Rising Adoption in Manufacturing Industry Boosts Laser Processing Market Growth
According to our latest market study on "Laser Processing Market Size and Forecast (2021–2031), Regional Share, Trend, and Growth Opportunity Analysis — by Type, Configuration, and Industry," the market was valued at US$ 6.46 billion in 2024 and is anticipated to reach US$ 11.26 billion by 2031. It is estimated to register a CAGR of 8.4% during 2025–2031. The report includes growth prospects in light of current laser processing market trends and driving factors influencing the market growth.
Industries such as automotive, electronics, and aerospace require high-precision, high-speed, and non-contact production solutions to improve their operational efficiency. This increases the adoption of lasers for cutting, welding, and engraving. In the automotive industry, lasers are used in numerous applications, including battery welding for electric vehicles, body-in-white welding, and high-strength steel cutting. It allows automotive manufacturers to achieve quality and safety standards while increasing production efficiency. As electronics manufacturing is rapidly observing the miniaturization of components and devices, the adoption of laser processing supports manufacturers in precise micro-cutting, drilling, and labeling of circuit boards and semiconductor devices while reducing thermal damage. Similarly, in the aerospace industry, laser processing is used to cut and weld complicated titanium and composite components, which support structural integrity and decrease overall aircraft weight. Significant benefits provided by lasers in manufacturing activities surge their adoption among industries. For instance, in January 2025, SISTEMA AZUD, S.A., together with PRECITEC GMBH & CO KG, IDEKO S COOP, FAGOR ARRASATE S COOP, and other companies, participated in the LaserWay project to revolutionize the manufacturing operations by replacing conventional, inefficient, and environmentally harmful methods. This project supports manufacturing companies to adopt high-speed laser technology, such as laser blanking, laser micro-drilling, and extreme high-speed laser application (EHLA), to develop highly flexible production lines by creating more sustainable manufacturing processes and products.
Laser Processing Market Analysis – by Geography
Laser Processing Market Size and Forecast (2021-2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Solid Lasers, Gas Lasers, Fiber Lasers, Others), Configuration (Fixed Beam, Moving Beam, and Hybrid), Industry (Machine Tools, Automotive, Electronics and Microelectronics, Medical, Aerospace, and Others), and Geography
Laser Processing Market Forecast by 2031- Size, Share & Trends
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Source: The Insight Partners Analysis
The fast development of laser micro/nano-manufacturing techniques has transformed precision manufacturing, allowing manufacturing industries to construct complex micro/nano structures. These techniques offer unparalleled precision and versatility, making them critical in a wide range of industries, including electronics, photonics, and biomedical engineering. Additionally, laser micro/nano manufacturing is essential in a wide range of applications, including surface friction control and radiative cooling. A nanosecond-laser-irradiated scanning near-field optical microscopy (SNOM) tip allows for mask-free, sub-wavelength nanostructure creation on thin films of gold (Au films) with line widths of approximately 83.6 nm. This steady and reliable technology enables precise and cost-effective nanolithography for a wide variety of materials, which increases its adoption in manufacturing, boosting the laser processing market growth.
The scope of the laser processing market report focuses on North America (US, Canada, and Mexico), Europe (UK, Germany, France, Italy, Russia, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). In Europe, the UK held significant laser processing market share in 2024. Ramped-up production activities and the expanding automotive industry are a few of the factors propelling the growth of the laser processing market in the UK. According to data released by the Office for National Statistics (ONS), product sales from UK-based manufacturers accounted for £456.1 billion (US$ 611.03 billion) in 2023, recording an increase of £17.2 billion (US$ 23.04 billion), i.e., 3.9%, from £438.9 billion (US$ 587.99 billion) in 2022. Moreover, according to the source mentioned above, the motor vehicle sector experienced the largest value surge, up by £9.6 billion (US$ 12.86 billion), i.e., 22.0%, in 2023 to £53.3 billion (US$ 71.40 billion). Motor vehicles [above 1,500 cubic centimeters (cc) engine], with a spark ignition internal combustion engine, observed the largest value surge (23.4%) for any single product in 2023, growing by £4.0 billion (US$ 4.38 billion) to £21.2 billion (US$ 232.29 billion). The subsequent increase in the adoption of laser processing techniques for micro-scale cutting, engraving, and drilling of manufacturing products and automotive parts is likely to impact the laser processing market forecast.
In North America, the US held the largest laser processing market share in 2024. The expanding electronics and semiconductor industry, the growing adoption of smartphones, and the increasing focus of manufacturers on designing and manufacturing compact and high-performance smartphones drive the laser processing market in the US. According to the GSM Association’s The Mobile Economy North America 2023 report, the smartphone adoption rate in the US accounted for 85% and is projected to reach 89% by 2030. The manufacturing of modern smartphones requires laser machines used for micromachining components such as display panels, camera modules, sensors, and other devices. For instance, the laser cutting technique allows manufacturers to precisely shape the glass and ceramic components, which is essential for designing a sleek smartphone. Similarly, laser drilling and welding processes are used to connect delicate internal circuits without causing damage to nearby components, ensuring reliability in small devices. Additionally, the laser ablation method is used to remove thin layers of material during the manufacturing of organic light-emitting diode (OLED) and microLED display technologies. Hence, significant benefits offered by laser processing in smartphone and other electronics manufacturing result in a high demand for laser processing techniques in the US.
LaserStar Technologies Corporation; Jenoptik AG; Fives SAS; Coherent, Inc.; Han's Laser Technology Industry Group Co. Ltd; IPG Photonics Corporation; TRUMPF SE + Co KG; TE Connectivity Ltd; Mitsubishi Electric Corp; and Lumentum Holdings Inc are among the key players profiled in the laser processing market report. Several other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The market study provides detailed market insights, which help the key players strategize their growth.
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