Market Research Future (MRFR) expects the global laser processing market size to reach USD 6.11 billion, registering a 7.3% CAGR from 2020–2026 (forecast period).
Light amplification by stimulated emission of radiation (LASER) is a device that generates light through a process of optical amplification based on the stimulated emission of electromagnetic radiation. Lasers are used for different applications in both commercial and industrial processes. Industrial processes typically involve material processing, marking and engraving, and other micro-processing using laser technology. Laser technology is used in various material processes, including laser cutting, welding, drilling, etc. A laser is also used for the marking/engraving of consumer goods, electronic components, and other parts used in industries.
The growing demand for high-quality and genuine products, the demand for miniaturization of microelectronic devices, and the altering preferences for laser-based material processing over traditional approaches are expected to boost the growth of the global laser processing market. In addition, technological developments in the medical sector are likely to increase the demand over the forecast period. In addition, factors such as the growing adoption of disk lasers, the growing demand for automobiles and mobile electronic devices, and green laser devices for projection applications are positively impacting the growth of the industry.
On the other hand, the lack of technological expertise to implement laser processing, the varying macroeconomic conditions, and the high cost of ownership, like maintenance, implementation, and investment costs, are possible obstacles to the overall market. However, the growing number of application areas, increasing demand for custom marking and engraving, and increasing automation across the manufacturing sector give favorable growth opportunities. On the contrary, the major problems facing the laser processing industry are technological complexities in high-power lasers and environmental issues for the overuse of rare earth elements.
Due to the Covid-19 pandemic, many businesses have experienced a drastic shift in their business. This is due to the downturn in the manufacture of metals in the engineering and construction industries, which directly affects the market demand for cutting equipment. As such equipment is used as a cutting tool in the construction industry. This would reduce the need for copper, aluminum, and steel in the engineering and construction industry. Metal manufacturers have faced tremendous pressure due to a decline in demand, production, and revenues. In addition, metal manufacturing firms overcome their cash liquidity and borrow cash to cover operating costs. For example, as per a recent survey of the National Association of Manufacturers (NAM), most metal manufacturers have had about 80% financial effect on their businesses.
The global laser processing industry has been segmented based on product, laser type, application, and end-user.
Based on product, the global laser processing market has been divided into gas lasers, fiber lasers, solid-state lasers, and others.
Based on laser type, the global laser processing market has been divided into moving beam, fixed beam, and hybrid beam.
Based on application, the global laser processing market has been divided into cutting, marking, welding, drilling, engraving, additive manufacturing, and others.
By end-user, the global laser processing market has been divided into automotive, aerospace & defense, medical & life sciences, manufacturing, semiconductor & electronics, packaging, oil & gas, and others.
By region, the global laser processing market has been segmented into North America, Europe, Asia Pacific, and the rest of the world.
North America to lead the global market
The North American region led the laser processing market in 2019 and is expected to continue leading during the study period. Strong laser marking regulations are anticipated to propel the growth of the market for marking systems in the coming years, which will further increase the demand for laser processing in North America.
APAC to witness fastest growth rate
The Asia Pacific is predicted to see the fastest growth in the projected period. The growing demand for custom markings and engraving is expected to push the market growth in the Asia Pacific over the forecast period.