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Laser Processing Market Report Scope & Overview:

The Laser Processing Market Size was valued at USD 6.2 billion in 2023 and is expected to reach USD 13.38 billion by 2031 and grow at a CAGR of 10.1% over the forecast period 2024-2031.

Laser processing entails the utilization of lasers across a spectrum of industrial and commercial applications, encompassing tasks such as cutting, welding, and drilling. In addition to these operations, laser processing is instrumental in engraving, material processing, marking, and various micro-processing activities. Notably, laser technology offers several advantages over conventional methods like plasma, flame, and water jet. While water jet techniques are primarily utilized for structuring and ablation, plasma and flame technologies are predominantly employed for cutting purposes rather than engraving, marking, or drilling. Furthermore, water jet operations generate considerable noise, making them less suitable for material processing compared to laser technology, which executes these tasks with minimal noise pollution. The versatility of lasers extends to engraving and marking applications across a range of sectors including consumer goods, electronic components, and industrial machinery. This technology finds widespread use in industries such as automotive, aerospace, original equipment manufacturers (OEM), electronics, medical, packaging, and others. Collectively, these factors contribute to the global expansion of the laser processing market share.

Laser Processing Market Revenue Analysis

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MARKET DYNAMICS:

KEY DRIVERS:

  • Progression in laser-based techniques surpasses conventional material processing methods.

Laser-based techniques offer several advantages over conventional material processing methods in terms of precision, efficiency, and versatility. Unlike traditional approaches reliant on mechanical tools, lasers can achieve exceptionally fine details with pinpoint accuracy. This precision minimizes material wastage and enables the creation of intricate and complex designs. Furthermore, laser technology operates without direct physical contact with the material, reducing wear on tools and eliminating the need for such contact. This non-contact nature contributes to faster processing speeds, leading to higher production rates and enhanced efficiency. Additionally, laser processing results in minimal heat-affected zones, reducing the risk of thermal damage to the material, which is particularly advantageous for delicate materials or applications requiring utmost precision. Lasers are utilized for a wide range of tasks including cutting, drilling, marking, engraving, welding, etching, and micro-machining, offering superior accuracy and speed compared to traditional tools such as saw machines, drill bits, chemicals, or electricity.

RESTRAINTS:

  • Insufficiently skilled labor.

A shortage of trained personnel presents a significant obstacle to the growth of the laser processing market. The specialized nature of laser systems demands skilled professionals proficient in operating, maintaining, and optimizing these advanced technologies. Acquiring and retaining skilled labor incurs expenses related to recruitment and training. However, there is a scarcity of individuals possessing the requisite training and qualifications to effectively manage laser-based processes across various industries. This deficiency in skilled personnel hampers the seamless integration and utilization of laser technology, constraining its potential impact on sectors such as manufacturing, healthcare, and research.

OPPORTUNITIES:

  • Automation is becoming more prevalent in the manufacturing sector.

  • A growing number of application areas are being explored.

  • Custom marking and engraving are in high demand.

Automation, integrating various technologies to perform tasks without human intervention, is increasingly becoming a staple in the manufacturing industry. This trend is driven by several factors, including advancements in robotics, artificial intelligence, and machine learning. By automating repetitive and labor-intensive processes, manufacturers can significantly improve efficiency, productivity, and consistency while reducing labor costs. Automation also enhances safety by minimizing the risk of accidents in hazardous environments. Moreover, automation allows for greater flexibility and scalability in production, enabling manufacturers to adapt to changing market demands quickly. Overall, the widespread adoption of automation is reshaping the manufacturing landscape, leading to more streamlined and efficient operations.

CHALLENGES: 

  • Environmental obstacles linked to the application of rare earth elements

The utilization of rare earth elements (REEs) in laser processing raises environmental concerns due to potential negative impacts associated with their extraction, processing, and disposal. REEs, such as neodymium and dysprosium, play crucial roles in the production of certain types of lasers, particularly solid-state lasers utilized in various applications. However, mining and processing of REEs often result in environmental degradation, habitat disruption, and the release of hazardous substances into ecosystems. Additionally, extraction and separation processes can lead to soil and water contamination, posing risks to human health and wildlife. Refining procedures involving toxic acids may cause severe environmental damage if mishandled.

IMPACT OF RUSSIAN-UKRAINE WAR

The Russia-Ukraine crisis has far-reaching effects across various sectors, including the laser processing market, primarily due to disruptions in global markets for critical raw materials and heightened geopolitical tensions. This crisis has led to significant disturbances in global markets, impacting the availability and pricing of materials like aluminum, nickel, and palladium, which are vital for modern manufacturing, including the production of laser processing equipment. Moreover, the escalation in geopolitical tensions and economic sanctions has prompted a reassessment of corporate strategies, with many companies, especially those from Western nations, downsizing their operations in Russia, potentially influencing the global footprint of major foreign entities in the region and affecting the laser processing market. Additionally, the crisis has resulted in an upsurge in defense expenditure in bordering and former Eastern bloc nations, indirectly impacting the laser processing market by fostering increased demand in sectors associated with defense and security. In summary, the Russia-Ukraine crisis presents significant implications for the laser processing market, characterized by disruptions in critical raw material supply chains, shifts in corporate strategies due to geopolitical tensions, and changes in defense spending. Companies in the laser processing sector may need to adeptly navigate these challenges by diversifying their supply chains, reassessing market strategies, and accommodating shifts in demand within related sectors.

IMPACT OF ECONOMIC SLOWDOWN

The ongoing economic deceleration has impacted the laser processing sector in diverse ways. The pandemic-induced economic turmoil, coupled with supply chain disruptions and intermittent lockdowns, has significantly disrupted manufacturers operating in laser processing. These disruptions, compounded by geopolitical tensions, curtailed market expansion in 2020. Nevertheless, as the market rebounds from the pandemic's effects, growth trajectories are anticipated to differ across regions, with certain countries presenting considerable growth opportunities while others exhibit limited profit margins. Advancements in technologies like Artificial Intelligence and machine learning are poised to fuel demand and broaden the scope of applications for laser processing, thereby contributing to market expansion in the forecast period.

The global laser technology market, encompassing laser processing, is experiencing robust growth propelled by increased adoption and demand across various industries, the inherent advantages of laser technology over traditional processing methods, and the burgeoning production of nanodevices and microdevices. Nonetheless, the market faces challenges such as the substantial deployment costs associated with laser technology and a shortage of skilled personnel.

MARKET SEGMENTATION:

BY PRODUCT

  • Gas Lasers

  • Liquid Lasers

  • Solid Lasers

  • Others

BY TYPE

  • Moving beam

  • Fixed beam

  • Hybrid beam

BY CONFIGURATION

  • Laser Cutting and Engraving Configuration

  • Laser Processing Configuration

BY APPLICATION

  • Cutting

  • Welding

  • Microprocessing

  • Drilling

  • Marking & Engraving

  • Additive manufacturing

  • Others

The market segmentation is based on various applications including Cutting, Welding, Microprocessing, Drilling, Marking & Engraving, Additive manufacturing, and Others. Currently, Marking & Engraving stand out as the predominant application areas for lasers due to their maintenance-free, flexible, and precise nature, thus preventing further market opportunities for laser technologies. Industries such as electronics/semiconductors, medical, aerospace, automotive, consumer products, gifts & trophies, and food & beverage commonly employ lasers for marking & engraving purposes.

Laser Processing Market By Application

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BY END-USER INDUSTRY

  • Microelectronics

  • Aerospace & Defense

  • Automotive

  • Machine Tools

  • Micromachining

  • Medical & Life Sciences

  • Architecture

  • Others

REGIONAL ANALYSIS:

The Asia Pacific region is divided into China, Japan, South Korea, India, and the Rest of Asia Pacific, constituting the largest market for laser processing. Japan and India are notable for being the world's fastest-growing economies. In comparison to other regions, APAC has been at the forefront of adopting laser processing solutions. Factors such as high population density, increasing investments in technology-related research and development, and a burgeoning manufacturing and electronics sector are anticipated to propel the growth of the laser processing market in the region. Moreover, the presence of key industry players and the region's status as a manufacturing hub facilitates the production and distribution of laser processing products.

In North America, the Laser Processing Market is poised for rapid growth. This growth is attributed to the superior precision, dimensional stability, minimal heat affected zones, and thin cut kerfs achieved through laser processing, prompting its rapid expansion.

Laser Processing Market By Region

REGIONAL COVERAGE:​​​​​​​

North America

  • US

  • Canada

  • Mexico

Europe

  • Eastern Europe

    • Poland

    • Romania

    • Hungary

    • Turkey

    • Rest of Eastern Europe

  • Western Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Netherlands

    • Switzerland

    • Austria

    • Rest of Western Europe

Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Vietnam

  • Singapore

  • Australia

  • Rest of Asia Pacific

Middle East & Africa

  • Middle East

    • UAE

    • Egypt

    • Saudi Arabia

    • Qatar

    • Rest of Middle East

  • Africa

    • Nigeria

    • South Africa

    • Rest of Africa

Latin America

  • Brazil

  • Argentina

  • Colombia

  • Rest of Latin America

KEY PLAYERS:

The key players in the laser processing market are Bystronic Laser, Epilog Laser, Newport Corporation, LaserStar Technologies, Jenoptik Lase, Amand, Coherent, IPG Photonics Corporation, Prima Industries, The Needham Group & Other Players.

