Laser Cutting Machine Market is expected to grow at a CAGR of 9.5% during the forecasting period (2022-2099).
Laser cutting machines are used in various industries to precisely contour thin sheets. A powerful laser beam is sent by the laser cutting device to either precisely cut or etch a design onto materials like steel, plastic or wood. The beam will burn, vaporize or melt away the extra product, leaving a superior completed pattern or edge. It is typically employed primarily for industrial manufacturing applications.
Laser optics and computer numerical control (CNC) settings on a laser cutting machine work together to direct and control the laser beam's intensity for the intended design effect or the precise cuts needed in a manufacturing or design project.
Electrical discharges or a light source trigger a lasing substance inside a container, triggering a chemical reaction that releases a powerful beam of light like the laser beam. A mirror is then used to reflect the beam, creating a monochromatic light stream. The light is then focused from the mirror to the work area using fiber optics or mirrors, with the narrowest point of the beam causing the material to be sliced or etched with the design.
Nowadays, various laser cutting machine types and constructions can be used in industrial applications. Laser cutting devices with rotational motions and laser robots are used for contour cutting 3-D thin sheet items. Lasers produce a laser beam that illuminates a tool as it is being used—utilizing laser cutting technology allowed for improved product quality, production flexibility and economic growth.
Increasing automation in manufacturing industries generates a tremendous market demand for the laser cutting machine industry to grow in the forecast period.
Increasing automation in manufacturing industries
The global laser cutting machine market is primarily driven by the high rise in automation owing to the demand for standard quality products worldwide. The increasing production activities all around owing to the rising demand is enabling the production facilities for installation of laser cutting machines which work with high precision with very low wastage. The firm is installing a new laser cutter machine to increase production too.
Medical devices, automotive, aerospace and military, electrical and electronics, industrial machinery and renewable energy, are examples of industries where automation is used extensively. These industries are showing signs of positive growth. Even a decade ago, the factory was different than it is today. Producing parts more rapidly, effectively and affordably is possible because of technological and creative advancements. "Laser cutting is a cutting-edge technology that uses cutting-edge machinery and equipment to make parts at record speeds in industrial manufacturing while saving costs.
For instance, WEC Group Invests in state-of-the-art Laser Cutting Machines for MTL Advanced. The new 6m x 2.5m Trumpf CO2 TruLaser 8000 was commissioned in December 2018 as part of an ongoing investment plan to modernize MTL’s machinery line-up and boost productivity. With high-speed cutting and reduced energy consumption of up to 40 % compared to the machine it replaced, the "new generation" large bed laser provides superior contour precision and higher part quality than most other laser cutting machines on the market. The new investment will enable MTL to retain a competitive advantage on large volume production contracts and wear-resistant, high-strength and stainless-steel components.
Availability of substitutes and high installation costs
A Laser-cutting machine is expensive, which includes several features and options attached to the base machine. The product's market price ranges from US$ 529 to US$ 4995, depending on features. However, it isn't easy to justify the total investment initial cost without generating statistics on these features and options. The equipment has relatively minimal running and maintenance costs. The equipment's initial cost impacts operating costs, hurling the product's market growth.
Furthermore, the running costs are impacted by several factors. Some factors are cutting speed, consumable expenses and maintenance costs. Thus, companies are investing in improving cutting speed and keeping consumable and maintenance expenses minimal to have cheap operating costs.
COVID-19 Impact Analysis
The unprecedented COVID-19 outbreak has had a significant negative impact on the laser cutting machine industry. The implementation of lockdown in a major part of the world has shut down various key manufacturing facilities across the globe, reducing the overall demand for laser cutting machines during the 2019-2021 period.
For instance, the manufacturing industry has been greatly impacted by the scale of this business disruption. In actuality, COVID-19's effects on the manufacturing sector have impacted the supply, demand and production chains—three crucial sectors that support typical manufacturing cycles and procedures.
More than two-thirds of respondents to an electronics industry survey informed them to expect delays. 15% of respondents reported delays of six weeks or longer, compared to an average wait of three weeks. Manufacturers anticipate delays of five weeks, which is a full two weeks longer than what is being claimed. Furthermore, uncertainty has remained one of the few constants in the industrial business landscape for more than 2 years since the discovery of COVID-19. The most successful manufacturers have been those who have been able to change course and remain flexible by adjusting to new business realities, demonstrating the value of data, trends and the capacity to derive information from them. Thus the damage caused to the manufacturing industry has hampered the laser cutting machine; however, changing global conditions are expected to regain the market growth momentum for the industry in the forecast period.
The global laser cutting machine market can be segmented on product, process, end-user and region.
Fiber is dominant in the laser cutting machine market due to technological advances, growing industrial applications and eco-friendly nature.
