Global Markets for Laser Systems, Components and Materials -- Focus on the EMEA Region

Report Highlights

• The global market for lasers in 2010 was $7.1 billion and it is expected to reach $7.9 billion in 2011. The market is expected to rise at a compound annual growth rate (CAGR) of 9.5% and reach nearly $12.5 billion by 2016.
• The contribution of the European, Middle Eastern and African (EMEA) region was 29% which was valued at $2 billion in 2010. The segment is expected to reach $2.3 billion in 2011, and should reach nearly $3.6 billion in 2016, at a CAGR of 9.1% between 2011 and 2016.
• Germany is the largest contributor in the EMEA region, it was valued at $391 million in 2010. It is expected to reach $416 million in 2011, and should reach nearly $565 million in 2016, at a CAGR of 6.3% between 2011 and 2016.

INTRODUCTION

“Laser” is an acronym for light amplification by stimulated emission of radiation.  Lasers are not a new invention by any yardstick.  Indeed, most of the mainstream laser categories were invented close to 5 decades ago.  The newest laser categories covered in this report are fiber lasers, which became commercially available over the last 5 years. The operating philosophy and principles are pretty much the same.  In spite of this relative calm on the theoretical front, lasers continue to be part of cutting edge devices across verticals.  A cursory look at the applications of lasers reveals that not only are lasers part of the state of the art, they are instrumental in driving the state of the art itself.  The continuing appeal of lasers underlines the sovereignty of their  value proposition, which can be summed up as coherent, powerful, and pure light.

The generic nature of lasers’  appeal also leads to interesting dilemmas.  It is impossible to characterize the laser market as a whole.  The picture of its market is a combination of pictures created by the dynamics of the verticals that lasers are employed in and created by the dynamics of raw materials that lasers employ.  This disparity is manifested most clearly in the wide range of average selling price values of its modules depending on the application and the energy medium.  These values can range from as little as a dollar to tens of thousands of dollars.  It would not be out of place to mention that lasers are a fairly accurate indicator of the health of the markets at large.

This report is an attempt to list, elaborate, highlight, and analyze the multitudes of demand and supply side dynamics of lasers at large.

The report focuses on laser modules - lasers at their bare minimum.  This distinction is important, as laser modules are available in varied levels of readiness for integration.  Customization is the name of the game for lasers, and lasers modules are designed with a particular application in mind more often than not.  This report defines a laser module as one that performs basic laser functions of light amplification and focus.  The report uses the terms lasers and laser modules interchangeably.  The market forecasts do not cover the metrics of the devices that lasers are eventually integrated in.

STUDY GOALS AND OBJECTIVES

This study has the following goals and objectives:

• Measuring and forecasting the global market size for laser modules in value (dollar sales) and volume (shipment sales) terms
• Breaking down the global laser market along individual energy medium type in value and volume terms: diode, fiber, carbon dioxide, solid-state, excimer, dye, and other gas lasers
• Breaking down the global laser market along individual end applications in value and volume terms: telecommunications; instrumentation and scientific research; medicine; energy, defense, and surveillance; computing and entertainment; industrial and automotive; as well as retail and others
• Breaking down the global laser market along individual regions in value and volume terms: the Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific (APAC)
• Breaking down the global laser market along value chain contributors: active material, firing source and other components, as well as operating margins
• Breaking down the market for individual laser type along individual end applications in value and volume terms: telecommunications; instrumentation and scientific research; medicine; energy, defense, and surveillance; computing and entertainment; industrial and automotive; as well as retail and others
• Breaking down the market for individual laser type along individual regions in value and volume terms: the Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific (APAC)
• Breaking down the market for individual laser type along value chain contributors: active material, firing source and other components, as well as operating margins
• Breaking down the global laser market along key individual countries in value and volume terms: USA, Brazil, Canada, Mexico, Germany, France, UK, Italy, Russia, Spain, the Netherlands, Turkey, China, Japan, India, South Korea, and Indonesia
• Analyzing the stakeholder landscape in the laser value chain
• Analyzing the patenting activity involving laser modules

REASONS FOR DOING THE STUDY

The laser market is extremely fragmented at all levels – innovation, design, manufacturing, integration, and sales.  While the technology driving lasers is fairly consistent in its underpinnings, there is no single market research study that attempts to present a composite picture of the overall market for lasers and modules spanning major application verticals and major laser types.  It is impossible to forecast the market size for laser modules in isolation.  One has to consider the extremely varied scenarios that characterize its demand and supply side dynamics.  The former is represented by the end application verticals while the latter is manifested in energy media defining the laser types.  This report breaks down the laser market along all major categories on both the sides.

