The laser technology market is expected to reach USD 15.38 billion by 2022, growing at a CAGR of 5.2 percent between 2017 and 2022.
Enhanced performance over the traditional material processing techniques is one of the major factors fueling the growth of this market. Moreover, the increasing demand from the healthcare sector and shift towards production of nano and micro devices are expected to generate a demand for this market. The key restraining factor for the growth of this market is the regulatory compliances according to Research and Markets.
Laser is an abbreviation for light amplification by stimulated emission of radiation. A laser is a device that releases a beam of coherent light through an optical amplification process. There are many types of lasers including solid state lasers, gas lasers, fiber lasers, dye lasers and diode lasers.
A laser beam is created when the electrons in atoms in special crystals, glasses or gases absorb energy from an electrical current and become active. Laser light is different from normal light as laser light contains only one specific color. The particular color or wavelength of light is determined by the amount of energy released when the stimulated electron drops to a lower orbit. Laser light is directional and it generates a very tight beam.
Gradually laser technology gained wider possibilities of being utilized in almost all areas of industrial production. Using the unique assets of laser radiation can further streamline a number of applications to achieve top quality and reduce production costs. According to Transparency Market Research, the laser technology market is segmented by type, application, vertical and geography.
On the basis of type, laser technology market is segregated into solid, liquid and gas. Solid-state lasers are lasers based on solid-state gain media such as glasses or crystals. A liquid laser uses the liquid as a medium for laser. In liquid lasers, energy to the laser medium is supplied by light and in gas laser electric current is discharged through a gas inside the laser medium to produce laser light.
Furthermore, the laser technology market is divided based on application into optical communication and laser processing. Optical communication is a technique of transmitting information from a place to another by sending pulses of light through an optical fiber, whereas laser processing involves marking, cutting, welding, drilling, ablation and cleaning. By verticals the laser technology market is again subdivided into research, military & defense, telecom & IT, healthcare, electronics and automotive segment.
Geographically, laser technology market is distributed over North America, Europe, South America, Asia Pacific and Middle East & Africa. Asia Pacific is expected to dominate the laser technology market due to the increasing demand for cost-effective and fast processing laser machine tools from the semiconductor, industrial, telecommunication, and automotive vertical.
According to Markets and Markets, Solid laser accounted for the largest share of the laser technology market based on type segment in 2016. This growth can be attributed to the ability of solid laser to prevent material wastage when in the active medium and produce both continuous and pulsed output at a higher efficiency. Moreover, solid laser can be used in applications such as drilling holes in metals and endoscopy.
The laser technology market for optical communication application is expected to grow at the highest rate during the forecast period. Laser technology is used in high-speed transmission of data in digital and analog fiber optic networks, which makes it suitable for the optical communication.
This factor is expected to drive the growth of this market during 2017-2022. The laser technology market for the commercial vertical is expected to grow at the highest rate between 2017 and 2022. This high market growth rate can be attributed to the increasing use of laser technology in laser projectors, smart card, signage devices, printers, awards and gifts modeling, and barcode marking.
Asia Pacific (APAC) is expected to hold the largest share of the laser technology market during 2017-2022. This growth can be attributed to the increasing demand for cost-effective and fast processing laser machine tools from the semiconductor, industrial, telecommunication and automotive vertical.
Cost advantages and initiatives by different countries in this region are expected to boost the domestic manufacturing and provide further impetus for the growth of the laser technology market. The competitive landscape of this market presents an interesting picture where a large number of big and small players have become a force to reckon with.