Laser Processing Equipment Market

Laser Processing Equipment Market Size

According to a recent study by Global Market Insights Inc., the global laser processing equipment market was estimated at USD 23.9 billion in 2024. The market is expected to grow from USD 25.9 billion in 2025 to USD 66.2 billion in 2034, at a CAGR of 11%.

The increasing adoption of Industry 4.0 technologies, such as IoT, AI, and automation, is driving the use of advanced laser processing equipment. According to the International Federation of Robotics (IFR), automation in manufacturing has increased by 14% annually, with advancing laser systems offering real-time monitoring, predictive maintenance, and improved productivity. Fiber lasers are required for cutting, welding, marking, and engraving applications due to their efficiency and reliability making them important in, replacing traditional laser technologies.

As electronics and medical devices get smaller every passing year the requirement for laser systems and equipment capable of micro-processing and precision machining is on the rise. As per SEMI (Semiconductor Equipment and Materials International), the global electronics manufacturing sector is projected to grow by 6% in 2024, further requiring the need for high-precision laser systems. These systems are critical for producing components with intricate designs and tight tolerances.

In the medical sector, laser processing equipment is hugely used for their precision and ability to work with a variety of materials such as metals, plastics, and ceramics. The World Health Organization (WHO) reports that the aging population is expected to double by 2050, increasing the demand for medical devices. Further driving its expansion in healthcare applications.

Fiber laser technology is also gaining traction in industrial manufacturing, supported by its energy efficiency and low maintenance costs. According to the Laser Institute of America (LIA), fiber lasers account for over 50% of the global laser market, with their adoption expected to grow further during the forecast period. This growth highlights the increasing reliance on advanced laser systems for precision-driven industrial processes.

Laser Processing Equipment Market Trends

Technological advancements are driving the market towards efficiency and precision.

• Laser-based additive manufacturing technologies, such as Selective Laser Melting (SLM) and Stereolithography (SLA) are driven by their ability to enable rapid prototyping and produce intricate components. According to the Additive Manufacturing Association, the adoption of laser-based additive manufacturing has grown steadily, with a compound annual growth rate (CAGR) of over 20% in the last decade. Companies like TRUMPF and IPG Photonics Corporation have been leveraging these technologies to enhance manufacturing precision and efficiency.
  

• Technological advancements and industry-specific requirements such as ultrafast lasers for medical micro-surgeries, high-power fiber lasers for aerospace propulsion and custom manufacturing are driving the innovation in laser processing equipment. According to the Laser Institute of America, the global laser processing equipment market is projected to grow at a CAGR of 8.5% during the forecast period of 2024-2029, driven by the increasing adoption of Industry 4.0 practices. Companies like Epilog Laser, Newport Corporation, and Eurolaser, are actively collaborating with manufacturers to develop customized solutions that address evolving industry needs.
  

Laser Processing Equipment Market Analysis

Based on technology type, the laser processing equipment is segmented into fiber lasers, CO2, solid state, and others. The fiber lasers segment generating a revenue of USD 12.3 billion in 2024

Fiber lasers are highly efficient, converting a substantial portion of input energy into usable laser energy. This efficiency significantly reduces power consumption and operating costs, offering businesses a cost-effective solution for various applications.

• According to the U.S. Department of Energy, energy-efficient technologies like fiber lasers can lower operational expenses by up to 30%, enabling companies to allocate resources more effectively. This economic advantage has driven their adoption across industries, particularly in manufacturing and precision engineering.
  
• The exceptional beam quality and stability of fiber lasers allow for precise and accurate results, making them indispensable for applications requiring intricate details or tight tolerances. For instance, in micro-machining and electronics manufacturing, where precision is critical, fiber lasers ensure consistent performance.
  
• The Laser Institute of America highlights that advancements in laser technology have enhanced production capabilities, enabling manufacturers to meet stringent quality standards while minimizing material waste. This reliability has positioned fiber lasers as a preferred choice in high-precision industries.
  
