- Summary
- Table Of Content
- Methodology
Laser Processing Market Size:
Laser Processing Market size is estimated to reach over USD 47,239.31 Million by 2031 from a value of USD 21,394.13 Million in 2023 and is projected to grow by USD 23,388.21 Million in 2024, growing at a CAGR of 10.4% from 2024 to 2031
Laser Processing Market Scope & Overview:
The laser processing machines utilize high-powered laser energy for the creation of laser beams and with the help of optics the laser beams are focused to a particular spot in the material. The various types of machines include solid-state lasers, gas lasers, and semiconductor lasers. The aforementioned machines are used in various applications such as cutting, welding, engraving, drilling, and others. Moreover, the benefits offered include high precision &speed, versatility, and automation among others. The aforementioned benefits of laser processing are major determinants for increasing their deployment in automotive, consumer electronics, defense and aerospace, and other industries. Further, the growth of the smart factory initiative is propelling the market due to improved efficiency and consistency in the laser processing industry.
Laser Processing Market Dynamics - (DRO) :
Key Drivers:
Integration of Artificial Intelligence Drives Demand for Laser Processing Market Growth
The laser processing system has the potential to significantly advance several different fields with the integration of artificial intelligence into the system. Moreover, artificial intelligence helps in improving efficiency, enhancing automation, and improving decision-making which in turn enhances the accuracy of laser technology with the power of artificial intelligence. Further, the improved efficiency and productivity with the integration of artificial intelligence into laser machines is driving the laser processing market growth.
- For instance, in June 2023, TRUMPF developed an AI application for a laser processing system. The AI application aims to make manufacturing even more efficient and reduces rework and scrap. Additionally, the AI application deployed into machines increases the efficiency of electric car manufacturing.
Therefore, the integration of artificial intelligence is driving the laser processing market demand.
Key Restraints :
Limitation on Material Consideration is Restraining the Market Growth
The laser processing machine has limitations in material selection as systems are not suitable for materials such as soft, fragile, and highly reflective. Further, the primary factor hindering the material consideration in the market is the conductivity and viscosity of metal in a liquid state. Additionally, the efficiency of the machine is affected by the material thickness. The different size of the material used for various laser processes increases the efforts and power consumption hampering the overall operation.
Thus, the limitation of material selection and conductivity and viscosity of metal hinders the laser processing market expansion.
Future Opportunities :
The Healthcare Industry is Expected to Promote Potential Opportunities for Market Growth
In medical device manufacturing the increasing need for small-scale parts to fit in the production process is propelling the need for high-quality laser machines. Additionally, the system is used for manufacturing various medical devices including specialty needles, metal shafts, helix weld coils, and hypo tubes among others. Further, the surging demand for high-quality and high-reliability precision laser welding in medical device manufacturing is driving the laser processing market opportunity.
- For instance, in February 2024, Coherent Corp. launched the ExactWeld 410 laser welding system. The machine is ideal for medical device manufacturing and aims to improve patient quality of life and longevity.
Thus, the surging demand for high-quality and high-reliability precision lasers as well as the increasing need for small-scale parts is fueling the laser processing market opportunity.
Laser Processing Market Segmental Analysis :
By Type:
Based on the type, the market is segmented into solid-state lasers, gas lasers, fiber lasers, semiconductor lasers, and others.
Trends in the type:
- The trend towards integration of artificial intelligence and machine learning into fiber laser cutting systems to improve efficiency and reduce downtime.
- The need for increasing cutting speed and reduced power consumption is propelling the demand for solid-state lasers which in turn is driving the laser processing market trend.
The Gas Laser accounted for the largest revenue share in the year 2023.
- The gas laser uses electric current for the generation of light and the process is known as population inversion. Further, the gas laser machines are used for laser marking, laser cutting, and laser welding.
- Additionally, the various types of gas used in the gas laser include carbon dioxide (CO2), helium-neon, argon, krypton, and excimer. Moreover, they are utilized in holography, spectroscopy, air pollution measurements, and other applications.
- Further, the primary factor driving the progress of gas lasers is the ability to generate a uniform flow of gas medium with less loss.
- For instance, in October 2021, Mitsubishi Electric Corporation launched CV Series models which is a 3D CO2 laser processing systems. The machine is ideal for cutting carbon fiber reinforced plastics (CFRP) and high-tensile steel used in automotive industries.
- Thus, as per the analysis, the ability to generate a uniform flow of gas medium with less loss is driving the gas laser processing market share.
The Fiber laser is anticipated to register the fastest CAGR during the forecast period.
- The fiber laser utilizes the heat of the fiber laser for melting and removing the workpiece material. Additionally, the fiber laser produces a narrow beam which helps in improving accuracy.
- Moreover, the benefits of fiber lasers include a small footprint, good electrical efficiency, low maintenance, and low operating costs.
- Further, the automation and integration of fiber lasers into the manufacturing process are propelling the development of fiber lasers.
- For instance, in November 2024, IPG Photonics Corporation launched Advanced Dual-Beam Fiber Lasers. The machine is ideal for additive manufacturers with improved precision, efficiency, and reliability.
- Therefore, the automation and integration of fiber lasers into the manufacturing process is anticipated to boost the progress of the market during the forecast period.
By Configuration:
Based on the configuration, the market is segmented into fixed beam, moving beam, and hybrid beam.
Trends in the Configuration:
- The trend towards high precision with real-time adjustment of the laser beam is driving the demand for moving beams.
- The increasing need for customizable laser beams is propelling the need for hybrid beams in healthcare applications.
The Moving Beam accounted for the largest revenue share of 51.33% in the year 2023.
- The primary key factor driving the adoption of moving beam is the ability to adjust the beam as per the workstation in various industries as per the requirement.
- Moreover, moving beams allow easy movement on material with complex designs and shapes. Additionally, the beam offers high speed and efficiency in covering large areas propelling the development of a moving beam.
- For instance, in June 2023, Coherent Corp. launched a HIGHmotion 2D laser head. The laser welding head is ideal where processing heads need to move quickly around the workpiece for welding tasks in electric vehicle manufacturing applications.
- Thus, the ability to move the beam as per the workpiece and cover large areas is driving the moving beam configuration of the laser processing market.
The Hybrid beam is anticipated to register the fastest CAGR during the forecast period.
- The primary key factor driving the adoption of hybrid beams is the ability to fix or move the beam as per the workstation in various industries as per the requirement.
- Further, the hybrid beam allows a high level of precession in various applications such as welding, cutting, and engraving among others.
- For instance, in September 2024, Laser Zentrum Hannover e.V. developed Hybrid laser arc welding. The machine is designed to provide a high deposition rate and a high welding speed which in turn increases efficiency.
- Therefore, according to the laser processing market analysis, the ability to fix or move the beam of the hybrid beam is anticipated to boost the evolution of the market during the forecast period.
By Application:
Based on the application, the market is segmented into cutting, welding, engraving, drilling, and others.
Trends in the Application:
- The trend towards reducing fume emissions and the shift of businesses towards sustainability is fueling the need for laser processing systems in welding applications.
- The adoption of laser welding machines in aircraft for precise laser weld is propelling the welding application.
The Cutting accounted for the largest revenue share in the year 2023.
- Laser cutting machines play a crucial role in the cutting application by providing high-quality cuts with improved efficiency and accuracy. The benefits include low cost, high precision, high accuracy, and others.
- Further, the growing need for laser cutting machines in the healthcare industry is propelling the progress of cutting applications. Furthermore, surgical and medical instruments require high cutting precision driving the adoption of cutting applications.
- For instance, in November 2022, Laserage, one of the brands of AMETEK Engineered Medical Components (EMC) launched a laser cutting and CNC machining solution. The solution is ideal for the medical device market.
- Thus, the rising adoption in the healthcare industry is driving the laser processing market share for cutting applications.
The Engraving is anticipated to register the fastest CAGR during the forecast period.
- The laser machine for engraving application is the process of engraving permanent and deep marks on the material with precision for product identification and traceability.
- Further, the materials on which the laser engraving is performed include plastic, metal, wood, and others.
- Furthermore, the rising adoption of creating vehicle identification plates and tags in automobile industries is driving the need for laser machines for engraving applications.
- For instance, in July 2024, Laser Photonics Corporation launched MarkStar Handheld VIN, which is a laser marking and engraving machine. The machine is ideal for the automotive industry due to its safe and reliable solution.
- Therefore, as per the analysis, the rising adoption in the automotive sector is boosting the development of the market during the forecast period.
By End-User:
Based on the end-user, the market is segmented into automotive, consumer electronics, defense and aerospace, industrial, and others.
Trends in the End-User:
- The rising adoption of laser cutting machines in surgical and medical device manufacturing due to the high level of precision and accuracy is fueling the laser processing market expansion.
- The miniaturization of various electronic components is driving the need for machines in the consumer electronics sector.
The Automotive accounted for the largest revenue share in the year 2023.
- The automotive sector utilizes laser machines for various applications such as welding, engraving, and others on various components of vehicles such as engines, motors, inverters, and sensors among others.
- Further, the spurring innovations in process automation and improvements in laser usability are driving the need for laser machines in the automotive sector.
- For instance, in May 2023, Coherent Corp. launched HIGHtactile, which is a laser welding head. The machine is ideal for electric vehicle manufacturing applications.
- Thus, the spurring innovations in process automation and improvements in laser usability are driving the automotive sector.
The Consumer Electronics is anticipated to register the fastest CAGR during the forecast period.
- The machines are used in various consumer electronics applications such as OLED and LCD panels among others.
- Moreover, the rising need for reducing chemical waste in consumer electronics manufacturing is driving the laser processing market demand.
- The rapid innovation in the industry with the integration of artificial intelligence and machine learning into the machine is driving the development of the market for the consumer electronics sector.
- For instance, In June 2023, NUBURU, Inc. introduced NUBURU BL-1000-F which is a laser processing machine for 3D printing and the consumer electronics sector.
