Key Market Overview:
The Semiconductor Laser Market was valued at USD 7,931.82 Million in 2022, registering a CAGR of 7.1% during the forecast period (2023-2030), and the market is projected to be worth USD 13,520.75 Million by 2030.
Semiconductor laser refers to a light-emitting device that is capable of generating carriers by inserting carriers into a PN junction of a semiconductor through an electric current. Semiconductor lasers are built on the principle of semiconductor gain media, in which the stimulated emission of photons during inter-band electron transitions leads to generation under high carrier concentration conditions in the conduction band. Moreover, semiconductor laser offers several benefits including monochromaticity, small emission spot size, high light density, coherence, and others. The aforementioned benefits of semiconductor lasers are prime determinants for increasing its utilization in telecommunication, military and defense, medical, automotive, printing, and other industries.
Factors including the increasing investments in telecommunication sector, rising demand for optical communication systems and equipment, and growing adoption of advanced communication devices are among the key prospects driving the adoption of semiconductor lasers. Additionally, the increasing application of semiconductor lasers in military & defense, medical, and automotive sectors are significant factors driving the market growth.
In March 2021, SkyEra launched its new series of high-power and high-brightness semiconductor lasers, TD22 series. The semiconductors lasers are built on the multi-single emitters beam polarization technology and offer stable performance, high-beam quality laser output, and good heat dissipation characteristics. Therefore, the rising developments of advanced semiconductor lasers are further driving the growth of the market.
Semiconductor Laser Market Report Coverage:
Request Sample Now
Rising utilization of semiconductor in telecommunication sector is driving the market growth
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||13,520.75 Million|
|By Type||Fiber Optic Laser, Vertical Cavity Surface Emitting Laser, High Power Diode Laser, Red Laser, Green Laser, and Others|
|By End Use||Telecommunication, Military and Defense, Medical, Automotive, Printing, and Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Coherent Corp., Nichia Corporation, IPG Photonics Corporation, TT Electronics, Sheaumann Laser Inc., Newport Corporation, Panasonic Industry Co. Ltd., ROHM CO. LTD, Hamamatsu Photonics K.K, Jenoptik Laser Gmbh, TRUMPF|
Semiconductor lasers are primarily used in the telecommunication sector for application in fiber optics communication systems. The ability of semiconductor lasers to generate coherent light with a narrow frequency enables various channels of information to be sent through a single fiber optic cable. Moreover, the characteristics of semiconductor lasers including low power consumption, high reliability, and long service life are prime aspects for increasing its utilization in the telecommunication sector.
Factors including the rising penetration of 5G infrastructure, increasing adoption of advanced communication devices, and growing demand for optical communication systems and equipment are driving the growth of the telecommunication sector.
For instance, according to the Ookla 5G Map, the total number of 5G deployments reached 112 countries in November 2021, depicting an increase of 13% in comparison to 99 countries in November 2020. Hence, the growth of telecommunication sector is increasing the adoption of semiconductor lasers for its application in fiber optics communication systems, in turn driving the growth of the market.
Availability of substitutes is restraining the market growth
Semiconductor lasers have several substitutes including solid-state lasers and light-emitting diodes, among others. Comparatively, the substitutes have similar characteristics, performance, and applications, with respect to semiconductor lasers, which is a prime factor limiting the market growth.
For instance, solid-state sensors function as an excellent alternative to semiconductor lasers for applications in medical, telecommunication optical transmission systems, printers, and others. Moreover, light-emitting diodes are the ideal alternatives to semiconductor lasers in terms of versatility in different light emissions, affordability, and power consumption. Therefore, the availability of various substitutes for semiconductor lasers is restraining the growth of the market.
Semiconductor Laser Market Segmentation:
The type segment is divided into fiber optic laser, vertical cavity surface emitting laser, high power diode laser, red laser, green laser, and others.
The high-power diode laser segment contributed to the largest revenue share in 2022. High power laser diodes are composed through an alteration of intrinsic semiconductors electrical properties by introducing impurities to the surface of a crystal wafer. Charge carriers when various layers of semiconductor layers meet and the electrical current in the lasers energy is released as light. High power diode lasers offer high electrical and optical efficiency, which makes it ideal for utilization in medical, military & defense, and telecommunication industries, among others.
In January 2023, IPG Photonics Corporation launched its new high power diode laser solutions that is optimized for utilization in industrial heating and drying applications. The high-power diode laser offers superior power conversion efficiency and extremely low impact on the factory environment. Thus, rising innovation associated with high power diode lasers is contributing to the growth of the segment.
