Semiconductor Laser Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.24 Billion |
| Market Size (2029) | USD 15.45 Billion |
| CAGR (2024 - 2029) | 13.40 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Semiconductor Laser Market Analysis
The Semiconductor Laser Market size is estimated at USD 8.24 billion in 2024, and is expected to reach USD 15.45 billion by 2029, growing at a CAGR of 13.40% during the forecast period (2024-2029).
- The semiconductor industry is seeing significant growth in the use of lasers. Lasers offer flexible, advanced machining to meet the industry’s strict requirements and give semiconductor manufacturers a highly accurate way to cut complex shapes from a variety of materials. Materials can be precisely cut with a limitless number of shapes and patterns using lasers. A laser system specifically created for a semiconductor application can quickly and accurately cut various materials.
- Extensive research and development efforts have resulted in many advancements in the semiconductor industry. The increasing need for green lasers is spurring vendors to create new products that meet a range of customer requirements. For instance, in June 2023, ams OSRAM launched enhanced blue and green lasers, which are built on a new version of its diode emitter chip. The chip’s high performance allows manufacturers to make laser modules and devices more valuable for leveling and scanning applications.
- Reliability is a major constraint hindering the growth of the laser market for the semiconductor industry. To ensure a consistent power output, the products must be maintained at a constant temperature and receive a steady current. If the electrical circuit is not correctly managed, it can lead to the product malfunctioning and impacting the device it is being utilized in.
- Various macroeconomic factors further impacted the dynamics of demand for the semiconductor laser market. For instance, Taiwan, an important part of the industry’s complex ecosystem, showed signs of isolation from geopolitics, particularly as pressures contributed to the decoupling of the United States and China. While the COVID-19 pandemic harmed supply and value chains, these geopolitical, trade, and technology disputes grew.
- The trade war between the United States and China splintered the supply chain even more, contributing to technological fragmentation and significant disruption in international trade. As the supply market was already under tremendous pressure and the four-month lead time from order to delivery for Taiwan chips was being maintained, any further reduction in supply capacity may have exacerbated the existing shortage.
Semiconductor Laser Market Trends
Inspection & Metrology Segment Expected to Hold Major Market Share
- Smartphones and other applications across consumer electronics, automotive applications, etc., drive the need for high-performance, low-cost semiconductor chips. Technology transitions have encouraged these industries, including wireless technologies (5G), artificial intelligence, etc. The trend of growing IoT devices is expected to push the semiconductor industry to invest in this equipment to achieve smart products.
- Moreover, the increasing digitization and trends of remote work and operations have sparked the requirement for advanced semiconductor devices that allow various new capabilities. As the need for semiconductor devices intensifies consistently, advanced packaging techniques deliver the form factor and processing power needed for the digitized world. Such trends in the semiconductor requirement are anticipated to offer lucrative opportunities for the growth of inspection and metrology equipment.
- Furthermore, capacity developments in the semiconductor industry are also aiding the growth of the market studied. For instance, according to SEMI Equipment Market Data Subscription (EMDS), the semiconductor industry's foot is firmly on the accelerator as the capacity expansion efforts are also aiding the expansion of the front-end and back-end semiconductor equipment industries to meet growth drivers.
- Billings for semiconductor equipment in the first quarter of 2023 increased by 9% year-over-year to USD 26.8 billion. Advanced logic and foundry capacity expansions, DRAM investment recovery, and robust NAND Flash spending drove the equipment market’s growth.
- As metrology and inspection are crucial processes involved in the manufacturing of semiconductor chips, such trends also create a favorable outlook for the laser market. Such trends are anticipated to support the growth of metrology and inspection equipment and associated laser systems during the forecast period.
Asia-Pacific Expected to Witness High Market Growth
- The semiconductor industry's manufacturing and consumption are major factors in the Asia-Pacific region. The laser market in the Asia-Pacific region is anticipated to grow as a result of the communication industry's rapid expansion in countries like South Korea, China, Japan, and India. In addition, the growing consumer electronics industry in this region, along with the rise in consumer device manufacturing, is driving up the demand for semiconductor lasers in various production processes.
- The region also boasts many initiatives by governments to boost the semiconductor industry. For instance, the Chinese government's National Integrated Circuit Industry Development Guidelines and the Made in China 2025 initiative aim to bolster the growth of the local semiconductor industry in the country, reducing the level of dependence on other countries.
