The laser processing market is evaluated at US$11.089 billion for the year 2019 and is projected to grow at a CAGR of 7.78% reaching the market size of US$18.742 billion by the year 2026.
Laser processing refers to the use of high-intensity light beams in material fabrication which include activities like cutting, engraving, drilling, and welding, among others. Increasing applications in medical devices and surgeries are one of the major market drivers anticipated to propel the growth of the laser processing market during the forecast period. Also, the rapid growth of nano-fabrication technology is expected to contribute to the growth of the global laser processing market. Furthermore, the manufacturing sector is increasingly adopting laser for material processing due to a large number of advantages it provides over traditional material processing, which is anticipated to be one of the prominent reasons driving the market growth. However, the high initial cost of laser processing systems is one of the major restraints of the global laser processing market. Also, the inability of lasers to cut thick metals and the need for expertise are some other factors expected to restrain the market growth.
The outbreak of the novel coronavirus disease had a negative impact on the laser processing market. The manufacturing facilities were shut down in many parts of the world as a measure to curb the spread of coronavirus, which led to a decline in market growth. Also, the travel restrictions led to supply chain disruptions in the market which harmed the market. Moreover, even after the opening of the manufacturing facilities, a dearth of laborers was reported in many places which further diminished the size of the laser processing market during the pandemic.
Advantages over traditional material processing.
One of the major factors anticipated to drive the growth of the laser processing market during the forecast period is the large number of advantages provided by laser material processing over the traditional methods, which is anticipated to lead to a rise in the adoption of laser for material processing during the forecast period. With the rise in the demand for miniaturization of microelectronics, laser cutting is increasingly being used as the laser cutters have extremely high accuracy and precision which is required in such conditions where tolerances are extremely tight and hence it makes laser cutter the best choice. Also, it is high-speed and produces products without the need for retooling. Furthermore, laser weld provides higher weld strength as the laser weld is narrow with an excellent depth-to-width ratio. Moreover, lasers allow the drilling of a large variety of materials, from rubber and wood to very hard metals such as diamond and ceramics. Also, a large depth-diameter ratio can be obtained by laser drilling. Many such advantages provided by the use of laser in material processing, coupled with the miniaturization of microelectronics prompting an increased need for precision, are projected to lead to a surge in the growth of the laser processing market during the assessment period.
Advancements in laser processing with new product launches.
The development of innovative and next-generation products is making the manufacturing and industrial processes easy which is anticipated to lead to an increased demand for laser processing products in the coming years. In June 2019, II?VI Incorporated launched high-speed RLSK remote laser processing heads with integrated vision systems that allow advanced precision welds that are vital in next-generation automotive manufacturing. The new vision system that the product possesses has high precision seam tracking capabilities which allow fillet welds that save material and hence the manufactured vehicles are lightweight and consequently fuel-efficient. In June 2020, Yamazaki Mazak announced to introduce a high-productivity laser processing machine that is able to cut a large number of small and medium diameter tubes at a fast pace. It has the capability to cut various different kinds of materials such as copper, aluminum, mild steel, stainless steel, and brass, which are generally used in automotive, construction, architectural, and furniture industries. Furthermore, in January 2021, Opt Lasers introduced a new product called PLH3D-15W which is the world's first compact three-laser-diode laser head for CNC machines. Many such new products are being developed with advances in laser processing which is anticipated to propel the growth of the laser processing market during the forecast period.
The Asia Pacific to dominate the market.
Geographically, the Asia Pacific region is anticipated to hold a significant market share and is projected to witness the fastest growth owing to the use of laser processing in manufacturing, largely in China. Furthermore, the growth of end-use industries such as electronics, healthcare, and construction is expected to surge the market growth in the region in the coming years.
|Market size value in 2019||US$11.089 billion|
|Market size value in 2026||US$18.742 billion|
|Growth Rate||CAGR of 7.78% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, End-Use Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Epilog Laser, Jenoptik AG, Newport Corporation, Coherent, Inc., TRUMPF Group, Lumentum Holdings Inc., IPG Photonics Corporation, Gravotech, II-VI Incorporated, Han's Laser Technology Industry Group Co., Ltd|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global laser processing market?
A1. Laser Processing Market was valued at US$11.089 billion in the year 2019.
Q2. What will be the laser processing market size by 2026?
A2. The global laser processing market is projected to reach a market size of US$18.742 billion by 2026.
Q3. What are the growth prospects for the laser processing market?
A3. The laser processing market is projected to grow at a CAGR of 7.78% during the forecast period.
Q4. What factors are anticipated to drive the laser processing market growth?
A4. Increasing applications in medical devices and surgeries are one of the major market drivers anticipated to propel the laser processing market growth.
Q5. Which region holds the maximum share of the laser processing market?
A5. Geographically, the Asia Pacific region is anticipated to hold a significant share of the laser processing market.
Lumentum Holdings Inc.
IPG Photonics Corporation
Han's Laser Technology Industry Group Co., Ltd
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