Market Overview
The Global Laser Technology Market is expected to reach a value of
USD 20.3 billion in 2023, and it is further anticipated to reach a market value of
USD 40.8 billion by 2032 at a CAGR of 8.1%.
Laser processing techniques are employed in industrial processes to adjust the shape & appearance of materials, while in medicine, applications include urology, ophthalmology, dentistry, & cosmetics. The perceived advantages of laser processing, like better precision & accuracy in comparison to traditional methods, drive growth in the market. Growth in the demand for high-quality finished products further boosts the need for laser technology across manufacturing & various industries.
Market Dynamic
Material processing contains diverse procedures like engraving, cutting, marking, & drilling on both metals & non-metals. Laser technology provides distinct advantages over conventional methods like plasma, flame, & water jet. While plasma & flame technologies are mainly used for cutting & not suitable for engraving, marking, & drilling, waterjet, although effective, creates loud noise during operation, making it inconvenient for material processing. In contrast, laser technology excels in performing all these processes efficiently without contributing to noise pollution. Further, these advantages are expected to drive the growth of the global laser processing market in the forecast period.
However, rare earth elements include two transition elements & 15 lanthanides with unique luminescent, magnetic, & electrochemical properties. Despite their utility, the extraction of these elements creates challenges, including open-pit mining & releasing contaminants like radionuclides, highly impacting the Earth's ecosystem. Furthermore, refining these elements can result in harmful by-products being released into water bodies & the air, creating potential hindrances to market growth of the market.
Research Scope and Analysis
By Type
The product segment of the global laser technology market is categorized into, solid-state lasers, gas lasers, liquid lasers, and semiconductor lasers. In 2023, the semiconductor sector commands the largest share of revenue, highlighting the growing significance of semiconductor lasers in different sectors like industry, communications, & military applications. The use of these lasers has become highly important in modern society, with armed forces globally investing heavily in high-energy laser-based technology. Such investments are part of efforts to expand defense budgets & research grants, showcasing the strategic importance of semiconductor lasers.
Further, Gas lasers & solid-state lasers are expected for the fastest growth during the forecast period, mainly driven by growth in demand in industrial applications. In addition, the growing use of solid-state lasers in laser marking systems presents various opportunities for the solid-state laser market, which is indicative of the expanding role & versatility of gas and solid-state lasers in addressing diverse industrial & technological needs.
By Application
Optical communications as an application commands the largest share of revenue in 2023, majorly driven by the growth in demand for Vertical-cavity surface-emitting lasers (VCSEL) in data transmission. The proliferation of data centers globally & the increasing dependency on
digital solutions necessitate high-speed & efficient data transfer, where VCSELs play an important role. Hyperscale data centers focus on reducing power consumption & facilitating low-latency, high-performance computing, incorporating VCSELs as transceivers.
Further, the laser-processing is expected for the highest growth in the forecast period. The expansion of lasers in
medical devices & surgical applications is a key driver to the growth, alongside the rapid progress in nanofabrication technology. The manufacturing industry's increasing adoption of laser technology, boosted by its advantages over conventional material processing, emerges as a significant factor driving the overall growth of the industry.
By End User
In 2023, the industrial sector has the largest share of revenue, driven by the growth in the utilization of automation across industries, such as CO2 lasers, diode lasers, & YAG lasers, which grows from their better efficiency, increased productivity, & accuracy. Laser processing requirements are on the rise across diverse sectors like electronics, manufacturing, automotive, construction, industrial, & aerospace. The switch toward electric vehicles in the automotive industry further opens up significant opportunities for the application of industrial lasers.
Moreover, the healthcare segment is expected to have remarkable growth, fueled by an expansion in aesthetic procedures, a preference for less invasive treatments, & a rising incidence of eye problems. The
healthcare sector experiences a heightened demand for lasers, driven by their application in advanced medical treatments & advanced procedures, reflecting the growing role of lasers in modern healthcare practices.
The Laser Technology Market Report is segmented on the basis of the following
By Type
- Solid State Lasers
- Gas Lasers
- Liquid Lasers
- Semiconductor Lasers
By Application
- Laser Processing
- Optical Communication
- Optoelectronic Devices
- Others
By End User
- Industrial
- Telecommunication
- Automotive
- Healthcare
- Commercial
- Semiconductor & Electronics
- Aerospace & Defense
- Others
Regional Analysis
Asia Pacific region asserts its dominance in the global laser technology market,
holding 41.2% of the global market share in 2023, driven by higher research and development investments & major steps in the semiconductor & industrial sectors, supporting industry expansion. The growth in demand for affordable & quick laser machining operations from electronics, industrial, telecommunications, & automotive sectors further fuel regional growth, driven by increased usage of consumer electronic devices.
Also, North America is expected to major market growth, driven by a rise in healthcare infrastructure & spending, a rise in cosmetic procedures, & increased adoption of cutting-edge technologies. Further, the presence of key industry players introducing new product lines enhances the laser technology market's scope in the region.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The laser market is a little consolidated, as various players are emphasizing organic growth through product enhancements, launches, events, & patents. In addition, inorganic strategies like acquisitions, partnerships, & collaborations are evident, fostering expansion for market players & expanding customer bases. These dynamic approaches contribute to the overall development of companies in the market, combining innovation & strategic alliances to achieve sustained growth.
In October 2022, Lumentum Holdings Inc widened its operations in Slovenia, aiming to advance R&D for specialty optical fibers & associated products. The newly established facility features a Center of Excellence dedicated to R&D, with a focus on creating fundamental laser component technology & innovative products.
Some of the prominent players in the global Laser Technology Market are:
- TRUMPF
- Coherent Corp
- IPG Photonics
- LUMIBIRD
- EKSPLA
- nLIGHT Inc
- Novanta Inc
- Jenoptik AG
- Corning Incorporated
- Lumentum
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Laser Technology Market:
The COVID-19 pandemic & following economic recession have significantly influenced the global laser technology market. The growth in disruptions caused by the health crisis led to a temporary slowdown in manufacturing & industrial activities, affecting the need for laser technology in sectors like automotive & aerospace. However, the pandemic also increased the adoption of laser-based medical devices & technologies for contactless applications, like temperature measurement & disinfection. The economic recession created challenges, with lower capital expenditures affecting the implementation of laser solutions in various industries. Despite the initial setbacks, the market is anticipated to recover as industries highly recognize the efficiency & precision offered by laser technology in addressing changing needs & fostering innovation in a post-pandemic landscape.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 20.3 Bn |
| Forecast Value (2032) |
USD 40.8 Bn |
| CAGR (2023-2032) |
8.1% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Type (Solid State Lasers, Gas Lasers, Liquid Lasers,
and Semiconductor Lasers), By Application (Laser
Processing, Optical Processing, Optoelectronic
Devices, and Others), By End User (Industrial,
Telecommunication, Automotive, Healthcare,
Commercial, Semiconductor & Electronics, Aerospace
& Defense, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
TRUMPF, Coherent Corp, IPG Photonics, LUMIBIRD,
EKSPLA, nLIGHT Inc, Novanta Inc, Jenoptik AG,
Corning Incorporated, Lumentum, and Other Key
Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Laser Technology Market size is estimated to have a value of USD 20.3 billion in 2023 and is
expected to reach USD 40.8 billion by the end of 2032.
Asia Pacific has the largest market share for the Global Laser Technology Market with a share of about
41.2% in 2023.
Some of the major key players in the Global Laser Technology Market are TRUMPF, Coherent,
LUMIBIRD, and many others.
The market is growing at a CAGR of 8.1 percent over the forecasted period.