The global semiconductor laser market size was estimated at USD 6.12 billion in 2015. The applications are spread in various segments including medical, microelectronics, machine tools, and automotive sectors. The fiber optic and high power diode variants are expected to play a key role in propelling the market growth in the next 8 years.
The leading strategic buyers in thesemiconductor lasermarket, with large cash reserves, stabilized financing environment for private equity, and an enhanced macro-environment, are anticipated to indulge in the surging M&A activities over the forecast period. In March 2016, Coherent, Inc. (U.S.), a prominent manufacturer for the scientific, commercial, and industrial customers, and Rofin-Sinar Technologies, Inc. (U.S.), a manufacturer of high-performance industrial solutions and components, had announced the approval of an agreement, under which Coherent would acquire Rofin for USD 32.50 per share in cash in a transaction valued closely around USD 942 million.
North America semiconductor laser market revenue by application, 2014 - 2024 (USD Million)
The substantial growth prospects of the market can be attributed to the surging demand for multiple applications and the preference of over other light sources. The launch of 3D printers has marked the emergence of another revolution in the architecture and healthcare era by enabling enhanced 3D prototyping in the architectural and maritime segments along with the fabrication of prosthetic limbs and several other life-sciences applications.
The surging government initiatives to develop novel applications of 3D printing for the healthcare industry, thereby sustaining the shortage of donated organs and increasing demand for organ transplantation, are some of the key factors driving the growth of the 3D printing equipment market and consecutively, the semiconductor laser market demand.
The communication segment is expected to remain the leading application over the next 8 years, owing to its higher efficiency and operational activity of specific diode types, such as of optical fibertype. The next generation systems have been designed to completely utilize the benefits of wavelength lasing and contemporary tuning dynamics.
The 3D printing systems are a solid testimony of revolution in the semiconductor laser segment, thereby allowing users to dynamically customize their designs and build real-life prototypes in the architecture and maritime industries. The customization of functioning prosthetic body organs by means of 3D printing in the healthcare segment has further propelled the growth verticals in dynamic life science vertical.
The optical storage application segment accounts for a major portion of the overall revenue market share that can be attributed to the growing usage of operationally efficient red, blue and green lasers variants.
Fiber optic and high power diode are the two major categories that dominate the market from the commercial aspect. The current market scenario portrays a broader market share acquired by the fiber optic and high power diode variants, which is expected to dominate over the forecast period. Communication, flat panel displays, connectivity, and photonics applications are projected to evolve as the major applications for the fiber optic semiconductor lasers.
The collaborations to achieve advanced technology licenses have evolved as a major trend amongst the manufacturers that directly affects the sales generated along with the overall goodwill generated. Advancements in technology, lesser operating costs, and improved edge quality & operating speeds are expected to open avenues for the use of this technology.
The Asia Pacific region is expected to witness an increase in demand, owing to the high industrialization and manufacturing in the region.
North America and Europe are anticipated to lose portion of the market to the Asia Pacific region. The market in Asia Pacific is expected to index the peak growth, owing to the significant demand from industrial machinery, display manufacturing, sensors manufacturing, and the healthcare industry.
The upcoming favorable initiatives by the U.S. Federal Government, in conjunction with International Electrotechnical Commission (IEC), are promoting the use of 3D printers in the healthcare sector with definite regulatory directives to be followed thereafter. These undertakings are anticipated to augment the industry growth over the forecast period.
The key industry participants include ASML Holding NV, Axcel Photonics Inc., Coherent Inc., IPG Photonics Corporation, Newport Corporation, Rofin-Sinar Technologies Inc., Trumpf GmbH + Co. KG, Sharp Corporation, and Sumitomo Electric Industries, Ltd.
The industry has observed surging M&A activities amongst manufacturers in aspiration to provide an enhanced product portfolio with high-power and proficient lasers at economical rates. In 2007, Laser Operations LLC (U.S.)’s subsidiary firm QPC Lasers collaborated with Northrop Grumman Corporation (U.S.) in order to achieve the integration of QPC's high-power semiconductor lasers.
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The exponential spread of COVID-19 worldwide has had an adverse impact on the semiconductor industry with manufacturing facilities temporarily shut, leading to a significant slowdown in the production. The outbreak could result in disruption across the ecosystem with several supply chain participants shifting their production facilities outside China, thereby reducing their over-reliance on China. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also hauled consumer demand for semiconductor devices. Our analysts predict a decline in semiconductor revenue by over 1% in 2020 as compared to that in 2019. The report will account for Covid19 as a key market contributor.
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