The global fiber laser market size is projected to reach USD 4,304 million in 2024. It is anticipated to surge at a CAGR of 11.5% during the forecast period to reach a value of USD 12,782.7 million by 2034. The industry is estimated to exhibit a y-o-y growth of 10.7% in 2024.
Fiber lasers or solid-state lasers are gaining popularity in cutting applications owing to their flexibility, which allows them to be twisted to control any directional changes. High levels of flexibility offered by solid-state lasers contribute to the creation of small cutting heads. These can substitute chemical etching as well as solid-state laser cutting, especially in electrical and medical industries where micro-cutting is necessary.
The rising demand for lightweight cutting and processing equipment is anticipated to drive expansion throughout the forecast period. The upcoming years are predicted to have a high need for potent solid-state lasers to treat thick materials and remove unwanted pulse pedestals, thereby opening up new business potential for participants.
Expansion of research and development efforts as well as innovations in green manufacturing are also likely to fuel demand. The growth of automotive and mobile applications for electronics is anticipated to pose new prospects for leading companies.
| Attributes | Description |
|---|---|
| Estimated Global Fiber Laser Market Size (2024E) | USD 4,304 million |
| Projected Global Fiber Laser Market Value (2034F) | USD 12,782.7 million |
| Value-based CAGR (2024 to 2034) | 11.5% |
Fiber lasers are extremely precise and accurate, making them perfect for industries like electronics, cars, and airplanes. There is a high demand for lasers in fine-cutting and detailed processes. As companies focus on creating small and detailed parts, especially in electronics and semiconductors industry, solid-state lasers are gaining importance.
Several industries are moving toward automated systems where solid-state lasers play a key role. They are ideal for cutting, welding, and marking materials in automated setups as they’re reliable and don’t require much maintenance. For example, car and airplane makers use solid-state lasers for fast and accurate welding and cutting in their production lines.
Solid-state lasers are also making waves in healthcare. They are progressively being used in surgeries and treatments that require precision, such as eye surgeries and other non-invasive procedures. As medical technology continues to improve, solid-state lasers are anticipated to be used twice as much, thereby facilitating growth.
Solid-state lasers are important in optical communication, especially with the rise of 5G and the need for faster data transmission. As people rely on high-speed internet and communication technology, the demand for fiber lasers in these applications is anticipated to increase.
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The table below showcases the anticipated CAGRs for the global fiber laser market over semi-annual periods ranging between 2023 and 2024. The examination offers businesses a better understanding of the growth in the market over the year by revealing crucial shifts in performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Numbers presented in the table below predict the growth rate for each half between 2023 and 2024. The market is anticipated to rise at a CAGR of 11.2% in the first half (H1) of 2023. The second half of the same year is projected to exhibit a surge in the growth rate at a CAGR of 11.9%.
| Particular | Value CAGR |
|---|---|
| H1 | 11.2% (2023 to 2033) |
| H2 | 11.9% (2023 to 2033) |
| H1 | 11% (2024 to 2034) |
| H2 | 12.2% (2024 to 2034) |
Preceding in the subsequent period, from H1 2024 to H2 2034, the CAGR is anticipated to witness a decrease to 11% in the first half (H1) and then substantially surge to 12.2% in the second half (H2). The industry witnessed a decrease of 20 BPS in the first half (H1) and a spike of 30 BPS in the second half (H2).
Usage in Marking Applications is Rising in Popularity
Fiber lasers are becoming popular among manufacturers owing to their high productivity and return on investment, especially in fine and micro-material processing applications. Increasing demand for miniaturization of integrated circuits and wafers along with rising demand for mobile and smart electronic devices is anticipated to drive growth in material processing applications.
The fibers are used in marking applications as they offer highly precise marking and are applicable to a wide range of material surfaces and end-user industries. Marking done using solid-state laser is difficult to counterfeit, non-contracting, and offers band protection. These factors are likely to positively influence growth.
The fibers are also used in marking printed circuits, plates, engine parts, and machining tools. The increasing use of 3D printing for developing modular designs and flexible machine concepts is likely to accelerate growth in the industry through the assessment period.
Fiber Laser is Gaining Traction in Micro Cutting Applications
The high flexibility of fiber lasers assists in the development of compact cutting heads. They are increasingly used in cutting applications as optical fiber is utilized as an active gain medium, which can be twisted to manage any directional changes.
They are free from any moving component, making their maintenance easier compared to CO2 lasers. Solid-state lasers are also equipped with modern and effective cooling mechanisms, thereby enabling them to operate for a long duration without losing efficacy.
Solid-state laser is replacing chemical etching and solid-state laser cutting, especially in the electronic and medical industry, where accurate micro-cutting is required. These factors along with the increasing demand for thin sheet cutting and processing devices are likely to propel growth in the assessment period.
