Laser Processing Equipment Market Size - By Technology Type (Fiber Lasers, CO2, Solid State, Others), By Process Type (Cutting & Drilling, Welding, Marking & Engraving, Punching & Micro Machining, Others), By Function Type, By End User & Forecast, 2024 – 2032

Laser Processing Equipment Market Size - By Technology Type (Fiber Lasers, CO2, Solid State, Others), By Process Type (Cutting & Drilling, Welding, Marking & Engraving, Punching & Micro Machining, Others), By Function Type, By End User & Forecast, 2024 – 2032

Laser Processing Equipment Market Size

Laser Processing Equipment Market size was valued at USD 22 billion in 2023 and is anticipated to register a CAGR of over 9% between 2024 and 2032. The integration of laser processing equipment with Industry 4.0 technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), and automation, is on the rise. Manufacturers are increasingly adopting smart laser systems that offer real-time monitoring, predictive maintenance, and enhanced productivity through data-driven insights.

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Fiber lasers have been gaining traction in various industries due to their superior performance, efficiency, and reliability compared to traditional laser technologies. As a result, there is a growing demand for laser processing equipment utilizing fiber lasers for applications such as cutting, welding, marking, and engraving.
 

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Laser processing equipment capable of handling micro-processing and precision machining tasks is in high demand, driven by the need for miniaturization in electronics manufacturing, medical device fabrication, and other industries requiring high-precision components. Laser processing equipment is widely used in the manufacturing of medical devices and equipment due to its precision, versatility, and the ability to work with a variety of materials including metals, plastics, and ceramics. With the increasing demand for medical devices due to aging populations and advancements in healthcare technologies, the market for laser processing equipment in the medical sector is expanding.

Laser processing equipment requires a significant initial investment including the cost of the equipment itself, installation, and training of personnel. This high upfront cost can be a barrier for Small & Medium-sized Enterprises (SMEs) or businesses with limited capital resources, limiting the adoption of laser technology. Laser processing equipment can also incur high operating costs associated with its maintenance, energy consumption, and consumables such as laser gases and optics. These ongoing expenses can be prohibitive for some companies, particularly in industries with narrow profit margins.

Laser Processing Equipment Market Trends

Laser-based additive manufacturing technologies, such as Selective Laser Melting (SLM) and Stereolithography (SLA), are gaining prominence for rapid prototyping and production of complex components. As additive manufacturing continues to evolve and finds applications across various industries, the demand for laser processing equipment tailored for additive manufacturing processes is expected to increase. Technological advancements, industry-specific requirements, and the pursuit of efficiency and sustainability in manufacturing processes are fueling the laser processing equipment market. Continued innovations and the integration of laser technologies with emerging trends, such as Industry 4.0 and additive manufacturing, are likely to shape the future market growth.
There is a growing emphasis on environmental sustainability and energy efficiency in manufacturing processes. Laser processing equipment offers advantages, such as reduced material waste, lower energy consumption, and fewer harmful emissions, over traditional machining methods, making it an attractive choice for environmentally conscious industries. The automotive and aerospace industries are significant consumers of laser processing equipment for applications such as welding, cutting, and surface treatment. As these industries continue to innovate and incorporate lightweight materials, such as composites and aluminum alloys, the demand for advanced laser processing solutions is expected to grow.

Laser Processing Equipment Market Analysis

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Based on technology type, the laser processing equipment market can be divided into fiber lasers, CO2, solid state, and others. The fiber lasers segment dominated around USD 11 billion revenue in 2023. Fiber lasers offer high efficiency, converting a larger proportion of input energy into usable laser energy. This results in reduced power consumption and operating costs compared to other types of lasers, making them more economical to use in various applications. Fiber lasers can deliver precise and accurate results owing to their excellent beam quality and stability. This makes them ideal for applications requiring fine detail, intricate patterns, or tight tolerances such as micro-machining and electronics manufacturing.

