The global industrial laser systems market size was valued at USD 20.15 billion in 2021. It is expected to reach USD 38.07 billion by 2030, growing at a CAGR of 8.28% during the forecast period (2022–2030). Industrial lasers are used to cut metals and fabrics, mark tracking codes for traceability in manufacturing, weld metals precisely, clean metal surfaces, alter surface roughness, and measure part dimensions. They are extensively employed in many industries, including the EV and primary metals sectors. The adoption of laser systems in industries is anticipated to increase due to the numerous technological developments in an industrial environment, such as industrial automation, industrial robotics, 3D printing, etc., brought about by the development of Industry 4.0 and Industrial IoT. The adoption of laser systems is further aided by the need for precision in manufacturing and other sectors.
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Improved Precision and Accuracy
For production, metal, plastic, and various other materials are accurately and effectively cut using lasers. The technique is utilized for precision cutting and welding because it is highly focusable to around 25 microns, or about 14 the width of a human hair strand. This technique makes the technology practical to remove the least amount of material to perform the cut, leading to great precision and accuracy.
A tiny and reliable electronic device is now required due to technological developments in consumer electronics, automotive, healthcare, networking and telecom, and computing. For components like screens, such portable electronic equipment requires exact dimensional accuracy. The demand for the fabrication materials needed to create high-performance semiconductor components is anticipated to increase.
Compliance with Regulations Related to Laser Use
Stricter market controls apply to the import and export of laser-based solutions, deterring firms from purchasing from non-local providers and limiting the free movement of this equipment around the globe.
The global industrial laser systems market is segmented into the laser, application, end-user, and region.
By laser, the global industrial laser systems market includes Fiber, Solid-State, CO2, and Others.
The Fiber segment is the largest shareholder and is expected to grow at a CAGR of 9.83% during the forecast period. Many different types of materials can be used with fiber lasers. Plastics, ceramics, silicon, and textiles are also processed. However, metals, including mild steel, stainless steel, titanium, and reflective ones like aluminum or copper, make up most of the laser processing worldwide. Fiber lasers can sustain minimal levels of internal thermal stress and are energy-efficient. Additionally, they require significantly less cooling than other traditional lasers. Fiber lasers provide high performance with very little maintenance expense.
A Solid-State Laser uses a solid as the laser medium, such as glass or crystalline material. Metal processing, medical procedures including eye surgery, red-green-blue (RGB) light sources in laser printers and projectors, environmental instrumentation assessments, and optical transmission systems all use solid-state lasers. Solid state lasers are favored over other types of lasers in several industries because of their benefits over the latter.
By application, the global industrial laser systems market includes Cutting, Welding, Marking, Drilling, and Others.
The Cutting segment owns the largest market share and is expected to grow at a CAGR of 7.2% during the forecast period. High-speed and high-precision processes emphasize industrial laser cutting system technology, focusing on critical issues, including accuracy, lightweight, and high long-term processing stability. Several sectors constantly strive for quicker, more dependable solutions to create precision cutting thin metals. In the machine tool industry and other industrial markets, fiber laser technology with high power levels, improved maintenance, and better functionality is becoming the preferred option for cutting applications, particularly applications with superior edge quality and high production is required.
Laser Drilling is extensively employed by numerous businesses in their manufacturing processes. The main benefit of laser drilling is that it is a non-contact procedure. Therefore, mechanical tool wear is not a concern. Aside from being able to drill practically any material, other advantages include immediate changes in hole size, shape, and approach angle, little heat input to the parent material, and high hole-to-hole dimensional repeatability. Additionally, unlike conventional drilling methods, the laser can drill holes with small dimensions.
Laser Marking is frequently utilized during equipment manufacturing to enhance traceability, quality control, and process improvement. Barcode scanners can identify the components at every manufacturing stage by recognizing each part at the beginning of the production line. The leading users of marking systems are the automobile, primary metals, including aluminum, steel, zinc, lead, and copper, extrusion, manufacturing, and converting industries.
By end-user, the global industrial laser systems market includes Semiconductor & Electronics, Automotive, Aerospace & Defense, Medical, and Others.
The Semiconductors & Electronics industry dominates the market and is expected to grow at a CAGR of 8.59% during the forecast period. The production and processing of semiconductors rely heavily on laser technology; two of the most popular lasers in wafer fabrication are near-infrared (NIR) and green lasers. NIR lasers are adaptable and suited for a wide range of machine applications, including the production of semiconductors. They work because their energy range falls precisely within the spectral region required to make the requisite marks on wafers. Second-harmonic generation, commonly known as frequency doubling, produces green lasers. This increases power while maintaining the laser's coherence. One of the procedures required in producing wafers is laser marking, which aids in the traceability and readability of wafers across the market.
The Aerospace & Defense industry, which is among those that use laser solutions most frequently, has shifted away from numerous conventional manufacturing solutions in favor of current machinery. Machines for laser welding and fiber laser cutting are among the most often utilized pieces of machinery in the aerospace industry because they make production and manufacturing in the modern aerospace industry easier.
APAC Holds Dominion Over Others
By region, the global industrial laser market is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
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Asia-Pacific acquires the leading market position and is expected to grow at a CAGR of 8.63% during the forecast period. Asia-Pacific houses some crucial players in the market, such as Han's Laser Technology Industry Group, among others. The region is known for its capabilities in the Automotive and Medical industries, which is expected to drive the growth of the market in the region. Also, various players have invested in driving their growth and development as the Asia-Pacific region is expected to witness the highest growth rate in the market. The market has seen firms' various research and development activities to achieve stable and high-quality results. While demanding high stiffness, design flexibility, and productivity, the region's automobile industry is heading toward electrification and shrinking. Excellent output power and high beam quality laser sources are necessary for highly productive processing.
Europe occupies the second-largest market share and is expected to generate USD 8.29 billion by 2030, growing at a CAGR of 7.73%. The market is predicted to expand, particularly in the automotive and healthcare sectors. The region's medical industry has seen the commercialization of laser systems due to the desire for minimally invasive procedures. Medical laser systems have increased due to the region's growing aging population and rising cancer incidence. Additionally, general procedures employ the usage of medical laser devices. Many European businesses have been concentrating on introducing industrial laser systems for medical uses.
The North American market is growing significantly, owing to technological improvements in various sectors, including manufacturing, aerospace, automotive, etc. Similarly, the area is home to several significant vendors, including IPG Photonics and Coherent Inc. Many businesses, tiny and medium-sized enterprises (SMEs), and startups have been raising large sums of money to create cutting-edge laser technology solutions. Significant developments by laser system makers have also signaled a consolidation and growth spree. The former intends to use the available laser welding technology to grow its current supplier base.
List of key industrial laser systems market suppliers profiled