Laser Processing Market Report 2025

This Laser Processing market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The laser processing market size has grown rapidly in recent years. It will grow from $20.14 billion in 2024 to $22.21 billion in 2025 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to increased adoption of laser technology in manufacturing processes, demand for high-precision and non-contact material processing, growth in industries such as automotive, electronics, and medical devices, need for efficient and cost-effective manufacturing solutions, stringent quality and precision requirements in manufacturing.

The laser processing market size is expected to see rapid growth in the next few years. It will grow to $33.97 billion in 2029 at a compound annual growth rate (CAGR) of 11.2%. The growth in the forecast period can be attributed to adoption of ultrafast and high-power lasers for advanced materials processing, integration of laser technology in semiconductor and electronics production, rising demand for laser cutting and welding in aerospace and defense, focus on miniaturization and microfabrication in electronics industry, expansion of laser processing in medical and healthcare applications. Major trends in the forecast period include fiber laser technology dominance, hybrid laser processing (laser and cnc machining), ultrafast lasers for precision micromachining, laser-based surface treatment and coating, laser cleaning and de-coating processes.

The laser processing market is experiencing significant growth, driven by the increasing applications of lasers in medical devices and surgeries. Medical lasers find utility across various medical specialties, including ophthalmology, dermatology, plastic surgery, dental surgeries, and procedures in intraabdominal, cardiothoracic, neurologic, gynecologic, and urologic domains. These lasers provide a focused, coherent light source capable of delivering intense energy precisely. For instance, in the U.K., approximately 330,000 cataract operations are performed annually, showcasing the rising adoption of lasers in medical procedures. This trend is expected to fuel the demand for laser processing in the market during the forecast period.

The growth of the industrial sector is anticipated to propel the expansion of the laser processing market. The industrial sector, encompassing activities related to production, manufacturing, processing, and distribution of goods and services, relies on laser processing due to its precision, speed, versatility, and efficiency. Addressing the dynamic needs of industries, laser processing supports innovation, automation, and sustainability. In the United States, industrial production witnessed a year-on-year increase of 3.3% in October 2022, indicating the instrumental role of laser processing in driving industrial growth.

Major companies in the laser processing market are emphasizing remote monitoring technologies, such as mobile connectivity. This feature in laser systems enables users to remotely monitor and control system settings through a smartphone app, improving convenience and operational flexibility. For example, in May 2024, Laser Photonics Corporation (LPC), a US-based machine industry company, introduced its next-generation CleanTech laser cleaning systems, designed for tasks like cleaning, finishing, roughening, and surface preparation. This updated series includes mobile connectivity for remote monitoring, a compact scan head for easier handling, and smart overheat protection that stops operations if temperatures exceed 122°F (50°C). Moreover, the smartphone app allows users to easily control settings. LPC's new CleanTech systems enhance usability and safety, serving a wide range of clients from small businesses to large manufacturers and government entities, while delivering precise and efficient surface cleaning solutions.

Major companies in the laser processing market are embracing a strategic partnership approach to gain full control over beam shape, frequency, sequence, and focus steering, addressing manufacturing challenges effectively. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and success. For example, in January 2024, MicroStep, spol. s r.o., a Slovakia-based machinery company, announced a strategic partnership with Suresh Indu Lasers Pvt. Ltd. (SIL), an India-based laser technology company, aimed at enhancing their precision cutting and manufacturing capabilities. This collaboration is expected to utilize advanced laser technologies to boost efficiency and product quality across various industrial applications. This initiative underscores MicroStep's commitment to innovation and its objective to remain at the forefront of technological advancements in the industry. The partnership is likely to enable the development of new solutions that address the evolving needs of clients in sectors such as construction and manufacturing.

In 2022, TRUMPF acquired an 80% stake in Active Fiber Systems GmbH (AFS), a German manufacturer of ultrashort-pulse laser systems. This strategic acquisition allows TRUMPF to utilize AFS's laser systems for generating extremely short-wavelength light with high coherence, benefiting applications in biomedical imaging and materials processing within the laser processing market.

Major companies operating in the laser processing market include Coherent Inc., TRUMPF Inc., Han's Laser Technology Industry Group Co. Ltd., IPG Photonics Corporation, Jenoptik AG, Rofin-Sinar Technologies Inc., Bystronic Laser AG, Prima Power Group, Amada Miyachi America Inc., Mitsubishi Electric Corporation, nLIGHT Inc., Lumentum Holdings Inc., SPI Lasers UK Ltd., Ekspla, FANUC Corporation, II-VI Incorporated, Trotec Laser GmbH, LaserStar Technologies Corporation, NKT Photonics A/S, Cutera Inc., MKS Instruments Inc., Laserline GmbH, Convergent Photonics Corporation, ALPHA LASER GmbH, Photonics Industries International Inc., Cy-laser s.r.l., Lumibird Medical.

Asia-Pacific was the largest region in the laser processing market in 2024, and it is also expected to be the fastest-growing region in the laser processing market share during the forecast period. The regions covered in the laser processing market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the laser processing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

Laser processing involves the use of a laser beam projection onto the surface of a material, utilizing a thermal effect to achieve various processes such as laser welding, laser cutting, surface modification, laser marking, laser drilling, and micro processing. Laser beams are employed for tasks like punching, cutting, scribing, welding, and heat treatment due to their adaptability to different material processing.

The main types of laser processing include gas laser, liquid laser, solid laser, and other types. Gas lasers generate light by passing an electric current through a gas, inducing a process called population inversion. Helium-neon lasers are commonly used in physics labs and educational settings, known for their cost-effectiveness. Laser processing finds applications in cutting, welding, drilling, micro processing, marking and engraving, and various other applications. The end-users of laser processing span across industries such as aerospace and defense, automotive, healthcare, machine tools, architecture, electronics and microelectronics, among others.

The laser processing market research report is one of a series of new reports that provides Laser processing market statistics, including laser processing industry global market size, regional shares, competitors with an laser processing market share, detailed laser processing market segments, market trends and opportunities, and any further data you may need to thrive in the laser processing industry. This laser processing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The laser processing market includes revenues earned by entities by providing services such as surface modification, precision welding, micro-drilling. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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