Laser Materials Market Size will exceed $1.56 billion by 2026
Published Date: August 17, 2020 Authors: Kiran Pulidindi, Hemant Pandey
According to a new research report by Global Market Insights, Inc., the Laser Materials Market size will exceed USD 1.56 billion by 2026. Rising military & communication sector will augment laser materials demand in the coming years
Continuous expansion of industrial processing will result in increased demand for Laser Materials
Prominent industry players are making significant investments in R&D to develop low cost and efficient materials that help reduce environmental threats. Regulatory bodies, such as EPA, have imposed stringent laws on industrial materials under Toxic Substance Control Act (TSCA) due to disposable concerns, and this has resulted in reduced greenhouse gas emissions.
The rising demand for consumer electronics, such as mobile phones, laptops, TVs, and displays will propel the laser materials market growth. Consumer durables demand from household is set to accelerate due to rising disposable income, changing lifestyles, and easier access to credit.
According to the Semiconductor Industry Association (SIA), the semiconductor sales increased from USD 125.6 billion in 1998 to USD 468.8 billion in 2018. These trends have surged implementation of laser technology to new heights. End-use industries are increasing the consumption of laser materials owing to their excellent advantages such as efficiency, decreasing cost, precision, good mechanical, and thermal resistance.
The global laser materials market is primarily driven by the rising demand for metal processing and designing applications from automotive and general manufacturing industries. Increasing demand for laser technology in industries such as metal fabrication, automation, steel, and original equipment manufacturers is anticipated to be a major driver propelling market size by 2026.
Browse key industry insights spread across 250 pages with 178 market data tables & 28 figures & charts from the report, “Laser Materials Market By Product (Plastic, Glass, Metal, Ceramics), By Application (Communication, Materials Processing, Medical & Aesthetic, Instrumentation & Sensors, Lithography, Optical Storage, R&D & Military), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
COVID-19 has caused disruption in the supply chain of raw materials in developed nations. The global death toll has surpassed the 735,000 mark. Sharp contraction in consumer spending has severely plunged the U.S. economy. Consumption that constitutes 2/3rd of U.S. GDP fell 34.6% during the period. America constitutes below 5% of global population, still it has almost a third of all new COVID-19 cases worldwide. The pandemic has led to diminishing industrial sales and import activities in the region.
High raw material and feedstock prices, availability of skilled labor, and energy-intensive production process are some of the factors that will hamper the overall laser materials market share during the coming years.
Metal-based laser material to accommodate majority position in segment share
The metals segment will hold a revenue close to USD 870 million in 2026 of the overall laser materials market. The material is generally utilized in fabrication of laser diode assembly, electric components, casing, and semiconductors. Metals, such as aluminum, gold, copper, and tantalum, are largely used in semiconductor products.
Global industrial production dramatically increased crude steel production by 3.4% in 2019, reaching at 1,869.9 MT compared to 2018 according to the World Steel Association. Metals are broadly used in numerous industries such as aerospace, automotive, appliances, OEMs, etc. In these industries, metals undergo bending, cutting, and assembling processes, which require laser for effective and efficient operations.
Communication application will generate promising revenue growth
The communication application segment accounts for a market share of over 33% in the laser materials market and will grow at a stable growth rate of 4.3% CAGR. The demand for lasers in telecommunications will foresee notable gains due to upcoming 5G deployments and upgrades outlook. Laser technology is highly preferred in fiber-optic communication, and diode lasers are integral components in fiber optic networks. In addition, growing utility of laser technology in free-space optical communication will create new opportunities for product manufacturers.
North America is expected to be among leading regional markets
North America is expected to constitute close to 25% market share in 2026. The region has huge potential in healthcare, aerospace, electronics, infrastructure, and energy sectors. The evolving regulatory requirements and establishment of new standards and technologies and increasing customer demands for longer lasting high-performance products will collectively have an impact on product formulation, supply, and consumption trends in the U.S.
The country’s industrial sector is undergoing a period of technological innovation and development, driven in part by federal regulations that require component manufacturers to meet regulatory standards. Stable economy, high investments in innovation & greater number of patents, sophisticated production technology combined with growing consumer demand in the long term will be some of the major factors driving the overall laser materials market in North America.
Strategic collaborations and product innovations can be seen in the laser material market
Major players operating in the laser materials industry are strategically investing in new product development to gain a competitive advantage. In February 2020, Universal Laser System expanded its portfolio of high-performance laser material processing systems. These product developments show a huge potential for laser material demand.
In addition, the acquisition of Mound Laser and Photonics Center Inc. by Resonetics LLC has opened new market avenues for the company in medical devices for microscale metal components.
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