Light amplification by stimulated emission of radiation or LASER is used in various applications such as industrial and commercial. These industrial processes include engraving, material processing, marking, and other micro-processing. It is also used for cutting, welding, drilling, etc. processes. Laser is also used for marking/engraving consumer goods, electronic components, and other parts used in industries. This technology is widely being used in numerous end-use industries which include automotive, aerospace, original equipment manufacturers (OEM), electronics, medical, packaging, and others.
The global laser processing market is estimated to account for US$ 34,785.7 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
Material processing includes various processes such as engraving, cutting, marking, and drilling of metals and non-metals. Laser technology offers various advantages as compared to conventional techniques such as plasma technology, flame, and water jet. Plasma and flame technologies are used for cutting purposes and not for engraving, marking, and drilling processes, while waterjet is used for the ablation and structuring process. However, waterjet creates a loud noise while operating and hence becomes inconvenient for material processing. On the contrary, laser technology can perform all the aforementioned procedures efficiently without producing noise pollution. Hence, these factors are expected to drive growth of the global laser processing market during the forecast period.
Carbon dioxide and Nd: YAG lasers are the most commonly used technologies in medical applications. However, laser technology has started to gain traction in a range of applications from diagnosis to treatment. It is typically used for treatment of skin, hair, cancer, and eyes. Various surgeries such as cleaning of arteries, surgery for a detached retina, and other cosmetic surgeries have become possible with the help of laser technology. Cosmetic surgeries such as removal of permanent/birthmarks on the skin, port-wine stains, skin blotches, and other skin treatments can be accomplished using laser technology. Lasers play an important role in material processing of medical such as surgical tools and implantable devices used in hospitals and dispensaries. Moreover, laser technology is being used in various medical procedures such as lithotripsy, dermatology, angioplasty, mammography, microscopy, medical imaging, cancer diagnosis, and ophthalmology. For instance, in September 2013, Harvard University researchers and a team from the University Of Michigan Medical School developed a new laser based technology that makes the treatment of brain tumor more accurate. Therefore, these factors are expected to propel the market growth over the forecast period.
|Base Year:||2019||Market Size in 2019:||US$ 15,694.1 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||10.5%||2027 Value Projection:||US$ 34,785.7 Mn|
Trumpf GmbH + Co. KG, Prima Industrie S.p.A., Universal Laser Systems Inc., Epilog Laser Inc., Coherent Inc., Eurolaser GmbH, IPG Photonics Corporation, Bystronic Laser AG, Newport Corporation, and Rofin-Sinar Technologies Inc.
|Restraints & Challenges:||
APAC held dominant position in the global laser processing market in 2019, accounting for 44.4% share in terms of value, followed by Europe, North America and RoW respectively.
Figure 1: Global Laser Processing Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
Despite offering numerous advantages, laser processing faces numerous obstacles adoption with the high cost being one of them. Conventional plasma cutting and requires a relatively low maintenance cost of US$ 5,000 annually, while it is as high as US$ 10,000 for laser technology annually. Although higher adoption of laser technology is declining the prices, it still remains an expensive technology to incorporate. Hence, these factors are expected to hamper the global laser processing market growth over the forecast period.
Rare earth elements consist of two transition elements and 15 lanthanides: scandium, yttrium, lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium and lutetium. These elements are known for their unique luminescent, magnetic, and electrochemical properties. However, extraction of these elements poses various challenges, since it is done through open-pit mining with release of major contaminants such as radionuclides. These contaminants have adverse effects on the earth's ecosystem. Moreover, these refining of these elements can produce harmful by-products into water bodies and air. Thus, these factors expected to hinder the market growth in the near future.
The major driving factor for the development of lasers for processing of industrial materials is the demand for high power lasers with improved beam quality. Conventional lasers such as Nd: YAG rod lasers have limited capabilities because of thermal lensing. Thermal lensing is an effect caused due to overheating of the laser crystal especially in high power lasers. Although replacement of lamps with diodes for laser generation reduces thermal lensing, the beam quality is still limited for higher power levels. The use of disk laser eliminates thermal lensing and provides high beam quality with enhanced processing capabilities at high power levels. A disk laser a solid-state type laser that uses a heat sink thereby increasing the power and efficiency of the laser.
Apart from industrial material processing, medical and marking applications, laser technology is expected to be used in numerous other applications such as optical disc data storage, laser microchemistry, dental treatment, and others. Lasers are expected to be widely used in the near future to fulfill data storage requirements. Laser technology can be used for volumetric data storage with higher efficiency than Blu Ray or high definition digital versatile discs (HD DVDs) and high definition three dimensional (HD3D) displays. The use of laser technology in disc storage application improves the audio and video quality as compared to the conventional discs.
Figure 2: Global Laser Processing Market Value (US$ Mn), 2017 - 2027
The global laser processing market was valued at US$ 15,694.1 Mn in 2019 and is forecast to reach a value of US$ 34,785.7 Mn by 2027 at a CAGR of 10.5% between 2020 and 2027.
Ultra-short lasers are lasers that generate laser pulse of width ranging from femtoseconds to pico-seconds. These lasers are increasingly being used for industrial applications such as laser cutting, drilling, welding, and marking and engraving. As these pulses are shorter, no heat is transferred to the surrounding materials and hence no damage is done to the material. The ultra-short lasers with pulse width in pico-seconds can generate power density of around 10 Giga watts per square millimeter (GW/mm2).
