Lasers Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

The Lasers Market is segmented by Type (Fiber Lasers, Diode Lasers, CO/CO2 Lasers, Solid State Lasers, and Other Types), Application (Communication, Material Processing, Medical and Cosmetics, Research and Development, Defense, and Military, Lithography, Instrumentation and Sensors, and Other Applications), and Geography (Asia-Pacific, North America, Europe, and Rest of the World). The report offers market size and forecasts for Lasers in revenue (USD million) for the above-mentioned segments.

Market Snapshot

Lasers Market - Market Summary
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >10 %

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Market Overview

The global lasers market is projected to register a CAGR of over 10% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Considering the pandemic scenario, people were not opting for cosmetics treatment or procedures to remain safe. Furthermore, various manufacturing and material processing facilities were temporarily halted during the lockdown, where lasers are used to perform various applications such as annealing, welding, cutting, converting, marking, engraving, and cladding reduced the demand for the market studied.

  • Over the short term, the increasing demand for laser systems from the electronics industry is expected to drive the market's growth.
  • However, the high capital investment and unfavorable conditions arising due to the impact of COVID-19 are likely to hinder the market's growth.
  • The material processing segment dominated the market owing to the robust manufacturing activities in developing nations.
  • Asia-Pacific dominated the market with a significant share and is estimated to continue its dominance during the forecast period.

Scope of the Report

Laser stands for light amplification by stimulated emission of radiation. It is a single-wavelength source of light, which poses high energy and can be accurately focused to transmit that light onto a very small area. Lasers find their major application in material processing, cosmetics surgery, defense, and others. The lasers market is segmented by type, application, and geography. By type, the market is segmented into fiber lasers, diode lasers, co/co2 lasers, solid state lasers, and other types. By application, the market is segmented into communication, material processing, medical and cosmetics, research and development, defense and military, lithography, instrumentation and sensors, and other applications. The report also covers the market size and forecasts for the lasers market in 11 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Type
Fiber Lasers
Diode Lasers
CO/CO2 Lasers
Solid State Lasers
Other Types
Application
Communication
Material Processing
Medical and Cosmetics
Research and Development, Defense, and Military
Lithography
Instrumentation and Sensors
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
United Kingdom
France
Germany
Italy
Rest of Europe
Rest of the World

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Key Market Trends

Material Processing Segment to Dominate the Market

  • Lasers are extensively used in the material processing industry. Laser material processing uses high-intensity light beams in material fabrication. This can include cutting, engraving, drilling, or welding metals. It can also include cleaning materials with lasers.
  • The major applications of laser systems in the material processing industry include annealing, welding, and cutting.
  • Annealing is widely used to improve the characteristics of materials, in particular thin films, with applications extending from wafer-scale to large substrates. Laser systems are used for annealing to activate dopants for advanced CMOS circuitry, sensors, IGBT, and 3D integration. Excimer lasers are widely adopted for crystallizing amorphous silicon films used to form the polysilicon layers that provide the electrical functionality of high-resolution displays. Laser crystallized polysilicon also provides stability required to drive OLED displays.
  • For instance, the global electronics and IT industry's production was valued at USD 2,972.7 billion in 2020 and is estimated to reach USD 3,175.6 billion by 2021, with a growth rate of 7% year on year, thereby is expected to stimulate the demand for the market studied.
  • Furthermore, any metal that can be conventionally welded can also be laser welded. The main advantage of laser welding is the high processing speed with no tool wear, as it is a contact-free process. Fiber lasers are a popular type in welding applications, especially for keyhole metal welding. Materials with a higher thickness-to-width aspect ratio are welded with a one μm wavelength. Moreover, diode lasers can be used for sheet metal welding for up to 2 mm.
  • Laser cutting is a mature industrial process with high flexibility. It is a non-contact and stress-free process that produces finished parts directly from the tool. Traditionally, diamond CO2 laser cutting is used for cutting plastics, ceramics, fiber-reinforced materials, and other organics, like rubber and wood. There is a recent trend of using direct-diode lasers rather than fiber or CO2 lasers, which is largely enabled by improvements in performance that now allow high-speed diode laser cutting of all relevant industrial metals.
  • For instance, as of India Brand Equity Foundation (IBEF), India's finished steel consumption is expected to reach 230 million tons by 2030 from 98.71 million tons in FY2019, thereby enhancing the demand for the market studied.
  • The other material processing applications where lasers are increasingly used are converting, marking, engraving, cladding, rapid prototyping, heat treating, and glass or sapphire cutting applications.
  • The usage of lasers in the material processing application increased over the last decade, owing to many advantages, like no requirement for contact tool, access to previously inaccessible locations with fiber lasers, and precise automated cutting.
  • Therefore, the aforementioned factors are expected to significantly impact the market in the coming years.
  • Lasers are extensively used in the material processing industry. Laser material processing uses high-intensity light beams in material fabrication. This can include cutting, engraving, drilling, or welding metals. It can also include cleaning materials with lasers.
  • The major applications of laser systems in the material processing industry include annealing, welding, and cutting.
  • Annealing is widely used to improve the characteristics of materials, in particular thin films, with applications extending from wafer-scale to large substrates. Laser systems are used for annealing to activate dopants for advanced CMOS circuitry, sensors, IGBT, and 3D integration. Excimer lasers are widely adopted for crystallizing amorphous silicon films used to form the polysilicon layers that provide the electrical functionality of high-resolution displays. Laser crystallized polysilicon also provides stability required to drive OLED displays.
  • For instance, the global electronics and IT industry's production was valued at USD 2,972.7 billion in 2020 and is estimated to reach USD 3,175.6 billion by 2021, with a growth rate of 7% year on year, thereby is expected to stimulate the demand for the market studied.
  • Furthermore, any metal that can be conventionally welded can also be laser welded. The main advantage of laser welding is the high processing speed with no tool wear, as it is a contact-free process. Fiber lasers are a popular type in welding applications, especially for keyhole metal welding. Materials with a higher thickness-to-width aspect ratio are welded with a one μm wavelength. Moreover, diode lasers can be used for sheet metal welding for up to 2 mm.
  • Laser cutting is a mature industrial process with high flexibility. It is a non-contact and stress-free process that produces finished parts directly from the tool. Traditionally, diamond CO2 laser cutting is used for cutting plastics, ceramics, fiber-reinforced materials, and other organics, like rubber and wood. There is a recent trend of using direct-diode lasers rather than fiber or CO2 lasers, which is largely enabled by improvements in performance that now allow high-speed diode laser cutting of all relevant industrial metals.
  • For instance, as of India Brand Equity Foundation (IBEF), India's finished steel consumption is expected to reach 230 million tons by 2030 from 98.71 million tons in FY2019, thereby enhancing the demand for the market studied.
  • The other material processing applications where lasers are increasingly used are converting, marking, engraving, cladding, rapid prototyping, heat treating, and glass or sapphire cutting applications.
  • The usage of lasers in the material processing application increased over the last decade, owing to many advantages, like no requirement for contact tool, access to previously inaccessible locations with fiber lasers, and precise automated cutting.
  • Therefore, the aforementioned factors are expected to significantly impact the market in the coming years.
Lasers Market - Segmentation

