The laser automation market has experienced tremendous growth in recent years owing to increased adoption of laser-based processes across various manufacturing industries. Laser automation systems offer high precision, speed, and flexibility for material processing applications. Some of the key advantages of laser automation include reduced material waste, increased throughput, consistency in product quality, and ability to handle complex geometries. With growing emphasis on productivity, quality, and cost-efficiency, there has been a rise in the deployment of automated laser systems for various manufacturing tasks including cutting, welding, and drilling.
The Global laser automation market is estimated to be valued at US$ 6.48 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030.
The need for laser automation stems from the desire of manufacturers to enhance production efficiency, minimize manual labor requirements, and reduce manufacturing costs. Laser systems integrated with robotics provide an accurate and flexible solution for high-volume manufacturing operations across automotive, electronics, aerospace & defense, medical devices and other industries.
Key Takeaways
Key players operating in the laser automation market are Trumpf GmbH + Co. KG, Coherent, Inc., IPG Photonics Corporation, Han’s Laser Technology Industry Group Co., Ltd., Rofin-Sinar Technologies Inc., Jenoptik AG, Amada Miyachi America, Inc., Newport Corporation, Prima Power, and Fanuc Corporation.
There exists considerable opportunity for laser automation providers to leverage the growth in electronics manufacturing, electric vehicles, and adoption of Industry 4.0 initiatives worldwide. The laser automation market is poised to witness expansion into new geographical regions driven by establishment of production facilities by global players in Asia Pacific, Middle East, and South America.
Global expansion of major laser and automation equipment manufacturers through strategic partnerships and acquisitions will further support the proliferation of laser automation systems across multiple applications over the coming years.
Market Drivers
Growing demand from automotive, electronics and other manufacturing sectors: Expansion of the auto and consumer electronics industries along with ongoing trend of advanced manufacturing technologies are driving demand for high-accuracy laser automation solutions.
Increased productivity and cost advantages: Laser automation offers significant productivity gains through faster processing times and reduced material requirements compared to traditional methods. This leads to lower manufacturing costs.
Market Restrain
High initial investment: Implementation of laser automation requires large capital expenditure toward laser processing equipment, robotics, control systems and software. This high upfront cost deters SMBs and limits adoption.
Volatility in commodity prices: Fluctuations in prices of key metals like steel and aluminum that are widely processed using laser machines impacts ROI calculations for laser automation systems.
Segment Analysis
The laser automation market can be segmented into laser cutting, laser welding, laser drilling, laser marking and laser engraving by application. The laser cutting segment dominates the market owing to wide usage of laser cutting machines for high precision cutting applications across various industries like automotive, electronics, medical devices etc. Laser cutting provides benefits like minimal heat input, high speed and flexibility which has increased its adoption over traditional cutting methods.
Within laser cutting, fiber laser cutting machines have emerged as the dominating sub-segment. Fiber laser cutting machines provide benefits like high power processing, improved cut quality, low maintenance costs and flexibility of processing various materials. The ability of fiber laser cutting machines to offer precision cutting of intricate parts for industries where close tollerances are required has increased their use over other laser cutting alternatives.
Global Analysis
North America dominates the global laser automation market currently due to presence of major players and widespread industrial usage of laser technologies across automotive, electronics and medical device industries in the US and Canada. The Asia Pacific region is projected to be the fastest growing market during the forecast period owing to expansion of manufacturing industry, infrastructure development and focus on Industry 4.0 adoption in major countries like China, Japan and India. Countries like China and India are witnessing heavy investments in automation by electronics, automotive and other manufacturing companies to boost productivity and gain competitive edge, thus driving growth of laser automation market in Asia Pacific.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
