The laser diode market comprises of laser sources that utilize semiconductor materials which emit coherent light when an electric current flows in them. Laser diodes are compact in size, rugged and highly efficient as compared to other laser sources such as gas lasers. They find extensive usage in various applications such as optical storage, laser printers, industrial processing, consumer electronics, medical devices and military. The significant advantages of laser diodes include low power consumption, high efficiency, small size, longer lifespan and ability to operate at room temperature. Growing demand for higher bandwidth from 5G infrastructures and increasing adoption of laser-based devices in healthcare sector are some of the major factors fueling the growth of global laser diode market. The rising demand for minimally invasive surgeries and medical aesthetic treatments is significantly propelling the usage of laser diodes in various medical applications such as laser skin resurfacing, laser eye surgery and dental procedures.
The Global laser diode market is estimated to be valued at US$ 11.9 billion in 2024 and is expected to exhibit a CAGR of 18% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the laser diode market are ASML Holding NV, Trumpf GmbH + Co. KG, Axcel Photonics, Inc., Sumitomo Electric Industries, Ltd., Coherent Inc., Sharp Corporation, Rofin-Sinar Technologies Inc., IPG Photonics Corp., and Newport Corp. ASML Holding NV is one of the prominent manufacturers of lithography systems for the semiconductor industry and emerged as a key player in laser diode market by introducing excimer laser technology for chip production applications. Axcel Photonics Inc. offers fiber laser diodes for various applications including material processing, display, lighting and medical.
The key opportunities in laser diode market include increase in fiber laser applications across industrial sectors and surge in demand for fiber coupled diode lasers from life sciences vertical. Geographically, Asia Pacific is projected to witness fastest growth in laser diode market during forecast period owing to rising electronics production and growing medical device industry in China and India. North America and Europe will also provide lucrative opportunities for laser diode manufacturers due to increasing investments in R&D for developing innovative laser-based products.
Market Drivers and Restraint
One of the major market drivers is rising demand for laser materials processing from automotive industry. Laser cutting and welding enable precision processing of auto components with minimal heat impact on surrounding materials. This helps automakers to reduce production times and costs. Additionally, growing adoption of laser technology in manufacturing electronics components is propelling the laser diode market growth.
However, high initial investments and complexity involved in laser diode manufacturing compared to traditional lighting sources can restrain the market growth. Fluctuations in prices of rare-earth materials used in lasers also pose a challenge. Strict regulatory approvals for various laser-based medical devices impede the timely commercialization of technologies as well.
Segment Analysis
The laser diode market can be segmented by type, such as blue laser diodes, red laser diodes, infrared laser diodes, ultraviolet laser diodes and other laser diodes. The blue laser diode segment is dominating currently due to increasing usage of blue laser diodes in 3D sensing applications including facial recognition and iris scanning. Blue laser diodes offer benefits like high efficiency, high brightness and compact size, which make them suitable for 3D sensing.
The laser diode market can also be segmented by application into optical storage, laser projection, optical communication, spectroscopy, industrial application, and others. The optical communication segment is dominating currently owing to wide usage of laser diodes in fiber optic communication systems. Laser diodes are an integral part of fiber optic networks as they convert electrical signals into light signals that can be transmitted over optical fibers for long distances without loss.
Regional Analysis
The Asia Pacific region is expected to grow the fastest in the laser diode market during the forecast period. This is attributed to rising demand for laser diode applications in consumer electronics, automotive, industrial and medical sectors from emerging economies like China and India. North America is currently the dominating region due to presence of key players and large base of end use industries like telecommunication and healthcare.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