Use of Fiber Lasers as Alternatives to Conventional Ones is Driving Growth
Fiber lasers have emerged as the most sought-after and superior alternatives to conventional lasers, such asCO2 lasers. These lasers are capable of achieving clean cuts and require less finishing and deburring after the cutting process.
The use of solid-state lasers is energy-efficient, economical, and environmentally friendly. They also give out accurate results compared to conventional lasers due to their ability to produce small focal diameters, making them preferable for marking, cutting, and micromachining. Increased cutting speeds, better-cutting edges, enhanced finishing, low operating costs, and decreased machine footprint make them better alternatives to conventional lasers, thereby driving demand.
Low Cutting Speeds in Thick Materials Anticipated to Hamper Utility
A prominent factor hindering growth in the fiber laser market is its lower cutting speed when cutting thick materials. Solid-state lasers are effective and efficient in cutting thin sheets of metal but lag while cutting thick metal sheets, making irregular and unfinished cuts.
Manufacturing of solid-state lasers has resulted in non-linear optical effects and undesired pulse pedestals. Although manufacturing processes of high-end lasers have suppressed the production of pulse pedestals, the characteristic persists in lower-end solid-state lasers. These factors are anticipated to hamper growth in the fiber laser market in certain key applications.
Principal Consultant
The global fiber laser industry witnessed a CAGR of 8.1% during the historical period ranging between 2019 and 2023. It was valued at USD 3,860.1 million in 2023.
The fiber laser market encountered several challenges during the historical period. The COVID-19 pandemic significantly disrupted the global supply and demand chain, leading to plant closures and reduced demand in industries, such as automotive and manufacturing.
Geopolitical tensions gave rise to trade disagreements between prominent countries, making it challenging for manufacturers to obtain materials. Raw material prices surged, thereby making end-products expensive.
The industrial sector showed signs of recovery from 2022, as the lockdown restrictions eased. The market witnessed a surging demand for fiber lasers, especially in the electronics and medical industries where their applications require high precision.
The industry is predicted to reach USD 4,304 million by 2024 and is further anticipated to rise at a CAGR of 11.5% during the assessment period. The market is estimated to reach USD 12,782.7 million by 2034.
The fiber laser market is anticipated to witness robust growth during the forecast period. An increase in automation in factories is estimated to pose a huge need for solid-state lasers.
Innovations in medical technology are likely to boost the market further. Fiber lasers are increasingly used in surgeries and treatments that require precision, making them popular in healthcare. With the growth of 5G and rapid communication technologies, solid-state lasers will likely play a key role in data transmission, enhancing their importance in telecommunications.
Tier 1 segment consists of companies with annual revenues exceeding USD 500 million. These businesses currently capture a significant share of 65% to 67% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are often distinguished by their extensive expertise in manufacturing and a broad geographical reach, which is underpinned by a robust consumer base. These firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include IPG Photonics Corporation and Trumpf GmbH + Co. KG.
Tier 2 encompasses mid and small-scale enterprises operating within the regional sphere. These companies have a revenue below USD 500 million and cater to the specialized needs of the industry. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 2 segment.
They are small-scale participants with limited geographical presence. Tier 2 includes Coherent, Inc., Fanuc Corporation, Fujikura Ltd., Wuhan Raycus Fiber Laser Technologies Co., Ltd., Lumentum Operations LLC, Maxphotonics Co., Ltd., and nLight, Inc.
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The section provides businesses with an overview of the industry. It comprises a detailed analysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination of the dynamics is predicted to help businesses understand the complex nature of the market.
The examination comprises key factors, potential challenges, and forecasts influencing the demand, production, and consumption of the product within each country. This section aims to help organizations make informed decisions and develop strategies tailored to individual countries.
India is projected to dominate the country-wise growth in the industry during the forecast period with an estimated CAGR of 15.2%. Japan, South Korea, and China are predicted to follow behind India to become the leading countries in the industry with forecasted CAGRs of 12.3%, 12.2%, and 11.7% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 15.2% |
| Japan | 12.3% |
| South Korea | 12.2% |
| China | 11.7% |
| United States | 11.5% |
China is anticipated to offer highly profitable opportunities for the expansion of the solid-state laser industry due to the rising demand for fabricated metal products and high-power cutting options in the country. Industrialization in China has led to a rise in manufacturing activities with a resultant increase in demand for fiber lasers within this country.
The government of China launched the “Made in China 2025” industrial strategy aimed at upgrading its manufacturing sector and becoming a world factory by 2025. This is estimated to increase the demand for solid-state lasers in the region. Apart from being one of the most prominent semiconductor manufacturers, the country attracts several participants in the industry.
This industry contributes a significant percentage to China’s GDP. Solid-state laser metal cutting is a central process in manufactured metal product production that is likely to benefit from new government policies created recently.
Revenue generation in the country’s industry over the forecast period will likely be driven by growing applications of fiber lasers in sheet metal and thin material welding as well as increased popularity among metal cutters.
The fiber laser market in Germany is anticipated to showcase a CAGR of 9.4% over the assessment period. This is owing to the increasing demand in the semiconductor and integrated circuit manufacturing industry.
With innovations in manufacturing technology, modern manufacturing industries are looking toward adopting compact laser cutting and welding machines to enhance their productivity. Increasing demand for miniature electronic components is also driving demand in the fiber laser industry in the country.
Solid-state lasers are widely used in high-precision cutting and perforation of semiconductor wafers and electronic circuits, as well as in thin metal welding in automotive body manufacturing. Increasing demand for electric and autonomous vehicles is likely to fuel demand for integrated circuits, which are anticipated to consequently boost growth in Germany’s market.
Federal Motor Transport Authority or KBA reported that 394,000 electric cars were registered in Germany. It raised the use of light detection and ranging (LiDAR) systems in modern automobiles.
The United States is anticipated to account for 72% of North America’s industry share in the fiber laser market through 2034. The presence of a highly innovative industrial sector in the country is a leading factor supporting growth in the market. The CMS Office of the Actuary estimated that the manufacturing industry accounts for 10.9% of the United States economy in terms of gross domestic product (GDP).
The United States is also one of the global leaders in consumer electronics and automotive manufacturing, making it a lucrative industry for solid-state laser players. Rising per capita income along with growing economic conditions is fueling automotive production in the country.
Solid state laser is progressively used in high-power applications like welding of lightweight automotive body panels. An increase in automobile production is, hence, estimated to augment growth in the United States.
The section provides organizations with insightful data and analysis of the two leading segments of the target industry. Segmentation of these categories assists businesses in understanding the dynamics of the market and investing in beneficial zones.
Examination of the growth helps companies to attain a thorough understanding of the trends, opportunities, and challenges. This analysis is predicted to assist organizations in navigating the complex environment of the business world and making informed decisions.
CW is predicted to dominate the laser-type segment with a value share of 76.1% in 2024. In terms of output power, high power (more than 2000 W) is projected to lead with a value share of 62.7% in the same year.
| Segment | CW (Laser Type) |
|---|---|
| Value Share (2024) | 76.1% |
Continuous wave (CW) fiber laser is estimated to account for 76.1% of the global share in 2024, owing to its high effectiveness against reflective metals. It is extensively used by aerospace and automotive manufacturers, as it is highly precise, stable, and offers excellent beam quality for material processing applications. It also delivers higher reliability and power efficiency compared to conventional laser welding.
A pulsed laser, on the other hand, is anticipated to gain a significant share during the forecast period, especially in marking applications. This is because it requires low maintenance, has a long service life, and boasts a quick cycle time for high-volume production.
| Segment | High Power [More than 2000 W] (Output Power) |
|---|---|
| Value Share (2024) | 62.7% |
Increasing the use of sheet metal to reduce weight, improve fuel economy, and lower the manufacturing cost of automobiles is predicted to drive sales of high-power solid-state lasers over the assessment period. The adoption of lightweight materials in the designing and manufacturing of aerospace body panels and other components is likely to further fuel growth.
High-power fiber lasers are experiencing high demand in thin metal-cutting applications. This is as due to its unparalleled combination of precision, productivity, and high cost-effectiveness in comparison to conventional cutting technologies like plasma torch and carbon-dioxide lasers.
Key players in the industry include IPG Photonics Corporation, TRUMPF GmbH + Co. KG, FURUKAWA ELECTRIC CO., LTD., Coherent, Inc., Wuhan Raycus Fiber Laser Technologies Co., Ltd., FANUC CORPORATION, and Newport CORPORATION.
Global manufacturers are making significant investments to fortify their competency as a reliable provider of laser fibers. They are working toward meeting the growing needs of several end-use industries, thereby fueling sales of these solid-state lasers.
Key companies are using partnership and joint venture strategies to develop innovative lasers and boost their resource base. Prominent players are further introducing new products owing to the growing demand for innovative solutions across multiple end-use industries. Reputed companies are adopting the strategy of geographic expansion to gain a competitive edge.
Industry Updates
Output power is divided into low power (up to 100 W), medium power (100 W to 2000 W), and high power (more than 2000 W).
CW, pulsed, and QCW are the laser types.
Cutting, welding and high power applications, marking, fine and microprocessing, medical, and communications, and advanced applications are the key applications.
The industry is spread across North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, and the Middle East and Africa.
The market is estimated to reach USD 4,304 million in 2024.
The market is anticipated to attain a size of USD 12,782.7 million by 2034.
IPG Photonics Corporation, TRUMPF GmbH + Co. KG, FURUKAWA ELECTRIC CO., LTD., Coherent, Inc., and Wuhan Raycus Fiber Laser Technologies Co., Ltd. are a few key players.
CW and pulsed are the two types.
It will likely rise at a CAGR of 11.5% through 2034.
It is a solid-state laser that uses optical fiber as a gain medium.
India is predicted to lead with a CAGR of 15.2% during the assessment period.
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Fiber Laser Market
