Semiconductor laser: Key market research findings
- APAC dominates the market geographically
- Material processing accounts for a majority share of the market’s revenue
- Key vendors – Coherent, Novanta, Han’s Laser, Rofin-Sinar Technologies, and TRUMPF
Technavio’s market research analysts predict the global market for semiconductor lasers to grow at a CAGR of over 7% between 2016 and 2020. The growth of the market can be accredited to the multifarious advantages of laser products. Lasers are essential for the material processing industry due to their low cost, high efficiency, large variation in output power, and many possible output waveforms. Furthermore, in the healthcare segment, laser systems are used in the treatment of skin imperfections including pigmentation, moles, birthmarks, sun-damaged skin, and pre-cancerous spots. During 2015, the global semiconductor laser market was dominated by APAC with a market share of around 44%. The growth in the communication industry in countries such as China, Japan, South Korea, Australia, and India is expected to fuel the demand for semiconductor lasers in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the semiconductor laser segments based on the application.
“The market is currently witnessing an upsurge in the number of mergers and acquisitions. Existing vendors are now acquiring new firms to either enter the market or broaden their product portfolios. In 2012, Coherent entered an acquisition agreement with Innolight and Lumera Laser to strengthen its market presence. This ongoing increase in consolidation will drive the market’s growth during the forecast period,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
By 2020, the material processing segment will account for almost 63% of the overall market share to become the dominant shareholder in the global semiconductor laser market. In the material processing industry, lasers are mostly used for lithography applications. They are used for are used for cutting metals and welding plastics due to their high efficiency, power, and brightness. High-power lasers are used for material processing as they can work in a kilowatt power range. Some other applications of semiconductor lasers include ablation, plastic welding, brazing, soldering, and surface hardening.
The key vendors in the global semiconductor laser market include Coherent, Novanta, Han’s Laser, Rofin-Sinar Technologies, and TRUMPF. The evolving consumer needs for high power output, high processing speeds, and greater penetration constitute a key strategic component for semiconductor laser manufacturers across the globe. All major vendors are accelerating their R&D initiatives to broaden their laser portfolios. Vendors are focusing on expanding R&D activities to enhance the output power range of lasers, performance of high-power lasers such as solid-state lasers, CO2 lasers, and diode lasers.
A more detailed analysis is available in the Technavio report, Global Semiconductor Lasers Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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