Laser Cutting Machine Market Overview
The global Laser Cutting Machine Market is
currently valued at $5.6 billion in 2021 and is expected to reach a valuation
of $6.69 billion by 2027 growing at a CAGR of 9.65% during 2022-2027. Laser Cutting is a thermal
separation method in which many different materials can be cut efficiently,
quickly, and precisely without reworking. The urgent requirement of many industries to
reduce human involvement and the role of machine tools and automate the metal
cutting process for better cutting precision and accuracy and lower material
wastage has been one of the driving factors behind the growth of this market.
The rapid expansion of end-user industries such as the automotive industry,
consumer electronics, home appliances, defence, aviation, and others has given
a big impetus to the manufacturers to increase production which in turn is
fuelling the market growth, especially of fibre laser cutting machine and CNC
laser cutting machine. In April 2022, Monoport Tech Inc. launched their series
of affordable laser cutting machines “Monoport Laser” which was specifically
designed for small businesses and individual use. Such developments coupled
with rapid industrial expansion in emerging economies, different types of
cutting materials, the need to automate metal cutting processes, and
technological advancements will positively impact the growth of this market.
- Semiconductor Lasers will be the fastest-growing segment in this
market with a CAGR of about 10.18% due to its energy efficiency, low cost,
and easy operability.
- Fiber Laser Cutting Machine holds the largest share in this
market owing to its varied industrial applications, low maintenance cost,
long service life, and greater efficiency.
- APAC region holds the largest market share at 33% due to rapid economic growth, expansion of end-user industries in emerging economies especially China and India, and massive increase in private consumption as these countries transition from low income to middle-income economies.
The Laser cutting machines market can be broadly classified into two segments: CO2 Laser Cutting machines and Fibre Laser Cutting machines. Fibre laser cutting machine is the fastest-growing segment in the Laser cutting machine market with a CAGR of 10.22% between 2022-and 2027. Low maintenance cost, long service life, compact size coupled with high electrical efficiency resulting in lower power consumption than CO2 lasers are some of the major factors that have been driving the growth of the Fibre laser cutting machine segment. The rapid growth of the automotive, consumer electronics, defence, and other industries in the emerging economies will provide a major boost to the growth of this market. In April 2022, Yamazaki Mazak launched their OPTIPLEX 3015 NEO-S-15 which is a 2D fiber laser cutting machine with advanced technologies such as innovative Beam Shaping Mode technology for enhanced control of beam shape and diameter, MCT3 Cutting Head, and a new MAZATROL Smooth Lx CNC control system to ensure optimal performance on a wide range of materials which greatly eases versatile operations on the workpiece that will ultimately result in widespread adoption. Such developments will positively affect the growth of this market.
Laser Cutting Machine Market Segment Analysis- By Process
The Flame-cutting segment is forecasted to grow with the highest CAGR of 10.56% between 2022-and 2027. Flame cutting process uses a neutral flame to heat the material up to its kindling temperature and then an additional flow high flowing stream of oxygen is injected into the flame to sever the material and blow away the molten metal or dross. Factors such as high portability, low power supply, and its ability to operate on materials with high thicknesses up to 25mm are driving the growth of this segment. The varied applications of this process in various rapidly growing industries such as automotive, consumer electronics and others coupled with its ability to operate with different types of materials as long as the oxide formed has a lower temperature than the base material to be cut is one of the key factors leading to the widespread adoption of this process. In 2020, the government of India launched the PLI (Production-Linked Incentive) scheme which aims to encourage manufacturers to start manufacturing in India. Under this scheme, iPhone manufacturers Foxconn and Wistron are expected to manufacture iPhones worth $5 billion in India. Such developments coupled with technological advancements will boost the growth of this market.
Laser Cutting Machine Market Segment Analysis-
The Laser cutting machine market in APAC region will account for the largest share at 33% in 2021. The factors that are propelling the growth of the Laser cutting machine market in APAC are rising demand due to the rapid growth of end-user industries in emerging economies, rising purchasing power, and increased need for manufacturers to automate the cutting process to produce objects with complex geometry. The increased focus on electric vehicles, electronic component manufacturing, and private consumption as the economy recovers will provide a massive boost to the growth of this market in this region. In September 2021, the Indian government issued a notification regarding a PLI scheme for automobile and auto components worth $3.49 billion. In January 2022, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 1,860,809 units. Such developments will further propel the growth of this market in the coming years.
