Laser Marking Machine Market Size, Share & Trends Analysis Report By Type (CO2, Fiber, Green, UV, YAG), By Application (Automotive, Aerospace, Medical, Packaging), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global laser marking machine market size was valued at USD 2.76 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.0% from 2021 to 2028. The increasing adoption of laser marking machines in automation processes for mass manufacturing has positively impacted the market growth. Laser marking systems are ideal for marking logos, bar codes, and matrix codes on almost all types of materials. In light of the COVID-19 outbreak, the medical sector has witnessed a surge in the demand for laser marking machines and services. There has been a sudden surge in the demand for masks and certain other medical devices used for covid treatment, and the adoption of laser marking machines by the medical product and device manufacturers to mark their brand name and certifications using laser marking. There has also been an excessive demand for COVID-19 testing kits with polypropylene tubes for sample collection. These kits are marked from outside using UV laser for different parameters to ensure that patient identification at any step is not compromised.

The laser marking technology is increasingly being adopted across various industrial verticals due to its cost-effectiveness, product uniqueness, and reliability. Administrations are instigating protocols for permanent marking on various products for proof of identity, traceability, and documentation purposes, especially in the healthcare and defense sectors. Furthermore, the automotive and aerospace industry is widely embracing the technology. In the automotive industry, markers are used for engraving serial numbers on tires without altering the tire structure. Compared to traditional engraving processes, laser marking is considered a versatile alternative for marking a wide range of aircraft parts since it offers high durability.

These engraving systems find extensive applications in the electronic devices industry. Products in the electronics and semiconductor industry are manufactured on a large scale and, hence, require automated marking and engraving procedures. These components are often labeled with a lot of information, which is done with the help of marking machines. For instance, 2D data-matrix codes are engraved on electronic components with the help of Galvo laser marking systems for a fully or semi-automated labeling process. Therefore, companies such as Telesis Technologies, Inc. offer EV4GDS Green Laser System for high-speed marking on electronic components such as microchips, capacitors, and circuit boards.

The growing need for unique device identification and deep engraving during the manufacturing process for the purposes of traceability, inventory control, production flow control, and product quality validation is anticipated to fuel the demand. Markings done through these machines, especially, fiber laser machines, consume less time and do not fade, even with continuous exposure to heat and harsh chemicals. Hence, the growing demand for such machines in the electronics and defense industries is further anticipated to bolster the market growth over the forecast period.

Additionally, the increasing number of stringent government regulations and guidelines for markings on surgical and medical equipment to improve their traceability is also projected to propel the growth of the laser marking machine market. On the other hand, high demand has been observed for personalized leather products, including leather jewelry, purses, and handbags, with customizations such as monogrammed initials and names. Hence, the demand from accessories & apparel industries is projected to propel the growth of engraving technologies such as laser marking systems over the forecast period.

Type Insights

The fiber laser type segment accounted for the largest revenue share of over 43.0% in 2020 and is anticipated to register the fastest growth over the forecast period. This is attributed to its various benefits such as flexible fiber light, high optical quality, high output power, and compact size of the machine. Apart from fiber laser, other types of lasers considered in the study are CO2, green, UV, and YAG lasers. The machines use different laser sources with different wavelengths; thus, each type of machine is used for a specific set of applications. For instance, CO2 laser marking machines are typically used for thinner and lesser rigid surfaces, while fiber machines are used on more robust and hard surfaces. Hence, the wavelength of the laser source used in the machine plays an essential role in the selection of the machine type to be used for marking on a specific material. The increasing use of laser marking across varied applications such as aerospace and defense equipment and other metal equipment has proved to be beneficial for the market.

The UV laser and YAG laser segments are expected to register significant CAGRs over the forecast period due to their ability of fine cutting and micro-processing of specific materials such as glass, textile, ceramic liquid crystal screen, and others. The beam used in the UV laser markings interacts with the materials’ surface to alter its properties and appearance. The beam targets only a specific area to design or create high-quality, precise, and high-contrast markings.