- Therefore, as per the analysis, the integration of artificial intelligence and machine learning into the laser machine is anticipated to boost the progress of the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 5,563.72 Million in 2023. Moreover, it is projected to grow by USD 6,098.56 Million in 2024 and reach over USD 12,679.03 Million by 2031. Out of this, China accounted for the maximum revenue share of 32.8%. As per the laser processing market analysis, the growing consumer electronics and automotive sectors are the primary factors fueling the laser processing market size. Additionally, the integration of artificial intelligence and machine learning into the system is driving the market. Moreover, the growing adoption of electric vehicles is propelling the need for laser machines for welding and engraving driving the market evolution.
- For instance, in May 2022, Yamazaki Mazak based out in Japan, launched FG-400 NEO, which is a 3D fiber laser cutting machine. The machine is designed for steel manufacturers and offers high productivity and energy conversion.
North America is estimated to reach over USD 14,833.14 Million by 2031 from a value of USD 6,715.80 Million in 2023 and is projected to grow by USD 7,341.93 Million in 2024. Moreover, the growth of the automotive and aerospace sectors is boosting the need for laser machines. Additionally, the growth of smart manufacturing is propelling the growth of the laser processing market in the North American region.
- For instance, in March 2022, Mazak Optonics announced the inauguration of a laser technology center in North America. The facility aims to increase the company's reach and enhance customer support across the globe.
The regional trends analysis depicts that the increasing focus on reducing carbon emissions in various industries such as automotive, healthcare, consumer electronics, and others in Europe is driving the laser processing market size. Additionally, the primary factor driving the market in the Middle East and African region is the growing focus on automation and quality control in the manufacturing sector. Further, the evolution of laser machines with the integration of artificial intelligence is paving the way for the progress of laser processing market trends in the Latin America region.
Top Key Players & Market Share Insights:
The global laser processing market is highly competitive with major players providing Laser machines to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the laser processing industry. Key players in the laser processing market include -
- Mitsubishi (Japan)
- TRUMPF (Germany)
- Tanaka Holding Co., Ltd. (Japan)
- Messer Cutting Systems GmbH (Germany)
- Han's Laser Technology Industry Group Co., Ltd. (China)
- Bystronic Group (Switzerland)
- Aamda Co. Ltd. (Japan)
- Coherent Inc. (U.S)
- Prima Industries (Finland)
- Yamazaki Mazak (Japan)
Recent Industry Developments :
Product launches
- In October 2024, nLIGHT, Inc. launched nfinity and ProcessGUARD to provide access to superior laser cutting and welding technologies. The machines aim to support the increasing requirement in advanced metal fabrication.
- In July 2023, Yamazaki Mazak launched the OPTIPLEX 3015 NEO 2D laser machine, which is ideal for sheet metal cutting operations. Additionally, the machine features flash cutting and fine power ramping which enhances the overall process.
Mergers & Acquisitions
- In August 2024, WEC Group acquired Laser Profiles Ltd. The acquisition aims to extend companies reach across the UK and reinforce its market-leading position in the contract manufacturing sector.
- In January 2024, Manitou Group acquired a 75% stake in COME S.R.L and Metal Work S.R.L. The acquisition aims to integrate the manufacturing of strategic components as both companies specialize in mechanically welded parts and laser cutting and folding.
Partnerships & Collaborations
- In July 2024, TRUMPF partnered with SiMa.ai. The partnership aims to develop lasers with artificial intelligence (AI) and equip the laser systems of TRUMPF with AI technology.
Laser Processing Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 47,239.31 Million |
| CAGR (2024-2031) | 10.4% |
| By Type |
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| By Configuration |
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| By Application |
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| By End-User |
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| By Region |
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| Key Players |
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| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the laser processing market? +
The Laser Processing Market size is estimated to reach over USD 47,239.31 Million by 2031 from a value of USD 21,394.13 Million in 2023 and is projected to grow by USD 23,388.21 Million in 2024, growing at a CAGR of 10.4% from 2024 to 2031.
What specific segmentation details are covered in the laser processing report? +
The laser processing report includes specific segmentation details for type, configuration, application, end-use, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the laser processing market, the hybrid beam is the fastest-growing segment during the forecast period due to the ability to fix or move the beam as per the workstation in various industries.
Who are the major players in the laser processing market? +
The key participants in the laser processing market are Mitsubishi (Japan), TRUMPF (Germany), Bystronic Group (Switzerland), Aamda Co. Ltd. (Japan), Coherent Inc. (U.S), Prima Industries (Finland), Yamazaki Mazak (Japan), Tanaka Holding Co., Ltd. (Japan), Messer Cutting Systems GmbH (Germany), Han's Laser Technology Industry Group Co., Ltd. (China) and others.
What are the key trends in the laser processing Market? +
The laser processing market is being shaped by several key trends including increasing utilization in the automotive and consumer electronics industry and increasing need for high-quality cuts, welds, engraves and others, as well as a trend toward rising adoption in the healthcare sector for surgical equipment manufacturing, are the key trends driving the market.
