May 22, 2024

“The Global Laser Diode Market is projected to thriving in miniaturization”

 

The laser diode market consists of semiconductor devices that produce coherent light through stimulated emission. Laser diodes have wide applications in optical storage, holography, spectroscopy, optical communication systems, barcode readers, printing and etc. owing to their compact size, high power, and monochromatic output. Advantages of laser diodes include high power, narrow spectral width, small size, and reliability. Laser diodes are replacing conventional lamps and LED lighting systems due to their directional beam, high power density, and energy efficiency.

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. These players are focused on developing innovative laser diode solutions for various applications through mergers and acquisitions and research collaborations.

The growing demand for laser technology in applications like optical fiber communication, medical devices, industrial processing, and 3D sensing is fueling the growth of the laser diode market. Laser diodes are replacing traditional lighting solutions in various industries owing to their compact size, reliability and energy efficiency.

Increasing geographical expansion to cater to growing global demand for laser diodes. Key players are expanding their operations in Asia Pacific and Latin America through partnerships and joint ventures to leverage low-cost manufacturing and tap into new markets.

Market key trends

One of the major trends in the laser diode market is miniaturization of laser diode modules. Manufacturers are focussed on developing ultra-compact laser diode modules and solutions through advances in semiconductor manufacturing processes and device engineering. Miniaturized laser modules find applications in mobile devices, biomedical equipment, defense & aerospace systems where space and size are a critical design factor. With ongoing R&D, miniaturized laser diodes are expected to proliferate applications across various industries in the forecast period.

Porter’s Analysis

Threat of new entrants: High capital requirements for manufacturing facilities pose barriers for new companies.

Bargaining power of buyers: Large buyers can negotiate lower prices due to their high purchasing power.

Bargaining power of suppliers: Suppliers of critical components like semiconductor materials have some control over pricing.

Threat of new substitutes: Alternatives like LEDs put pressure on laser diode manufacturers to innovate.

Competitive rivalry: Established laser diode makers compete intensely on performance, quality and pricing.

Geographical Regions

The Asia Pacific region dominates the laser diode market in terms of value, with a share of over 35% in 2024. This is attributed to a large manufacturing base of laser diodes in China and other Asian countries. North America is expected to be the fastest growing regional market during the forecast period, spurred by increasing demands from applications like communication, industrial processing and healthcare.

The laser diode market size is projected to reach US$ 11.9 billion in 2024 from US$ 8.8 billion in 2019, at a CAGR of 18% between 2024 and 2031. Prominent players operating in this market include 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.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it