Semiconductor Laser Market

This study intends to analyse diverse aspects of the global semiconductor laser market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.

Market Analysis in Brief

In 2021, the semiconductor laser market reflected modest growth and per industry figures, it stood at over US$7 Bn in terms of value. According to preliminary study carried out by Fairfield Market Research, the semiconductor laser industry will continue to grow at a promising pace through the years of forecast.

Key Report Findings

• High demand in the development of smart connected devices to augment market growth of the semiconductor laser market
• Increasing use in high tech applications remains a crucial factor in driving the semiconductor laser market growth
• Post pandemic scenario to portray a lucrative market scenario for semiconductor lasers
• Developing economies in Asia Pacific to present an optimistic scenario for semiconductor laser industry

Growth Drivers

Proliferation of Smart Connected Devices

The proliferation of smart connected devices has accelerated the demand for semiconductor lasers. In addition, rising investments in smart connected devices by electronic device manufacturers has further fuelled the growth of the semiconductor laser market. In March 2022, an investment of around US$200 Mn was initiated by Samsung Electronics Ltd. to set up new manufacturing plant in India.

In November 2022, a new 12” display was launched by LG Display. This display provides 100 PPI resolution with high reliability, durability, and flexibility. That said, the demand for laser technology, and laser diodes across such applications in the connected devices segment increased significantly and is expected to grow further in the coming years. This factor remains instrumental in driving growth prospects in the semiconductor laser market.

Increasing Development and Use Across High-end Applications

The rising demand of semiconductor lasers across a myriad of applications continues to influence market growth. There has been a significant adoption of laser diodes in the manufacturing of optical communication devices. Laser diodes with high precision are witnessing greater demand for the manufacturing of various telecommunication devices and satellite components.

For instance, in July 2022, laser diodes were used by Silicon Photonics in the manufacturing of high-performance components in computing systems in data centres. This is mainly owing to their low power consumption and cost-effectiveness along with their ability to speed up the manufacturing of optical devices. In October 2021, new electro absorption modulator laser diode chips were launched by Mitsubishi Electric Corporation for applications such as Coarse Wavelength Division Multiplexing (CWDM). In this backdrop, increasing developments and the adoption of laser technologies are expected to bode well for the growth trajectory of the global semiconductor laser market.

Growth Challenges

COVID 19 Impact

The COVID-19 pandemic embossed a negative impact on the manufacturing sector worldwide. Owing to imposed lockdown restrictions, manufacturing activities of various industries such as automotive, electronics, and consumer goods were restricted. This resulted in a decline in sales of secondary products needed for manufacturing. Semiconductor lasers are widely used solutions in the manufacturing of automobiles, and consumer electronics.

The decline in demand in these industries impacted the sales of lasers solutions thus hampering the semiconductor laser market growth in the process. However, post-2020 fall in demand, the market has witnessed a steady upward trend. Post COVID-19 reflected a critical spike among industries including the automotive, consumer electronics and communication sectors, among others. This translated to momentous opportunities for manufacturers and providers of semiconductor lasers.

Demand indexed an upswing, particularly in data centre applications. Moreover, growing investments by technology companies to re-establish data centres paved potential avenues for laser diodes that are used in the manufacturing of optical communication products. That said, although 2020 registered a significant slack, the post-pandemic condition proved beneficial for the growth of the semiconductor laser market on a global front.

High Initial Investments and Technical Limitations

The manufacturing of semiconductor lasers requires significant sums of investment as well as advanced technological expertise. Moreover, the semiconductor lasers market is highly competitive, which could result in pricing pressures and lower profit margins for industry players. Furthermore, semiconductor lasers are limited by their physical properties such as power output and wavelength. The development of high-efficiency, high-power lasers with smaller form factors at lower costs may presently remain a roadblock. Factors such as these are expected to negatively influence the further progression of the global semiconductor laser market.    

Growth Opportunities Across Regions

Asia Pacific to Account for the Majority Revenue Share  

Developing nations in the Asia Pacific region are expected to showcase high-growth potential in the semiconductor laser market. This can be mainly attributed towards a growing manufacturing sector and rapid industrialization across economies such as China, India, and Japan. Furthermore, economies such as Taiwan, Korea, and China, house major smartphone companies including OnePlus, Samsung, and Vivo among others. This has fuelled the demand and use of semiconductor lasers in these areas. In addition, favorable government initiatives have supported the growth of industrialization in this region.

For instance, the Government of China introduced the ‘Made in China 2025’ initiative. This state-wise industrial policy is focused on accelerating the growth of the high-tech manufacturing industry. Additionally, through this initiative, government subsidies would be used to advance the manufacturing sector in China. Similarly, in India, the future of the manufacturing industry appears promising. For instance, according to the India Brand Equity Foundation, the Indian manufacturing sector is projected to grow significantly, and is expected to cross US$1 Tn by the end of 2025. Such developments and initiatives are likely to provide a spotlight for the semiconductor laser market in the coming years.

Semiconductor Laser Market: Competitive Landscape

A few of the major players in the semiconductor laser market include OSRAM Licht AG, Mitsubishi Electric, Sharp Corporation, Hans Laser Technology Industry Group Co. Ltd., ASML Holding NV, IPG Photonics Corporation, Coherent Inc., Newport Corporation, Panasonic Corporation, and Nichia Corporation, to name a few. To gain a competitive edge, various established industry players are now more focused on new product launches, partnerships, collaborations, acquisitions, and alliances.

Recent Developments:

• In March 2022, red colour laser diodes were introduced by Ushio. These diodes come with wavelengths of 670-690 nm and are best suited for biomedical applications
  
  
• In April 2022, Atotech Limited was acquired by MKS Instruments. With this acquisition, MKS Instruments aims to strengthen its position by adding lasers to its product portfolio
  
  
• In April 2022, Femto-blade laser system was launched by Lumentum Inc. This system offers high-precision, ultrafast semiconductor and industrial lasers
  
  
• In September 2022, Coherent Corporation introduced I-Temp micro pump semiconductor laser. This laser was launched mainly for extended temperature operations

Regional Classification of the Global Semiconductor Laser Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Semiconductor Laser Market

• Semiconductor Laser Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2019 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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