A laser diode is an electrically-injected system wherein an active medium is formed similar to that found in LED. Laser diodes are being used in CD players, laser printers, fiber optic communications, and many more applications. There are different types of laser diodes such as infrared laser diode, blue-violet laser diode, ultraviolet laser diode, red laser diode, green laser diode, and more.
Market Statistics:
The global laser diode market is expected to surpass US$ 41.6Mn in terms of value by the end of 2028.
Market Driver
Significant advantages offered over conventional material processing technologies is expected to propel the laser diode market growth over the forecast period. Laser diodes have many inherent advantages over the other types of lasers which make them a good choice for a varied range of applications. These lasers are small in size and can easily integrate with electronic equipment. Construction of laser diodes is very simple and mass production further reduces the manufacturing cost of these lasers, thereby making them more economical. Moreover, laser diodes do not require mirrors to obtain the reflectivity needed to produce the feedback mechanism. Laser diodes have high efficiency and can offer over 40% electrical efficiency at room temperature. Furthermore, plasma and flame technologies are typically used for cutting purposes and not for engraving, marking, and drilling processes. On the contrary, waterjet technology can be used cutting as well as ablation and structuring purposes. However, due to higher noise pollution and cost, laser finds greater preference over waterjet. Laser systems are capable of processing all the metals except those that are highly reflective and other materials such as plastics, wood, and glass.
Market Opportunity
The most commonly used laser in medical devices includes carbon dioxide (CO2) and Nd: YAG lasers. Laser technology is used for a wide range of applications in the medical sector from diagnosis to treatment. Laser technology finds wide application in the medical sector for the treatment of eyes, skin, hair, cancer, and other disorders. Various surgeries such as the cleaning of arteries, corrective surgery for a detached retina, and other cosmetic surgeries have become possible with the help of laser technology. Cosmetic surgeries such as the removal of permanent marks/birthmarks on the skin, port-wine stains, skin blotches, and other skin treatments can be accomplished using laser technology. Moreover, laser technology is also being used for the treatment of brain tumors and cancer. 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 effective.
Global Laser Diode Market: Recent Developments
In June2021, Australian semiconductor developer BluGlass received the latest results of testing for its laser diode development. The prototype laser diodes are showing lasing results consistent with commercial specifications for output power and wavelength, demonstrating the soundness of the BluGlass wafer epitaxial process.
In Jan 2020, Scientists developed laser diode to emit deep UV light. Laser diodes that emit short-wavelength ultraviolet light, which is called UV-C, could be used for disinfection in healthcare, for treating skin conditions such as psoriasis, and for analyzing gases and DNA.
Major market players are involved in product launches, in order to expand the product portfolio. For instance, in July 2020, IPG Photonics Corp introduced new YLR-U series near-infrared 1 μm fiber lasers.
Global Laser Diode Market: Restraint
Lack of R&D funding for the military segment is expected to hamper the global laser diode market growth over the forecast period. Despite its various applications, the research and development funding for laser in the military segment is significantly low. Laser diode requires high investment, in order to be incorporated into the military sector, and hence very few market players are focused on this sector.
Global Laser Diode Market - Impact of Coronavirus (Covid-19) Pandemic
The outbreak of novel coronavirus has impacted many industries and markets with sharp decline in major economic activities. Since many countries adopted nationwide lockdown policies, manufacturing activities across industries were temporarily suspended, in order to curb the spread of the virus. With regulations on physical distancing and many organizations adopting work-from-home policies, the demand for new laser projectors in different industries including corporate, media & entertainment, and more declined massively. Furthermore, people have been forced to stay at home where they were engaged in streaming video, audio, and surfing the internet, which has further impacted the global laser diode market growth.
Key Takeaways:
- The global laser diode market was valued at US$ 3 Mn in 2020 and is forecast to reach a value of US$ 41.6 Mn by 2028 at a CAGR of 18.8% between 2021 and 2028. This is owing to increasing use of laser diodes in various end-use sectors.
- The automotive segment was valued US$ 2.55 Mn in 2020 and is expected to witness a CAGR of 12.3 over the forecast period. This owing to increasing applications of laser diode in automotive sector.
Market Trends
Among regions, North America is expected to witness significant growth in the global laser diode market during the forecast period. This is owing to presence, of major manufacturers such as Coherent Inc., Axcel Photonics, Inc., and IPG Photonics Corp. across the region. Furthermore, increasing applications in defense and other sectors is expected to boost the regional market growth over the forecast period.
Asia Pacific is expected to exhibit robust growth in the global laser diode market over the forecast period. This is owing to an increase in medical devices and healthcare sectors across the region. Furthermore, increasing the use of industrial applications is expected to boost the regional market growth over the forecast period.
Competitive Section
Key players operating in the global laser diode market are ASML Holding NV, Trumpf GmbH + Co. KG, Axcel Photonics, Inc., Sumitomo Electric Industries, Ltd., Coherent Inc., Sharp Corporation, Rofin-Sinar Technologies Inc., IPG Photonics Corp., and Newport Corp.