Laser Cutting Machine Market Drivers
Rapid Adoption of Laser cutting machines in Emerging Economies: Rapid urbanization, increase in industrial expansion, and government policies leading to widespread adoption of Laser cutting machines
The rapid growth of infrastructure, urbanization and industrial automation are the main driving factors behind the rapid expansion of the Laser cutting machine market in developing economies. The breakneck speed of urbanization and infrastructural development coupled with the need to maintain cutting precision and limit material wastage are the key factors that are driving the growth of the market. Apart from this, the exponential increase in electronic and automotive component manufacturing, increasing defence budgets, and burgeoning aviation industry has led to the rapid adoption of Laser cutting machines by manufacturers everywhere. Lowering costs along with significant technological advancements such as integration of multiple power modes, auto-changing tables, and compact design are also giving a significant boost to this market. In April 2022, Nukon launched its Eco 315 2D 4kW model fitted with Lift tech which allows it to operate with 2 machines at the same time thereby enhancing its efficiency and production capacity. The factors such as rapid urbanization, rapid industrial development, and technological advancements are the main factors that will drive the growth of this market.
Increased requirement of manufacturers to automate cutting processes to enhance production capacity and precision
need felt by manufacturers across the globe to automate cutting processes,
especially in emerging economies has led to widespread adoption of laser
cutting machines by industry. The rapid growth of end-user industries,
increased competition among firms to produce objects with complex geometry, and
lowering production cost are some of the main factors driving the growth of
this market. The integration of advanced technologies like beam control, flame
profile control and the ability to operate at multiple power levels positively
impact the growth of this market. The rapid adoption of sophisticated Laser
cutting machines enabled with advanced technologies by the various industries
of some of the major countries to do increase production, enhance precision and
lower cost has been one of the key drivers of this market. In April 2022, Union Minister Ashwini Vaishnaw announced that India will be
manufacturing $300 billion worth of electronic goods and components in FY
2022-2023. Such developments coupled with widespread industrial adoption,
urgent need for automation, and technological advancements are some of the main
reasons behind the growth of this market.
Laser Cutting Machine Market Challenges
High Costs and Technological Constraints:
The high equipment cost and technological constraints are the major challenges that are impeding the growth of this industry. Although the cost of a laser cutting machine cost ranges between $30,000 to $200,000 depending upon the specifications and is relatively inexpensive for large-scale manufacturers, its pricing point becomes an insurmountable barrier in the case of small-scale operations or start-ups. Apart from this, there are certain materials such as plastic, thermosets, and others that are unsuitable for operation by laser cutting machines as they produce toxic gaseous by-products during the process. The other factors that inhibit the widespread adoption of laser cutting machines are their inability to operate on thick materials, distortion of the workpiece, and setup time. Such developments will negatively impact the growth of this market.
Laser Cutting Machine Market Landscape
Product launches, collaborations, and R&D activities are key strategies adopted by players in the Laser Cutting Machine market. The top 10 companies in the Laser cutting machine market are
- Prima Power
- In April 2022, the venture capital division of TRUMPF invested $15 million in sensiBel, a MEMS microphone startup to support the ramp in production of high quality optical audio devices. Such developments will lead to growth in the consumer electronics industry which will lead to the market growth of laser cutting machines.
- In April 2022, Bystronic
partnered with Nano Lock Security to develop security
solutions for sheet and tube metal cutting, bending, and automation systems.
Such technological developments will lead to the solution of many pending
issues in downstream industries which will result in the increased demand of
laser cutting machines leading to market growth.
- In April 2022, Mazak launched FG-220, which is capable of round, square, rectangular and open profile structural material cutting resulting in reduced setup time, reduced lead time, fewer operators, and reduced floor space requirements. Such developments will lead to widespread adoption and positively affect the market growth in the coming years.
Report Code: AIR 0424
Report Code: AIR 0121
Report Code: ESR 0726
For more Electronics Market reports, please click here