Laser Technology Market

According to Stratistics MRC, the Global Laser Technology Market is accounted for $13.64 billion in 2022 and is expected to reach $19.91 billion by 2028 growing at a CAGR of 6.5% during the forecast period. The word "laser" refers to light amplification through radiation stimulation. It is a device that produces a beam of light with a single wavelength using optical amplification. There are several different kinds of lasers. Electrons in particular crystals are activated by electrical current to produce a laser beam. The amount of energy released affects the wavelength or color of light. Numerous industries, including manufacturing, automotive, chemical synthesis and processing, and healthcare, have successfully adopted and used laser technology.

According to the American Society for Aesthetic Plastic Surgery (ASAPS), in 2018, the American population spent more than USD 16.7 billion on various aesthetic procedures such as dermal resurfacing, body contouring, acne prevention, and others. Key players are also focusing on launching an innovative medical laser portfolio to improve customer experience.



Market Dynamics:

Driver:

Increasing use of lasers in the healthcare industry

Particularly for surgical indications and interventions, lasers have been crucial diagnostic and therapeutic tools in medicine. The use of low-level laser therapy in medical research is expanding, and it is revolutionizing the practice of regenerative medicine. Almost all fields of medical science use laser technology. Since the high-intensity, high-power laser beam is effective at cutting tissue, the conventional scalpel can be replaced by a large surgical instrument. Eye, dental, skin, and cancer disorders are all treated with laser technology. The detached retina is frequently forged into the choroid using a laser. Macular degeneration, bleeding, and diabetic rehabilitation are other severe eye conditions that are handled by lasers. Due to its widespread use, it is accelerating market expansion.

Restraint:

High initial costs

Due to their versatility across a range of applications, laser-type technology solutions are being adopted at a rapid rate. To build its architecture and infrastructure, a sizable initial investment and venture capital funds are needed. The operation and setup process is significantly more time-consuming, expensive, and resource-intensive, all of which will likely impede market expansion. Although the long-term benefits of advanced solutions outweigh the high deployment costs, particularly for SMEs, this market's expansion is predicted to be constrained.

Opportunity:

Increasing investments and use of smart factory technologies

Organizations are observing increased output, enhanced efficiencies, and lower cost benefits, along with improved quality and increased production capacity, as industry 4.0 and smart factory solutions emerge. Most laser-based Industry 4.0 applications make use of advancements in IoT, AI, cloud computing, cognitive computing, cyber-physical systems, machine learning, and other fields. The market is growing as a result of rising automation in sectors that demand high efficiency and accuracy. It is anticipated that rising spending on industry 4.0 initiatives and investments in smart factories by nations like China, the United States, Germany, and others will increase demand among businesses.

Threat:

Environmental concerns due to use of rare-earth elements

The processing and refinement of rare-earth metals like neodymium, chromium, erbium, or ytterbium using solid-state and fiber lasers poses a serious risk of radioactive pollution brought on by slurry tailings. When toxic acids are handled improperly during the refining process, they could seriously harm the environment. Additionally, the use of rare-earth metals raises the possibility of short-term supply interruptions, and future supply issues for these metals may hinder the development of clean energy technology.

Covid-19 Impact

Investments in the industrial sector are expected to decline as a result of the COVID-19 outbreak. The pandemic spread, causing factory closures and lockdowns in China, which caused a sharp drop in revenue for Q1 2020 for Chinese laser businesses. Companies in the United States and Europe were also affected by the pandemic. Manufacturing facility closures during the first quarter caused issues with the supply chain and shipping delays. Revenue from lithography lasers and material processing also decreased. However, sales of extreme ultraviolet (EUV) lasers were maintained throughout the year 2020, and Chinese laser companies demonstrated a strong recovery.

The solid-state lasers segment is expected to be the largest during the forecast period

The solid-state laser segment is predicted to grow with significant market share during the forecast period. With little material waste in the active medium, this laser produces output of excellent quality in both continuous and pulsed modes. Metal-boring, military targeting and endoscopy are just a few applications for solid lasers. These lasers are anticipated to become more popular across a number of sectors, including the automotive, aerospace, machine tool, medical, and packaging industries. The active medium isn't squandered by solid lasers. Because of this, they are frequently used in spectroscopy, imaging, and other research- and medical-related applications. In terms of both continuous and pulsed output, solid lasers are more effective than He-Ne (Helium-Neon) and Argon lasers, making them suitable for a range of applications in different industries, such as telecommunications and automotive.

The laser processing segment is expected to have the highest CAGR during the forecast period

During the projection period, the laser processing segment is anticipated to experience profitable growth. It can produce output that is higher quality, more reliable, and more precise than traditional mechanical systems. Utilizing a laser for tasks like material processing, microprocessing, and advanced processing is known as laser processing. The demand for genuine end products, the rise in demand for microelectronic devices, and the growing preference of end-user sectors for laser-based material processing over conventional methods are also propelling the growth of the laser processing industry.

Region with largest share:

Due to the growing popularity of cosmetic procedures, the rising uptake of cutting-edge technologies, and the presence of several significant market players like IPG Photonics Corporation and Coherent Inc., North America currently holds the largest share of the global laser technology market. By introducing cutting-edge laser-based technologies, these businesses are increasing the demand for laser-based solutions in consumer electronics and defense. Additionally, the market for laser technology in the area is expanded by the presence of new industry players with new product lines.

Region with highest CAGR:

The Asia-Pacific region is anticipated to experience the highest growth rate due to the expansion of the manufacturing and electronics sectors and the rise in the number of laser centers and original equipment manufacturers in the healthcare infrastructure in the region. In addition, the region's rising R&D expenditures and expanding electronics and manufacturing sectors are anticipated to fuel market expansion.



Key players in the market

Some of the key players profiled in the Laser Technology Market include Access Laser Company , Bystronic Laser AG, Coherent, Inc., Epilog Corporation, eurolaser GmbH, Gravotech Engineering Pvt Ltd, Han's Laser Technology Industry Group Co., Ltd.,IPG Photonics Corporation, Jenoptik AG, LaserStar Technologies Corporation, Lumenis Ltd., Lumentum Holdings Inc., Lumibird, MKS Instruments, Inc., Novanta Inc., Optotek d. o. o., Photonics Industries Inc., Solaris Laser S.A. , The 600 Group PLC, Toptica Photonics and TRUMPF GmbH + Co. KG.

Key Developments:

In March 2022, Nittoku Co., Ltd. and Furukawa Electric Co., to improve their customers’ efficiency, Ltd. introduced a laser welding machine for electric vehicle motors.

In July 2022, An F-Theta lens was released by Jenoptik for applications involving processed laser material. It is used for micro-structuring, labeling, and extremely precise marking for various materials. It offers superb durability and extremely accurate laser material processing.

In August 2022, Coherent, a manufacturer of laser technology equipment, has introduced the FL4000CSM-ARM, a new 4kW fiber laser welding system. The new laser provides "improved high-temperature metal welding capability and aligns with welding requirements for e-mobility, energy storage, and other high-tech applications.

Types Covered:
• Solid-State Lasers
• Liquid Lasers
• Gas Lasers
• Semiconductor Lasers
• Other Types

Revenues Covered:
• Laser Revenue
• System Revenue

Applications Covered:
• Laser Processing
• Optical Communications
• Optoelectronic Devices
• Other Applications

End Users Covered:
• Aerospace & Defense
• Automotive
• Commercial
• Electronics & Semiconductor
• Healthcare
• Industrial
• Research
• Telecommunications
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o 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 2020, 2021, 2022, 2025, and 2028
- 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
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances