Laser Cutting Machine Market - Forecast(2024 - 2030)

The Laser Cutting Machines Market Size was valued at USD 7.1 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2024 to 2030 Laser Cutting is a thermal separation method in which many different materials can be cut efficiently, quickly, and precisely without reworking. The urgent requirement of many industries to reduce human involvement and the role of machine tools and automate the metal cutting process for better cutting precision and accuracy and lower material wastage has been one of the driving factors behind the growth of this market The evolution of fiber laser technology represents a significant advancement in the laser cutting machine market. With continuous innovation, fiber lasers now offer higher power levels, improved efficiency, and superior beam quality. These advancements translate into faster cutting speeds, heightened precision, and enhanced versatility across a wide range of materials, including metals, plastics, and composites. Moreover, the growing adoption of fiber lasers for cutting thick materials underscores their expanding capabilities and reliability in demanding applications. 

Furthermore, the development of hybrid laser cutting systems, which integrate multiple laser sources, further amplifies the market's growth trajectory by providing enhanced flexibility and efficiency to meet diverse manufacturing needs. Overall, the ongoing advancements in fiber laser technology propel the industry forward, driving increased adoption and fueling innovation in laser cutting solutions. The integration of automation and Industry 4.0 technologies marks a pivotal advancement in laser cutting machines, revolutionizing manufacturing processes across industries. By incorporating automation principles, these machines deliver heightened productivity, minimize downtime, and boost operational efficiency. Key features such as robotic loading and unloading systems, automatic nozzle changing mechanisms, real-time monitoring, and diagnostics capabilities, as well as seamless connectivity with smart manufacturing systems, enable laser cutting machines to seamlessly integrate into automated production lines. These advancements cater to the escalating demand for high-throughput and flexible manufacturing solutions in critical sectors like automotive, aerospace, electronics, and sheet metal fabrication. As a result, manufacturers benefit from optimized production workflows, improved quality control, and enhanced competitiveness in the dynamic market landscape.

The report: “A Laser Cutting Machine Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Laser Cutting Machine Market.

By Type: CO2 Laser Cutting Machine, and Fibre Laser Cutting Machine.

By Technology: Solid-State Laser, Gas Laser, and Semiconductor Laser

By End User: Automotive, Electronics, Defence and Aerospace, Manufacturing, and others

By Process: Fusion Cutting, Flame Cutting, and Sublimation Cutting.

By Geography: North America (U.S, Canada, Mexico), Europe (U.K, Germany, France, Italy, Spain, Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others) and RoW (Middle East, Africa)

• Semiconductor Lasers will be the fastest-growing segment in this market with a CAGR of about 10.18% due to its energy efficiency, low cost, and easy operability.

• Fiber Laser Cutting Machine holds the largest share in this market owing to its varied industrial applications, low maintenance cost, long service life, and greater efficiency.

• APAC region holds the largest market share at 33% due to rapid economic growth, expansion of end-user industries in emerging economies especially China and India, and massive increase in private consumption as these countries transition from low income to middle-income economies.

The Laser cutting machines market can be broadly classified into two segments: CO2 Laser Cutting machines and Fibre Laser Cutting machines. Fibre laser cutting machine is the fastest-growing segment in the Laser cutting machine market with a CAGR of 10.22% between 2024-and 2030. Low maintenance cost, long service life, compact size coupled with high electrical efficiency resulting in lower power consumption than CO2 lasers are some of the major factors that have been driving the growth of the Fibre laser cutting machine segment. The rapid growth of the automotive, consumer electronics, defence, and other industries in the emerging economies will provide a major boost to the growth of this market. In April 2022, Yamazaki Mazak launched their OPTIPLEX 3015 NEO-S-15 which is a 2D fiber laser cutting machine with advanced technologies such as innovative Beam Shaping Mode technology for enhanced control of beam shape and diameter, MCT3 Cutting Head, and a new MAZATROL Smooth Lx CNC control system to ensure optimal performance on a wide range of materials which greatly eases versatile operations on the workpiece that will ultimately result in widespread adoption. Such developments will positively affect the growth of this market.