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Based on process type, the market is categorized into cutting & drilling, welding, marking & engraving, punching & micromachining, and others. The cutting & drilling segment accounted for 51% of the laser processing equipment market share in 2023. Laser cutting and drilling provide unparalleled precision, allowing for high accuracy in intricate designs and fine details. This precision results in minimal material wastage and ensures consistent quality across production batches.

Laser processing equipment can be used on a wide range of materials including metals, plastics, ceramics, and composites. This versatility makes it suitable for various industries such as automotive, aerospace, electronics, and medical devices. Laser processing generates minimal heat, resulting in a small Heat-affected Zone (HAZ) compared to other methods. This reduces the risk of material distortion, warping, or damage, especially for heat-sensitive materials.

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North America laser processing equipment market size held over USD 7 billion in 2023. North America, particularly the U.S., is a hub for technological innovation and research & development. Many leading laser processing equipment manufacturers and technology companies are based in the region, driving advancements in laser technology and equipment. The region has a diverse industrial landscape spanning sectors such as automotive, aerospace, electronics, healthcare, and consumer goods.

Laser processing equipment finds extensive use across these industries for various applications including cutting, welding, marking, engraving, and surface treatment. The U.S. and Canada have well-established manufacturing sectors that contribute significantly to the regional demand for laser processing equipment. These industries constantly seek ways to improve productivity, quality, and cost-effectiveness, fostering the adoption of advanced manufacturing technologies such as lasers.

Laser Processing Equipment Market Share

In 2023, dominant market players including Concept Laser, Control Micro Systems, Epilog Laser, Eurolaser, and Hanslaser collectively held a substantial 10%-15% market share. The market is highly fragmented. These industry leaders are actively engaged in strategic initiatives, such as mergers & acquisitions, facility expansions, and partnerships, to broaden their product portfolios, reach a wider customer base, and strengthen their market presence. These companies continuously invest in research & development to improve their products and incorporate new technologies, allowing them to stay ahead of the competition.

Laser Processing Equipment Market Companies

Major companies operating in the laser processing equipment industry include

• Concept Laser
• Control Micro Systems
• Epilog Laser
• eurolaser
• Hanslaser
• Hgtech
• IPG Photonics Corporation
• Jenoptik
• Laser Systems
• Lumentum
• Newport Corporation
• Rofin-Sinar Technologies
• TRUMPF
• Universal Laser Systems
• Vermont

Laser Processing Equipment Industry News

• In February 2023, xTool, a laser tool manufacturer based in the U.S., launched a 40W laser module with powerful capabilities. The equipment provides a precise laser cut and ultra-precision engraving features.
   
• In October 2022, BLM Group, a tube and laser technology manufacturer, launched its new LS7, which offers high productivity, cutting speed, and accuracy.
   
• In October 2022, Slovenia, Lumentum Holdings Inc. saw an uptick in business operations as it pursued research and development efforts focused on specialized optical fibers and associated products. Within its facility, a Center of Excellence dedicated to pioneering research & development aimed at producing crucial laser component technologies and products is in operation.
   
• In July 2022, IIVI Incorporated acquired Coherent, Inc., resulting in the formation of a global leader in materials, networking, and laser technologies. This merger positioned the combined entity to serve a diverse range of sectors including industrial, communications, electronics, and instrumentation.

The laser processing equipment market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Million Units) from 2018 to 2032, for the following segments

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Market, By Technology Type

• Fiber lasers
• CO2
• Solid State
• Others (Semiconductor, etc.)

Market, By Process Type

• Cutting & drilling
• Welding
• Marking & engraving
• Punching & micromachining
• Others (heat treatment., etc.)

Market, By Function Type

• Semi-automatic
• Robotic

Market, By End User

• Automotive
• Metal & fabrication
• Electronics
• Energy & power
• Others (medical, & life sciences, aerospace & defense, etc.)

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
  • Rest of North America
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia     
  • Indonesia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA