Laser Technology Market Size & Forecast

The Laser Technology Market is expected to reach $32.8 billion by 2031, at a CAGR of 10.6% from 2024 to 2031. The growth of the laser technology market is driven by the increasing adoption of laser technology in the electronics industry, the transition towards micro and nanodevices, and the preference for laser-based material processing over traditional material processing methods.

Furthermore, the utilization of laser technology in robotics and its applications in optical communication are expected to create market growth opportunities.

Laser Technology Market Growth Drivers

Increasing Adoption of Laser Technology in the Electronics Sector

The electronics sector is witnessing remarkable growth, driven by the widespread use of electronic components across various industries. There is a constant demand for devices that deliver high performance and reliability. Laser technology has emerged as a solution that offers precise and accurate processing while ensuring safety standards are met. As a result, the demand for laser technology is increasing in the electronics industry, where it is utilized in numerous applications such as optical disk drives, laser printers, barcode scanners, fiber optics, LCDs, and smartphones.

Moreover, lasers play a crucial role in tasks like cutting, scribing, drilling, and ensuring precise component placement on PCBs and military electronics. As laser technology continues to gain traction in the electronics sector, many companies are collaborating to advance laser display technology. For instance, in March 2024, Hisense International Co., Ltd. (China) partnered with Xbox Game Studios (U.S.) to enhance home gaming and entertainment experiences with cutting-edge laser display technology. Such initiatives by major market players are expected to drive the growth of the laser technology market during the forecast period.

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Transition Towards Micro and Nanodevices

The demand for micro and nanodevices is on the rise across various sectors, including electronics, medicine, manufacturing, automotive, robotics, and military. In the electronics and semiconductors industries, nanotechnology plays a crucial role in enhancing displays, reducing power consumption, optimizing thickness, and boosting the storage capacity of memory chips while reducing their physical size, leading to the miniaturization of electronic devices.

Laser technology is increasingly being adopted in micro and nanomanufacturing due to its versatility in addressing challenges related to various materials at a small scale. Techniques such as near-field laser fabrication, far-field laser interference lithography, and laser direct writing are utilized for nanofabrication, along with methods like stimulated-emission-induced depletion (STED) assisted laser fabrication, among others. Different laser techniques, including laser ablation, laser beam drilling & cutting, and high-power ultrashort pulsed laser radiation processes, enable precise structuring for micro and nano applications. These advantages contribute to a growing demand for laser technology in micro and nanodevice fabrication.

Laser Technology Market Trends

Rising Demand for Laser Technology in 3D Printing

Laser-enabled 3D printing, also known as laser sintering, utilizes a laser source to selectively fuse powdered materials, enabling the creation of components and objects. This technology is gaining traction across various sectors, including aerospace, automotive, and medicine, due to its high precision capabilities. Laser-powered additive manufacturing enables businesses to produce components with complex geometries using a wide range of materials. Moreover, laser technology in 3D printing facilitates the creation of intricate designs while minimizing waste and material usage during production. It enhances manufacturing processes by achieving higher accuracy and stronger builds, thereby improving efficiency and flexibility.

With the increasing adoption of laser technology in 3D printing, several companies are launching solutions to deliver stable and high-quality 3D printing using laser technology. For instance, in February 2022, Mitsubishi Electric Corporation (Japan) launched two models of the AZ600 wire-laser metal 3D printer. These printers utilize a laser beam to melt welding wire, resulting in high-quality 3D structures. Moreover, these printers reduce energy & resource consumption through shortened processing times and highly efficient production methods such as near-net-shape manufacturing and repair support. Such developments are expected to drive the growth of the laser technology market during the forecast period.

Laser Technology Market Opportunity

Utilization of Laser Technology in Robotics

Laser technology finds extensive utilization in robotics, serving as a critical component in various robotic applications. As the demand for diverse types of robots continues to rise, lasers have become integral to their functionality. Robots are equipped with multiple sensors for object detection and obstacle avoidance. These sensors utilize laser beams to detect objects and calculate distances accurately. Robots can precisely determine their proximity to other objects or surfaces by emitting laser beams and employing image processing techniques.

The robotics industry is experiencing significant growth, subsequently driving the growth of the laser technology market. Moreover, many companies are launching robotic solutions integrated with laser technology. For instance, in April 2024, Laserax Inc. (Canada) launched a new robotic cell to enhance the capabilities of its laser processes. The Laserax Robot Cell combines the precision of laser technology with the agility of robotics, enabling manufacturers to achieve complex processing angles on large parts. Thus, the increasing utilization of laser technology in robotics is expected to offer significant opportunities for the growth of this market.

Laser Technology Market Analysis: Key Findings

By Type: In 2024, the Solid-state Laser Segment to Dominate the Laser Technology Market

Based on type, the laser technology market is segmented into solid-state laser, gas laser, semiconductor laser, and liquid laser. In 2024, the solid-state laser segment is expected to account for the largest share of over 45.1% of the laser technology market. The segment's large market share can be attributed to the increasing number of surgeries performed using solid-state laser technology, the rising utilization of solid-state lasers for micromaterial processing, and the growing adoption of YAG lasers for high-power applications.

However, the semiconductor laser segment is expected to register the highest CAGR during the forecast period. This segment’s growth is driven by factors such as the increasing utilization of semiconductor lasers due to their higher reliability, compact size, low power consumption, and high efficiency, the rising adoption of semiconductor lasers in the healthcare sector for a wide range of applications, including cosmetic procedures, medical diagnosis, and therapies, and the rising demand for semiconductor lasers, particularly laser diodes such as Vertical-Cavity Surface-Emitting Lasers (VCSELs), in smartphones for sensing applications.

By Application: In 2024, the Laser Processing Segment to Dominate the Laser Technology Market

Based on application, the laser technology market is segmented into laser processing, optical communications, and other applications. In 2024, the laser processing segment is expected to account for the largest share of over 58.5% of the laser technology market. This segment’s large market share can be attributed to the advantages offered by laser processing over conventional processing technologies, the rising number of laser-based surgeries, and the growing demand for high-precision, flexibility, and quality during material processing.

However, the optical communications segment is expected to register the highest CAGR during the forecast period. This segment’s growth is driven by factors such as the increasing demand for VCSELs for data transmission, driven by the proliferation of digital solutions requiring high-speed and efficient data transmission and the growing utilization of laser technology in hyperscale data centers to reduce power consumption and enable low-latency, high-performance computing capabilities.

By End User: In 2024, the Industrial Segment to Dominate the Laser Technology Market

Based on end user, the laser technology market is segmented into industrial, semiconductor & electronics, automotive, telecommunications, aerospace & defense, healthcare, commercial, and other end users. In 2024, the industrial segment is expected to account for the largest share of over 21.1% of the laser technology market. This segment’s large market share can be attributed to the increasing adoption of laser technology in industrial settings for achieving high accuracy in cutting, welding, and marking tasks. Additionally, laser technology enables non-contact processing, which reduces wear and tear on machinery and eliminates the need for physical tooling. Moreover, laser technology ensures consistent quality across production batches, thereby reducing defects and enhancing overall product quality.

However, the healthcare segment is projected to register the highest CAGR during the forecast period. This segment’s growth is driven by factors such as the increasing adoption of lasers for a wide range of applications, including cosmetic procedures, medical diagnosis, and therapies, the rising utilization of laser technology for treating cutaneous malignancies and primary skin diseases, and the growing availability of cost-effective laser treatments.

Geographical Analysis

In 2024, Asia-Pacific to Dominate the Laser Technology Market

In 2024, Asia-Pacific is expected to account for the largest share of over 46.5% of the laser technology market. Asia-Pacific’s significant market share can be attributed to the rising manufacturing activities in countries such as China, Japan, South Korea, and India, the large consumer electronics and automobile markets in China, and the proliferation of data centers, resulting in the substantial demand for fiber lasers.

However, the market in North America is projected to register the highest CAGR of over 10.0% during the forecast period. The growth of this regional market is driven by factors such as the increasing utilization of laser technology in healthcare for procedures such as cosmetic surgeries, dermatology treatments, and ophthalmology; the rising integration of laser technology across manufacturing, automotive, and aerospace sectors to enhance processing capabilities and precision; and the increasing adoption of laser technology within the defense sector, particularly in applications like laser weaponry, energy systems, and defense equipment.

Laser Technology Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the laser technology market are Coherent, Inc. (U.S.), IPG Photonics Corporation (U.S.), TRUMPF GmbH + Co. KG (Germany), Lumentum Holdings Inc. (U.S.), Jenoptik AG (Germany), Novanta Inc. (U.S.), LUMIBIRD Group (France), LaserStar Technologies Corporation (U.S.), Epilog Laser (U.S.), Han's Laser Technology Industry Group Co., Ltd. (China), MKS Instruments, Inc. (U.S.), Gravotech Marking (France), Corning Incorporated (U.S.), Eurolaser GmbH (Germany), and Bystronic Laser AG (Switzerland).

Laser Technology Industry Overview: Latest Developments from Key Industry Players

• In February 2024, BIOLASE, Inc. (U.S.) launched its state-of-the-art all-tissue laser system, namely, Waterlase iPlus Premier Edition. This innovative approach provides clinicians with customized packages of procedures designed to ensure that practitioners invest in the capabilities they need today while allowing easily added features as the clinician expands their practice.

• In January 2024, Iridex Corporation (U.S.) launched two new next-generation platform lasers such as Iridex 532 nm and Iridex 577 nm to the U.S. market. Iridex’s patented technology is a laser delivery modality designed to add fine control of photothermal effects in laser photocoagulation by allowing the tissue to cool between laser pulses, minimizing or preventing potential tissue damage.

• In February 2023, Rhein Laser Technologies Ltd. (China) launched UroFiber 150Q, which is the first 150W SuperPulsed thulium fiber laser (TFL) system, an innovative fiber laser technology for treating both stone lithotripsy and BPH enucleation.

Laser Technology Market Research Summary

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