The Flame-cutting segment is forecasted to grow with the highest CAGR of 10.56% between 2024-and 2030. Flame cutting process uses a neutral flame to heat the material up to its kindling temperature and then an additional flow high flowing stream of oxygen is injected into the flame to sever the material and blow away the molten metal or dross. Factors such as high portability, low power supply, and its ability to operate on materials with high thicknesses up to 25mm are driving the growth of this segment. The varied applications of this process in various rapidly growing industries such as automotive, consumer electronics and others coupled with its ability to operate with different types of materials as long as the oxide formed has a lower temperature than the base material to be cut is one of the key factors leading to the widespread adoption of this process.

 

The Laser cutting machine market in APAC region will account for the largest share at 42% with the CAGR of 6.9% in 2023. The factors that are propelling the growth of the Laser cutting machine market in APAC are rising demand due to the rapid growth of end-user industries in emerging economies, rising purchasing power, and increased need for manufacturers to automate the cutting process to produce objects with complex geometry. The increased focus on electric vehicles, electronic component manufacturing, and private consumption as the economy recovers will provide a massive boost to the growth of this market in this region. The growing presence of consumer electronics and automotive manufacturers in the region is expected to further propel the market growth. The growing adoption of automation in laser-cutting machinery is another factor that is augmenting regional laser cutting machine industry’s growth The regional growth is attributed to the presence of economies such as China, Japan, India, Vietnam, and South Korea, among others, with a strong presence in the manufacturing industry.

 

Rapid Adoption of Laser cutting machines in Emerging Economies: Rapid urbanization, increase in industrial expansion, and government policies leading to widespread adoption of Laser cutting machines

The rapid growth of infrastructure, urbanization and industrial automation are the main driving factors behind the rapid expansion of the Laser cutting machine market in developing economies. The breakneck speed of urbanization and infrastructural development coupled with the need to maintain cutting precision and limit material wastage are the key factors that are driving the growth of the market. Apart from this, the exponential increase in electronic and automotive component manufacturing, increasing defence budgets, and burgeoning aviation industry has led to the rapid adoption of Laser cutting machines by manufacturers everywhere. Lowering costs along with significant technological advancements such as integration of multiple power modes, auto-changing tables, and compact design are also giving a significant boost to this market. 

Many emerging economies continue to implement policies and incentives to promote industrial growth and technological advancement. Governments offer subsidies, tax breaks, or investment incentives to encourage the adoption of advanced manufacturing technologies like laser cutting machines. The factors such as rapid urbanization, rapid industrial development, and technological advancements are the main factors that will drive the growth of this market.

Increased requirement of manufacturers to automate cutting processes to enhance production capacity and precision

The increased need felt by manufacturers across the globe to automate cutting processes, especially in emerging economies has led to widespread adoption of laser cutting machines by industry. 

The rapid growth of end-user industries, increased competition among firms to produce objects with complex geometry, and lowering production cost are some of the main factors driving the growth of this market. The integration of advanced technologies like beam control, flame profile control and the ability to operate at multiple power levels positively impact the growth of this market. The rapid adoption of sophisticated Laser cutting machines enabled with advanced technologies by the various industries of some of the major countries to do increase production, enhance precision and lower cost has been one of the key drivers of this market. In April 2022, Union Minister Ashwini Vaishnaw announced that India will be manufacturing $300 billion worth of electronic goods and components in FY 2023. Such developments coupled with widespread industrial adoption, urgent need for automation, and technological advancements are some of the main reasons behind the growth of this market.

The high equipment cost and technological constraints are the major challenges that are impeding the growth of this industry. Although the cost of a laser cutting machine cost ranges between $30,000 to $200,000 depending upon the specifications and is relatively inexpensive for large-scale manufacturers, its pricing point becomes an insurmountable barrier in the case of small-scale operations or start-ups. Apart from this, there are certain materials such as plastic, thermosets, and others that are unsuitable for operation by laser cutting machines as they produce toxic gaseous by-products during the process. The other factors that inhibit the widespread adoption of laser cutting machines are their inability to operate on thick materials, distortion of the workpiece, and setup time. Such developments will negatively impact the growth of this market.

Product launches, collaborations, and R&D activities are key strategies adopted by players in the Laser Cutting Machine market. The top 10 companies in the Laser cutting machine market are