- China is quickly becoming one of the leading nations in producing fiber lasers. In addition, the Chinese government is striving to enhance its manufacturing industry by the year 2025 to become the leading global factory. This is increasing the need for fiber lasers in metal cutting, industrial cleaning, and various other applications in China, which in turn is increasing the demand for semiconductor lasers.
- A similar trend is being observed across other countries. For instance, in May 2023, according to the India Brand Equity Foundation (IBEF), the Indian government implemented a long-term plan for semiconductor development with the USD 10.2 billion Semicon India Program. Such initiatives in the region are expected to drive the growth of the semiconductor industry ecosystem, creating opportunities in the laser market as well.
- Semiconductors remain the backbone material of electronics integrated with modern devices such as cars, smartphones, robots, and many other intelligent devices. Driven by the continuous need for miniaturized and robust chips, current semiconductor manufacturing technologies face increasing pressure. The growing adoption of automobiles in the Asia-Pacific region also creates a favorable outlook for the growth of the market studied.
- Japan stands out in the market as one of the leading suppliers of semiconductor materials and equipment. Before the fiscal year ends in March 2028, 99.9% of homes in Japan are expected to have fast fiber-optic connections. Hence, the country is anticipated to hold notable growth opportunities for lasers used in the semiconductor industry.
- The need for semiconductors has grown significantly in Asia-Pacific in recent years. As prominent semiconductor customers in several countries strengthen their supply chains, investments in the semiconductor industry value chain are further accelerated. Many Japanese and foreign semiconductor companies are currently ready to begin mass production in new factories in Japan, with the opening of TSMC's Kumamoto fab in February 2024. This development is expected to boost Japan's entire semiconductor supply chain and accelerate its growth, enhancing the country's capacity for semiconductor manufacturing.
Semiconductor Laser Industry Overview
The laser market for the semiconductor industry is fragmented, with the presence of significant players like Lumentum Operations, Trumpf, SUSS MicroTec, Coherent, etc. These key players in the market are actively pursuing various strategies, including partnerships and acquisitions, to enhance their product portfolios and establish sustainable competitive advantages.
- November 2023: IPG Photonics Corporation, a manufacturer of fiber laser technology, and Miller Electric Mfg. LLC, a manufacturer of arc welding products, announced a strategic partnership to improve the quality of laser solutions for handheld welding applications. The combination of Miller's expertise in conventional welding methods and IPG Photonics' expertise in fiber laser technology is anticipated to produce a handheld welding process that is quick, accurate, and easy to use.
- March 2023: Tower Semiconductor, in collaboration with Quintessent Inc., announced the world's first heterogeneous integration of GaAs quantum dot (QD) lasers and a foundry silicon photonics platform (PH18DB). This PH18DB platform targets optical transceiver modules in data centers & telecom networks and new emerging applications in artificial intelligence (AI), machine learning, LiDAR, and other sensors. This platform allows dense photonic integrated circuits (PICs) to assist higher-channel count in small form factors.
- January 2023: Coherent Corp. announced the introduction of its next-generation pump laser diodes that execute an industry-record high output power of 50 W from a single chip. The deployment of fiber lasers for materials processing applications like cutting, welding, marking, and additive manufacturing is accelerating, driving the need for key components that lower the output power cost per watt. The new laser diodes reach 50 W of output power, 40% more than the existing product, allowing high-power industrial fiber laser designs with fewer pump laser diodes.
Semiconductor Laser Market Leaders
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Coherent, Inc.
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Sharp Corporation
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Nichia Corporation
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IPG Photonics Corporation
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TT Electronics
*Disclaimer: Major Players sorted in no particular order
Semiconductor Laser Market News
- January 2024: Coherent Corp., a supplier of industrial lasers for materials processing, announced its new HyperRapid NXT industrial picosecond green laser. This laser operates at 532 nm with an average power of 100 W, allowing for extremely precise manufacturing of thin-film solar cells. With the introduction of this new laser, manufacturers of second-generation solar panels can scale up production while still ensuring high quality and cost efficiency.
- September 2023: IPG Photonics introduced a new dual-beam laser with the most efficient single-mode core power. The IPG booth will include advanced fiber laser sources and automated laser systems designed for welding applications in the EV battery industry. AMB (Adjustable Mode Beam) dual-beam lasers use a secondary ring beam in conjunction with the single-mode core to help stabilize the weld pool, effectively reducing welding flaws such as spatter, cracking, and porosity. IPG AMB lasers can be set up with various beam characteristics to provide the required performance for different welding applications.
