Materials processing application to drive laser materials market outlook
The laser materials market in North America is projected to capture nearly 25% of the global share by 2026. The expansion of aerospace, infrastructure, healthcare, electronics, and energy sectors in the region are major determinants of the materials demand. Also, factors such as rising investments in innovation and a greater number of patents, stable economy, sophisticated manufacturing technology coupled with consistently rising consumer demand will result in greater business development in North America.
The high demand for laser materials will be augmented by its widespread application in various industries and accelerating investment in product innovation. Laser material processing utilizes high-intensity laser lights or beams to modify the appearance or shape of a material. The growth of manufacturing industries and production capabilities in developed countries will positively impact the technology demand.
According to the United Nations Statistics Division, in 2018 China held a share of nearly 28% of the global manufacturing output, with almost 10% more as compared to the U.S. This indicates the significant potential of laser materials demand from areas like materials processing, instrumentation, sensors and optical storage. As per a Global Market Insights, Inc., analysis report, global laser materials market size is projected to surpass US$1.56 billion by 2026.
Laser materials will witness substantial growth on account of the expanding additive manufacturing industry and extensive investment in upgrading laser technology across the globe. High product demand would be augmented by the growing precision industry in developing countries. Contrastingly, the disrupted global supply chain and decreased power of several end-use industries due to the ongoing COVID-19 pandemic has drastically hampered market progression. Also, fluctuations in raw material prices will lead to restricting product demand globally.
On account of aging military equipment and machinery, R&D and military expenses have grown substantially. By 2026, the R&D and military application segment will bring revenue of nearly US$84.6 million for the laser materials industry. The growing tensions among countries and geopolitics are expected to propel military spending. Reportedly, the global military expenditure in 2019 grew at 3.2% to US$1.9 trillion as compared to 2018.
The utilization of advanced laser technology in material processing renders enhanced performance with high precision as compared to traditional methods. Based on such characteristics, advanced laser technology is widely used in several end-use industries such as military, manufacturing, academics, medial, medical, and others. Additionally, laser material processing has multiple applications in the medical sector, especially in dentistry, oncology, tattoo removal, gene therapy, and radiotherapy.
With a CAGR of 4.7% up to 2026, Latin America is considered to be the second-fastest-growing market. The laser materials adoption will be augmented by demand from material processing and medical applications in the region. Countries like Mexico and Brazil have a cheap labor force and robust manufacturing industries, favoring market expansion. Additionally, higher life expectancy and rising per capita income fueling up medical expenditure in the region will render a sustainable business environment.
The plastic material segment is projected to grow at a considerable rate and hold nearly 8% of the demand share by 2026. The plastic material has a high adoption rate in additive manufacturing and 3D printing due to its versatile characteristics. Also, low weight and low cost are anticipated to augment demand for plastic materials in the coming years. However, as a low-cost substitute material, plastic materials could restrain laser material market growth.
Prominent companies in the global laser materials market include Evonik, Aurubis AG, Taishan Fiberglass, Corning Incorporated, Mitsubishi Chemical Holdings Corporation, Asahi Glass Co., CeramTec GmbH, Norilsk Nickel, Universal Laser Systems, Dow Chemical Company, Sinopec Shanghai Petrochemical Group, and GrafTech International.
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A qualified Engineering graduate, Vinisha Joshi takes pride in playing with words. Presently, she pens down insightful articles on business, core industry, technology, and the like. Creativity comes naturally to her, and Vinisha makes sure to effectively combine the same with her technical expertise in the articles she writes.