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The global laser processing equipment market size was valued at USD 22.4 billion in 2022. The market is projected to grow from USD 24.1 billion in 2023 to USD 48.2 billion by 2030, exhibiting a CAGR of 10.4% during the forecast period.
Laser processing is an advanced method of manufacturing products that uses primary laser processing machines to perform complex operations, such as metal cutting, welding, marking & engraving, punching, and others. Also, there is a robust demand for this technology as it provides streamlined operations and minimizes production downtime. Also, the prominent use of modern fiber lasers for manufacturing operations will fuel the market growth during the forecast period.
Furthermore, rapid industrialization and supportive government policies are promoting and expanding the application of laser processing equipment across the automotive sector. Additionally, the increasing demand for electric vehicles in regions, such as Europe, Asia Pacific, and the U.S. is boosting the adoption of laser punching, cutting, and welding machines across the automotive, metal & fabrication, and consumer electronics industries.
Decreased Production Activities and Supply Chain Disruptions Impacted Market Revenue in Short Term
Global production capacities were hampered owing to the shortage of raw materials and supply chain delays. Also, the weakening demand for lasers in the sheet metal cutting & welding industry across production facilities impacted the revenues of key market players, which significantly slowed the market growth in the short term. Furthermore, the sluggish economic growth of prominent regions, such as North America and Europe decreased investments in production capacities and, in turn, jeopardized the demand for laser equipment. Thus, the above-mentioned factors caused economic pressure on the supply of goods, thereby negatively affecting the demand for laser process equipment in the short term.
Industry 4.0 and IoT feature Integration to Equipment Changing Trends of Modern Engineering
The changing scales of production across the globe have increased the need for modern engineering techniques in fabrication technology. Also, the development and integration of next-generation features, such as data logging and Industrial Internet of Things (IIOT), are accelerating the global market progress. Furthermore, modern engineering is growing exponentially with the introduction of innovative analytics features. Integration of Industry 4.0 into heavy-duty automated laser processing equipment for efficient operation will also bolster the market growth during the forecast period.
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Growing Industrial Applications and Demand for Precision Engineering to Bolster Market Progress
Industrialization has taken over several countries across the world with increased investments in manufacturing, fabrication, and automotive production lines. Also, global market players have experienced a major demand for precision engineering equipment to operate highly efficient feed-automated systems. These systems offer efficiency while performing precision engineering operations through offsetting optimal laser position. Such advancements in laser equipment will bolster the laser processing equipment market share during the forecast period.
Extended Return on Investments (ROI) and Delay in Supply to Hamper Product Demand
Laser processing tools utilize high laser machining for precision cut edges and high production capabilities, thereby significantly increasing the material processing efficiency. These factors often raise the installation cost and put a burden on investors. Also, the complex parts used in these machines need frequent maintenance, which will suppress the growth of the market in the short term.
Advancements in Fiber Lasers to Boost Their Demand Among Various Industries
Based on technology, the market is classified into fiber laser, CO2, solid state, and others (Yag).
The fiber laser segment is estimated to dominate the market due to the rising use of this technology for producing implantable devices and surgical tools that need high-precision engineering and minimal exposure to rust. In contrast, the subsequent demand for CO2 and Solid lasers owing to its dominance use in metal sheets and immense structure fabrication significantly drives the demand for CO2 and solid lasers in short term. These lasers provide a higher deposition rate and better welding strength to the material, which will drive their demand significantly. Furthermore, Yag lasers have a minimal and specific application and are capable of providing high-quality, continuous, and pulsed output for engraving and marking. These features will increase the demand for these lasers.
Rising Investments in Infrastructure Projects to Fuel Demand for Precise and Clean Welding Processes
Based on process type, the market is classified into cutting & drilling, welding, marking & engraving, punching & micro machining, and others (heat treatment).
The welding laser segment is estimated to dominate the market owing to the rising global investment in infrastructure projects, such as heavy structure and metal fabrication. These projects need precise welding and high strength to protect the structures from environmental impact. Furthermore, the demand for industrial lasers in cutting and drilling operations is rising in the metal fabrication industry for precise and measured engineering is augment to the boost growth of the cutting & drilling segment. Also, rising demand for surface finishing and metal utensils marking is predicted to drive for the use of marking & engraving, punching & micromachining, and other processes in near term future.
Demand for High Precision and Less Human Intervention to Boost Adoption of Robotic Lasers
Based on function type, the market is segmented into semi-automatic and robotic.
The robotic laser segment is expected to record the highest CAGR owing to its ultra-precision finishing and minimized human intervention, which enhance operational efficiency. Also, there is a steady demand for semi-automatic lasers for human-guided and manual computer-aided design operations for metal fabrication and complex metal joining operations, which will drive the growth of the semi-automatic laser segment.
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Demand for High-Strength Mobility Solutions to Strengthen Adoption of Laser Cutters in Automotive Sector
Based on end-users, the market is divided into automotive, metal & fabrication, electronics, energy & power, and others (medical).
The automotive segment is set to dominate the market owing to the installation of continuous production lines. Laser processing equipment provides excellent operation capabilities to the machines operating in the production line. Furthermore, the rising use of laser cutting or engraving machines in ultra-precision and complex engraving operations is driving the demand for laser cutting and engraving equipment in metal fabrication and electronics manufacturing. Also, the energy & power and medical sectors is set to grow steadily due to the rising use precision laser engineering tools for material processing operations, including sheet metal cutting and welding.
The market is studied across the regions of North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Asia Pacific Laser Processing Equipment Market Size, 2022 (USD Billion)
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The global laser processing equipment industry is growing extensively due to a large consumer base, rise in the consumption of finished goods, and strong use of automation in automotive and metal fabrication industries. Asia Pacific region lead the sales of vehicles due to supportive government policies that expand the regional market share in the long term. Also, the rising demand for structural rigidity and smooth surface finish for products, such as alloy wheels and metal cutting for making chassis is anticipated to drive the market revenue during forecast period.
China is dominating the Asia Pacific laser processing equipment market owing to rise in infrastructure development across the country’s mega cities that needs modern laser fabrication methods for tough manufacturing. Also, dominant user of laser cutting and welding for mass manufacturing in production line provide lucrative opportunities and set to dominate the laser cutting and welding application across automotive industry. Also, the strong demand for laser processing machines to produce advanced vehicles will bolster the demand for laser processing equipment in countries, such as India, South Korea, and Japan for the long term.
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The market in North America is predicted to grow progressively with rising investment in manufacturing and food processing. Also, there is a high potential for using the laser processing equipment to develop infrastructure in countries, such as the U.S. and Mexico, which will further drive the regional market growth.
The Europe market is anticipated to grow moderately due to the formulation of sustainable product development future technologies which minimizes energy consumption during metal processing. Furthermore, these devices provide excellent operational capabilities which can minimize expenses and offer benefits in the long term.
The subtle demand for laser processing machines across the Middle East & Africa is due to the limited application of these devices in metal fabrication and manufacturing facilities. However, the substantial demand of laser cutting and welding beholds the market growth in the long term.
South America is forecasted to grow steadily as key companies across the region are focusing on expanding the manufacturing of the laser processing equipment.
Prominent Players Will Integrate IoT and Advanced Fiber Lasers to Maintain Market Dominance
Laser processing device manufacturers are poised to grow at a strong pace owing to the production of advanced machines. Manufacturers offering more advanced laser cutting and welding devices that minimize operational expenses are leading the market growth. Also, these companies are improving their product portfolios by integrating new and advanced IoT features into the laser equipment to provide real-time equipment information and improve production efficiency. This factor is set to bolster the demand for laser processing equipment during the forecast period.
The report provides a detailed analysis of the market and focuses on key aspects, such as key market players, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that contributed to the growth of the market in recent years.
An Infographic Representation of Laser Processing Equipment Market
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CAGR of 10.4% from 2023 to 2030
Value (USD Billion)
By Technology Type
By Process Type
By Function Type
By End Users
The market value is projected to reach USD 48.2 billion by 2030.
In 2022, the market was valued at USD 22.4 billion.
The market is projected to record a CAGR of 10.4% during the forecast period.
The fiber lasers technology type segment is expected to lead the market.
Growing industrial applications and high demand for precision engineering are the key factors driving the market growth.
Trumpf, Hanslaser, HGTECH, Bystronic, Jinan Bodor CNC Machine Co., Ltd., Amada, Salvagnini, PrimaPower, Mazak, Messer, Mitsubishi, IGP Photonics, and Epilog Laser are the top players in the market.
Asia Pacific holds the largest market share.
By end user, the automotive segment is expected to record a remarkable CAGR during the forecast period.
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