• Moreover, the versatility of fiber lasers extends their utility across a wide range of sectors, including automotive, aerospace, and healthcare. Their ability to handle diverse materials, such as metals, plastics, and composites, makes them suitable for cutting, welding, and marking applications.
  

Based on process type, the market is categorized into cutting & drilling, welding, marking & engraving, punching & micromachining, and others. The cutting & drilling segment accounted for about 51.2% of the laser processing equipment market share in 2024.

• Laser cutting and drilling are highly valued for their precision, enabling manufacturers to create intricate designs and achieve fine details with exceptional accuracy. This precision reduces material wastage, lowering production costs and supporting sustainability goals.
  
• According to the Association for Manufacturing Technology (AMT), precision technologies like laser processing can improve manufacturing efficiency by up to 30%. Companies such as TRUMPF and Coherent are leveraging these technologies to enhance their production capabilities.
  
• The versatility of laser processing equipment allows it to handle materials such as metals, plastics, ceramics, and composites, making it indispensable across industries like automotive, aerospace, electronics, and medical devices.
  
• For example, in the automotive sector, laser processing is used to produce lightweight components that align with global trends toward fuel efficiency and reduced emissions. Tesla and General Motors are among the companies utilizing laser technologies to innovate and optimize their manufacturing processes.
  

North America Laser Processing Equipment Market

• The U.S. region captured about 65% share of the North America laser processing equipment industry in 2024, driven by its robust ecosystem of technological innovation and research & development. The country is home to prominent manufacturers and technology firms that consistently push the boundaries of laser technology. This innovation is further supported by a diverse industrial base, including sectors such as automotive, aerospace, electronics, healthcare, and consumer goods.
  

• Laser processing equipment plays a critical role in these industries, offering advanced solutions for applications like cutting, welding, marking, engraving, and surface treatment. The U.S. manufacturing sectors, known for their scale and sophistication, actively adopt these technologies to enhance operational efficiency, improve product quality, and reduce costs, fueling the demand for laser processing equipment.
  

Asia Pacific Laser Processing Equipment Market

Asia Pacific market for laser processing equipment is expected to grow at 11.5% CAGR during 2025 to 2034.

• The laser processing equipment industry in the Asia Pacific region is witnessing robust growth, driven by increasing industrial applications, advancements in manufacturing technologies, and the rising demand for precision engineering. Countries in the region are adopting innovative laser technologies to enhance production efficiency and meet global quality standards. This growth is further supported by public and private sector investments, fostering innovation and expanding the market's scope.
  

Europe Laser Processing Equipment Market

• Europe laser processing equipment industry holds the second largest share and is expected to grow at 10.7% CAGR through 2034, due to its advanced manufacturing capabilities, strong focus on innovation, and robust industrial infrastructure. The region's commitment to research and development, coupled with increasing adoption of automation across industries, is driving significant growth in this market.
  

Laser Processing Equipment Market Share

• The top companies in the laser processing equipment industry includes TRUMPF Group, Coherent, IPG Photonics, Hans’s Laser Technology and Jenoptik AG and collectively held a substantial 20-25% of the market share. The market is highly fragmented, and the industry leaders are actively engaged in strategic initiatives, such as mergers & acquisitions, facility expansions, and partnerships, to broaden their product portfolios, reach a wider customer base, and strengthen their market presence.
  
• TRUMPF Group, continuously innovate in industrial laser systems. Its diverse portfolio boasts high-performance fiber, disk, and CO2 lasers, adept at cutting, welding, and surface treatment. For instance, TRUMPF offers TruLaser systems for precise laser cutting and TruLaser Weld for automated laser welding. These solutions cater to key sectors, including automotive, aerospace, and electronics. With a keen focus on smart manufacturing and automation, TRUMPF integrates digital connectivity and AI-driven optimizations, improving productivity and precision in industrial applications.
  
