Laser Processing Market Forecasts to 2030 - Global Analysis By Product (Gas Lasers, Solid Lasers, Liquid Lasers and Fiber Lasers), Process, Discrete Industry, Function Type, Configuration, End User and By Geography

According to Stratistics MRC, the Global Laser Processing Market is accounted for $6.0 billion in 2023 and is expected to reach $13.4 billion by 2030 growing at a CAGR of 12.1% during the forecast period. Laser processing involves using focused beams of intense light to alter materials. It encompasses various techniques, including cutting, welding, engraving, and marking, across diverse industries like manufacturing, healthcare, and electronics. The laser's high energy density enables precise material removal or alteration without physical contact, minimizing damage to surrounding areas. Different types of lasers, such as CO2, fiber, and diode lasers, offer unique advantages based on wavelength and power output. Laser processing facilitates intricate designs, rapid prototyping, and high-speed production, enhancing efficiency and quality while reducing waste. Its versatility and accuracy make it indispensable in modern manufacturing and research applications.

According to a recent National Association of Manufacturers survey, the pandemic caused over 80% of metal manufacturers financial distress causing an adverse impact on the industry's growth.

Market Dynamics:

Driver:

Superiority over traditional techniques

Laser processing offers unparalleled precision and accuracy compared to traditional techniques such as mechanical cutting or manual engraving. This precision enables manufacturers to achieve tighter tolerances and produce intricate designs with consistent quality, driving demand for laser systems across industries. This flexibility allows manufacturers to streamline their production processes and address diverse application needs with a single technology platform, leading to increased adoption of laser systems thus propelling the growth of the market.

Restraint:

Complexity and skilled workforce

The complexity of laser processing technology often requires substantial expertise to operate and maintain laser systems effectively. This can create a barrier to entry for small and medium-sized enterprises (SMEs) or companies new to laser processing, as they may lack the resources or specialized knowledge to adopt the technology. Additionally investing in employee training programs and continuing education to ensure proficiency in operating and troubleshooting laser systems adds to operational expenses and may deter some companies from adopting laser technology which hinder the market growth.

Opportunity:

Shift towards automation and smart manufacturing

Automation and smart manufacturing require advanced production technologies that can operate efficiently within integrated, digitally connected environments. Laser processing systems are well-suited to these requirements due to their precision, speed, and adaptability. As industries automate their manufacturing processes and adopt smart technologies, there is a growing demand for laser systems for cutting, welding, marking, and engraving applications.

Threat:

Limited material processability

Laser processing techniques may not be suitable for certain materials with properties such as high reflectivity, transparency, or heat sensitivity and with laser processing systems primarily targeting materials that are compatible with the technology. This can result in missed opportunities for manufacturers who require a broader range of materials to be processed, potentially driving them to explore alternative manufacturing methods. This limitation restricts the range of applications for which laser processing can be used effectively, impacting market demand and adoption, especially in industries where these materials are commonly used.

Covid-19 Impact

Industries adapted to remote work and safety protocols, demand for laser processing solutions, particularly in medical devices, electronics, and packaging, surged. The need for contactless production and increased automation further accelerated the adoption of laser technology. Additionally, the shift towards online retail boosted demand for laser-marked and engraved products for branding and traceability. Overall, while the pandemic posed challenges, it also spurred innovation and drove long-term growth in the laser processing market.

The fiber lasers segment is expected to be the largest during the forecast period

The fiber lasers segment is estimated to have a lucrative growth, as fiber lasers are highly efficient, converting a large proportion of input energy into output laser power. This efficiency leads to lower operating costs and increased productivity for laser processing applications. Moreover fiber lasers produce high-quality laser beams with excellent beam quality and stability. This allows for precise and consistent processing, resulting in superior product quality and reduced scrap rates.

The marking & engraving segment is expected to have the highest CAGR during the forecast period

The marking & engraving segment is anticipated to witness the highest CAGR growth during the forecast period, owing to specialized laser systems with specific characteristics such as high precision, variable depth control, and fine detail capabilities. This has led to the development of a wide range of laser technologies tailored to meet the diverse needs of marking and engraving applications, including fiber lasers, diode-pumped lasers, CO2 lasers, and UV lasers.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the ongoing advancements in laser technology, such as the development of high-power lasers, fiber lasers, and ultrafast lasers, have expanded the capabilities of laser processing systems in china and Japan. These advancements have enabled higher precision, faster processing speeds, and the ability to work with a wider range of materials. Moreover laser systems offer advantages such as non-contact processing, high speed, and flexibility, making them ideal for integration into automated manufacturing environments in this region.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, as North American laser processing market serves various industries, including automotive, aerospace, electronics, healthcare, consumer goods, and more. Each sector has unique requirements for laser processing, driving innovation and customization in laser technologies. Further additive manufacturing, also known as 3D printing, is experiencing rapid growth in North America. Laser-based technologies such as selective laser melting (SLM) and stereolithography (SLA) are utilized for rapid prototyping and production of complex components in industries ranging from aerospace to healthcare.

Key players in the market

Some of the key players in the Laser Processing Market include TRUMPF, Alpha Nov laser, Altec GmbH, Amada Co., Ltd., Bystronic Laser AG, Coherent Corp., Epilog Laser, Eurolaser GmbH, Han's Laser Technology Industry Group Co., Ltd, IPG Photonics Corporation, Jenoptik AG, Laser Systems, Inc., LaserStar Technologies Corporation, Lumentum Operation LLC, Mazak Messer, Mitsubishi, Newport Corporation, PrimaPower and Xenetech Global Inc.

Key Developments:

In March 2024, Coherent Corp. introduced a game-changing diode laser bar for the hair removal industry. This innovative 808 nm bar employs a two-junction configuration to deliver 200 W of output with just 100 A of input current, thus doubling the efficiency of previous single-junction bars.

In March 2024, Coherent Corp. announced the introduction of two new optical test instrumentation products. The growing demand for capacity in optical networks has generated more interest in using the O-Band more effectively.

In January 2024, Bystronic Laser AG announced the introduction of ByBend Star 120, the newest member of the Bystronic family of pressbrakes, offers you bending technology for the highest demands on process speed, flexibility, and precision.

Products Covered:

• Gas Lasers
• Solid Lasers
• Liquid Lasers
• Fiber Lasers

Processes Covered:

• Marking & Engraving
• Material Processing
• Micro-Processing
• Welding
• Punching & Micro Machining
• Cutting & Drilling
• Other Processes

Discrete Industries Covered:

• Moving
• Fixed
• Hybrid

Function Types Covered:

• Semi-Automatic
• Robotic

Configurations Covered:

• Laser Processing Configuration
• Laser Cutting & Engraving Configuration

End Users Covered:

• Medical
• Automotive
• Aerospace & Defense
• Architecture
• Machine Tools
• Electronics & Microelectronics
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances