Laser Processing Market - Forecasts from 2021 to 2026
The laser processing market is evaluated at US$11.089 billion for the year 2019 and is projected to grow at a CAGR of 7.78% to reach a market size of US$18.742 billion by the year 2026. Laser processing refers to the use of high-intensity light beams in material fabrication which include activities like cutting, engraving, drilling, and welding, among others. Increasing applications in medical devices and surgeries are one of the major market drivers anticipated to propel the growth of the laser processing market during the forecast period. Also, the rapid growth of nano-fabrication technology is expected to contribute to the growth of the global laser processing market. Furthermore, the manufacturing sector is increasingly adopting laser for material processing due to a large number of advantages it provides over traditional material processing, which is anticipated to be one of the prominent reasons driving the market growth. However, the high initial cost of laser processing systems is one of the major restraints of the global laser processing market. Also, the inability of lasers to cut thick metals and the need for expertise are some other factors expected to restrain the market growth.
The outbreak of the novel coronavirus disease had a negative impact on the laser processing market. The manufacturing facilities were shut down in many parts of the world as a measure to curb the spread of coronavirus, which led to a decline in market growth. Also, the travel restrictions led to supply chain disruptions in the market which harmed the market. Moreover, even after the opening of the manufacturing facilities, a dearth of laborers was reported in many places which further diminished the size of the laser processing market during the pandemic.
One of the major factors anticipated to drive the growth of the laser processing market during the forecast period is the large number of advantages provided by laser material processing over the traditional methods, which is anticipated to lead to a rise in the adoption of laser for material processing during the forecast period. With the rise in the demand for miniaturization of microelectronics, laser cutting is increasingly being used as the laser cutters have extremely high accuracy and precision which is required in such conditions where tolerances are extremely tight and hence it makes laser cutter the best choice. Also, it is high-speed and produces products without the need for retooling. Furthermore, laser weld provides higher weld strength as the laser weld is narrow with an excellent depth-to-width ratio. The heat-affected zone is limited, and due to rapid cooling, the surrounding material is not annealed. Moreover, lasers allow the drilling of a large variety of materials, from rubber and wood to very hard metals such as diamond and ceramics. Also, a large depth-diameter ratio can be obtained by laser drilling. Many such advantages provided by the use of laser in material processing, coupled with the miniaturization of microelectronics prompting an increased need for precision, are projected to lead to a surge in the growth of the laser processing market during the assessment period.
The development of innovative and next-generation products is making the manufacturing and industrial processes easy which is anticipated to lead to an increased demand for laser processing products in the coming years. In June 2019, II?VI Incorporated launched high-speed RLSK remote laser processing heads with integrated vision systems that allow advanced precision welds that are vital in next-generation automotive manufacturing. The new vision system that the product possesses has high precision seam tracking capabilities which allow fillet welds that save material and hence the manufactured vehicles are lightweight and consequently fuel-efficient. In June 2020, Yamazaki Mazak announced to introduce a high-productivity laser processing machine that is able to cut a large number of small and medium diameter tubes at a fast pace. It has the capability to cut various different kinds of materials such as copper, aluminum, mild steel, stainless steel, and brass, which are generally used in automotive, construction, architectural, and furniture industries. Furthermore, in January 2021, Opt Lasers introduced a new product called PLH3D-15W which is the world's first compact three-laser-diode laser head for CNC machines. Many such new products are being developed with advances in laser processing which is anticipated to propel the growth of the laser processing market during the forecast period.
Geographically, the Asia Pacific region is anticipated to hold a significant market share and is projected to witness the fastest growth owing to the use of laser processing in manufacturing, largely in China. Furthermore, the growth of end-use industries such as electronics, healthcare, and construction is expected to surge the market growth in the region in the coming years.