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Fortune Business Insights recently published a report on, "Semiconductor Market Size, Share & COVID-19 Impact Analysis, By Type, By Application, and Regional Forecasts, 2022-2029". The semiconductor laser market size was valued at USD 7.22 billion in 2021 and USD 7.69 billion in 2022. The market is expected to reach USD 13.25 billion by 2029 with a CAGR of 8.1% during the forecast period.
Rising applications in various sectors such as automotive, consumer electronics, and others are predicted to boost the demand for semiconductor lasers. Asia Pacific held the largest market share USD 3.08 billion in 2021, owing to the robust manufacturing sector. Increasing investments in smart connected devices are set to drive market growth.
Key Industry Development
September 2022- Coherent Corporation launched I-Temp micro pump semiconductor lasers. The laser launched for the extended temperature operations for the optical networking.
Key Takeaways
- Rising Adoption of Lasers Solutions in Various High-end Applications to Drive the Market Growth
- Increasing investment by electronics device manufacturers in smart connected devices is expected to drive market growth
- Application Analysis: Rising Investments in the Automotive Sector by Leading Players to Aid the Segment Growth
- Semiconductor Laser Market Size in North America was USD 3.8 Billion in 2021
- Instruments & sensors segment is projected to grow with the highest CAGR over the forecast period 2029
Drivers and Restraints:
- Increasing Investments by Manufacturers to Drive Market Advancement.
- Increasing instances of investments by electronics devices manufacturers in smart connected devices is anticipated to drive the semiconductor laser market growth.
- Laser diodes are broadly used in manufacturing consumer electronics devices for high-quality products.
- Laser diodes have numerous applications such as medical diagnosis, scientific research, telecommunications, military equipment, barcode scanners, consumer electronics, optical storage devices, printers, entertainment, manufacturing, surveying, and others.
- Rising adoption of lasers solutions in various high-end applications is expected to push the market growth.
- However, high capital costs and reliability issues related to different laser diodes are anticipated to hamper the market growth.
Segments
Fiber Optic Laser (FOL) to Lead Due to Increasing Adoption
On the basis of type, the market is divided into Fiber Optic Lasers (FOL), Vertical Cavity Surface Emitting Lasers (VCSEL), blue laser, red laser, green laser, infrared laser, and others (compact disc laser). Fiber Optic Lasers (FOL) segment is anticipated to have the dominant part due to increasing adoption of edge-emitting diodes in optical device manufacturing.
Material Processing to Govern Owing to Rising Investments
Based on application, the market is categorized into medical & aesthetic, instruments & sensors, aerospace, defense, and military, materials processing, communications & optical storage, entertainment, displays, & printing, and others (printing, lithography). Material processing segment is expected to have a major part due to rising investment in manufacturing automotive component cutting. Instruments & sensors segment is projected to grow with the highest CAGR owing to increasing investments across IoT devices.
Regional Insights
Asia Pacific to Lead Market Share Due to a Strong Manufacturing Sector
Asia Pacific is anticipated to head the semiconductor laser market share due to a strong manufacturing sector. India, China, South Korea, and Japan have a strong manufacturing sector, which is set to propel market growth of the region. The manufacturing sector in India is developing at a fast rate with the help of foreign direct investments.
North America is set to have substantial growth due to the rising expansion of data center investments with rapid development of the 5G infrastructure.
Europe is set to have the highest CAGR during the forecast period due to rising demand from automotive manufacturers across Germany, Italy, the U.K., and France.
Competitive Landscape
Acquisition Strategies by the Key Market Players to Set Market Progression
The global market players include OSRAM Licht AG, ASML Holding NV, Coherent Inc., Jenoptik Ag, Mitsubishi Electric, Sumitomo electric industries ltd., TRUMPF Group, and others. Market players have been adopting various strategies such as mergers, product launches, acquisitions, partnerships, and collaborations. In March 2021, Coherent, Inc. acquired U.S.-based optoelectronic components manufacturer II-VI Incorporated for around USD 7.01 billion. The acquisition by Coherent, Inc. will help the company to expand its businesses.
List of Key Players Profiled in the Report
Click here to read the research report titled, "Semiconductor Market Size, Share & COVID-19 Impact Analysis, By Type, By Application, and Regional Forecasts, 2022-2029".