Semiconductor Laser Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of COVID-19 aftereffects and Other Macroeconomic Factors on the Market
4.5 Technology Snapshot
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Proliferation of Semiconductor Laser Applications
5.1.2 Growth in the Fiber Laser Market
5.1.3 Preference for Semiconductor Lasers Over Other Light Sources
5.2 Market Challenges
5.2.1 Difficulties Regarding Reliability and Testing
6. MARKET SEGMENTATION
6.1 By Wavelength
6.1.1 Infrared Lasers
6.1.2 Red Lasers
6.1.3 Green Lasers
6.1.4 Blue lasers
6.1.5 Ultraviolet Lasers
6.2 By Type
6.2.1 EEL (Edge-emitting Laser)
6.2.2 VCSEL (Vertical-cavity Surface-emitting Laser)
6.2.3 Quantum Cascade Laser
6.2.4 Fiber Laser
6.2.5 Other Types
6.3 By Application
6.3.1 Communication
6.3.2 Medical
6.3.3 Military and Defense
6.3.4 Industrial
6.3.5 Instrumentation and Sensor
6.3.6 Automotive
6.3.7 Other Applications
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Coherent Inc
7.1.2 Sharp Corporation
7.1.3 Nichia Corporation
7.1.4 IPG Photonics Corporation
7.1.5 TT Electronics
7.1.6 Sumitomo Electric Industries, Ltd.
7.1.7 Sheaumann Laser, Inc.
7.1.8 Newport Corporation (mks Instruments, Inc.)
7.1.9 Panasonic Industry Co., Ltd
7.1.10 Rohm Company Limited
7.1.11 Hamamatsu Photonics K.K
7.1.12 Jenoptik Laser GMBH
7.1.13 TRUmpF Group
7.1.14 ams OSRAM AG
7.1.15 Lumentum Holdings Inc.
- *List Not Exhaustive
7.2 Vendor Positioning Analysis
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Semiconductor Laser Industry Segmentation
A laser is a device or source that produces a highly concentrated stream of radiation by inducing the release of light at particular wavelengths from atoms or molecules. In the semiconductor industry, lasers are frequently used for a multitude of applications, including quality control and chip design outlines.
The semiconductor laser market report is segmented by wavelength (infrared lasers, red lasers, green lasers, blue lasers, and ultraviolet lasers), type (EEL [edge-emitting laser], VCSEL [vertical-cavity surface-emitting laser], quantum cascade laser, fiber laser, and other types), application (communication, medical, military and defense, industrial, instrumentation and sensor, automotive, and other applications), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The report offers the market size and forecasts for all the above segments in value (USD).
| By Wavelength | |
| Infrared Lasers | |
| Red Lasers | |
| Green Lasers | |
| Blue lasers | |
| Ultraviolet Lasers |
| By Type | |
| EEL (Edge-emitting Laser) | |
| VCSEL (Vertical-cavity Surface-emitting Laser) | |
| Quantum Cascade Laser | |
| Fiber Laser | |
| Other Types |
| By Application | |
| Communication | |
| Medical | |
| Military and Defense | |
| Industrial | |
| Instrumentation and Sensor | |
| Automotive | |
| Other Applications |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Semiconductor Laser Market Research FAQs
How big is the Semiconductor Laser Market?
The Semiconductor Laser Market size is expected to reach USD 8.24 billion in 2024 and grow at a CAGR of 13.40% to reach USD 15.45 billion by 2029.
What is the current Semiconductor Laser Market size?
In 2024, the Semiconductor Laser Market size is expected to reach USD 8.24 billion.
Who are the key players in Semiconductor Laser Market?
Coherent, Inc., Sharp Corporation, Nichia Corporation, IPG Photonics Corporation and TT Electronics are the major companies operating in the Semiconductor Laser Market.
Which is the fastest growing region in Semiconductor Laser Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Semiconductor Laser Market?
In 2024, the Asia Pacific accounts for the largest market share in Semiconductor Laser Market.
What years does this Semiconductor Laser Market cover, and what was the market size in 2023?
In 2023, the Semiconductor Laser Market size was estimated at USD 7.14 billion. The report covers the Semiconductor Laser Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Semiconductor Laser Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Semiconductor Laser Industry Report
Statistics for the 2024 Semiconductor Laser market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Semiconductor Laser analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
