LASER AUTOMATION MARKET ANALYSIS

Global laser automation market is projected to reach US$ 12,045.3 Mn by 2030, from US$  16,071.4 Mn in 2023, exhibiting a CAGR of 4.2% during the forecast period. Increasing demand for laser automation in various industries, such as automotive, electronics, and healthcare, is driving the growth of the market. Laser automation is the use of lasers to automate various manufacturing processes such as cutting, welding, and marking. Lasers offer a number of advantages over traditional manufacturing methods, such as high precision, high speed, and flexibility. As a result, laser automation is increasingly being adopted by manufacturers across a wide range of industries.

The automotive industry is one of the major drivers of the laser automation market. Lasers are used in the automotive industry for a variety of applications, such as cutting and welding of sheet metal, marking of components, and 3D printing. Increasing demand for lightweight and fuel-efficient vehicles is boosting adoption of laser automation in the automotive industry.

Global Laser Automation Market- Regional Insights

• North America is the largest market for laser automation, with a share of 35% in 2022. The region is expected to continue to dominate the market in the near future due to growing automotive, electronics, and packaging industries.
• Asia Pacific is the second largest market for laser automation, with a share of 30% in 2022. The region is expected to grow at a CAGR of 8.5% during the forecast period, driven by increasing adoption of laser automation in the aerospace, defense, and medical industries.
• Europe is the third largest market for laser automation, with a share of 18% in 2022. The region is expected to grow at a CAGR of 7.7% during the forecast period, driven by increasing adoption of laser automation in the machine tool, automotive, and electronics industries.

 Figure 1. Global Laser Automation Market Share (%), By Region, 2023

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Analyst View Point : The global laser automation market is expected to witness significant growth over the next decade. The rising adoption of laser technology across various industries for precision cutting, marking, and engraving applications is a major driver for market growth. Increased productivity and efficiency compared to traditional mechanical methods is encouraging more companies to automate laser processing.

North America currently dominates the laser automation market owing to early adoption of advanced technologies in the region. However, Asia Pacific is expected to be the fastest growing regional market with strong growth anticipated in major economies like China, India, and Japan. This can be attributed to rising labor costs and increasing focus on quality and productivity by manufacturers in the region.

While high initial capital investments required for laser machines and systems pose a challenge, falling prices of lasers and related components are making the technology more affordable. Furthermore, customizability of laser processes as per application requirements provides immense opportunities for equipment providers to expand in niche and customized solutions.

Global Laser Automation Market- Drivers

• High precision and accuracy of laser automation systems: Increasing demand for high precision and accuracy across various manufacturing industries such as electronics, automotive, healthcare, and others is one of the major factors boosting the growth of the global laser automation market. Laser systems offer unmatched precision and accuracy down to microns and nanometers, allowing manufacturers to produce extremely small components and achieve close tolerances. This level of precision cannot be achieved through conventional mechanical processes. For example, in the electronics industry, several components like computer chips, circuit boards, and sensors are being miniaturized rapidly. The intricate design and close tolerances required during the manufacturing of these components can only be achieved through precise laser processes such as cutting, welding, drilling, and others. According to UN statistics, global manufacturing output is projected to grow at an annual rate of 3-4% between 2020-2023. This growth will further increase demand for advanced manufacturing technologies like laser automation from sectors, aiming to reduce costs through automation while improving product quality. Many manufacturing companies are increasingly integrating laser systems and automating laser processes to gain long term productivity and precision benefits. In the future, it is anticipated that laser automation would significantly disrupt traditional manufacturing, propelling the market's expansion.
• Advancements in Laser Technology: Continuous advancements in laser technology including improvements in power, precision, and beam quality have expanded the scope of laser automation applications. The development of fiber lasers, diode lasers, and ultrafast lasers has enabled new possibilities in various industries, leading to increased demand for laser automation solutions.

