LASER PROCESSING MARKET ANALYSIS

Laser processing techniques are used in industrial procedures to change the shape and appearance of industrial materials as needed. Other medical applications for laser technology include dentistry, ophthalmology, urology, skin cosmetics, and so on. The potential advantages of laser processing over conventional processing methods for precision and accuracy are viewed as growth drivers in the Laser processing market. Moreover, the demand of quality finished products is raising as a result need of laser technology is growing in the manufacturing and othe industries. 

Recent Developments:

• In October 2021, Mitsubishi Electric Corporation launched two new CV Series models of 3D CO₂ laser processing systems cutting carbon fiber reinforced plastics (CFRP) for automobile industry.
• In December 2022, schott a German multinational glass company signed partnership with 3D-Micromac specialist in laser micromachining to develop laser cutting technology

Market Driver:                                                                        

1. Lucrative advantages of laser process over conventional material processing technologies are expected to drive growth of the global laser processing market during the forecast period

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.

2. Growing application of laser in medical surgeries and devices is expected to propel the global laserprocessing market growth over 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.

 Restraint:

1. High initial cost involved in laser processing machines is expected to hamper the global laser processingmarket growth over the forecast period

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.

2. Growing environmental concerns regarding rare earth elements mining are expected to hinder 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.

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

Market Trends 

1. Emerging applications in laser technologies can provide major business opportunities

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.

2. Increasing use of ultra-short lasers for industrial processes

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).

Figure 1. Laser Processing Market, Revenue Share (%), By Country, 2021

To learn more about this report, request a free sample copy

Market Opportunity:

Growing application of disk lasers in industries can present lucrative growth opportunities

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.

Figure 2: Laser Processing Market (US$ Mn) Analysis and Forecast, 2022 - 2030

To learn more about this report, request a free sample copy

Laser Processing Market was valued at US$ 19,162.9 Mn in 2021 and is expected to reach US$ 46,642.6Mn by 2030, growing at a CAGR of 10.0% between 2022 and 2030.         

Major players operating in the 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.