by Market Overview:
Laser diodes are compact semiconductor devices that emit coherent and polarized light when an electric current passes through it. They are used in various applications such as optical fiber communication, laser pointers, barcode scanners, laser printer, laser surgery, reading Blu-ray discs and CDs. The advantages of laser diodes include high energy efficiency, small size, reliability and low power consumption.
Market Dynamics:
The growth of the laser diode market is driven by increasing demand from manufacturing sector for laser marking, laser welding and laser cutting applications. Laser marking is a technique used to mark or label various materials like plastics, metals, ceramics and glasses. Laser marking offers benefits like non-contact process, high contrast, legibility at any distance. Laser marking finds wide usage in automotive, aerospace, electronics and other industries for product identification. Furthermore, increasing demand for fiber laser cutting machines from sheet metal processing industries is also fueling the growth of the laser diode market. Fiber laser cutting provides benefits like high speed, high accuracy and precision cutting of even complex shapes from sheet metal.
Segment Analysis
The laser diode market is dominated by the Red segment, accounting for over 40% share of the global market. Red laser diodes find widespread usage in the entertainment industry for laser light shows and displays. They are also commonly used in barcode scanners, laser printers, and optical disk drives due to their ability to focus a beam precisely to read digital data. Red laser diodes have high penetrating power and thus remain the preferred choice over other visible wavelengths.
PEST Analysis
Political: No significant political factors impacting the laser diode market.
Economic: High demand from telecommunications, industrial manufacturing sectors driving market growth. Emerging economies witnessing increased spending on datacenters, 5G networks boosting demand.
Technological: Advancements in diode packaging technology improving reliability, efficiency. Growing R&D in high-power devices for 3D sensing, LiDAR applications opening new opportunities.
Social: Rising use of laser diodes in consumer electronics, entertainment, healthcare applications influencing market positively.
Key Takeaways
The global laser diode market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period of 2023 to 2030, due to increasing demand for fiber optic communication networks and growing 3D sensing applications. The market size for laser diodes is estimated to reach US$ 16.79 Mn in 2023.
Regional analysis indicates that Asia Pacific dominated the global laser diode market in 2022 with over 40% share, led by countries such as China, India, Japan and South Korea. The region is expected to maintain its dominance during the forecast period owing to the presence of smartphone and electronics manufacturing hubs and exponential growth of fiber optic networks.
North America is expected to be the second largest market for laser diodes, growing at a CAGR of over 15% between 2023-2030. U.S. accounts for the major share of North American market stoked by investments and developments in LiDAR systems and fiber optic communications.
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. ASML and Coherent, Inc. have established their leadership in the market through continuous innovations in product design, packaging, and reliability.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
