Laser Technology Market (2023 - 2030) Size, Share & Trends Analysis Report By Type (Solid-state Lasers, Gas Lasers, Liquid Lasers, Semiconductor Lasers), By Product, By Application, By Vertical, By Region, And Segment Forecasts

Laser Technology Market Summary

Technology offers high adaptability, productivity, sustainability, and accuracy levels. Technology is used on a large scale in certain healthcare applications, including laser eye surgery and developing new tools and prosthetics. These technological advantages are propelling the market for laser technology ahead. For instance, in January 2021, Lumentum Operations LLC acquired Coherent, Inc. in a cash and stock transaction. The acquisition combines Lumentum's top photonics businesses in Datacom, telecom, and 3D sensing with Coherent's renowned laser and photonics enterprises to create a unique photonics tech company with significantly increased market reach.

The use of 3D laser technologies, which are precise, accurate, and enable contamination-free procedures by design, has decreased the cost of producing prostheses while speeding up production. The material's surface is unaffected, and the UV laser leaves no raised markings. Laser technology has simultaneously allowed manufacturers to significantly increase their production capacity to meet constantly growing demands of hospitals and private care.

For instance, in February 2021, JENOPTIK AG's Light & Production Division announced a collaboration with 4JET Group, a developer of innovative laser systems. The partnership intends to drive the commercialization of cutting-edge laser prototyping technology. Through precise laser material processing, technology enables quick tire prototypes and eliminates tedious manual carving of tires, greatly shortening tire development cycles and lowering prototyping costs.

Advances in photonics technology, increased oil and gas demand, medical, favorable government investments, increased demand for lasers in military and defense sectors, and more applications are all driving up demand for laser technology. For instance, in March 2021, Lumibird, a developer of numerous laser technologies, acquired Saab AB, a Swedish aerospace and defense company, to take over its defense laser rangefinder business. The footprint of Lumibird Group in the European defense market is likely to have a positive impact. All of these measures help the market for laser technology to expand.

Market Dynamics

Laser technology has marked significant adoption across various industries and verticals due to its multitasking capabilities. It offers precise and versatile processing capabilities, enabling cutting, welding, marking, engraving, and surface treatment in manufacturing and industrial sectors. Performing multiple tasks with a single laser system improves operational efficiency, reduces production time, and enhances product quality. This multitasking capability has driven adoption of laser technology in industries and sectors such as automotive, aerospace, electronics, and medical devices.

Furthermore, laser technology plays a vital role in optical communication systems, offering high-speed data transfer capabilities over long distances. Lasers are used in fiber-optic networks to transmit and receive data, providing multitasking capabilities for voice, video, and data transmission. Growing demand for high-speed and reliable communication networks is driving adoption of laser technology in the telecommunication sector.

Laser technology's multitasking capabilities have significantly impacted research and development activities across various scientific disciplines. Lasers are used in spectroscopy, microscopy, material characterization, and scientific imaging, enabling scientists to perform multiple experiments and analyses with a single laser system. This multitasking capability accelerates research processes and facilitates breakthrough discoveries in physics, chemistry, biology, and materials science.

Type Insights

The semiconductor segment accounted for the largest revenue share of over 49% in 2022. The use of semiconductor lasers in industry, communications, and military has become increasingly important in modern society. Armed forces worldwide are adopting high-energy laser-based technology and making significant investments in research and development to expand defense budgets and research grants.

For instance, in September 2021, Freedom Photonics LLC announced the release of Aura, a new semiconductor optical amplifier product line and high-power diffraction-limited semiconductor laser. This unique, renowned technology provides a full order-of-magnitude boost in power.

Gas laser and solid-state laser are expected to have the fastest growth during the forecast period. The high share can be attributed to a growing demand for industrial applications. In addition, higher usage of solid-state lasers for laser marking systems is creating several opportunities for solid-state market.

For instance, in August 2020, LASEROPTEK Co., Ltd., a medical device company, announced the release of PALLAS, its Solid-State 311nm UVB laser, in the U.S. Food and Drug Administration (FDA) has cleared PALLAS laser for treating psoriasis, vitiligo, leukoderma, and atopic dermatitis.

Product Insights

The system segment accounted for the largest revenue share of over 75% in 2022, attributed to the increasing use of lasers for specialized marking and engraving across industries, including automotive, medical, aerospace, military, and packaging, and the rising demand for automation and high-end processing manufacturing applications. Various countries' governments are taking initiatives to contribute to the growth of industry. For instance, the Indian Defense Research and Development Organization (DRDO) is making best use of government facilities to take India's defense sector to the next level. India looks up to organizations such as DRDO's Centre for High Energy Systems and Sciences (CHESS). CHESS performs research and development on High Energy Laser Systems. The institution has been experimenting with Directed Energy Weapons (DEWs) to transform the nation's defense technology.

The increasing emphasis of industrialists and manufacturers on implementing laser technology in manufacturing processes and the industrial shift toward micro and nano technologies are some of the factors contributing to market growth. Increasing use in defense and ultra-short pulse lasers are emerging trends in laser technology market. Lasers have been gaining traction in the fashion industry, allowing designers to cut fabrics without burning them. Similarly, lasers in agriculture have driven the adoption of non-invasive technology for poultry farming and other applications.

