Laser Technology Market

Global Laser Technology Market Size (2023 to 2028)

The global laser technology market size is expected to be worth USD 13.47 Billion in 2023. It is expected to grow at a CAGR of 4.65% during the forecast period and reach a value of USD 16.90 Billion by 2028.

Enhanced precision and accuracy compared to conventional options will propel the laser technology market expansion. With a focus of 25 microns, or a minuscule fraction of the size of a human hair, laser cutting systems are employed to cut materials like metal and plastic sharply and specifically. To control the laser, they employ CAD software and computer systems.

Global Laser Technology Market Drivers:

The growing preference for industrial laser systems against traditional ones is anticipated to propel the market. Growing need for part miniaturization to further boost the laser technology market. Powerful and compact electronic devices are becoming more and more important due to technological developments in the automotive, consumer electronics, and healthcare industries. This increases the necessity for precise dimensional accuracy in components like screens, moreover, due to the rising demand for small and high-performance semiconductor parts in consumer electronics and aircraft, along with enhanced integration and speed.

Data security, autonomous vehicles, medical sensing systems, microscopes, etc. are industries that quantum technology is predicted to transform. Businesses such as Triumph are already manufacturing industrial solutions, suggesting that the global market for laser systems will continue in this direction. Furthermore, data security, autonomous vehicles, medical sensing systems, and microscopes are just a few of the industries in which quantum technology is predicted to transform. Businesses such as Triumph have begun manufacturing industrial solutions which will continue to move forward.

An increase in diamond manufacturing efficiency by using energy beam techniques presents substantial opportunities for the laser technology market. Energy beam-based polishing systems such as plasma-assisted and laser-assisted polishing apply direct and aided techniques to change diamond surfaces using lasers, ion beams, or plasma. Apart from this companies are also advancing with laser cleaning systems and are increasingly becoming popular. The laser cleaning system that Lufthansa Technik ordered showed the growing use of this technology in the aerospace and aviation sectors and was the ideal answer for their facility's maintenance requirements in Aguadilla for the repair and overhaul of short- and medium-sized aircraft. Furthermore, it is also adopted in fabrication, the automotive industry, and the armed forces.

Increasing focus on implementing laser technology in manufacturing processes, the application of lasers in optical communication, and the industrial shift toward nano and micro-technologies are some of the primary drivers of the growth of the global laser technology market. The rise in the usage of this laser technology in defense & the surging use of ultrashort pulse lasers and the growing adoption in scientific research are the trends that are emerging to direct the market growth. The surge in demand from the healthcare vertical, the rapid expansion and advancements in the various end-user verticals, and the increasing incidence of surgical procedures have contributed to the laser technology market growth in recent years. The expensive initial costs of installation and the drop in the prices of diode lasers and fiber lasers are the factors that are hindering the development of the global laser technology market.

Global Laser Technology Market Restraints:

Components produced utilizing selective laser melting (SLM) technology are more expensive to produce than those made with traditional manufacturing methods. The size and weight of the finished product, lifespan costs, material costs, and energy usage throughout the manufacturing process are all impacted by the freedom of complicated design geometries. Intense competition has restricted the entry of new companies in the laser technology market. When they face competition from larger competitors, well-established firms hold a monopoly in resources, brand awareness, and distribution channels. As a result, smaller players are less able to reach niche applications and laser types.

The laser source and scan head are selected according to their respective performance attributes and getting the best possible performance out of the integrated system poses a special problem for the laser technology market. Also, the combined effect of energy economy and exact process guidance about weld seam depth and defect prevention including spatter and melt ejections is a significant problem in process design primarily because of copper's high thermal conductivity. The material presents a major challenge during the welding process because its high heat conductivity is correlated with its high electrical conductivity. Furthermore, there are still issues with energy usage and possible environmental effects with some traditional laser technology which is another issue affecting the market.

Impact of COVID-19 on the laser technology market:

COVID-19 promoted the adoption of laser-based technologies by organizations, which further elevated the market share. Lockdowns interrupted businesses and industries, lowering sales and hampering logistics and production activities. Moreover, scientists worldwide were focused on creating laser detectors that can rapidly identify the virus from saliva or nasal swabs in the early stages of illness. In April 2023, to identify COVID-19 precisely in real time, scientists from CU Boulder and NIST developed a laser-based Breathalyzer using quantum technology and artificial intelligence.

REPORT COVERAGE:

This research report on the global laser technology market has been segmented and sub-segmented based on the type, application, revenue, verticals, & region.         

Global Laser Technology Market - By Type:

• Solid Laser
• Liquid Laser
• Gas Laser
• Others

The solid laser segment is anticipated to be the biggest market under this category due to increasing business usage. The growing need for pulsed lasers in multiple healthcare applications is expected to drive the segment. Nd: YAG-based solid-state pulsed lasers are used in several cosmetic operations such as skin resurfacing, scar removal, and treatment for melasma, also, due to the increasing demand for gas and liquid lasers and other types of lasers across various industries including manufacturing, automotive, IT and telecom, healthcare, and others.

