Home Semiconductor & Electronics Industrial Laser Systems Market Size & Share, Growth Forecast to 2031

Industrial Laser Systems Market

Industrial Laser Systems Market Size, Share & Trends Analysis Report By Type (Macro Processing, Micro Processing), By Power (Less than 1 kW, More than 1.1 kW), By Applications (Cutting, Welding, Non-Metal Processing, Additive manufacturing, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRSE2501DR
Study Period 2020-2032 CAGR 7.3%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market Asia-Pacific Fastest Growing Market Europe
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Market Overview

The global industrial laser systems market size was valued at USD 19.64 billion in 2022. It is estimated to reach USD 37.22 billion by 2031, growing at a CAGR of 7.3% during the forecast period (2023–2031).

The term laser refers to light amplification by stimulated emission of radiation, which generates high-intensity light of a specific wavelength. It is employed in various industrial processes, including cutting, welding, processing non-metals, additive manufacturing, etc. The laser is a reliable, small-marking technology that uses computer parts like printed circuit boards to create high-quality images.

Laser marking is used for marking unique identification numbers on machines and devices for identification and improving safety. In addition, marking comprises various sub-applications such as engraving, annealing, ablation, tempering, foaming, and coloring. Good beam quality provided by lasers produces smaller line widths, higher marking speeds, and sharper contours. Moreover, the laser's versatility for industrial and commercial uses allows it to mark trademarks, names, serial numbers, bar codes, 2D data matrices, and artwork on various materials.

Highlights

  • Macro processing dominates the type segment
  • More than 1.1 kW dominates the power segment
  • Cutting dominates the application segment
  • Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Market Drivers

Eco-Friendly Technology

Laser systems are now the preferred option for marking and cutting applications due to the rising trend of green manufacturing and the growing awareness of material processors regarding the environmental impact of their products across numerous industrial sectors. Leading laser manufacturers produce high peak power, vibrational stability, maintenance-free turnkey operation, and superior quality edge finishes in energy-efficient, environmentally friendly fiber lasers. For instance, fiber laser systems use electricity 20 times more efficiently than conventional lasers, further encouraging adoption and propelling market expansion.

Additionally, lasers are increasingly replacing traditional methods used for machine marking, such as chemical etching and ink-based printing, as lasers provide easily automated, non-contact solutions without using consumables like helium. Reduced energy consumption and using nonhazardous materials in fiber lasers are the major aspects that boost the market's growth. A surge in the adoption of eco-friendly lasers and a rise in regulations regarding hazardous emissions are also anticipated to accelerate the growth of the Industrial Laser Systems Market over the forecast period.

High Beam Quality and Low Cost of Ownership

The quality of laser beams is extremely high, as these lasers do not require expensive, complicated optics for beam delivery. The beam is generated and restricted inside a small fiber core resulting in a straight beam, which can be focused effectively on a small dot. This strong beam focusing has increased the demand for fiber lasers in industrial applications such as cutting, material processing, marking, and drilling.

In addition, a high beam allows a large distance between the workpiece and the focusing objective, which is desirable to protect the optics from getting damaged through debris and fumes and reduces beam diameters. Higher speeds and high electrical efficiency at relatively lower running costs boost the growth of the global industrial laser systems market.

Market Restraint

Laser Hazards

There are many industrial applications for lasers. Workers are exposed to laser light when a laser is utilized on the job site. However, a laser beam could cause harm to the workers. The most common side effect of laser light exposure is eye damage. Severe laser eye damage may result in blindness for life. Moreover, lasers can damage human skin, leading to thermal burns ranging from sunburns to third-degree burns. As a result, regulatory agencies have established various rules regarding the usage of lasers, restraining the growth of the industrial laser systems market globally.

Market Opportunities

Technological Advancement concerning Fiber Lasers

The development of ultrafast and ribbon core fiber lasers, as well as the growing use of fiber lasers in micro-cutting, 3D micro milling, blind hole machining, optical pumping, scribing, surface treatment, defense, and microscopy applications, are the main factors driving the growth of the fiber laser market. Fiber lasers have been increasingly replacing diode-pumped, solid-state (DPSS) lasers in the ultrafast laser category as well as CW and kW level fiber lasers are replacing CO₂ and DPSS lasers in macro-material processing applications, owing to femtosecond to picosecond range pulse duration of fiber lasers.