Additive manufacturing or three-dimensional (3D) printing offers various advantages over conventional subtractive manufacturing techniques. Through additive manufacturing, more complex designs can be manufactured with minimum wastage of materials and higher manufacturing speeds. Laser technology is being increasingly used in 3D printing for material deposition by welding. It provides faster and accurate fabrication of the components to be manufactured. For instance, in 2014, Koenigsegg, the Swedish supercar manufacturer, announced its supercar the One: 1. The company has equipped various components such as side-mirror internals, titanium exhaust components, air ducts, and complete turbocharger assembles that were built using 3D printing.
Value Chain Analysis
Raw material suppliers
The key materials required for the production of laser machines are semiconductors, laser diodes, circuit boards, copper and steel, glass and other electronic components including resistors and capacitors. Other raw materials required for the manufacturing of laser machines include metal for machine fabrication, engineering plastics, granite and marble stones, marking compounds and other polymers used in laser machines. At present, the laser processing market consists of large number of raw material suppliers. Most of these components are easily available due to their use in several other electronics devices. The raw materials supplier provides these materials to the laser head manufacturers for production of laser heads. As the raw material suppliers are abundant in number, switching cost of buyers is less. Some of the raw materials suppliers are Ferro Corporation, Identification Plates Inc., Port Plastics, LaserSketch Ltd., Johnson Plastics, LaserBits Inc. and others.
Global Laser Processing Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. Globally, most of the countries are affected by COVID-19 and most of the countries have announced lockdown. There is a negative impact on the laser processing market, as these laser are used in the oil & gas industry. Laser drilling offers numerous advantages such as high penetration rates, reduction of operation costs, and control advantages over other drilling techniques. Due to lockdown imposed by countries, the demand and price of crude oil have fallen. For instance, in March 2020, in the U.S., the price of crude oil decreased from US$ 61.06 to US$ 23.36. Moreover, every country has banned international and domestic travel due to which there is a huge decline in the consumption of Aviation Turbine Fuel (ATF) across the globe. These factors have a huge impact on the laser processing market and there is a huge decline in demand for laser drilling machines.
Key players operating in the global laser processing market are Trumpf GmbH + Co. KG, Prima Industrie S.p.A., Universal Laser Systems Inc., Epilog Laser Inc., Coherent Inc., Eurolaser GmbH, IPG Photonics Corporation, Bystronic Laser AG, Newport Corporation, and Rofin-Sinar Technologies Inc.
Laser Processing is the laser beam radiation to the surface of work piece that is used to melt material and change the properties of the material by using high energy emission. Laser processing technologies is used for marking/engraving consumer goods, electronic components, and other parts used in industries. Lasers are used for various applications in commercial as well as industrial processes. Industrial processes typically include material processing, marking and engraving, and other micro-processing using laser technology. Laser technology offers various advantages as compared to conventional techniques such as plasma technology, flame, and water jet. Plasma and flame technologies are used for cutting purposes and not for engraving, marking, and drilling processes, while waterjet is used for the ablation and structuring process. Laser technology can perform all the aforementioned procedures efficiently without producing noise pollution. Hence, these factors are expected to drive growth of the global laser processing market during the forecast period.
Increasing demand from 3D printing in jewelry is expected to drive the market growth during the forecast period. Aforementioned factors are driving the adoption of these technologies such as CAD (computer-aided-design), laser technology, and induction technology among jewelry manufacturers. 3D printers with rapid prototyping (RP) technology help several designers to review design concepts and understand the requirements and complexity of any jewelry design. The adoption of such innovative manufacturing technologies in jewelry design is expected to boost the growth of the market. Moreover, increasing popularity of e-commerce is also expected to favor the growth of the laser processing market. The penetration of internet and adoption of smartphones increased access to online shopping. Most of the e-commerce companies such as Flipkart and Amazon are offering their products directly to the customers. Increased consumer trust in online retail, faster shipping services and increased internet penetration plays major role in the growth of laser processing market. Additionally, players operating in the e-commerce industry have introduced augmented reality (AR) in online platforms which allow consumers to try jewelry virtually using AR, and select products according to their preferences.
Efficient processing on both metal and non-metal materials is expected to boost the global laser processing market growth over the forecast period
Marking and engraving is also expected to drive market growth during forecast period. Marking used for making serial numbers, brand name, manufacturing dates, price, product codes, and other information on various industrial products. Common techniques used for marking are ink-jet printers, ink stamping, punching, and laser marking. Laser marking systems offer numerous advantages such as environment-friendly and high-quality marks over other conventional marking techniques. Moreover, laser marking requires no solvent for marking; hence it helps to reduce the finishing process in manufacturing and is easy to recycle. Furthermore, laser making provides high-speed and fine markings as compared to other technologies.
This report segments the global laser processing market on the basis of product type, process, end-use industry and region. On the basis of product type, the global laser processing market is segmented into gas lasers, solid state lasers, fiber lasers and others. On the basis of process, the global laser processing market is segmented into material processing, marking and engraving and micro-processing. On the basis of end-use industry, the global laser processing market is segmented into automotive, aerospace, original equipment manufacturer (OEM), electronics and micro-electronics, medical devices and treatment and packaging. On the basis of region, the global laser processing market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa.
Key features of the study:
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