Vertical Insights

The industrial segment accounted for the largest revenue share of over 19% in 2022. The increasing trend of automation in industries has increased demand for industrial lasers such as CO2 lasers, diode lasers, YAG lasers, and others due to their high efficiency, increased productivity, and precision. The need for laser processing is growing across several industries, including construction, manufacturing, electronics, automotive, industrial, and aerospace.

Additionally, the transition to electric vehicles in the automotive industry is creating numerous opportunities for industrial lasers. For instance, in July 2021, Furukawa Electric Co., LTD., Japanese electric and electronics equipment company introduced fiber-based industrial laser. Laser produces high-quality beams with time stability, high reliability, and effect.

The healthcare segment is expected to grow at the highest CAGR due to increased aesthetic operations, growing preference for minimally invasive procedures, and rising incidence of eye problems, driving demand for lasers in the healthcare sector. Furthermore, the increasing demand for lasers for several advanced medical treatments and the rising use of lasers in cutting-edge medical procedures are increasing demand for lasers in healthcare.

For instance, in July 2022, North-Eastern Hill University signed a Memorandum of Understanding (MoU) with CV Laser Pty Ltd, a medical device company, to establish innovation industries and start-ups in medical laser technology and healthcare.

Application Insights

The optical communications segment held the largest revenue share of over 30% in 2022. The significant growth is largely attributed to the increase in demand for Vertical-cavity surface-emitting lasers (VCSEL) for data transmission. High-speed and effective data transfer is requireddue to the proliferation of data centers worldwide and increasing digital solutions.

Furthermore, to reduce power consumption and enable low-latency and high-performance computing, hyperscale data centers use VCSELs as transceivers. For instance, in September 2022, Semtech Corporation, a provider of semiconductors and advanced algorithms, announced the release of GN1848. GN1848, quad 56GBd PAM4 Linear Vertical-Cavity Surface-Emitting Laser (VCSEL) driver, provides low-cost and cutting-edge performance for communication fiber.

Laser-processing segment is expected to grow at the highest CAGR during the forecast period. Expansion of lasers in medical devices and surgical applications is expected to drive growth. Rapid development of nanofabrication technology is also expected to help the growth of the global market. Due to several advantages over conventional material processing, the manufacturing industry has also boosted the adoption of laser technology, which is expected to be one of the key reasons driving industry’s growth. For instance, in January 2022, JENOPTIK AG introduced a new Votan laser-processing machine focused on the automotive industry. A standard modular version, Votan A+, complements existing customized machines for concise laser airbag weakening.

Regional Insights

Asia Pacific dominated the market in 2022, accounting for over 40% of global share. Rising R&D expenditures and notable developments in semiconductor and industrial sectors are anticipated to drive the industry’s expansion. The regional industry is also driven by a surge in demand for low-cost, quick-turnaround laser machining operations from electronics, industrial, telecommunications, and automotive verticals. Increased usage of consumer electronic gadgets is expected to drive demand for laser technology solutions over the forecast period.

North America is anticipated to register the fastest CAGR from 2023 to 2030. An increase in healthcare infrastructure and spending, an increase in cosmetic procedures, and a rise in the adoption of new technologies are the main factors influencing the growth of the market. In addition, presence of significant industry players with new product lines broadens the laser technology market in region.

For instance, in April 2022, Mazak Optonics Corporation announced the completion of its North America laser technology center expansion. The company's sizeable investment in North American operations aims to improve customer support further while maintaining its ability to offer customers cutting-edge laser-cutting and automation system solutions.

Key Companies & Market Share Insights

Various businesses are focusing on organic growth strategies such as product upgrades, product launches, and other aspects like events and patents. Acquisitions, partnerships, and collaborations were among the inorganic growth strategies observed in the market, and these activities have allowed market players and customer bases to grow. In November 2020, Kyocera, a Japanese electronics company, agreed to acquire full ownership of SLD Laser, creator of visible laser light sources for mobility, medical, automotive, specialty lighting, li-fi communication, sensing, and consumer applications. SLD Laser will begin operating as Kyocera Group company once regulatory authorities approve the agreement. Some prominent players in the global laser technology market include:

• Coherent, Inc. 

• TRUMPF GmbH + Co. KG

• Han's Laser Technology Industry Group Co., Ltd. 

• Lumentum Holdings Inc. 

• JENOPTIK AG

• Novanta Inc.

• LUMIBIRD

• Gravotech Marking 

• Corning Incorporated 

• Bystronic Laser AG

Laser Technology Market Report Scope

Global Laser Technology Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global laser technology market report based on type, product, application, vertical, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Solid-state Lasers

    • Fiber Lasers

    • Ruby Lasers

    • YAG Lasers

    • Thin-Disk Lasers

  • Gas Lasers

    • CO2 Lasers

    • Excimer Lasers

    • He-Ne Lasers

    • Argon Lasers

    • Chemical Lasers

  • Liquid Lasers

  • Semiconductor Lasers

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Laser

  • System

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Laser Processing

    • Macroprocessing

      • Cutting

      • Drilling

      • Welding

    • Microprocessing

  • Optical Communications

  • Optoelectronic Devices

  • Other Applications

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • Telecommunications

  • Industrial

  • Semiconductor & Electronics

  • Commercial

  • Aerospace & Defence

  • Automotive

  • Healthcare

  • Other End Users

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East and Africa (MEA)