The global laser processing market was valued at USD 17.48 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 9.1% from 2022 to 2030. This market expansion is primarily driven by the increasing application of lasers in medical devices and surgeries. Additionally, the rapid growth of nano-fabrication technologies is expected to further contribute to market development. The adoption of laser technology by the manufacturing sector for material processing is accelerating, owing to its multiple advantages over conventional processing methods. These benefits include greater precision, reduced waste, and higher operational efficiency, making laser technology a preferred choice across industries.
A specific example of the transition from traditional to laser-based technology is in metal arc welding, which has been associated with significant environmental impacts. The automotive sector has shifted toward laser-based welding to address these challenges. For instance, in July 2021, Furukawa Electric launched a 12kW industrial fiber laser system, specifically designed for welding car bodies and parts, including tasks like aluminum processing, battery welding, and motor assembly. This highlights the growing role of laser technology in advanced manufacturing processes.
Government regulations promoting laser technology for marking and engraving applications are expected to further boost market growth. These technologies find extensive usage in cutting, welding, drilling, marking, and engraving across industries, which is likely to result in high demand over the next few years. Moreover, the strict directives regarding laser applications for product marking and engraving combined with the growing use of lasers in medical surgeries are projected to accelerate market growth. For example, LASIK and Refractive technologies are now widely used in laser eye surgeries to correct refractive errors such as myopia, hyperopia, presbyopia, and astigmatism, further showcasing the importance of laser processing in the healthcare sector.
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Product Segmentation Insights:
In 2021, the gas segment dominated the laser processing market, accounting for over 55% of total revenue. This segment includes a variety of gas lasers, such as carbon dioxide (CO2), nitrogen, carbon monoxide (CO), argon-ion, copper, and helium-neon lasers. These gas-based lasers are widely used for cutting, welding, and engraving applications across industries.
The solid-state laser segment is also experiencing significant growth. It includes Q-switched Nd lasers, small diode-pumped Nd or Nd lasers, and larger lasers configured with side-pumped or end-pumped designs. One of the key advantages of fiber lasers, a sub-category within the solid-state segment, is that they allow manufacturers to harness the technology’s benefits for high-precision applications with minimal waste.
The solid-state laser market is anticipated to grow at a lucrative rate during the forecast period due to the efficient material usage and the high-quality continuous or pulsed output they produce. These lasers are used in a variety of sectors, including:
- Medical: Endoscopic procedures and minimally invasive surgeries
- Industrial: Drilling holes in metals
- Defense: Military targeting systems
The rising demand for laser technology across multiple verticals such as automotive, aerospace, machine tools, medical devices, and packaging is expected to drive global market growth in the coming years.
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