Global Laser Processing Market to Reach $15.9 Billion by 2024

Laser processing has become an integral part of several industrial applications. LASER, an acronym for Light Amplification by the Stimulated Emission of Radiation, is a light technology that differs from ordinary light as it comprises monochromatic and coherent photons of energy. Also unlike ordinary light, laser light has the ability to focus onto a small spot owing to the laser beams extremely low divergence characteristic. Due to its high power density, laser beam is widely used for processing of various types of materials.

Laser processing system refers to a machine, which is an assembly of electrical, mechanical, and optical components including the laser source and/or medium used to emit the laser light. Laser light features unique properties high temporal coherence, collimation and monochromaticity, which differentiates it from other sources of light. Laser systems are designed to use light generated through electromagnetic radiation to enable material processing activities such as, cutting, welding, lithography, and engraving. These systems are highly flexible and effective, with process speeds much quicker than other conventional machine tools. Laser systems are used in macro and micro material processing as well as marking and engraving applications. While macro processing applications include cutting, welding, drilling and marking, micro processing applications include micromachining and microfabrication of semiconductors printed circuit boards, and electronic components, among others. Laser cutting, laser welding, hybrid laser welding, laser marking, laser drilling, laser cladding, laser brazing, and laser cleaning are among the various types of laser processes. Though a variety of lasers have been developed over the years, only a few types are used in materials processing applications. Each of the laser variants differs in various terms such as beam quality and laser beam wavelength.

Amid the COVID-19 crisis, the global market for Laser Processing is projected to reach US$15.9 Billion by 2024, registering a compounded annual growth rate (CAGR) of 7.6% over the analysis period. China represents the largest regional market for Laser Processing, accounting for an estimated 24.9% share of the global total. The market is projected to reach US$4.9 Billion by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 10.3% over the analysis period.

Given the important role played by lasers, the laser processing market is poised to witness robust growth in the coming years. The growing use of solid and gas in drilling, cutting, engraving & marking applications and the escalating demand for lasers from varied end-use industry verticals is driving growth in the laser processing market. The growing demand for high quality products and increasing needs of medical and industrial applications are fueling growth in the market. In particular, medical sector offers tremendous growth potential for laser processing market, due to the need for high precision to manufacture extremely complex components for patient care devices. The growing use of laser drilling to form accurate holes in liquid and gas flow delivery devices are also spurring demand for laser processing in the medical industry. Other medical products using laser processing include balloons, angioplasty and flexible tubing and filtering devices. Another technique with significance in medical device manufacturing is laser welding. Since the process results in the formation of clean, strong and appealing welds, the laser welding process is considered ideal for use in medical devices where heat sensitive assemblies are important due to their ability to reduce thermal distortion. Few medical products made using laser welding including pacemakers, surgical tools, ultra-fine wires and catheter tubing. Driven by the rising use of lasers in surgeries and medical devices, the market for laser processing is poised to witness high growth.

In addition to the medical industry, laser processing also finds growing application in automotive, semiconductor, aerospace and electronics industries. Laser processing is widely utilized in the manufacture of electronic components and parts. The growing use of laser technology in industrial sector for a range of material processing applications including welding, cutting, engraving and drilling is poised to fuel market growth, specifically in the machine tools application market. The rising needs of machine tools manufacturing and emerging applications in the fields of oil & gas and automotive industries are also expected to stimulate growth in the global laser processing market. For the automotive industry, laser cutting process is used in production operations due to its high processing speeds and the high quality of cutting edges. Also driving market growth is the escalating demand for wireless-enabled devices, mobile devices and telecom equipment, and growing the commercialization of laser-based photovoltaic (PV) modules with higher throughput, improved module efficiencies and reduced processing costs.