Industrial Laser System Market Report 2025

The industrial laser system market size has grown rapidly in recent years. It will grow from $25.39 billion in 2024 to $28 billion in 2025 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to material processing applications, increased manufacturing automation, medical and scientific applications, rise in 3D printing, and military and defense applications.

The industrial laser system market size is expected to see rapid growth in the next few years. It will grow to $42.23 billion in 2029 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to increased adoption in electronics manufacturing, growing demand for laser cutting in automotive, expansion of the aerospace industry, rise in medical device manufacturing, and advancements in high-power laser systems. Major trends in the forecast period include integration with Industry 4.0, advancements in fiber laser technology, emergence of laser technology, rise in fiber laser technology, and laser cleaning applications.

An increase in the trend of automation within industries is anticipated to contribute to the growth of the industrial laser system market in the future. Automation involves utilizing various technological applications to reduce human involvement in processes. This shift has heightened the demand for high-precision industrial laser systems across multiple applications. Automated laser systems integrate vision and motion technologies to perform precise and high-quality tasks. The rising trend of automation in industries, aimed at enhancing productivity, efficiency, and accuracy, is leading to the increased adoption of industrial laser systems. For example, in December 2023, Formstack, a US-based software company, reported that 76% of organizations utilize automation to streamline their daily workflows, with 58% employing it for data automation and reporting for planning purposes, and 36% for regulatory compliance. Thus, the growing trend of automation in industries will drive the expansion of the industrial laser system market.

The rising demand for consumer electronics is expected to further propel the growth of the industrial laser system market. Consumer electronics include a broad array of electronic devices intended for personal use, such as smartphones, laptops, televisions, and audio devices. Industrial laser systems are utilized in the manufacturing of consumer electronics for precision cutting and engraving of materials like metals and plastics, ensuring high-quality and intricate designs in products such as smartphones and laptops. For instance, in May 2023, the Japan Electronics and Information Technology Industries Association, a trade association based in Japan, reported that the total electronic equipment production in Japan reached $52.36 billion (¥771,457 million). Moreover, consumer electronics production amounted to $2.17 billion (¥32,099 million) in May 2023, up from $1.71 billion (¥25,268 million) in May 2022. Therefore, the increasing demand for consumer electronics will drive the growth of the industrial laser system market.

Leading companies in the industrial laser systems market are advancing technologies like femtosecond laser fiber inscription grating technology, which facilitates high-precision manufacturing and enhances performance across various applications. This technology utilizes extremely short laser pulses (measured in femtoseconds) to create precise patterns and structures within optical fibers, thereby improving their effectiveness for applications such as telecommunications and sensing. For example, in August 2024, BWT Beijing Ltd., a China-based manufacturer of high-performance diode laser components and subsystems, introduced the Thunder 200kW (kilowatt) ultra-high-power industrial-grade fiber laser. This industrial laser integrates advanced technologies, including Circulating Tumor Cell (CTC) chip integration, femtosecond laser fiber inscription grating, and an ultra-high-power beam. These innovations aim to enhance the processing of ultra-thick metal plates, thereby aiding the transformation and modernization of traditional manufacturing practices.

Major companies in the industrial laser system market are focusing on product innovation, such as CO2 smart focus laser systems, to meet evolving industry demands for enhanced precision and efficiency. A CO2 smart focus laser system is a precision technology that utilizes carbon dioxide lasers with intelligent focusing capabilities for material processing applications. In June 2023, Videojet Technologies, a US-based laser marking system company, launched the Videojet 3350 and Videojet 3350 Smart Focus 30-watt CO2 laser marking systems. Specifically engineered for fast and precise coding in industries such as food, beverage, cosmetics, pharmaceuticals, packaging, and extrusion, these lasers provide high-speed marking, enabling the printing of text, barcodes, graphics, and other information at speeds of up to 2,000 characters per second. The high-resolution marking head ensures the creation of permanent codes, supporting product traceability and anti-counterfeiting measures.

In June 2022, II-VI Incorporated, a US-based semiconductor manufacturing company, acquired Coherent Inc. for an undisclosed amount. Through this acquisition, II-VI Incorporated aims to establish itself as a global leader in compound semiconductors, photonic solutions, and laser systems. Coherent Inc. is a US-based manufacturer of laser equipment.

Major companies operating in the industrial laser system market include Fanuc Corporation, The TRUMPF Group, Newport Corporation, COHERENT Inc., Amonics Ltd., Amada Co. Ltd., DMG Mori Co. Ltd., Han's Laser Technology Co. Ltd., IPG Photonics Corporation, NKT Photonics A/S, Bystronic Laser AG, Jenoptik AG, Sodick Co. Ltd., Mazak Corporation, Prima Industrie SpA, Trodat Trotec Holding GmbH, nLIGHT Inc, Universal Laser Systems, Epilog Laser Corporation, CY Laser SRL, ACSYS Lasertechnik Inc., Calmar Laser, Apollo Instruments Inc., Quantel Group, ROFIN-LASER GmbH, ALPHA LASER GmbH, Penta Laser Technology Co. Ltd., GSI Group\

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

An industrial laser system is a device that stimulates atoms or molecules to emit light at specific wavelengths, amplifying that light to produce a narrow beam of radiation. Industrial laser systems are used for cutting metals and fabrics, marking tracking codes for industrial traceability, welding metals, cleaning metal surfaces, altering surface roughness, and measuring part dimensions.

The primary types of lasers in industrial laser systems are fiber, solid-state, CO2, and others. Fiber lasers use an optical fiber cable with a doped fiber made of silica glass as a gain medium. Macro processing and micro processing with power ranges less than 1 kW and more than 1.1 kW find applications in cutting, welding, marking, drilling, and other industries such as semiconductors and electronics, automotive, aerospace and defense, medical, and others.

The industrial laser system market research report is one of a series of new reports that provides industrial laser system market statistics, including global laser system industry market size, regional shares, competitors with an industrial laser system market share, detailed industrial laser system market segments, market trends and opportunities, and any further data you may need to thrive in the industrial laser system industry. This industrial laser system 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 industrial laser system market consists of sales of industrial laser systems including diode/excimer lasers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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