Additionally, improved ribbon core fibers are ideal for defense applications due to their enhanced thermal damage resistance. Industrial fiber lasers are expected to be used more frequently as additive manufacturing expands since 3D printers use lasers to print materials to create products. In addition, technical improvements will broaden the range of applications for fiber lasers across various end-user sectors. All these factors are anticipated to present opportunities for the industrial lasers market during the forecast period.

 

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global industrial laser systems market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the most significant global industrial laser systems market shareholder and is anticipated to exhibit a CAGR of 7.5% during the forecast period. Asia-Pacific has the fastest growth in the global market due to the increased need for fiber lasers in the electronics and automotive industries. Many industries use fiber lasers, including material processing, defense, etc. The conventional techniques for machine marking in industrial applications are being superseded due to better cost savings and less maintenance. In addition, industrial laser developments, such as the production of new core lasers, laser machining, and high-end laser manufacturing equipment in the Wuhan Optical Valley of China, are the major contributors to the growth and development of the industrial laser market in this region. Cheap labor, low manufacturing costs, and the widespread use of material processing applications in this region are additional factors driving the industrial laser systems market.

Europe is estimated to exhibit a CAGR of 6.4% over the forecast period. The region is one of the leading markets of lasers in the world. This region's major fiber laser manufacturers include Jenoptik Laser GmbH, Keopsys Group, and NKT Photonics. LUMIBIRD, Toptica Photonics AG, Clark MXR, Inc., and Fianium Ltd. A rapid rise in the demand for fiber lasers in the automotive industry is driving the laser market in this region. In addition, key leading players in the market are investing huge amounts of capital in R&D to enhance their technological base, diversify their product offerings, and increase their geographical reach. In 2017, researchers working at Bath University (UK) developed a new laser capable of emitting continuous and pulsed mid-infrared beams at a wavelength of 3.2µm and 3.1µm, respectively. This development is expected to aid in expanding the applications of mid-IR fiber lasers in this region.

North America is expected to grow significantly over the forecast period. The value of green spaces is growing in the U.S. and Canada due to environmental and health benefits linked with access to greenery. The rise in the popularity of green spaces and roofs propels the demand for innovative products in the North American industrial laser systems market. The demand for backyard beautification among the Less than 1 kW sector also drives the market growth. In addition, the popularity of green roofs is gaining momentum in the U.S. owing to their environmental, social, and cost benefits. For instance, in July 2019, lawmakers in New York State passed legislation to revise and renew the State's current Green Roof Tax Abatement to encourage green roofs programs. These factors are anticipated to affect the industrial laser systems market favorably. Moreover, the rise in the application of industrial laser systems in the commercial sector due to their use in golf courses and other large lawns and parks is expected to boost the market growth.

LAMEA includes Latin America, the Middle East, and Africa. There is an increase in industrial laser systems owing to their features, such as excellent beam quality, compact size, robustness, and low maintenance cost. In addition, the advantages such as less operating costs, enhanced productivity, flexible operational activities, and production of good quality products are increasing the scope and popularity of industrial laser systems in the region.

 

Report Scope

Report Metric Details
Segmentations
By Type
  1. Macro Processing
  2. Micro Processing
By Power
  1. Less than 1 kW
  2. More than 1.1 kW
By Applications
  1. Cutting
  2. Welding
  3. Non-Metal Processing
  4. Additive manufacturing
  5. Others
Company Profiles Amonics Ltd. Apollo Instruments Inc. Coherent Inc. IPG Photonics Corporation Jenoptik Laser GmbH CY Laser SRL NKT Photonics A/S Quantel Group TRUMPF Toptica Photonics AG.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global Industrial Laser Systems Market is segmented by type, power, and application 

Based on type, the global industrial laser systems market is bifurcated into macro processing and micro processing. 

The macro processing segment dominates the global market and is projected to exhibit a CAGR of 7.12% over the forecast period. Marking, cutting, welding, and additive manufacturing use laser macro processing equipment. The most complex and fragile materials can be marked, including metals, ceramics, and polymers. The laser is a reliable, small-marking technology that uses computer parts like printed circuit boards to create high-quality images. In addition, laser marking identifies unique numbers on machines and devices and improves safety. Marking comprises various sub-applications such as engraving, annealing, ablation, tempering, foaming, and coloring.