Epilog Laser-Company Financial Analysis

Company Landscape Analysis

RECENT DEVELOPMENT

In October 2022: Lumentum Holdings Inc. saw a surge in business operations in Slovenia, coupled with advancements in research and development focused on specialized optical fibers and associated products. Notably, the establishment includes a Center of Excellence dedicated to pioneering research and development endeavors aimed at creating pivotal laser component technologies and products.

In July 2022: IIVI Incorporated acquired Coherent, Inc., resulting in the formation of a global frontrunner in materials, networking, and laser technologies. The amalgamated entity is poised to serve diverse sectors including industrial, communications, electronics, and instrumentation markets.

Laser Processing Market Report Scope:

Report Attributes Details
Market Size in 2023 US$ 6.2 Billion
Market Size by 2031 US$ 13.28 Billion
CAGR CAGR 10.1% From 2024 to 2031
Base Year 2022
Forecast Period 2024-2031
Historical Data 2020-2022
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Product (Gas Lasers, Liquid Lasers, Solid Lasers, Others)
• By Type (Moving Beam, Fixed Beam, Hybrid Beam)
• By Configuration (Laser Cutting And Engraving Configuration, Laser Processing Configuration)
• By Application (Cutting, Welding, Microprocessing, Drilling, Marking & Engraving, Additive Manufacturing, Others)
• By End Use Industry (Microelectronics, Aerospace & Defense, Automotive, Machine Tools, Micromachining, Medical & Life Sciences, Architecture, Others)
Regional Analysis/Coverage North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America)
Company Profiles Bystronic Laser, Epilog Laser, Newport Corporation, LaserStar Technologies, Jenoptik Lase, Amand, Coherent, IPG Photonics Corporation, Prima Industries and The Needham Group.
Key Drivers • Progression in laser-based techniques surpasses conventional material processing methods.
Market Restraints • Insufficiently skilled labor.

Frequently Asked Questions

The Laser Processing Market was valued at USD 6.2 billion in 2023.

The expected CAGR of the global Laser Processing Market during the forecast period is 10.1%.

 The North America region is anticipated to record the Fastest Growing in the Laser Processing Market.

The Marking & Engraving segment is leading in the market revenue share in 2023.

The Asia-Pacific region with the Highest Revenue share in 2023.

TABLE OF CONTENTS

 

1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions

 

2. Industry Flowchart

 

3. Research Methodology

 

4. Market Dynamics

4.1 Drivers

4.2 Restraints

4.3 Opportunities

4.4 Challenges

 

5. Impact Analysis

5.1 Impact of Russia-Ukraine Crisis

5.2 Impact of Economic Slowdown on Major Countries

5.2.1 Introduction

5.2.2 United States

5.2.3 Canada

5.2.4 Germany

5.2.5 France

5.2.6 UK

5.2.7 China

5.2.8 Japan

5.2.9 South Korea

5.2.10 India

 

6. Value Chain Analysis

 

7. Porter’s 5 Forces Model

 

8.  Pest Analysis

 

