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 anticipated growth is primarily due to the increasing use of lasers in medical devices, particularly in surgical applications, where lasers provide precise, minimally invasive solutions. Additionally, the rapid advancement of nano-fabrication technology is expected to drive demand for laser processing, given its applications in high-precision fields such as microelectronics and medical devices. Furthermore, the manufacturing sector has increasingly adopted laser processing due to its advantages over traditional methods for material processing, contributing significantly to the market's growth.
Traditional processing techniques, such as manual metal arc welding, present high environmental risks. This concern has been alleviated by using laser processing, particularly in the automotive industry. For instance, in July 2021, Furukawa Electric introduced an industrial fiber laser system with a 12kw fiber laser that can handle complex automotive manufacturing tasks such as welding car bodies, processing aluminum, welding batteries, and assembling motors, further demonstrating the role of laser technology in reducing environmental impact and enhancing manufacturing precision.
Gather more insights about the market drivers, restrains and growth of the Laser Processing Market
Government regulations supporting the use of laser technology for product marking and engraving are expected to positively impact market growth. Laser processing technology is increasingly popular across various applications, including welding, marking, cutting, drilling, and engraving. Strict government directives, combined with the expanding use of laser technology in medical applications, are likely to drive significant market growth in the coming years. For instance, in the field of eye surgery, LASIK and refractive technologies utilize lasers to correct vision issues such as myopia, hyperopia, presbyopia, and astigmatism.
Technical advancements have also improved the quality and speed of laser processing. Hamamatsu Photonics, for example, developed a spatial light modulator (SLM) with a liquid-crystal design capable of handling pulsed laser powers up to 400 GW/cm², enabling high-throughput and high-precision laser processing for industries that demand precise manufacturing capabilities.
Application Segmentation Insights:
In 2021, the machine tools segment led the laser processing market with over a 30% revenue share. This segment benefits from the widespread adoption of laser technology in industrial material processing applications such as cutting, welding, drilling, and engraving. The demand for laser processing is growing in sectors like microelectronics and medical devices. In medical manufacturing, welding is vital for creating devices like pacemakers, implantable devices, and surgical tools that require ultra-fine, non-porous, and sterile materials suitable for use in cardiac surgeries.
Investments in research and development by industry players are further propelling the market. For example, researchers at Fudan University have developed an all-silicon laser with high optical gains using silicon nanocrystals, similar to gallium arsenide (GaAs) and indium phosphide (InP). This silicon-based laser, used in fields such as sensing, communication, displays, detection, and imaging, combines microelectronics and optoelectronics, expanding laser processing applications. Emerging applications in automotive and oil and gas sectors, along with demand in machine tool manufacturing, are expected to support market growth. In automotive manufacturing, laser cutting offers benefits like high processing speeds, superior edge quality, and reduced heat input, which are crucial for efficient automobile production.
In summary, the laser processing market is expected to experience robust growth driven by advances in medical applications, government regulations, technical innovations, and widespread industrial use across various sectors.
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