Global Laser Automation Market- Opportunities

• Emerging Industries: The laser automation market has significant opportunities in emerging industries such as renewable energy, electric vehicles, and advanced electronics. As these industries continue to expand, there is growing demand for laser automation solutions for processes like solar cell manufacturing, battery production, and electronics assembly.
• Medical and Healthcare Applications: The healthcare industry offers promising opportunities for laser automation. Laser systems are used in medical device manufacturing, surgical procedures, dermatology, ophthalmology, and dental applications. The demand for minimally invasive procedures, precision surgeries, and personalized medical devices is likely to boost adoption of laser automation in the healthcare sector.

Global Laser Automation Market- Trends

• Adoption of Fiber Lasers: Fiber lasers have gained significant popularity in laser automation applications. These lasers offer high power, excellent beam quality, and efficient energy consumption. Compared to traditional solid-state lasers, fiber lasers provide enhanced reliability, longer operational lifetimes, and lower maintenance requirements. The adoption of fiber lasers is increasing across various industries, including automotive, aerospace, electronics, and metal fabrication. The adoption of fiber lasers has been growing in various industries due to these advantages. For instance, in the manufacturing sector, fiber lasers are increasingly being used for applications such as cutting, welding, and engraving due to their high precision and efficiency.
• Integration of Intelligent Features: Laser automation systems are becoming smarter and more intelligent. Integration with advanced technologies such as artificial intelligence (AI), machine learning, and computer vision enables real-time monitoring, process optimization, and predictive maintenance. Intelligent features allow laser automation systems to adapt to changing conditions, optimize parameters, and improve overall efficiency and productivity. Laser systems equipped with intelligent capabilities can perform highly complex tasks with increased accuracy by learning from experience. For instance, autonomous robots using machine vision and deep learning are now able to identify defects, irregularities and anomalies during precision welding, cutting and drilling applications with an accuracy rate of over 95%. This is eliminating the need for human operators to visually inspect each individual workpiece. Furthermore, AI-guided lasers can adapt to unpredictable environments in real-time by monitoring multiple variables like temperature, pressure and vibrations.

Global Laser Automation Market- Restraints

• High Initial Investment: Laser automation systems often require a significant initial investment, including the cost of laser equipment, associated infrastructure, and integration with other machinery. The upfront capital expenditure can be a barrier for small and medium-sized enterprises (SMEs) or companies with limited financial resources, limiting their ability to adopt laser automation technologies.
• Skilled Workforce Requirement: Operating and maintaining laser automation systems require specialized skills and knowledge. The need for trained operators and technicians proficient in laser technology and safety practices can be a restraint. Companies may face challenges in finding and retaining skilled personnel, which can impact the widespread adoption of laser automation.

Counterbalance: The requirement for a skilled workforce can be addressed through training and education. Many companies are investing in training programs to upskill their existing workforce. Additionally, there are numerous online platforms and institutions offering courses in various fields, making it easier for individuals to acquire the necessary skills Companies can also outsource certain tasks or processes to third parties that specialize in those areas. This can be a cost-effective solution, particularly for small and medium-sized businesses that may not have the resources to hire a full-time, skilled workforce.

Global Laser Automation Market- Recent Developments

New Product Launches

• In June 2022, Coherent has introduced the OBIS XT Series of The OBIS XT series introduces a new breed of smart, compact ultraviolet lasers designed to elevate power capacity to 150 mill watts while operating at a 320 nm wavelength. Their compact size, minimal heat dissipation, and built-in controller capabilities redefine the landscape of UV laser technology.
• In June 2022 At the Tube trade fair in Dusseldorf, Germany, TRUMPF unveiled an automated loading solution for laser tube-cutting machines. This innovative system seamlessly transfers tubes from the storage unit to the tube-cutting machine, offering a streamlined process that minimizes downtime and enhances overall productivity.

Figure 2. Global Laser Automation Market Share (%), By Application, 2023

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Top companies in Global Laser Automation Market

• 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
• Fanuc Corporation

Definition: Laser automation market refers to the industry that encompasses the development, production, and deployment of automated systems and solutions that utilize laser technology for various industrial applications. Laser automation involves the integration of lasers with robotic systems, control software, and other technologies to enable precise and efficient processes such as cutting, welding, marking, engraving, and material handling. It aims to enhance productivity, quality, and operational efficiency in industries ranging from manufacturing and automotive to aerospace, electronics, healthcare, and more.