The global laser cutting machine market is segmented by product: fiber, solid-state, diode and others. Fiber is dominant in the laser cutting machine market due to technological advances, growing industrial applications and eco-friendly nature.
A specific solid-state laser is used in fiber laser cutting to melt and pierce metals, producing an accurate and effective cut. The term "fiber laser cutting" refers to the laser medium used in this technology, optical fiber rather than gas or crystal. Because of its increased robustness and efficiency, fiber technology is used in various infrastructure and industrial applications. The primary distinction between the various types of laser cutting equipment currently used is how the laser is produced.
Fiber laser cutting machines can work upon both metals and non-metals. Fiber laser cutting machines offer various advantages. They can adjust from one industry need to another smoothly, can be used on a versatile range of metals and can adapt to different wavelengths, ranges and even speeds. Furthermore, the machine works faster than CO2 lasers, increasing overall efficiency with high power output and beam quality, which creates a cleaner cutting edge and lower power consumption, keeping running costs low.
The machine does not pose a heat risk despite its power. Solid-state laser cutting machine demand is increasing owing to its quick cutting efficiency and is expected to grow with a higher CAGR in the forecast period. Fiber laser cutting is expected to grow at a CAGR of ~XX% during the forecast period.
Asia-Pacific is growing at a tremendous rate and the growth in demand is mainly because of people's increasing disposable incomes and rising international tourism.
Asia-Pacific holds the largest market share for the laser cutting machine market due to the economic rise and growing manufacturing industries like consumer electronics and automotive. China and India have high demands for laser cutting machines owing to the rise in mobile phones and automotive production. For instance, according to the Indian Cellular Association (ICA), the annual production of mobile phones within the country increased from 3 million devices in 2014 to 11 million in 2017. India now accounts for 11 % of global mobile production, only 3 % in 2014.
According to information provided by the ministry, the yearly production of mobile manufacturing is anticipated to surpass US$ 100 billion, up from the present US$ 30 billion. It is anticipated to account for close to 40% of this development. Over the next five years, the domestic market will be anticipated to grow from US$ 65 billion to US$ 180 billion. By 2026, electronics will be one of India's top two or three exports. The "all of the government" approach-based five-part strategy to accomplish US$ 300 billion goal drastically concentrates on expanding and strengthening electronics manufacturing in India. The expanding electronics industry is expected to be accomplished by attracting international electronics manufacturers and brands, moving and developing the sub-assemblies and component ecosystem, improving the design ecosystem, cultivating Indian champions and gradually eliminating the cost disadvantages India currently faces.
However, North America is after Asia-Pacific in terms of the market share of the laser cutting machine market due to increased technological advancement and the higher adoption of technologies such as laser cutting. The other major reason is the presence of leading automotive manufacturers. The rise in production and the investments in new production facilities of automotive in the region are expected to grow the laser cutting market in the forecast period. Honda completed more than US$ 174 million in expansion and innovation activities at its U.S. plants in 2018, totaling US$ 5.9 billion in new capital investments in Honda's U.S. production operations undertaken over the past five years.
The laser cutting machine market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth are Coherent Incorporation, Jenoptik Laser GmbH, ALPHA Laser GmbH, Bystronic Incorporated, Epilog Laser Inc, Amada Miyachi Company, Trumpf GMBH + Co. KG, Ltd, Conzzeta Management AG, Han’s Laser Technology Industry Group Co. Ltd, IPG Photonics Corporation and others.
The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to the global laser cutting machine market growth.
• In July 2021, The new version of the TruLaser Series 1000, which has increased productivity, process stability and cost-effectiveness, was displayed at Blechexpo by high-tech company TRUMPF. The Highspeed Eco function is being utilized on this particular machine type for the first time. A TRUMPF-designed nozzle directs the cutting gas to the sheet metal, resulting in an up to 70% increase in the machine's feed rate and a 60% decrease in gas usage. The device greatly outperforms 2D laser machines for cutting sheet metal.
Han’s Laser Technology Industry Group Co. Ltd
Overview: Han's Laser Technology Industry Group Co., Ltd, established in 1996, is a China-based public company. The company is committed to providing customers with the latest industrial laser machine technology to suit their special needs better. In 2004, Han's Laser was listed on the Shenzhen Stock Exchange and as of now, the company's market valuation exceeds US$ 6 billion.
• MARS-10J/20J: The company offers a fiber-based laser cutting machine that is suitable for a variety of materials: steel, gold, aluminum, silver and silicon. The product can be used in the Electronic components industry, Medical device industry, Glasses, watch and clock industry, IC card industry and Jewelry industry
• For instance, on 2019, Han's Laser Smart Equipment Group Co., Ltd. introduced their T16/ T25 Series Fiber Laser Tube Cutting Machine in the market. The product is a highly flexible and stable laser tube cutting machine expected to improve small and medium enterprise productivity significantly.
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