Laser Processing Market Size, Share, Opportunities, And Trends By Type (Fiber Laser, Solid State Laser, Diode Laser, Others), By Application (Cutting, Welding, Drilling, Microprocessing, Marking & Engraving, Others), By End-Use Industry (Aerospace And Defense, Automotive, Healthcare, Industrial, Architecture, Electronics And Microelectronics, Others), And By Geography - Forecasts From 2024 To 2029

The laser processing market is anticipated to reach a market size of US$19,959.084 million in 2029, with a CAGR of 5.60%, from US$15,200.233 million in 2024.

Laser processing involves using high-intensity light beams in material fabrication. In the ongoing “Industry 4.0” trend, such technology is highly applicable in various major sectors, such as automotive, industrial, healthcare, and aerospace, for complex parts manufacturing.

Bolstering growth in such end-users, followed by the rapid growth of nano-fabrication technology, is expected to contribute to the market growth. Likewise, such technology bolsters optimum functioning, one of the prominent reasons driving its demand in industrial applications. However, the high initial cost of laser processing systems is one of the major restraints for market growth. The inability of lasers to cut thick metals and the need for expertise to operate for precision cutting further act as obstacles.

Laser Processing Market Drivers:

• Advantages over traditional material processing drive the market demand for laser processing.

One of the major factors driving the laser processing market growth during the forecast period is the large number of performance benefits such as precise material cutting, easy customization, and high material compatibility, which has increased their preference over traditional methods. Owing to its performance-related functioning, the technology is finding its way into processing miniaturized ICs and semiconductors, whose demand is witnessing a significant boom for consumer electronics such as smartphones.

Laser drilling can also obtain a large depth-diameter ratio. Favorable efforts to improve material processing, coupled with the miniaturization of microelectronics, have provided new growth prospects for market expansion.

• Strategic collaborations and new product launches stimulate market growth.

Developing innovative and next-generation products is making manufacturing and industrial processes easy, which is anticipated to increase the demand for laser processing products in the coming years. For instance, in September 2023, IPG Photonics showcased its new innovative AMB (Adjustable Mode Beam) laser solutions at the “The Battery Show” held in Michigan, USA. The dual-beam laser aimed to expand IPG’s AMB series and increase battery welding speed.

Likewise, strategic collaborations are also taking place to enhance industrial laser processing. For instance, in February 2024, Cailabs partnered with Precitec to integrate Former’s advanced beam shaping module into Precitec’s laser beam welding head. The collaboration will meet the demand for unparalleled precision laser welding in the e-mobility sector. Such product innovations and strategic collaboration are estimated to accelerate laser processing market expansion.

Laser Processing Market Geographical Outlook

• Asia Pacific holds a considerable share of the market.

Geography-wise, 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 the manufacturing sector, largely in China. According to the National Bureau of Statistics, in November 2023, manufacturing output witnessed an overall 6.9% Y-o-Y growth, in which high technology manufacturing experienced 6.7% Y-o-Y growth. The same source further stated that the output of metal-cutting machine tools witnessed a major growth of 21.3%.

Moreover, end-users such as construction, healthcare, and electronics have showcased positive growth over the years, which is projected to drive the regional market growth in the coming years. According to the PIB’s April 2023 release, India’s electronic manufacturing is expected to reach up to USD300 billion by 2025-2026, and favorable government schemes such as the PLI scheme for LSME (Large-Scale Electronics Manufacturing) are bolstering the country’s investment in the electronics sector.

Additionally, Asia is home to major semiconductor and PCB manufacturing nations such as Taiwan, South Korea, Japan, and China, which are actively investing in technological innovations to bolster their overall production output. Laser processing constitutes one of the major technologies used in PCB and semiconductor applications, and with the growing investments, the prevalence of such a technique is also expected to increase.

Laser Processing Market Restraints:

• High costs associated with laser processing can restrain market growth

Laser processing provides unparalleled and precise cutting for various materials and components. However, such a technique requires a hefty amount to be invested for their employment. Price differs based on the type of lasers employed and the applications in which they will be used. For instance, the wattage laser cutting machine ranges between US$4,000 to US$15,000, whereas the fiber laser cutting machine can range between US$20,000 to US$45,000. Such high costs can become an obstacle, especially for small-scale manufacturers and firms.

• Lack of expertise can act as an obstacle to market growth.

Laser processing provides countless performance benefits over traditional cutting techniques. However, to achieve the precise shape of the material, the cutting or welding process needs to be done with great accuracy. Operating such machines requires a great degree of technical expertise, and the lack of it can hinder the market's growth.

Laser Processing Market Key Developments

• April 2024: Laser Photonics Corporation announced a partnership with Brokk Inc. to integrate the former’s laser system with Brokk’s remote controlled-robots. The collaboration aimed to bring laser cutting technology for various applications such as tunneling, metal processing, construction, and military. 
• November 2023: LKPF Laser & Electronics showcased its “ProtoMat S104” and “ProtoLaser 04” at the “Productronica 2023” in Munich. Under the theme “Innovating Electronics Together” the company aimed to introduce laser products that could ease the process of PCB and sensitive materials cutting.
• June 2023: Coherent Corp. launched new ARM (Adjustable Ring Mode) lasers with improved beam properties. The laser is designed to control welding processes over large working areas, making it ideal for EV battery manufacturing. The new launch extended Coherent’s “Highlight FL-ARM” laser series.
• January 2023: IPG Photonics Corporation launched three “DP UV Fiber Lasers” equipped with proprietary non-linear crystal that offers more flexible and robust laser cutting. The lasers are ideal for micromachining applications.

Laser Processing Market Scope:

The Laser Processing market is segmented and analyzed as follows:

• By Type
  • Fiber laser
  • Solid-state laser
  • Diode laser
  • Others
• By Application
  • Cutting
  • Welding
  • Drilling
  • Microprocessing
  • Marking & Engraving
  • Others
• By End-User Industry
  • Aerospace & Defense
  • Automotive
  • Healthcare
  • Industrial
  • Architecture
  • Electronics & Microelectronics
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others