February 25, 2024

Rising adoption of Industry 4.0 technologies to boost the growth of the Growth Laser Automation Market

The global Laser Automation Market is estimated to be valued at US$ 6.48 Bn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The laser automation market includes systems that are capable of manufacturing customized products at mass scale. Laser systems offer advantages such as precision cutting & machining, negligible heat affected zones, and minimizing material wastage. They are widely used for cutting, engraving, welding, and marking applications in industries such as automotive, electronics, telecommunication, and healthcare. The increasing demand for customized products is driving the need for flexible and precise manufacturing systems offered by laser automation.

Market key trends:
Adoption of Industry 4.0 technologies such as IoT, AI, 3D printing, and big data analytics is a key trend in the laser automation market. Manufacturers are integrating these advanced technologies to develop smart, connected, and autonomous laser systems. This enables real-time data analysis, predictive maintenance, remote monitoring, and efficient production planning. For instance, IPG Photonics has developed a machine learning platform to optimize laser processes based on collected operational data. The growing Industry 4.0 trend is expected to boost the demand for advanced laser automation systems.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is moderate as the substantial initial investment required in R&D and manufacturing equipment for laser automation poses a significant barrier. However, new players can enter the market by offering laser-based solutions for niche applications.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of numerous solution providers offering similar automation solutions. Buyers can negotiate on price easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate since raw material and component suppliers have minimal differentiation. However, suppliers of technology such as laser sources enjoy some bargaining power.

Threat of new substitutes: The threat from substitutes is low as laser-based automation offers high precision and flexibility not replicable through traditional mechanization. However, additive manufacturing is emerging as a potential substitute for certain laser applications.

Competitive rivalry: Intense as major players compete on the basis of technology, value-added services and price.

Key Takeaways:

The global laser automation market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period, due to increasing demand for precise, flexible and contactless material processing from industries like electronics & semiconductor, automotive, and medical devices.

Regionally, Asia Pacific dominates the laser automation market owing to the large presence of both manufacturers and component suppliers in China, Japan and other Asian countries. The region is estimated to maintain its dominance during the forecast period as well, driven by growing demand from industries and government support for industrial automation adoption.

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, and Fanuc Corporation. The market is expected to witness increased consolidation activity as major players look to enhance their product portfolio and market share through acquisitions