Global Laser Technology Market - By Application:

• Laser Processing
• Laser Gyroscopes
• Laser Printers
• Laser Printers
• Laser Rangefinders
• Laser Headlights
• Laser Security Systems
• Others

The laser processing segment is expected to grow at a faster rate in the coming years. The superior quality, dependability, and precision of output that laser processing offers over traditional mechanical processes is propelling this market category. Laser technology has been adopted for processing material applications in industries like automobiles and semiconductors & electronics due to the growing need for methods to increase the precision of material processing processes and the increasing requirement to minimize turn-around time.

Global Laser Technology Market - By Revenue:

• System Revenue
• Laser Revenue

The system revenue segment is projected to lead this category with a significant market share during the forecast period. The system’s adaptability in handling various tasks contributes to its increased use in industries including commercial, industrial, automotive, and medical. The system makes money by selling laser system types such as marking and engraving systems. The demand for small and portable systems for uses such as remote operations and fieldwork is also growing.

Global Laser Technology Market - By Verticals:

• IT & Telecommunication
• Aerospace & Defence
• Healthcare
• Automotive
• Others

The automotive segment is predicted to have substantial growth because of the industry's widespread use of industrial laser systems. The market is expanding as a result of automakers using laser cutting technology more often to produce high-quality and error-free goods. Short cycle times and slender edges can be guaranteed with laser cutting. In the automotive sector, this technology is utilized for welding, cladding, branding, and engraving.  In addition to this, laser technology will also elevate the healthcare segment due to the increasing use of laser technology in optogenetics, dynamic contrast-enhanced MRI, confocal microscopy, laser vision correction, and dermatological therapy. Furthermore, the market growth is further supported by the growing usage of laser-based solutions in a variety of industries including semiconductor devices, production, automobiles aviation and defense, and IT and telecom.

Global Laser Technology Market - By Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

North America continues to be the leading market for laser technology owing to the growing number of cosmetic operations, the rising acceptance of modern technologies, and the presence of major companies like IPG Photonics Corporation and Coherent Inc. With the introduction of innovative technologies, the demand for laser-based solutions among firms for defense and consumer electronics is increasing. Moreover, the expansion can also be ascribed to several factors including a burgeoning market for aesthetic laser treatments, consistent advances in R&D, and advancements in optical communications and data storage.

Europe laser technology market is estimated to grow further in the coming years because many companies are offering cutting-edge laser solutions there. To drive development across the many verticals, the European countries are concentrating on R&D investments and maximizing the usage of laser-based solutions. The European technologies used in the TALOS Project are considered to be attractive as they offer a proof of concept for an LDEW effector and open up new avenues for investigation and advancement. The demand for greater power-effective capabilities independent of non-EU suppliers has been boosted by the development of tiny high-power laser effectors capable of generating over 100 kW by non-EU countries.

Asia Pacific is expected to move forward at a faster rate during the forecast period. The expanding electronics and manufacturing sectors in the area along with increased R&D investments are anticipated to propel the market. Additionally, the demand for laser-based solutions will be fueled by the rising OEM base, a growing number of laser centers, and the building of healthcare infrastructure. Also, the adoption of lasers for industrial procedures like drilling, welding, cutting, etc. is mostly driven by flourishing businesses as a result of the region's rapid industrialization.

Latin America's laser technology market is estimated to grow during the forecast period. The primary reasons for investing are increased work efficiency and cost reductions. Owing to sound business practices, trade agreements, and fiscal policies multinational corporations have the chance to capitalise on the market. Factors propelling the growth of the market are the increasing need for fiber lasers in cutting applications, the growing demand across many sectors, and the emergence of industrial automation.

Middle East and Africa are predicted to propel at a higher CAGR in the coming years. The main factors propelling the laser technology market expansion are the rise in industrial automation, growing demand across a range of industries, and increasing need for fiber lasers in cutting applications. Drones equipped with laser beams are used by scientists at the National Centre of Meteorology in Dubai to create precipitation. This innovative technology has the potential to significantly alter the weather. In December 2023, Pro Lab Trading and the Laserworld Group entered into a partnership to distribute laser equipment throughout the Middle East.

KEY MARKET PLAYERS:

Companies such as Coherent, IPG Photonics, Trumpf, Lumentum, Jenoptik, Novanta, Lumibird, Laserstar, Epilog Laser, MKS Instruments, EuRoLAser, Bystronic Laser, Toptica Photonics and Photonics Industries are playing a leading role in the global laser technology market.

RECENT HAPPENINGS IN THE MARKET:

• In December 2023, the Twist Boron Nitride (TBN) crystal was introduced by the Chinese researchers. It is the thinnest optical crystal as of now with high energy efficiency and will make application advances in quantum light sources, photonic devices, artificial intelligence, and other disciplines in the future due to its high integration potential and new functionality. Its energy efficiency is increased from 100 to 10,000 times when compared to conventional crystals of the same thickness.