Semiconductor Laser Market Size (2024 - 2029)

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 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).