• Coherent Corp offers a broad spectrum of industrial and scientific markets. Its offerings encompass ultrafast, fiber, and diode lasers, pivotal in microelectronics, medical device production, and precision material processing. For example, Coherent provides Monaco Ultrafast lasers for micromachining and Highlight FL fiber lasers for industrial welding and cutting. With an emphasis on scalable, energy-efficient systems and innovative beam delivery technologies,
  
• IPG Photonics, specializes in high-power fiber laser technology, its systems find applications in cutting, welding, drilling, and surface treatment, serving industries from automotive and aerospace to electronics and medical device manufacturing. For example, IPG offers YLS fiber lasers for high precision cutting and welding and QCW lasers for drilling and fine processing. With a focus on vertically integrated production and relentless R&D, IPG delivers compact, energy-efficient, high-performance solutions.
  

Laser Processing Equipment Market Companies

Major players operating in the laser processing equipment industry include:

• Coherent
• Concept Laser
• Control Micro Systems
• Eurolaser
• Hans Group
• Hgtech
• IPG Photonics
• Jenoptik
• Laser Systems
• Lumibird
• Newport
• Rofin-Sinar Technologies
• TRUMPF
• Universal Laser Systems
• Vermont
  

Han’s Laser in the laser processing equipment market, offers an extensive portfolio of over 200 models, including laser marking, cutting, welding, and cleaning systems. Serving a wide range of industries, Han’s Laser is recognized for its high-speed, precision laser solutions that are both cost-efficient and scalable for mass production. By incorporating automation and intelligent control systems, the company has established itself as a reliable partner for high-throughput industrial applications, particularly in the evolving field of smart manufacturing.

Jenoptik applies its extensive knowledge in photonics and optical technologies to design high-precision laser processing systems tailored for the automotive, semiconductor, and medical technology industries. Its offerings include laser material processing systems, optical metrology solutions, and automation platforms, all designed to ensure reliability and seamless integration. Jenoptik stands out by combining laser precision with real-time quality monitoring and modular system designs

Laser Processing Equipment Industry News

• In June 2025, Coherent Corp. showcased innovative laser technologies at Laser World of Photonics in Munich. Highlights included a 600W Excimer Laser for HTS tape production, an 18W 880 nm Diode Laser for DPSS systems, and the ACE FL 2 µm Thulium Fiber Laser for urology. The company also introduced the Osprey Femtosecond Laser for life sciences and manufacturing and an Air-Cooled Diode Laser for polymer welding.
  
• In March 2025, Laserax announced the acquisition of DPSS Lasers Inc., a leading UV laser manufacturer, to strengthen its position in the laser technology market.
  
• In November 2024, Laser Photonics Corporation (LPC) completed the acquisition of Control Micro Systems (CMS) to expand into the pharmaceutical laser equipment market. CMS, known for its expertise in laser drilling for slow-release tablets and anti-counterfeiting marking systems, brings $4 million in existing orders. This move strengthens LPC’s position in a recession-resistant sector and adds high-profile pharmaceutical clients to its portfolio.
  

The laser processing equipment market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Thousand Units) from 2021 to 2034, for the following segments:

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Market, By Technology Type

• Fiber lasers
• CO2
• Solid State
• Others (Semiconductor, etc.)

Market, By Process Type

• Cutting & drilling
• Welding
• Marking & engraving
• Punching & micromachining
• Others (heat treatment., etc.)

Market, By Metal Type

• Steel
• Aluminium
• Copper
• Plastics and polymers
• Ceramics
• Others (Glass, composites, semiconductors etc.)

Market, By Function Type

• Semi-automatic
• Automatic

Market, By Integration Level

• Standalone systems
• Integrated production lines
• Modular systems
• Portable/desktop units

Market, By Laser Source Type

• Diode lasers
• Disk lasers
• Excimer lasers
• Others (Ultrafast lasers, thulium, etc.)

Market, By Cooling Mechanism

• Air-cooled
• Water-cooled
• Hybrid cooling

Market, By End Use

• Automotive
• Metal & fabrication
• Electronics
• Energy & power
• Others (medical, & life sciences, aerospace & defense, etc.)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE