Published: Oct, 2016
As key players start focusing on product innovation, the competition prevailing in the global laser cutting machines market is likely to intensify further. The overall competition in the market is expected to remain high throughout the forecast period between 2014 and 2020, with the potential entry of new players, finds Transparency Market Research (TMR) in a new study.
The vendor landscape in the global laser cutting machines market therefore looks highly fragmented, currently led by companies such as Amada Miyachi CO. Ltd., ALPHA Laser GmbH, Trumpf Laser GMBH + Co. KG, DPSS Lasers Incorporation, and and IPG Photonics Corporation.
According to TMR, the global laser cutting machines market stood at US$2.43 bn in 2014. The market is expected to expand at a CAGR of 10.3% between 2014 and 2020 to reach US$4.37 bn by the end of 2020. Regionally, North America dominated the global laser cutting machines market with a share of 31.28% in 2013. By technology, the market was led by solid state lasers with a share of 39.95% in 2013.
Increasing Use of Laser Cutting in Automotive Industry to Fuel Demand for Laser Cutting Machines
In the last couple of years, laser cutting machines have outclassed a majority of substitutes available in the market for cutting processes. The robust growth witnessed by the market is attributed to the myriad benefits they offer over the available substitutes. For instance, the heat generated during cutting materials in case of other processes can twist them out of shape. Laser beam on the other hand reduces the chances of distorting materials since it is directly subjected to a particular area of the material.
Furthermore, the rising demand for materials with aesthetic appeal will increase applications of laser cutting. “Laser cutting machines cut materials at a very high speed due to which the materials obtained post cutting are extremely precise,” observed the TMR report’s author. Besides this, laser cutting materials could be used for doing embroidery on materials. At the same time, vehicle production, which is increasing at a rapid pace around the world, will fuel demand for laser cutting materials such as gas lasers, semiconductor lasers, and solid state lasers in the automotive industry.
High Initial Investment and Maintenance Cost Inhibiting the Market’s Trajectory
High investment incurred on the installation and set-up for laser cutting machines, coupled with the high maintenance cost that follows has suppressed the market’s growth. Moreover, using laser cutting on plastics can prove an expensive affair owing to the gas emitted during the process. Furthermore, the complete configuration of an adequately ventilated room is necessary for the process, which could be incredibly expensive. The gases released during the process can be toxic or fatal in nature. Factors such as these have been creating challenge that key players are struggling to address.
Laser cutting machines represent a considerable fire hazard. Besides this, these machines can produce hazardous fumes, which has been compelling international agencies to take steps for ensuring safety of workers operating laser cutting machines. This could create bottleneck for the market as well.
Increasing Use of Disk Lasers across Industries to Fuel Opportunities for Market
Nevertheless, in the forthcoming years, the market is expected to gain impetus from the increasing use of disk lasers across industries such as aerospace, defense, automotive, and consumer electronics. Disk lasers come with novel technology that allows it getting integrated with industrial robots or other handling equipment without any glitch. Additionally, their stupendous beam quality can facilitate applications with narrow focusing optics and accessing comparatively larger working areas.
The information presented in the review is based on findings published by TMR in a report, titled “Laser Cutting Machines Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020.”
The report segments the global laser cutting machines market as:
Laser Cutting Machines Market: By geography
- North America
- Asia Pacific
- Rest of the World
Laser Cutting Machines Market: By technology
- Solid state lasers
- Gas lasers
- Semiconductor lasers
Laser Cutting Machines Market: By process
- Fusion cutting
- Flame cutting
- Sublimation cutting
Laser Cutting Machines Market: By end use industry
- Consumer electronics
- Defense and aerospace
The report provides a cross-sectional analysis of all the above segments with respect to the following regions:
- North America
- Asia Pacific
- Rest of the World (RoW)
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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