Further, factors including the rising pace of industrialization and the increasing need for semiconductor lasers with high electrical and optical efficiency from multiple industries are projected to boost the growth of the high-power diode laser segment during the forecast period.
Additionally, the vertical cavity surface emitting laser segment is expected to grow steadily during the forecast period. Vertical cavity surface emitting laser (VCSEL) is a kind of semiconductor laser with beam emissions that are perpendicular to the surface of the wafer. Vertical cavity surface emitting lasers offer several benefits including optimized beam profile, narrow bandwidth spectral light emission, low power consumption and installation space, and others. Moreover, vertical cavity surface emitting lasers are primarily used in military & defense, telecommunication, and other sectors.
In April 2022, TRUMPF introduced an advanced VCSEL solution with the aim of expanding its existing portfolio for 3D sensing in consumer and industrial applications. The new generation VCSEL arrays enable improvements in several functionalities and offer a high-reliability performance at a broad temperature range. Therefore, the rising development of vertical cavity surface emitting lasers for its utilization in industrial applications is fostering the growth of the segment.
Furthermore, factors including the growth of military & defense, and telecommunication industries and the rising need for robust, reliable, and efficient communication system and equipment for the aforementioned end users are driving the growth of the vertical cavity surface emitting laser segment.
By End Use
The end use segment is divided into telecommunication, military, and defense, medical, automotive, printing, and others.
The telecommunication segment accounted for the largest share in the semiconductor laser market in 2022. Semiconductor lasers are utilized in the telecommunication sector for application in fiber optics communication systems. The characteristics of semiconductor lasers including high reliability, low power consumption, superior power conversion efficiency, and long service life make it ideal for utilization in the telecommunication sector.
Factors including the growing penetration of 5G networks, increasing adoption of advanced communication devices, and rising demand for efficient optical communication systems and equipment are driving the growth of the telecommunication sector. For instance, according to Ookla LLC, the total amount of 5G deployments increased considerably and reached 85,602 deployments in November 2021 as compared to 17,428 deployments in November 2020. Therefore, the growth of telecommunication sector is driving the adoption of semiconductor lasers for application in advanced communication systems and equipment, in turn will foster the growth of the segment during the forecast period.
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The North American region is considered to contribute the largest revenue share in the year 2022. The market growth in North America is attributed to several factors including the growing telecommunication and medical industries, increasing automobile production, and rising investments in military & defense sector in the region, which is further fueling the demand for semiconductor lasers. Moreover, the rising adoption of semiconductor lasers in military & defense applications including radar, communication systems, illuminators, and others have been prevailing factors for the growth of the market in the North American region.
For instance, in March 2023, the Department of Defense of the United States invested around USD 146 billion in the military & defense sector, as a part of the budget for FY 2024. The investment aims at building and maintaining warfighting forces and capabilities of the country. Thus, the rising investment in the military & defense sector is anticipated to drive the market growth in North America during the forecast period.
The European region is anticipated to witness substantial growth during the forecast period. The growing military & defense and telecommunication sectors in Europe is a significant factor driving the market growth the region. Further, factors including the increasing penetration of 5G infrastructure in multiple countries of Europe are among the major determinants driving the adoption of semiconductor lasers in the region.
For instance, in 2021, Telefonica, a Spanish multinational telecommunications company, launched its 5G services in over 150 towns and cities across the United Kingdom. Telefonica further states that its 5G coverage footprint has grown significantly in major cities including Birmingham, London, Glasgow, Bristol, Liverpool, and Manchester. The expansion of telecommunication infrastructure in Europe is further driving the demand for semiconductor lasers for deployment in fiber optics communication systems and devices. The aforementioned factors are proliferating the growth of the market in the European region.
Semiconductor Laser Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Semiconductor Laser Market. Key players in the market include-
• Coherent Corp.
• Nichia Corporation
• IPG Photonics Corporation
• TT Electronics
• Sheaumann Laser Inc.
• Newport Corporation
• Panasonic Industry Co. Ltd.
• ROHM CO. LTD
• Hamamatsu Photonics K.K
• Jenoptik Laser Gmbh
• In June 2023, Coherent Corp. launched its next-generation laser diode that offers an output power of 65 W. The laser diode are designed for utilization in industrial and consumer applications.
• In December SemiNex Corporation introduced its new Gallium Antimonide lasers that provide high optical power and a low threshold current density. Semiconductor lasers are ideal for material processing, medical, and gas sensing applications.