Laser Processing Market

[262 Pages Report] The global laser processing market size is estimated to be valued at USD 6.8 billion in 2024 and is anticipated to reach USD 11.0 billion by 2029, at a CAGR of 10.1% during the forecast period. The market growth is ascribed to emerging trends in laser processing, surging demand for laser processing in medical applications, advancement of laser-based techniques compared with conventional material processing methods, and significant transition towards nanodevices and microdevices production.

Laser Processing Market Forecast to 2029

To know about the assumptions considered for the study, Request for Free Sample Report

Laser Processing Market Trends

Driver: Advancement of laser-based techniques compared with conventional material processing methods

Laser-based techniques are superior to conventional material processing methods in terms of precision, efficiency, and versatility. Unlike traditional methods that rely on mechanical tools, lasers can focus on extremely fine details with pinpoint accuracy. This precision minimizes material waste and allows for intricate and complex designs. Moreover, laser technology is non-contact, reducing wear and tear on tools and eliminating the need for direct physical contact with the material. Laser processing is often faster, leading to higher production rates and increased efficiency. Additionally, the heat-affected zone in laser processing is minimal, reducing the risk of thermal damage to the material. This is particularly beneficial for delicate materials or applications where precision is paramount. Lasers are used for cutting, drilling, marking, engraving, welding, etching, and micro-machining. They offer a significantly higher level of accuracy and speed than traditional tools, such as saw machines, drill bits, chemicals, or electricity. For instance, they can achieve extremely high levels of precision, allowing for intricate and detailed material processing, which is particularly beneficial in applications such as engraving, cutting, and micro-machining. In the manufacturing vertical, laser systems are rapidly replacing traditional tools. Laser processing is also used in the creation of sculptures, as well as in the modeling, prototyping, and design of trophies, gift articles, and false walls. Previously, these processes required skilled workers and a significant amount of time to complete a single artwork or product. However, laser processing has made these processes more convenient, precise, and productive, while also reducing the need for skilled workers and lowering the cost of the artwork or product.

Restraint: Lack of trained workforce

The lack of trained personnel is another factor that is restraining the growth of the laser processing market. The laser processing market faces a significant hindrances due to the lack of a trained workforce. The specialized nature of laser systems necessitates skilled professionals who possess expertise in operating, maintaining, and optimizing these advanced technologies. Skilled labor is essential for operating and maintaining laser systems, adding expenses related to hiring and training qualified professionals. However, there is a shortage of individuals with the necessary training and qualifications to effectively manage laser-based processes in various industries. This deficiency in skilled personnel can impede the seamless integration and utilization of laser technology, limiting its potential impact on manufacturing, healthcare, research, and other sectors. For instance, the operation of an excimer laser requires the presence of at least one trained personnel to ensure that the operator is aware of the protocols to be followed during the use of laser systems. The lack of trained staff could damage the materials involved in laser processing and lead to high time consumption.

Opportunity: Growing adoption of laser processing in surface treatment and engraving

Laser processing is widely utilized for surface treatment and engraving across various industries, or verticals, due to its precision, versatility, and efficiency. In the automotive sector, laser surface treatment techniques are employed to prepare surfaces for painting, improve adhesion, and enhance functional properties like corrosion resistance and wear resistance. Laser engraving is used for part identification, branding, and customization, providing permanent and high-contrast markings on components such as engine parts, chassis components, and interior trim. In the electronics industry, laser surface treatment is applied for microstructuring and texturing of substrates, improving adhesion and electrical properties in devices such as circuit boards and semiconductor components. Laser engraving is also utilized for marking and cutting precision components like microchips and electronic housings. In the medical field, laser surface treatment techniques are employed to modify the surface properties of implants, enabling better integration with the human body and reducing the risk of rejection. Laser engraving is used for marking medical devices and instruments with essential information for traceability and compliance. In the consumer goods sector, laser surface treatment enhances the aesthetic appeal and functionality of products like appliances, jewelry, and packaging materials, while laser engraving provides customizable designs and branding options. Overall, laser processing in surface treatment and engraving serves a wide range of verticals, contributing to improved product quality, functionality, and customization across diverse industries.