Application Insights

The machine tool application segment accounted for the largest revenue share of around 25% in 2020. The growing functionality of lasers to provide permanent alphanumeric details on machine tools, such as batch numbers, 1D & 2D bar codes, designs, dates of manufacturing, brand names, manufacturer codes, and logos, is fueling the segment growth. The manufacturing sector is upgrading its operations with concepts such as factory automation and smart factories to improve its production capacity through batch production. Moreover, the increasing use of robotics and sensors has also highlighted the importance of tool identification and recognition, thus driving the demand for laser marking machines.

The aerospace application segment is expected to register the fastest growth with a CAGR of over 10% from 2021 to 2028. The application of laser marking machines has witnessed a tremendous increase over the past few years owing to the growing demand for electronic products. Besides, electronic device manufactures are also focusing on diversification of product range to grab a larger share of the market, thus leading to an increase in the production of electronic devices and positively impacting the market growth.

Regional Insights

Asia Pacific accounted for the largest market share of over 40% in 2020 and is expected to dominate the market over the forecast period. China and India are the major contributors to the growth of the regional market owing to the increased adoption of laser marking machines in manufacturing factories in the region. The market growth is primarily driven by the adoption of enhanced manufacturing techniques in the Chinese machine tools industry and the flourishing aerospace and military industry in the region. Moreover, its continued dominance can also be attributed to the increased foreign investments and relocation of manufacturing facilities of numerous companies to countries such as India and China. For instance, the Belt and Road Initiative (BRI) and Make in India initiative are attracting investments for infrastructural development, which, in turn, would enhance the manufacturing sector in the country, thus generating demand for laser marking machines.

Europe was valued at over USD 750.0 million in 2020 owing to the dominance of automotive and automotive component manufacturers in countries such as Germany, Europe, Italy, and France. Besides, considerable growth in the aerospace and shipping industries is expected to fuel the market growth in the region. For instance, in December 2018, the government of the U.K. agreed to invest approximately USD 335.0 million in the Future Flight Challenge to support advancements in aerospace technology.

Key Companies & Market Share Insights

The key players in the market are increasingly investing in research and development activities to enhance their product offerings and gain a competitive edge over their counterparts. Some of the prominent participants in the market include Han's Laser Technology Industry Group Co., Ltd; Telesis Technologies, Inc.; Videojet Technologies, Inc.; Trotec Laser GmbH; Epilog Laser; TYKMA Electrox, Inc.; MECCO; LaserStar Technologies Corporation; Gravotech Marking; and Sea Force Co., Ltd. Other vendors operating in the market include Universal Laser Systems, Inc.; Keyence Corporation; Huagong Tech Company Limited; Panasonic Electric Works Europe AG; and Coherent, Inc. The lack of technology alternativeness aids the growth of the market.

The leading vendors in the market are focusing on providing enhanced marking systems to cater to the needs of varying customers and gain a more significant market share. Moreover, companies are also highly focused on strategic partnerships and acquisitions to expand their operations and product offerings to meet consumer demands. For instance, in May 2019, TYKMA Electrox announced its collaboration with Cerakote, a provider of thin-film ceramic coating for several applications. The partnership was aimed at providing advanced imaging on products with Cerakote coatings by blending it with the former’s laser marking abilities on a variety of 3D objects. Some of the prominent players operating in the global laser marking machine market are:

• Han's Laser Technology Industry Group Co., Ltd

• Telesis Technologies, Inc.

• Videojet Technologies, Inc.

• Trotec Laser GmbH

• Epilog Laser

• TYKMA Electrox, Inc.

• MECCO

• LaserStar Technologies Corporation

• Gravotech Marking

• Sea Force Co., Ltd.

Laser Marking Machine Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global laser marking machine market report based on type, application, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2028)

  • CO2 Laser

  • Fiber Laser

  • Green Laser

  • UV Laser

  • YAG Laser

• Application Outlook (Revenue, USD Million, 2018 - 2028)

  • Automotive

  • Aerospace

  • Machine Tool

  • Electronics and Microelectronics

  • Medical

  • Packaging

  • Military

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa