Laser Diode Global Market Report 2024

The laser diode market size has grown rapidly in recent years. It will grow from $7.76 billion in 2023 to $8.71 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The growth observed in the historical period can be attributed to factors such as increased demand in telecommunications, consumer electronics, medical applications, industrial and manufacturing applications, and the implementation of automotive LiDAR (Light Detection and Ranging) systems.

The laser diode market size is expected to see rapid growth in the next few years. It will grow to $13.51 billion in 2028 at a compound annual growth rate (CAGR) of 11.6%. The anticipated growth in the forecast period can be attributed to factors such as the proliferation of 5G and data centers, increased focus on defense and security applications, the trend towards miniaturization in consumer electronics, emphasis on energy efficiency and cost competitiveness, and growing applications in environmental monitoring. Key trends expected in the forecast period encompass the integration of laser diodes in augmented reality and virtual reality systems, a shift towards green technology, ongoing research and development in advanced materials, and increased applications in environmental sensing and monitoring.

The surge in demand within the EV automotive industry is poised to drive the expansion of the laser diode market in the coming years. Electric vehicles (EVs), powered by electricity stored in batteries, have witnessed increased adoption, driven by factors such as COVID-19 defense measures and the pursuit of net-zero emissions. Laser diodes, as optoelectronic devices converting electricity into high-intensity coherent light, play a crucial role in EVs. The Global EV Outlook 2022 report highlights a substantial growth in EV sales, reaching 6.6 million in 2021, twice the previous year's figures. This trend underscores the rising demand for laser diodes in the development of electric and hybrid vehicles, contributing to the overall growth of the market.

The laser diode market is anticipated to experience significant growth due to the escalating demand from the aerospace and defense industry. This expansive sector encompasses the production of military and civilian aircraft, along with related components. Laser diodes find extensive applications in this industry, primarily as pump sources for solid-state systems. An analysis by the World Bank reveals a noteworthy increase in global military spending, reaching 2.08 trillion in 2021 compared to 1.95 trillion in the previous year. Notably, the United States alone spent $800,672,200,000 billion on military expenses in 2021. The consistent demand from the aerospace and defense sector is expected to be a key driver for the laser diode market.

A prominent trend in the laser diode market is the emphasis on product innovations by major industry players. Companies are investing in cutting-edge solutions to enhance the capabilities of laser diodes. For example, Lumentum Holdings Inc., a leading player in the laser diode market, introduced the FemtoBladeTM femtosecond laser system in April 2022. This innovative system boasts a modular architecture that delivers high power at elevated repetition rates, offering increased flexibility, faster processing speed, and higher throughput for applications such as OLED, PCB, ceramic and glass cutting, engraving, and solar cell processing. The FemtoBlade's field-replaceable non-linear optics unit is a distinct feature that significantly reduces downtime.

Major companies in the laser diode market are focusing on innovative solutions such as the pump laser diode. This semiconductor device employs electrical current to drive lasing action in a solid-state laser gain medium, such as a neodymium-doped YAG crystal. Coherent Corp, a notable semiconductor manufacturing company, launched a next-generation pump laser diode in June 2023. This cutting-edge pump laser diode stands out with handheld fiber laser welding technology, achieving a remarkable 65 W of output power, surpassing existing products by 30%, all while requiring less operational current.

In January 2021 Kyocera, a Japanese ceramics and electronics manufacturer, acquired SLD Laser. The acquisition aligns with Kyocera's vision to pioneer LaserLight products for applications such as precision sensing, high-speed LiFi communication, industrial processing, and biomedicine. SLD Laser, a US-based laser diode company, contributes to Kyocera's growth and innovation in the laser diode market.

Major companies operating in the laser diode market report are Coherent Inc., Hamamatsu Photonics K.K, IPG Photonics Corp., Jenoptik AG, Newport Corporation, Rofin-Sinar Technologies Inc., ROHM Semiconductor, Sharp Corporation, Sumitomo Electric Industries Ltd, Trumpf Gmbh + Co. KG, austriamicrosystems AG, ASML Holding NV, Axcel Photonics Inc., Bluglass Limited, Frankfurt Laser Company, Infineon Technologies AG, Kyocera Corporation, Lumentum Holding Inc., MKS Instruments Inc., Power Technology Inc., Thorlabs Inc., Ushio Inc., Finisar Corporation, Panasonic Semiconductor Solutions Co. Ltd, Nichia Corporation, OSI Systems Inc., Laser Components GmbH, Sony Corporation, Mitsubishi Electric Corporation, Nippon Electric Company Ltd. , Wolfspeed Inc., Laser Quantum Ltd., Quantel Laser.

Asia-Pacific was the largest region in the laser diode market in 2023. Asia-Pacific is expected to be the fastest-growing region in the laser diode market during the forecast period. The regions covered in the laser diode market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the laser diode market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of laser diodes include infrared laser diodes, red laser diodes, blue laser diodes, blue-violet laser diodes, green laser diodes, and ultraviolet laser diodes. Green lasers specifically emit wavelengths within the 500 nm to 559 nm spectral region. Various doping materials, such as InGaN, GaN, AIGaInP, GaAs, and others, are employed in the manufacturing process. Laser diodes utilize technologies such as double heterostructure lasers, quantum well lasers, quantum cascade lasers, distributed feedback lasers, SCH lasers, VCSEL diodes, and VECSEL diodes. These laser diodes find applications across diverse industries, including aerospace and defense, automotive, consumer electronics, electronics and semiconductors, IT and telecommunication, among others.

The laser diode market research report is one of a series of new reports that provides laser diode market statistics, including global market size, regional shares, competitors with a laser diode market share, detailed laser diode market segments, market trends and opportunities, and any further data you may need to thrive in the laser diode industry. This laser diode 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 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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