9. Active Pharmaceutical Ingredient Market, By Product

9.1 Introduction

9.2 Trend Analysis

9.3 Gas Lasers

9.4 Liquid Lasers

9.5 Solid Lasers

9.6 Others

10. Active Pharmaceutical Ingredient Market, By Type

10.1 Introduction

10.2 Trend Analysis

10.3 Moving beam

10.4 Fixed beam

10.5 Hybrid beam

11. Active Pharmaceutical Ingredient Market, By Configuration

​​​​​​​11.1 Introduction

11.2 Trend Analysis

11.3 Laser Cutting and Engraving Configuration

11.4 Laser Processing Configuration

12. Active Pharmaceutical Ingredient Market, By Application

12.1 Introduction

12.2 Trend Analysis

12.3 Cutting

12.4 Welding

12.5 Microprocessing

12.6 Drilling

12.7 Marking & Engraving

12.8 Additive manufacturing

12.9 Others

13. Active Pharmaceutical Ingredient Market, By End-User Industry

13.1 Introduction

13.2 Trend Analysis

13.3 Microelectronics

13.4 Aerospace & Defense

13.5 Automotive

13.6 Machine Tools

13.7 Micromachining

13.8 Medical & Life Sciences

13.9 Architecture

13.10 Others

14. Regional Analysis

14.1 Introduction

14.2 North America

14.2.1 USA

14.2.2 Canada

14.2.3 Mexico

14.3 Europe

14.3.1 Eastern Europe

14.3.1.1 Poland

14.3.1.2 Romania

14.3.1.3 Hungary

14.3.1.4 Turkey

14.3.1.5 Rest of Eastern Europe

14.3.2 Western Europe

14.3.2.1 Germany

14.3.2.2 France

14.3.2.3 UK

14.3.2.4 Italy

14.3.2.5 Spain

14.3.2.6 Netherlands

14.3.2.7 Switzerland

14.3.2.8 Austria

14.3.2.9 Rest of Western Europe

14.4 Asia-Pacific

14.4.1 China

14.4.2 India

14.4.3 Japan

14.4.4 South Korea

14.4.5 Vietnam

14.4.6 Singapore

14.4.7 Australia

14.4.8 Rest of Asia Pacific

14.5 The Middle East & Africa

14.5.1 Middle East

14.5.1.1 UAE

14.5.1.2 Egypt

14.5.1.3 Saudi Arabia

14.5.1.4 Qatar

14.5.1.5 Rest of the Middle East

14.5.2 Africa

14.5.2.1 Nigeria

14.5.2.2 South Africa

14.5.2.3 Rest of Africa

14.6 Latin America

14.6.1 Brazil

14.6.2 Argentina

14.6.3 Colombia

14.6.4 Rest of Latin America

 

15. Company Profiles

15.1 Bystronic Laser

15.1.1 Company Overview

15.1.2 Financial

15.1.3 Products/ Services Offered

15.1.4 SWOT Analysis

15.1.5 The SNS View

15.2 Epilog Laser

15.2.1 Company Overview

15.2.2 Financial

15.2.3 Products/ Services Offered

15.2.4 SWOT Analysis

15.2.5 The SNS View

15.3 Newport Corporation

15.3.1 Company Overview

15.3.2 Financial

15.3.3 Products/ Services Offered

15.3.4 SWOT Analysis

15.3.5 The SNS View

15.4 LaserStar Technologies

15.4.1 Company Overview

15.4.2 Financial

15.4.3 Products/ Services Offered

15.4.4 SWOT Analysis

15.4.5 The SNS View

15.5 Jenoptik Lase

15.5.1 Company Overview

15.5.2 Financial

15.5.3 Products/ Services Offered

15.5.4 SWOT Analysis

15.5.5 The SNS View

15.6 Amand

15.6.1 Company Overview

15.6.2 Financial

15.6.3 Products/ Services Offered

15.6.4 SWOT Analysis

15.6.5 The SNS View

15.7 Coherent

15.7.1 Company Overview

15.7.2 Financial

15.7.3 Products/ Services Offered

15.7.4 SWOT Analysis

15.7.5 The SNS View

15.8 IPG Photonics Corporation

15.8.1 Company Overview

15.8.2 Financial

15.8.3 Products/ Services Offered

15.8.4 SWOT Analysis

15.8.5 The SNS View

15.9 Prima Industries,

15.9.1 Company Overview

15.9.2 Financial

15.9.3 Products/ Services Offered

15.9.4 SWOT Analysis

15.9.5 The SNS View

15.10 The Needham Group

15.10.1 Company Overview

15.10.2 Financial

15.10.3 Products/ Services Offered

15.10.4 SWOT Analysis

15.10.5 The SNS View

16. Competitive Landscape

16.1 Competitive Benchmarking

16.2 Market Share Analysis

16.3 Recent Developments

            16.3.1 Industry News

            16.3.2 Company News

            16.3.3 Mergers & Acquisitions

 

17. Use Case and Best Practices

 

18. Conclusion

An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of good and accurate research report and selecting the best methodology to compete the research is the toughest part. Since the research reports we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach at a stage wherein we can provide our clients best and accurate investment to output ratio.

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The 5 steps process:

Step 1: Secondary Research:

Secondary Research or Desk Research is as the name suggests is a research process wherein, we collect data through the readily available information. In this process we use various paid and unpaid databases which our team has access to and gather data through the same. This includes examining of listed companies’ annual reports, Journals, SEC filling etc. Apart from this our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various university as well as individual libraries.

Secondary Research

Step 2: Primary Research

When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data.  This type of research is focused on gaining content specific facts that can be sued to solve specific problems. Since the collected data is fresh and first hand therefore it makes the study more accurate and genuine.

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This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses and observation of on filed participants. The below mentioned chart should give a better understanding of the part 1 of the primary interview.

Primary Research

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Data Bank Validation

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