Asia-Pacific to Dominate the Market

  • Asia-Pacific is projected to witness strong growth during the forecast period, owing to the booming manufacturing sector, primarily electrical and electronics products in the region.
  • China dominated the market with a significant share, followed by Japan and India. However, the shift of manufacturing bases of various companies into India is estimated to propel the demand for lasers at the fastest rate.
  • In China, according to SoYoung, a leading Chinese online platform for cosmetic surgery, the country’s cosmetic surgery market is growing at a rapid pace. It is expected to top the world in terms of cosmetic procedures performed. As of December 2020, there were around over 3.35 million monthly active users on SoYoung App.
  • According to the International Society of Aesthetic Plastic Surgery (ISAPS), about 1,473,221 aesthetic/cosmetic procedures (including both surgical and non-surgical) were performed in Japan in 2019. Furthermore, in India, about 643,752 procedures were performed in 2019.
  • Cosmetic procedures in Japan were around 1,473,221, standing fourth, following China in the first position. Cosmetic procedures in India were around 643,752 in the year 2019.
  • According to the India Brand Equity Foundation (IBEF), the Indian government has set a defense production target valued at USD 25 billion by 2025, which is expected to increase the demand for lasers from the defense manufacturing sector.
  • The global production by Japanese electronics and IT companies was valued at about USD 327 billion in 2020, and it is estimated to reach about USD 340 billion by 2021, with a growth rate of about 4%, which is expected to stimulate the demand for lasers used in the electronics industry.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Lasers Market - Regional Trend

Competitive Landscape

The lasers market is fragmented in nature. Some of the prominent players in the market include Coherent Inc., IPG Photonics Corporation, TRUMPF, Han’s Laser Technology Industry Group Co. Ltd, and SPI Lasers Limited.

Recent Developments

  • In December 2019, LUMIBIRD signed an agreement with Ellex Medical Lasers Limited to acquire Ellex’s laser and ultrasound business. The acquisition is expected to be completed by mid of 2020.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Laser Systems from the Electronics Industry

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 High Capital Investment

      2. 4.2.2 Impact of COVID-19 Pandemic

    3. 4.3 Industry Value-Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Fiber Lasers

      2. 5.1.2 Diode Lasers

      3. 5.1.3 CO/CO2 Lasers

      4. 5.1.4 Solid State Lasers

      5. 5.1.5 Other Types

    2. 5.2 Application

      1. 5.2.1 Communication

      2. 5.2.2 Material Processing

      3. 5.2.3 Medical and Cosmetics

      4. 5.2.4 Research and Development, Defense, and Military

      5. 5.2.5 Lithography

      6. 5.2.6 Instrumentation and Sensors

      7. 5.2.7 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 United Kingdom

        2. 5.3.3.2 France

        3. 5.3.3.3 Germany

        4. 5.3.3.4 Italy

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis(%)** /Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Coherent Inc.

      2. 6.4.2 Epilog Laser

      3. 6.4.3 Han's Laser Technology Industry Group Co. Ltd

      4. 6.4.4 IPG Photonics Corporation

      5. 6.4.5 JENOPTIK AG

      6. 6.4.6 KEYENCE CORPORATION

      7. 6.4.7 LUMIBIRD

      8. 6.4.8 Novanta Inc

      9. 6.4.9 PRIMA INDUSTRIE SpA

      10. 6.4.10 SPI LASERS LIMITED

      11. 6.4.11 TRUMPF

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Lasers Market market is studied from 2016 - 2026.

The Lasers Market is growing at a CAGR of >10% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

IPG Photonics Corporation, TRUMPF, SPI LASERS LIMITED, Coherent, Inc., Han's Laser Technology Industry Group Co., Ltd. are the major companies operating in Lasers Market.

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