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The global laser technology market size was USD 11.30 billion in 2019 and is projected to reach USD 15.99 billion by 2027, exhibiting a CAGR of 4.5% during the forecast period.
The laser technology offers significantly high flexibility, productivity, and precision in various industrial processing applications such as manufacturing, chemicals, and others, which is expected to propel its demand. The increasing adoption of various technologies emerging from laser-based applications such as AR/VR, vertical-cavity surface-emitting laser (VCSEL), and light detection and ranging (LiDAR) is likely to drive the growth of the market. This, in turn, is fueling demand in various industry verticals such as healthcare, automotive, manufacturing, and others.
Primary factors such as favorable government investment, advancements in photonic technology, and rising demand in oil & gas, medical, and other industrial applications, are likely to boost the market growth. In addition, the increasing demand for lasers in the military & defense sector, rising adoption in semiconductor optoelectronic devices such as LDs & LEDs, and ultrashort pulse laser are expected to propel the market. Thus, key players are more focused on developing advanced laser-based solutions to improve customer experience.
COVID-19 Crisis to Encourage Organizations to Adopt Laser-based Solutions
COVID-19 pandemic is expected to adversely impact the market to a certain extent in the near future. Lockdowns imposed by the governments in various parts of the world have reasonably reduced the demand. This is attributed to the affected manufacturing sector, supply chain processes, and others. Owing to the pandemic, there have been disruptions in the supply chain process that have enabled end-users to realize destructive effects in the business and manufacturing process. Besides, researchers across the globe have been focused on developing laser sensors that can detect the virus at the earliest point of infection from nasal swabs or saliva in several minutes.
The increasing investment by various governments and funding raised by major players is also likely to propel this market during the pandemic. For instance, in July 2020, BELKIN Laser Ltd. raised around USD 12.2 million in Series B funding which is led by Santen Ventures Inc. and Rimonci Capital. The aim is to provide easy, effective, and quick treatment for glaucoma patients by using its laser treatment.
In February 2020, the Government of the United Kingdom has invested around USD 105.10 million to launch an unconventional imaging center - "Extreme Photonics Applications Centre (EPAC)". The aim is to generate precise 3D images of the inner structure of objects. This is beneficial for various applications across sectors such as healthcare, medical devices, and military vehicle engineering, etc. Key market players are also focusing on launching advanced laser-based devices amid COVID-19.
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Rising Investments and Implementation of Smart Factory Solutions to Aid Market Growth
Laser technology plays a vital role in the industry 4.0 concept. With the emergence of industry 4.0 and smart factory solutions, organizations are witnessing increased output, improved efficiencies, and lower cost benefits along with enhanced quality and increased production capacity. It is used for performing various mechanical applications including welding, laser printing, cutting, engraving, brazing, and others. The majority of laser-based Industry 4.0 applications feature technologies such as the Internet of Things (IoT), artificial intelligence (AI), cloud computing, cognitive computing, cyber-physical systems, machine learning, and others.
The rising automation in industries for high efficiency and accuracy is expected to result in the laser technology market growth. The increasing investments in smart factories and growing spending on industry 4.0 projects by countries such as China, U.S., Germany, and others is anticipated to fuel the market demand among organizations. For instance, in June 2019, Telefonaktiebolaget LM Ericsson has invested USD 100 million for the implementation of the automated smart factory solutions across the U.S. In addition, the spending on Industry 4.0 technology globally is likely to be USD 907 billion per year through to 2020, according to PricewaterhouseCoopers (PwC). The government initiatives such as Make in India, Smart Cities Mission, the Industrial Value Chain Initiative (IVI), Saudi Vision 2030, and Made in China 2025 among others will also play an essential role in boosting the market growth.
Rising Adoption of Laser Technology in Medical Industry to Aid Market Growth
The medical sector has witnessed a rapid surge. A medical laser is an intensive and non-invasive light source to treat tissues and offers quick healing without discoloration or scarring. It finds applications in the treatment of dermatology, urology, ophthalmology, and dentistry, etc. The factors such as a growing need for medical lasers for the treatment of numerous diseases and the escalating demand for non-invasive therapies are likely to propel the growth of the market.
The increasing aging population, improvement in medical infrastructure, and a rising number of cosmetic surgeries is expected to fuel the demand. The growing demand for aesthetic laser procedures in developing countries is anticipated to boost the growth of this market. According to the American Society for Aesthetic Plastic Surgery (ASAPS), in 2018, the American population spent more than USD 16.7 billion on various aesthetic procedures such as dermal resurfacing, body contouring, acne prevention, and others. Key players are also focusing on launching an innovative medical laser portfolio to improve customer experience.
Thus, the rising awareness regarding various non-invasive aesthetic procedures such as injection of neuromodulators and dermal fillers, sclerotherapy, and ablative laser procedures is likely to propel the demand for laser technologies.
High Initial Cost to Inhibit Market Growth
The adoption of laser type of technology solutions is growing at a rapid pace due to its multi-tasking abilities across various applications. The high upfront investment and vast venture capital funds are required to set up its architecture and infrastructure. The operation and setup process is much more complicated, expensive, and also requires enormous resources which are likely to hinder the growth of the market. Although advanced solutions are beneficial in the long-term, deployment cost is extremely expensive, especially for SMEs, which in turn, is expected to impede the growth of this market. In addition, issues relating to government standards, uncertain regulatory compliance, and the lack of skilled workforce are expected to limit the development of the market during the forecast period.
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Solid Laser Segment to Gain Traction Owing to its Rising Adoption amongst Enterprises
Based on the laser type, the market has been divided into a solid-state laser, liquid laser, gas laser, and others.
Among these, the solid-state laser segment is expected to hold the largest market share during the predicted period. The segment growth is primarily driven by the increasing demand for pulsed lasers for numerous healthcare applications. Many cosmetic procedures, including melasma treatment, scar removal, and skin resurfacing, among others, utilizes Nd: YAG based solid-state pulsed lasers. The rising demand for liquid lasers, gas lasers, and other lasers across the varied industry including automotive, IT and telecom, healthcare, manufacturing, and others is likely to spur the growth of this market in the near future.
Optical Communication Segment is Likely to Gain Traction Owing to the Latest Technological Advancements
Based on the application, the market is further segregated into optical communication, laser processing, and others.
The laser processing segment is anticipated to exhibit the highest laser technology market share in the coming years. The rising adoption in material processing applications is expected to drive the segment growth. The deployment of this technology in the manufacturing & industrial sectors leads to accurate & precise industrial processes. The optical communication segment is anticipated to experience the highest growth rate owing to the increasing need for reliable & faster communication networks, increasing adoption of cloud-based services, the advent of Industry 4.0, and the rising number of data centers across the globe.
Increasing Adoption of Laser Technology across Healthcare Industry to Boost the Market
Based on the industry, the market is segmented into IT and telecom, electronics and semiconductor, healthcare, manufacturing, automotive, aerospace and defense, and others.
The manufacturing segment is likely to hold the dominant share during the forecast period. Laser-based solutions are implemented across the manufacturing sector as it delivers intense welding or cutting power with high precision. Their ability to transform and manipulate materials makes them ideal for the industrial, automobile, and robotics industries. It also enables increased accuracy at faster production rates through more effective processes while using fewer resources and materials.
The healthcare segment is likely to gain traction in the coming years. The growing adoption of laser technology for confocal microscopy, laser vision correction, dynamic contrast-enhanced MRI, dermatological treatment, and ontogenetic. Also, the ever-increasing adoption of laser-based solutions across the IT and telecom, semiconductor electronics, manufacturing, automotive, aerospace and defense, and others are expected to augment the industry growth.
North America Laser Technology Market Size, 2019 (USD Billion)
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Geographically, the market is segregated across five major regions, namely North America, South America, Europe, Middle East & Africa, and the Asia Pacific. North America is expected to exhibit the highest growth during the predicted period. The escalating healthcare expenditure, rising number of cosmetic surgeries, and high adoption rate of advanced technologies are likely to fuel the market growth in North America. The presence of major key players such as Coherent, Inc., IPG Photonics Corporation, Corning Incorporated, and others are also fueling the demand for laser-based solutions in sectors such as defense, consumer electronics, etc. across the US and Canada. These players are focusing on launching advanced laser-based solutions to improve their product portfolio.
The Asia Pacific is expected to dominate this market in terms of revenue share in the global market during the estimated period. The region’s rising R&D investments and increasing electronics & manufacturing sectors are expected to drive the market growth. Also, the developing healthcare infrastructure, increasing number of OEMs, and a growing number of laser centers are likely to propel the demand for laser-based solutions in this region. Europe is expected to develop with a considerable growth rate owing to the presence of a significant number of advanced laser solutions providers. The European countries are focused on the R&D investments and maximum adoption of laser-based solutions to fuel the advancement across the various verticals.
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In the Middle East and Africa, the increasing initiatives by governments to propel smart factories and industrial automation are accelerating the demand for laser-based solutions. South American countries such as Brazil, Argentina, etc. are developing coherent strategies and new policies which are expected to pose a lucrative market opportunity in the near future.
Emphasis on Developing Advanced Laser Technology by Key Players to Consolidate Market
Companies such as Coherent, Inc., IPG Photonics Corporation, The TRUMPF Group, and Corning Incorporated Inc., among others are some of the major players in the market. Major players are focused on developing laser-based solutions with advanced technology such as adaptive optics, fiber laser, silicon laser, holmium-doped laser, and others. Also, the high competition in the market is forcing some solution providers to focus on acquisition strategy for strengthening their market position. Emphasis is being placed on product innovation and cost-efficiency to ensure long-term sustainability. For instance, In August 2020, Dover Corporation acquired Poland-based Solaris Laser S.A. The aim is to enhance Solaris's laser technology product line and strengthen its position as one of the leading providers of traceability & identification solutions and equipment. This product line expansion will enable Solaris to cater to the rising consumer demand for reliable laser coding technologies.
An Infographic Representation of Laser Technology Market
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The global laser technology market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
2016 – 2027
2020 – 2027
2016 – 2018
Value (USD Billion)
By Laser Type
Fortune Business Insights says that the market value stood at USD 11.30 billion in 2019.
By 2027, the market size is expected to reach USD 15.99 billion.
The market is expected to grow at a CAGR of 4.5% in the forecast period (2020-2027).
Within laser type, the solid-state laser segment is expected to lead the market during the forecast period.
The rising adoption of laser technology in the medical industry is one of the key drivers for market growth.
Coherent, Inc., IPG Photonics Corporation, The TRUMPF Group, and Corning Incorporated Inc. are the top companies in the market.
The manufacturing segment holds a major market share.
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