The lasers are used in micro-processing applications in the semiconductor, automotive, and textile industries. They are employed in laser surface texturing, which is required for the adhesive bonding of structures in the aerospace industry. The lasers are employed in chip production as fiber laser separates the chips on a silicon wafer without contacting the surface, thus with no material loss at the cut edge. In addition, micro processing is a significant growth area for shorter wavelength lasers, such as green and ultraviolet wavelengths, and ultrafast fiber lasers. Manufacturers such as NKT Photonics A/S offer a series of power picosecond lasers, which can deliver an output power of 40W for application in the material processing industry.

Based on power, the global industrial laser systems market is divided into less than 1 kW and more than 1.1 kW. 

The more than 1.1 kW segment is the largest contributor to the market and is expected to exhibit a CAGR of 7.21% during the forecast period. More than 1.1kW lasers are generally suitable for industries that need high-power capacity lasers, such as aerospace & defense. Some of the typical types of more than 1.1kW capacity lasers include CO₂, x-ray, free-electron, excimer, and chemical lasers. The lasers with a power capacity of more than 1.1kW are effective for cutting, welding, and others in various end-user industries, including automotive and chemical. Key companies are adopting advanced strategies to promote the progress of the industry. For instance, in June 2018, SPI Lasers opened a new service center in the U.S. to serve customers in the Americas.

The less than 1kW lasers segment aims at basic low-demand laser applications. These lasers are an optimal solution for applications involving sensitive materials and miniaturized components. Generally, these lasers are compact and robust in construction. They are suitable for precision laser marking, laser cutting, and others. In the medical industry, lasers in this range are used in endoscopy to remove rectal polyps and other applications. He-Ne lasers, ion gas lasers, and fiber lasers are some of the types of less than 1kW lasers. In addition, the less than 1kW lasers are highly suitable for applications such as laboratory, fiber optic sensing, and medical industry, among various others. These lasers are ideal for applications where space is an issue, as they are compact.

Based on application, the global industrial laser systems market is segmented into cutting, welding, non-metal processing, additive manufacturing, and others. 

The cutting segment owns the highest market share and is predicted to exhibit a CAGR of 6.31% during the forecast period. The lasers are employed in the high-speed cutting of plastics, metals, and ceramics. In addition, lasers are used to cut or trim metal and other non-metallic materials. It initially projects the laser beam on the workpiece surface to melt it. The lasers are employed in the cutting application of components such as vanes, blades, and combustors of modern turbine engines. They are also used in enabling manufacturing processes to enhance production rates. There is an increase in the digitalization trend in manufacturing processes, which positively impacts market growth.

The lasers are employed in the cost-effective welding of metals in the aerospace, automotive, defense, and machine tooling industries. The lasers are used in cutting and welding applications due to their properties, such as high wall plug efficiency, compact size, highly flexible system performance, robustness, and good beam quality. The advantage of laser technology in welding applications is that the dead time between the welds using this system is negligibly small. The application of welding lasers is expected to increase as the automotive sector expands globally during the forecast period.

 

Market Size By Type

Recent Developments

  • March 2023- Laser Photonics Corporation ("LPC"), a world-leading developer of industrial CleanTech laser systems for laser cleaning and other material applications, announced that it had established a service collaboration with Argento Lux to concentrate on servicing clients as well as growing business in Texas, the biggest oil and gas manufacturing state in the U.S.
  • April 2023- Laser Photonics Corporation ("LPC"), the world's leading developer of industrial CleanTech laser systems for laser cleaning and other material applications, received a fourth order for its CleanTech Handheld LPC-2000-CTHD laser system from a significant North American truck manufacturer.

Top Key Players

Amonics Ltd. Apollo Instruments Inc. Coherent Inc. IPG Photonics Corporation Jenoptik Laser GmbH CY Laser SRL NKT Photonics A/S Quantel Group TRUMPF Toptica Photonics AG. Others

Frequently Asked Questions (FAQs)

How big is Global Market?
The global industrial laser systems market size was valued at USD 19.64 billion in 2022. It is estimated to reach USD 37.22 billion by 2031, growing at a CAGR of 7.3% during the forecast period (2023–2031).
Key verticals adopting market include: - Amonics Ltd., Apollo Instruments Inc., Coherent Inc., IPG Photonics Corporation, Jenoptik Laser GmbH
Europe region has the highest growth rate in the market.
Eco-friendly technology and high beam quality and low cost of ownership are the key drivers for the growth of the market.
Technological advancement concerning fiber lasers are the key opportunity in market.


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