Market Overview:

Laser diodes are semiconductor devices that emit coherent and monochromatic optical beams when an electric current passes through them. They have advantages such as high efficiency, low power consumption, small size, and narrow divergence of emitted beams. These properties have led to their widespread applications in measurement devices, optical storage, defense equipment, medical devices, and industrial processing tools. Laser diodes are used in barcode scanners, optical fiber communication and telecommunication networks, laser pointers, optical disc drives, laser printers, laser scanning, laser welding, and laser cutting. Their growing use in new applications such as laser material processing, microscopy, and displays is driving market growth.

Market key trends:

One of the key trends in the laser diode market is the increasing adoption of UV and green laser diodes. UV laser diodes find applications in biomedical research, fluorescence microscopy, DNA sequencing, and dermatology. Green laser diodes are used in laser displays, laser printing, optical data storage, and laser pointers. The higher power and increased efficiency of UV and green laser diodes compared to traditional infrared versions is boosting their demand. Another major trend is the emergence of vertical-cavity surface-emitting lasers (VCSELs). VCSELs have advantages such as single longitudinal mode, circular light output, and two-dimensional array configuration. They are widely employed in 3D sensing, LiDAR applications, data centers, and augmented/virtual reality headsets. The development of high-power VCSELs with increased output is expected to further their applications.

Porter’s Analysis

Threat of new entrants: The threat of new entry is moderate due to capital-intensive nature of the laser diode market. It requires large investments in R&D, equipment and infrastructure which are barriers for new players.

Bargaining power of buyers: The bargaining power of buyers is high as the laser diode market is highly fragmented with presence of numerous global as well as regional players. Buyers can negotiate on price easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Few raw material suppliers are present globally and locally which supply materials like semiconductor substrates and components required for laser diode manufacturing.

Threat of new substitutes: Threat from substitutes is low as laser diodes have advantages over traditional lighting technologies and other alternatives in terms of energy efficiency, small size, reliability and longevity.

Competitive rivalry: The competitive rivalry is high due to presence of numerous global and regional players offering similar product portfolio targeting the same industries. Players differentiate through technological innovation, product differentiation and competitive pricing.

Key Takeaways

The global Laser Diode Market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing demand for fibre laser technology in manufacturing and telecommunication industries.

Regional analysis: Asia Pacific dominates the global laser diode market and is estimated to grow at the highest CAGR during forecast period. China accounts for the major share in the APAC region due to presence of large manufacturing base and growing electronics industry. North America and Europe are other major laser diode markets globally.

Key players operating in the laser diode market are ASML Holding NV, Trumpf GmbH + Co. KG, Axcel Photonics, Inc., Sumitomo Electric Industries, Ltd., Coherent Inc., Sharp Corporation, Rofin-Sinar Technologies Inc., IPG Photonics Corp., and Newport Corp. Key players are focusing on new product launches, partnerships, and expansion to increase their market share.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it