It is projected that the Global Laser Cutting Machines Market will be worth an estimated $5.7 billion US dollars by the year 2022, a compound annual growth rate of 9.3 percent between 2016 and 2022. Several factors are expected to fuel the growth of this market, such as increases in production requirements across various industries and the need to limit the involvement of humans in the improvement of metal processing.
Laser cutting machines cast a laser beam onto a piece of metal that is to be cut. The laser beam melts the metal, which evaporates the area that is targeted by applying a high degree of heat to the location. It is expected that the global laser cutting machines market will see growth in revenues between the years 2016 and 2022 as a result of the increased use of laser cutting machines across various industries worldwide.
Factors Fueling the Growth of the Laser Cutting Machines Market
There are several factors that are expected to lead to the augmentation of the global laser cutting machines market.
Of all these factors, the increased amount of industrialization in developing nations, such as China, India and Brazil, will boost the growth of this market on a global scale over the forecasted time period. Moreover, the increased application of laser cutting machines in the healthcare sector is also expected to surge the growth of the size of this market worldwide.
Laser cutting machines are largely used in the production of consumer electronics. The increased demand for consumer electronics worldwide is another factor that is expected to fuel the growth of the laser cutting machines industry on a global scale. In fact, consumer electronics is expected to be the fastest growing sector in this market over the forecasted time period.
Other factors that are anticipated to lead to the increased size and value of the global laser cutting machines market include the need for high power input and efficiency-based cutters, as well as the increased desire for less human involvement in the process of cutting metals.
Global Laser Cutting Machine Market: Product Segmentation
The global laser cutting machine market is segmented according to products. These products include:
- Solid state laser cutting
- CO2 laser cutting
- Fiber laser cutting
- Gas laser cutting
- Fusion laser cutting
The CO2 laser cutting segment accounted for the largest revenue in the past years. However, during the forecasted time period, the gas laser cutting segment will account for the largest growth in revenue, with a projected compound annual growth rate of 9.4 percent during the forecasted time period. There has been an increased demand for new and improved machine tools and equipment that are capable of making holograms, dye laser pumping, laser printing, and barcode reading. Moreover, the fusion laser cutting segment is projected to be the fastest growing segment during the forecasted time period. The benefit of fusion cutting is that it produces a virtually oxide-free cutting edge, which is highly suitable for cutting thin sheets.
Global Laser Cutting Machine Market: End User Segmentation
The global laser cutting market is further segmented by end users. These end users include:
- The aerospace and defense sector
- The automotive sector
- The industrial machinery sector
- The electrical and electronics sector
In the year 2015, the automotive sector accounted for the largest share of the global laser cutting machines market, holding approximately 19 percent of the market share. It is projected that this sector will continue to see substantial growth during the forecasted time period.
In the coming years, the electrical and electronics sector is also expected to see a significant amount of growth. This will largely be due to the increased demand by consumers for electrical and electronics products, which will necessitate more laser cutting machinery in this sector. Moreover, the industrial machinery sector will also see substantial growth over the next few years. This will be due to the growing trend of automation in the process of manufacturing products, which is expected to directly increase the demand for laser cutting machines in this sector, as these machines have the ability to cut pieces with exact precision at high speeds, and they yield consistent results.
Global Laser Cutting Machine Market: Regional Segmentation
The global laser cutting machine market is segmented even further by region. The regions that contribute to this market include:
- North America
- South America
- Asia Pacific
- The Middle East
In 2015, Asia Pacific dominated this market, accounting for the highest growth. This was the largely due to the fact the significant industrial and economic development in the region. Additionally, several domestic and international companies in the aerospace and defense, automotive, electrical equipment and industrial machinery segments, as well as other segments, invested substantial amounts in this region. During the forecasted time period, Asia Pacific is expected to continue dominating the global laser cutting machine market.
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Global Laser Cutting Machines Market: Competitive Landscape and Key Players
The global laser cutting machines market is highly competitive. The market is comprised of several local and international players. These vendors are keenly focuses on adding more technologically advanced and energy efficient products to their portfolios in order to gain a competitive edge. As such, the competition in this market is expected to intensify even more, as there will be increases in research and development.
The key players in the global laser cutting machine market include Rofin-Sinar Technologies, Coherent, IPG Photonics, Newport Corporation, Trumpf, Alpha Laser, DPSS Laser, Bysronic, Prima Industries, Universal Laser Systems, Trotec Laser and Xenetech Global, among others.
Outlook for the Global Laser Cutting Machines Market
The outlook for the global laser cutting machines market between 2016 and 2022 is very positive. The projected increase in the compound annual growth rate coupled with the increased demand for laser cutting machinery and the capabilities that these products offer makes them highly attractive. Given the projections for this market, it will be a favorable market for investors in the coming years.