Laser diodes are semiconductor devices that emit coherent monochromatic light when an electric current passes through. They are commonly used in applications such as barcode readers, laser pointers, fiber optic communication systems, laser printers, and laser cooling systems. The narrow monochromatic light produced by laser diodes offers several advantages over regular light sources such as higher intensity, spectral purity, collimation, and directionality.
The global laser diode market is estimated to be valued at US$ 8 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period.
Key Takeaways
Key players operating in the laser diode market are Osram Licht AG, IPG Photonics, Coherent Inc., LASER COMPONENTS, NICHIA CORPORATION, Sharp Corporation, ROHM Co., Ltd., Hamamatsu Photonics K.K., and TT electronics – Piezo Systems.
The increasing demand for laser diodes from applications like optical communication systems, industrial processing, and medical equipment is a major Laser Diode Market Demand Asia Pacific region has emerged as the largest and fastest growing market due to presence of key players and growing demand from consumer electronics segment and medical industry.
Market Key Trends
One of the key trends gaining traction in the laser diode market is the increasing adoption of vertical-cavity surface-emitting lasers (VCSELs). VCSELs are advantageous over conventional edge-emitting lasers as they are cheaper to manufacture, emit in a circular beam pattern ideal for imaging and illumination applications, consume less power, and allow for testing and sorting on the wafer level. Sectors like data communications, 3D sensing, and LiDAR are witnessing growing demand for VCSEL due to their cost-effectiveness and performance characteristics. This rapid adoption of VCSEL is expected to remain a key trend shaping the laser diode market over the coming years.
Porter’s Analysis
Threat of new entrants: Due to high capital requirement, it poses medium to high barriers for new companies. Bargaining power of buyers: The buyers has limited power due to wide range of product differentiation from existing players.
Bargaining power of suppliers: Some key materials used in manufacturing are proprietary in nature which increases suppliers’ Laser Diode Companies bargaining power. Threat of new substitutes: There exists substitutes like LED which exerts medium threat based on performance and cost metrics.
Competitive rivalry: The industry has major players with high brand loyalty leading to high competitive rivalry.
Geographical Regions
North America region accounted for largest share in laser diode market in terms of value owing to early adoption and high demand from various industries. Asia Pacific region is projected to witness fastest growth during forecast period due to increasing industrialization and growing electronics industry especially in China and India.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.