Challenge: Environmental challenges related to the utilization of rare earth elements

The use of rare earth elements (REEs) in laser processing raises environmental concerns due to the potential negative impacts associated with their extraction, processing, and disposal. Rare earth elements, such as neodymium and dysprosium, are essential components in the production of certain types of lasers, particularly in solid-state lasers used in various applications. Mining and processing of REEs are often associated with environmental degradation, habitat disruption, and the release of hazardous substances into ecosystems. Additionally, the extraction and separation processes can lead to soil and water contamination, posing risks to both human health and wildlife. The refining processes use toxic acids, which, if mishandled, may result in severe environmental damage. Also, the use of rare-earth metals poses the risk of supply disruptions in the short term, and supply challenges for these metals may affect the deployment of clean energy technology in the years to come. Furthermore, rare earth mining has been linked to social and human rights issues, as it is concentrated in a few countries with lax environmental regulations.

Laser Processing Market Ecosystem

Laser Processing Market Segmentation

The fibre lasers segment accounted for the largest share of the laser processing market in 2023.

Laser processing involves using lasers for various applications, such as cutting, welding, drilling, marking, engraving, and scribing. The lasers used to carry out these operations include solid, gas, liquid, and other laser types. Solid-state lasers, particularly fiber lasers have become significant players in the laser processing market, holding a substantial market share. Recognized for their high power, energy density, and enhanced reliability, these lasers are extensively applied in cutting, welding, and engraving across diverse materials. Their compact design, efficiency, and adaptability make them suitable for seamless integration into manufacturing processes. Advancements in fiber laser technology, coupled with their versatility in material processing and applications in additive manufacturing and microprocessing, contribute to their prominence.

The hybrid configuration segment is to hold the largest market share during the forecast period.

Laser processing requires either of the three types of laser configurations: fixed beam, moving beam, and hybrid configuration. Hybrid configuration in laser processing refers to a setup that combines laser technology with other complementary manufacturing methods, such as milling, drilling, or waterjet cutting, to leverage the strengths of each technique for improved processing efficiency and flexibility. A hybrid system is more efficient than the moving beam system as it provides a constant beam delivery path length and allows a comparatively simpler beam delivery system.

Marking and Engraving application will grow at the highest CAGR during the forecast period.

The market has been segmented by applications, cutting, drilling, welding, marking & engraving, microprocessing, advanced processing, and others. Marking & engraving are the major application areas of lasers at present because this process is maintenance-free, flexible, and precise in nature, which further creates additional market opportunities for lasers. The electronics/semiconductor, medical, aerospace, automotive, consumer products, gifts & trophies, and food & beverage end-user industries generally use lasers for marking & engraving applications.

Asia Pacific region to hold the largest market share during the forecast period.

The Asia Pacific region is segmented into China, Japan, South Korea, India, and the Rest of Asia Pacific,  representing the largest market for laser processing. Both Japan and India stand out as the world's fastest-growing economies. APAC has been ahead in terms of the adoption of laser processing solutions as compared to other regions. High population density, increasing R&D investments in technology, and growing manufacturing and electronics sectors are expected to drive the growth of the laser processing market in the region. Additionally, the presence of key industry players and the region's status as a manufacturing hub facilitate the production and distribution of laser processing products.

Laser Processing Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players

The major companies in the laser processing companies are Coherent Corp. (US), TRUMPF (Germany), Han’s Laser Technology Industry Group Co., Ltd (China), IPG Photonics Corporation (US), JENOPTIK AG (Germany) and others. These companies have used both organic and inorganic growth strategies, such as product launches, acquisitions, and partnerships to strengthen their position in the laser processing market.

Want to explore hidden markets that can drive new revenue in Laser Processing Market?

Unlock Insights

Scope of the Report

Laser Processing Market Highlights

In this report, the overall laser processing market has been segmented based on Laser Type, Configuration, Application, Industry and Region.

Recent Developments

• In January 2024, Coherent introduced the OBIS 640 XT, a red laser module that matches the high output power, low noise, beam quality, and compact size of its existing portfolio of blue and green laser modules, which as a complete set enable high-performance SRM systems.
• In January 2024, Novanta Inc. completed the acquisition of Motion Solutions. This acquisition creates the potential to develop new and unique intelligent subsystems using our combined technology offerings.
• In November 2023, IPG Photonics collaborated with Miller Electronics Mfg. LLC for their commitment for innovation with quality and reliability The alliance will advance laser technologies for the handheld welding market and reshape the landscape of welding tools to provide welders with powerful, efficient, and precise solutions that meet the demands of modern welding applications. This collaboration will deliver dependable solutions that welders can rely on for their critical tasks.

Frequently Asked Questions (FAQs):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst