Semiconductor Laser Market Forecasts to 2030 – Global Analysis By Type (Green Laser, Vertical Cavity Surface Emitting Lasers (VCSEL), Fiber Optic Lasers (FOL), Blue Laser, Red Laser, Infrared Laser and Other Types), Application and By Geography

Semiconductor Laser Market Forecasts to 2030 – Global Analysis By Type (Green Laser, Vertical Cavity Surface Emitting Lasers (VCSEL), Fiber Optic Lasers (FOL), Blue Laser, Red Laser, Infrared Laser and Other Types), Application and By GeographyAccording to Stratistics MRC, the Global Semiconductor Laser Market is accounted for $8.75 billion in 2023 and is expected to reach $17.16 billion by 2030 growing at a CAGR of 10.1% during the forecast period. A common optical communication light source for data transfer is a semiconductor laser. Their expansion in the future may be supported by characteristics like their small size, high output power, and simplicity of integration, among others. Comparatively speaking, semiconductor lasers are more sophisticated and effective than traditional lasers. Semiconductor lasers are the best option for the production of laser-based systems since they are the smallest, use the least amount of power, and function more efficiently than conventional lasers in a variety of applications.

According to the United Nations Statistics Division Development Data and Outreach, the share of the manufacturing value added to the global GDP declined from 16.6% to 16.0% between 2019 to 2020.

Market Dynamics:

Driver:

Increase in OLED demand by application

OLEDs are largely used in a variety of applications, including military & defence, industrial, instrumentation & sensor, communications & optical storage, and other uses. A good light source may be made with OLEDs. They can be adaptable, effective, light, thin, transparent, and color-tunable, and they provide diffuse area illumination. OLED lighting technologies are being developed by a number of businesses worldwide. The market for semiconductor lasers is expanding as a result of the rise in smartphone sales and smartphone-specific technologies like OLED. Additionally, the expansion of the semiconductor sector might promote market expansion.

Restraint:

Costly laser diode operations and reliability problems

These lasers are unreliable and have expensive manufacturing costs for the hardware parts. Additionally, the worldwide market's expansion is being constrained by the laser's low power generation. High production costs for laser diodes make it challenging for new competitors to enter the industry. High start-up costs and reliability problems with various laser diodes impede market expansion.

Opportunity:

Increasing investments and smart factory solutions implementation

In the industry 4.0 idea, laser technology is crucial. Organisations are observing higher productivity, enhanced efficiency, and lower cost advantages along with improved quality and expanded production capacity as industry 4.0 and smart factory solutions emerge. It is used for a variety of mechanical tasks, such as brazing, cutting, engraving, laser printing, and welding. Applications for Industry 4.0 that use lasers most frequently incorporate IoT, AI, cloud computing, cognitive computing, cyber-physical systems, machine learning, and other technologies.

Threat:

Concerns for the environment related to the usage of rare-earth elements

Using solid-state and fibre lasers to process and refine rare-earth metals like neodymium, chromium, erbium, or ytterbium present a significant risk of radioactive contamination brought on by slurry tailings. The refining procedures make use of hazardous acids that, if handled improperly, might cause significant environmental harm. Additionally, the usage of rare-earth metals raises the possibility of short-term supply interruptions, and future implementation of renewable energy technologies may be hampered by supply issues for these metals.

Covid-19 Impact

The COVID-19 epidemic has limited production in a number of sectors, including the automotive and consumer electronics industry. The demand for the goods needed for production decreased as a result. In the production of consumer electronics, automobiles, and other sectors, laser solutions are frequently employed. Additionally, the COVID-19 epidemic decreased demand for automobiles worldwide. The need for laser solutions rose in the automotive and data centre industries during the COVID-19 epidemic. Numerous optical communications products are made with laser diodes to build data centres. The expansion of the worldwide market is being driven by an increase in investment by key companies in the IT industry in data centres.

The vertical cavity surface emitting lasers (VCSEL) segment is expected to be the largest during the forecast period

The vertical cavity surface emitting lasers (VCSEL) segment is estimated to have a lucrative growth. The rise of these laser diodes in data centres and communication equipment is mostly to blame for this. This segmental expansion is being driven by an increase in 5G device adoption and rising data centre expenditure. Technology advancements, lower operating costs, and higher edge quality and operating speeds are anticipated to create new applications for this technology. The vertical cavity surface emitting lasers market is expanding as a result of such increasing infrastructure investments in data centres.

The communication segment is expected to have the highest CAGR during the forecast period

The communication segment is anticipated to witness the highest CAGR growth during the forecast period, due to its higher efficiency and operational activity of specific diode types, such as of optical fibertype. The advantages of wavelength lasing and modern tuning dynamics have been fully included into the design of the systems of the next generation. These lasers have use as pump lasers in Erbium-doped Fibre Amplifiers (EDFAs), high power pulsed lasers for field measurement and testing, and transmitters in analogue and digital fibre optic networks.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the manufacture of heavy machinery and the car industry both employ semiconductor lasers extensively for metal cutting. India, China, South Korea, and Japan are among the nations in the Asia Pacific region that have robust manufacturing sectors that make up the majority of the market. Additionally, the governments of various Asia-Pacific nations are launching programmes to support the manufacturing sector. For instance, the Made in China 2025 state-wide industrial policy, which stimulates high-tech manufacturing sectors, was introduced by the Chinese government. The programme sought to employ government aid in China's sophisticated industrial sectors.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the growing cost of healthcare, the number of aesthetic procedures, and the high incidence of The market expansion in North America is projected to be fuelled by advanced technology. The need for laser-based solutions in industries like defence, consumer electronics, etc. throughout the US and Canada is also being fuelled by the existence of significant key companies like Coherent, Inc., IPG Photonics Corporation, Corning Incorporated, and others. These players are concentrating on releasing cutting-edge laser-based solutions to expand their product line.

Key players in the market

Some of the key players profiled in the Semiconductor Laser Market include II-VI Incorporated, Sharp Corporation, IPG Photonics Corporation, Nichia Corporation, Coherent Inc., Sharp Corporation, Panasonic Corp., ASML Holding N.V., Han’s Laser Technology Industry Group Co. Ltd., Mitsubishi Electric, Sumitomo Electric Industries Ltd., Rohm Company Limited, Jenoptik AG, Huaguang Photoelectric and OSRAM Licht AG .

Key Developments:

In September 2022, Mitsubishi Electric Corporation began the shipment of advanced tunable laser diode chips used for optical communication devices. The company sold its laser diodes to manufacture the optical transceivers of optical fiber communication systems.

In September 2022, Coherent Corporation in the communications and aerospace & defense industry firm launched I-Temp micro pump semiconductor lasers. The laser launched for the extended temperature operations for the optical networking.

In October 2021, Mitsubishi Electric Corporation launched an electro-absorption modulator laser diode chips sample of its 100 Gbps pulse-amplitude modulation (PAM4) for coarse wavelength division multiplexing.

Types Covered:
• Green Laser
• Vertical Cavity Surface Emitting Lasers (VCSEL)
• Fiber Optic Lasers (FOL)
• Blue Laser
• Red Laser
• Infrared Laser
• Other Types

Applications Covered:
• Materials Processing
• Healthcare
• Lithography
• Display
• Optical Storage Devices
• Instrumentation and Sensor
• Communication
• Printing
• Military and Defense
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements