Laser Processing Market Size and Growth 2031

The laser processing market size is expected to reach US$ 6.46 billion by 2031 from US$ 11.26 billion in 2024. The market is anticipated to register a CAGR of 8.4% during 2025–2031. Growing research and development activities to advance laser processing  is likely to bring new trends to the market in the coming years.

Laser Processing Market Analysis

The expansion of the automotive, aerospace, and medical sectors, the rising adoption of laser technology in manufacturing, and the growing focus of industries on sustainable operations are among the main factors driving the demand for laser processing worldwide. The growing need for high-performance solutions and the rising investments in adopting laser technology are fueling the laser processing market growth. Technological advancements and the integration of advanced technologies such as AI and ML in laser processing are expected to create lucrative opportunities in the market during the forecast period. Further, the soaring research and development activities to advance laser processing, growing awareness related to the benefits of using sustainable solutions, and the evolution of ultrafast pulsed laser technology are expected to generate future growth opportunities in the market.

Laser Processing Market Overview

Laser processing is a non-contact and abrasion-less manufacturing technology that uses focused laser beams to cut, mark, weld, drill, or change materials with extreme precision and efficiency. The laser processing technique uses concentrated light energy to interact with materials in a non-contact way, which reduces physical wear and strain on equipment. The adaptability and flexibility provided by laser processing increase its adoption in a variety of industries, including aerospace, automotive, electronics, medical equipment, and art and jewelry. The primary application of laser processing is microfabrication, which requires precise features and patterns on microscopic components. Moreover, the laser processing technique is highly adopted by businesses to easily operate automation and computer numerical control (CNC) systems during mass production. Laser processing offers significant benefits, including high accuracy, reliability, and speed, enabling industries to produce complex geometries without the need for costly tooling or finishing.

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Laser Processing Market Drivers and Opportunities

Growing Focus of Industries on Sustainable Operations

According to Optica and Optica Foundation data published in May 2024, human-induced climate change is increasing the frequency and intensity of extreme weather events such as heat waves, floods, hurricanes, droughts, and wildfires. These calamities harm the livelihoods of millions of individuals. Industries are transitioning to renewable energy and sustainable practices to combat climate change and ensure a sustainable future. Lasers will remain essential tools in producing technologies crucial to this transition, including solar cells, light-emitting diodes (LEDs), and lithium-ion (Li-ion) batteries. When it comes to the green energy transition, solar power is the most adopted renewable energy worldwide. The deployment of solar photovoltaics (PV) has increased. As per the International Energy Agency, solar power is expected to have more installed power capacity than all other electricity-generating technologies, including coal, by 2027. The construction of new solar energy facilities is a cheaper alternative than existing coal facilities. The global need to achieve net-zero carbon dioxide emissions by 2050 and the growth of solar PV increase the demand for industrial lasers to increase silicon PV production. Laser-based manufacturing helps silicon PV manufacturers to develop thin film materials and silicon PV technologies such as cadmium telluride, copper indium gallium selenide (CIGS), perovskite, and perovskite/silicon tandem solar cells. Moreover, precision laser patterning even powers the processing of cutting-edge technologies such as solar windows, which have the potential to significantly reduce major buildings' carbon footprints.

According to a United Nations Environment Programme (UNEP) report, electricity for lighting accounts for over 20% of total electricity usage and 6% of global carbon dioxide emissions. Global lighting energy consumption is anticipated to increase by 60% by 2030. The growing awareness and industrial need to reduce greenhouse gas emissions increases the demand for LED lights. These lights produce light up to 90% more efficiently than incandescent light bulbs. LED technology is being widely installed in homes, vehicles, commercial buildings, and public spaces to save energy equivalent to the annual output of over a hundred 1,000 MW power plants. The growth of LED lighting encourages manufacturers to adopt the laser scribing process for developing wafers used in high-brightness LEDs. Lasers are utilized to form an extremely fine scribe line, allowing the wafers to be separated into individual LED devices. Laser scribing of LED wafers increases yield by producing significantly finer scribe lines than traditional mechanical scribing. This enables the LED devices to be spaced more closely, enhancing yield and throughput while improving their long-term stability.

Additionally, laser-ranging techniques, such as lidar, and remote-sensing techniques, such as infrared and hyperspectral imaging, are critical in satellite tracking of climate-change dynamics, such as ice sheet thickness and coral reef health, as well as studying and preventing climate-change-driven wildfires. They are also becoming increasingly significant in aerial and drone-based agricultural monitoring approaches, which aim to improve long-term food sustainability in global warming. Lasers enable sensing devices that detect microplastics and nanoplastics in oceans and lakes. Hence, the increasing focus of industries on sustainable business practices is driving the market.

Integration of AI in Laser Processing

As machine and production lines gradually become networked and digitalized within the Fourth Industrial Revolution, product-related data volumes will expand dramatically. This, in turn, will unlock huge potential to improve quality assurance and optimize production processes. The Fraunhofer Institute for Laser Technology ILT plans on capitalizing on laser material processing by employing artificial intelligence (AI) and machine learning (ML) algorithms. Depending on the application and machining process, various sensors, signals, and data streams can be utilized to create real-time AI-based quality monitoring. For instance, in-situ process monitoring with high-speed thermal imaging allows businesses to capture the interaction zone of a laser welding process in great detail. When combined with machine learning (ML) technologies, this monitoring technology allows for identifying seam and process flaws. To enhance application-specific AI solutions, tech companies such as Fraunhofer ILT are engaged in developing their software module that creates an overall process fingerprint and allows users to calculate and assess various signal and image elements. Similarly, based on the specific process fingerprint, multiple ML algorithms are employed to distinguish process flaws, such as surface pores, seam collapse, loss of connection, splatter, and deviations in focal position.

AI enhances both the efficiency and precision of laser material machining by continuously identifying factors that cause process deviations. Machine learning algorithms can then optimize corrective strategies based on real-world measurements or simulation data to ensure consistent process performance. As businesses across the globe are demanding technologically advanced solutions, tech companies and market players are integrating AI into the laser process to improve operation stages. For instance, in May 2025, Gasparini Industries S.r.l. launched X-Fiber laser machine LAMIERA 2025. The fiber laser machine is integrated with AI technology to optimize sheet metal processing. The machine automatically intervenes, checking and correcting the bending parameters to obtain the desired angle precisely and consistently by minimizing downtime. Hence, technological advancements and the integration of AI technology in laser processing are expected to create opportunities in the market during the forecast period.

Laser Processing Market Report Segmentation Analysis

Key segments that contributed to the derivation of the laser processing market analysis are type, configuration, and industry.

• Based on type, the market is segmented into solid lasers, gas lasers, fiber lasers, and others. The solid lasers segment dominated the market in 2024.
• In terms of configuration, the market is categorized into fixed beam, moving beam, and hybrid. The fixed beam segment dominated the market in 2024.
• In terms of industry, the market is segmented into machine tools, automotive, electronics and microelectronics, medical, aerospace, and others. The automotive segment dominated the market in 2024.

Laser Processing Market Share Analysis by Geography

The laser processing market is segmented into five major regions: North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America. Asia Pacific dominated the market in 2024.

The manufacturing industry in Asia Pacific has experienced a huge expansion and development over the years. It is rapidly adopting innovation and technologically advanced solutions such as AI, IoT, deep learning, and ML. According to Vietnam Investment Review under the Ministry of Finance data for August 2024, the manufacturing sector in Asia Pacific is driving innovation, with 61% of manufacturing businesses planning to adopt AI technology in their manufacturing processes, an increase from 41% in 2024. In Asia Pacific, 68% of manufacturers expect AI to boost growth by 2029, up from 46% in 2024. This increase in AI adoption and digital transformation across the manufacturing processes encourages the manufacturing industry to leverage advanced technologies that improve operational visibility and quality throughout the manufacturing process. The integration of AI technology in the manufacturing industry surges the adoption of AI-based laser processes for production control, research and development in design, and overall operational management.

Laser Processing Market Regional Insights

The regional trends and factors influencing the Laser Processing Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Laser Processing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Laser Processing Market Report Scope

Laser Processing Market Players Density: Understanding Its Impact on Business Dynamics

The Laser Processing Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Laser Processing Market are:

1. LaserStar Technologies Corporation
2. Jenoptik AG
3. Fives SAS
4. Coherent, Inc.
5. Han's Laser Technology Industry Group Co. Ltd
6. IPG Photonics Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

Laser Processing Market News and Recent Developments

The laser processing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the laser processing market are listed below:

• Coherent Corp. (NYSE:COHR), a global leader in photonics, announced the expansion of its industry-leading PowerMax sensor portfolio with two new innovations: the PM15K+ high-power laser sensor and a new backscatter shield option for the PM10K+. These new solutions address the growing demand for accurate, efficient, and safe measurement of high-power laser systems in industrial environments.

(Source: Coherent Corp, Press Release, June 2025)

• TRUMPF has developed the TruMicro 9010, a new ultra-short pulse laser (USP laser) with an output of 1 kilowatt. The very high power output for a USP laser makes it particularly attractive for processing large surfaces. Unlike many other USP lasers, the TruMicro 9010 is also suitable for processing larger components. The laser's high power enables industrial customers to process large surfaces with high productivity. Even in roll-to-roll processes with high productivity requirements, users can cut contours from flat materials with the TruMicro 9010," says Steffen Rübling, Product Manager at TRUMPF responsible for the new USP laser. The high-tech company is presenting the TruMicro 9010 at the world's leading trade fair, LASER – World of Photonics, in Munich.

(Source: TRUMPF, Press Release, June 2025)

Laser Processing Market Report Coverage and Deliverables

The "Laser Processing Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Laser processing market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Laser processing market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Laser processing market analysis covering key market trends, regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the laser processing market
• Detailed company profiles