The global laser processing market exhibits a highly competitive vendor landscape. The top three players, Trumpf GmbH + Co. KG, Amada Co. Ltd., and Han’s Laser Technology Co. Ltd., held over 47% of the market in terms of revenue in 2013. According to Transparency Market Research (TMR), the dominance of these enterprises is mainly attributed to the robust research and development activities in laser technology. The companies operating in the market are also gaining from wide distribution network.
According to TMR, the global laser processing market stood at US$8.7 bn in 2013. Rising at a CAGR of 10.2% between 2014 and 2020, the market is expected to reach US$17.26 bn by the end of 2020. Regionally, North America led the global market in 2013 and was valued at US$1.6 bn. By end-use industry, the original equipment manufacturers are likely to dominate the market through the forecast period. The segment 33.4% of the market in 2013.
Laser Processing Offers Superior Advantages with Negligible Noise Pollution which Fuels its Demand
The demand for laser processing is likely to increase considerably during the forecast period due to the superior advantages offered by the technology over its conventional mechanic counterparts. Unlike conventional mechanic techniques, the laser technology can perform a plethora of tasks such as marking, cutting, engraving, wielding, structuring, and others. “The technology generates high output with negligible noise pollution, which is a key factor boosting demand for laser processing,” said a lead TMR analyst.
“Besides this, the market has been considerably gaining from the favorable government policies mandating their use in engraving and marking products,” added the TMR analyst. For instance, government regulations requiring clear and permanent marking on pharmaceutical and food products give significant impetus to the market. Marking and engraving constitute key functions of laser processing within any industry. Laser marking systems offer myriad advantages such as eco-friendly and high quality marks. Laser marking also makes possible high speed and fine marking than other conventional technologies. Due to these reasons laser processing is preferred more across industries.
Additionally, the increasing use of laser drilling in oil and gas exploration activities will augur well for the market. The rising application of laser products in medical surgeries and devices will create novel growth opportunities for the market.
Environmental Concerns Associated with Rare Earth Elements to Restrain Market’s Growth
Despite witnessing rapid implementation across industries, the leading players need to focus on rising environmental concerns pertaining to rare earth elements mining to continue enjoying growth. The extraction process of rare earth elements comprises processes such as mining, refining, and disposal of the elements obtained. All these processes are directly related to environmental concerns, which creates a significant concern for players operating in the market.
Furthermore, the market also faces challenge from the high initial costs incurred on laser processing machines.
Market to Gain Impetus from Increasing Use of Disk Lasers
The market is expected to gain significantly from the increasing use of disk lasers in the forthcoming years. The application of disk lasers helps eliminating thermal lensing and ensures high beam quality with improved processing abilities at high power levels. Furthermore, this type of lasers offers benefits such as efficient conversion of intra-cavity frequency. This is likely to boost the uptake of disk lasers in the forthcoming years. The emerging applications of laser processing are also expected to creative opportunities conducive to the market’s growth in the near future.
This review is based on a report published by TMR, titled “Laser Processing Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020.”
The report segments the global laser processing market as:
Laser Processing Market, by Product Type
- Gas Lasers
- Solid-state Lasers
- Fiber Lasers
- Other (Semiconductor, Excimer, Dye) Lasers
Laser Processing Market, by Process
- Material Processing
- Marking and Engraving
Laser Processing Market, by End-use Industry
- Automotive Industry
- Aerospace Industry
- Original Equipment Manufacturers (OEM) Industry
- Electronics and Microelectronics Industry
- Medical Devices and Treatment Industry
Laser Processing Market, by Geography
- North America
- Asia -Pacific
- Rest of the World (RoW)
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