• In 2022, Trumpf acquired TruTops Fab, a leading provider of laser cutting software. This acquisition will help Trumpf to expand its software offerings and provide customers with a more integrated solution.
• In 2021, Epilog Laser acquired Aeon Laser, a manufacturer of high-power laser cutting and engraving systems. This acquisition will help Epilog to expand its product portfolio and reach new markets.
• In 2020, Coherent acquired Trumpf's laser marking business. This acquisition will help Coherent to expand its laser marking capabilities and become a more integrated supplier of laser solutions.

Figure 2. Global Laser Automation Market Share (%), by application, 2023

Top companies in Laser Automation Market

• Trumpf GmbH + Co. KG
• Coherent, Inc.
• IPG Photonics Corporation
• Han's Laser Technology Industry Group Co., Ltd.
• Rofin-Sinar Technologies Inc.
• Jenoptik AG
• Amada Miyachi America, Inc.
• Newport Corporation
• Prima Power
• Fanuc Corporation

*Definition: The Laser Automation market refers to the industry that encompasses the development, production, and deployment of automated systems and solutions that utilize laser technology for various industrial applications. Laser automation involves the integration of lasers with robotic systems, control software, and other technologies to enable precise and efficient processes such as cutting, welding, marking, engraving, and material handling. It aims to enhance productivity, quality, and operational efficiency in industries ranging from manufacturing and automotive to aerospace, electronics, healthcare, and more.