In times of economic downturn, it is important to analyze the profitability of engaging in laser manufacturing ventures.  This report attempts to quantify the various stages of value additions in laser revenue generation.

A study of lasers is nothing short of a complete macroeconomic analysis.  This report provides a granular view of individual country markets in volume and value terms in 17 key nations spanning all global regions.

SCOPE OF THE REPORT

The report forecasts the size of the market in current U.S. dollars as well as in millions of shipment units for lasers from 2011 through 2016.

The report forecasts the market size for the following:

• Individual laser types such as diode, fiber, carbon dioxide, solid-state, excimer, dye, and other gas lasers
• The above forecasts are classified on the basis of end application vertical, geographical region and seventeen key nations on volume and value bases as well as value chain contributors on value basis.

The Executive Summary provides a snapshot of key findings of the report.

The chapter on theory of lasers and their applications introduces and explains central operating concepts of lasers and then enlists key laser applications.

The chapter on dynamics of laser types highlights differences and also identifies important common threads that run through diverse laser types.

The chapter on global markets provides a 360-degree view of the laser market quantitatively.

The chapter on regional analysis – Americas presents the overall market metrics and overview of the region followed by analyses of individual major countries such as USA, Brazil, Canada, and Mexico.

The chapter on regional analysis – EMEA presents the overall market metrics and overview of the region followed by analyses of individual major countries such as Germany, France, UK, Spain, Italy, Russia, the Netherlands, and Turkey.

The chapter on regional analysis – APAC presents the overall market metrics and overview of the region followed by analyses of individual major countries such as China, Japan, India, South Korea, and Indonesia.

The chapter on stakeholders and value highlights stakeholder categories and analyzes their activities in this domain and clarifies where and how they fit in the larger picture.

The U.S. Patent Analysis chapter highlights the patenting activity underway in the area of laser modules.  The chapter classifies the patents awarded according to categories such as carbon dioxide lasers, dye lasers, excimer lasers, fiber lasers, generic gas lasers, helium based lasers, ion lasers, quantum cascade lasers, general semiconductor lasers, solid-state lasers, and vertical cavity surface-emitting laser VCSELs.

INTENDED AUDIENCE

This report will be relevant to the following:

• Laser module manufacturers to analyze the market prospects for their offerings broken down by laser type, end application, geographical regions, and key country markets
• Allied component suppliers to identify the sunrise and sunset technology trends among lasers
• Original equipment manufacturers and other laser integrators to analyze the prospects of the laser technology employed by them in their devices, equipment and products

METHODOLOGY AND INFORMATION SOURCES

Both primary and secondary research methodologies were used in this study.  Industry experts were interviewed as primary sources; secondary sources included industry consortia, individual company financial statements, published opinions, and other published sources. 

ABOUT THE AUTHOR

Kaustubha Parkhi has worked in a broad range of functional roles with leading telecommunications operators and service providers such as Reliance Infocomm, Ramco Systems, and BPL Cellular.  He has written on an array of telecommunications and electronics related subjects based on his critical analysis of the underlying technology and its business impact.  Kaustubha holds a Bachelor of Engineering (Equivalent to a Bachelor of Science) in Electronics and Telecommunications and an MBA in Systems.

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DISCLAIMER

This publication provides informative material of a professional nature.  It does not constitute managerial, legal, or accounting advice, nor should it serve as a corporate policy guide or an endorsement of any given product or company.  This information is intended to be as accurate as possible at the time it was written and was undertaken on a best-effort basis.  The views expressed are those of the author and do not make any warranty, express or implied, for the accuracy, completeness, or usefulness of the information, or for the interpretation of data or its use by others.  Projections involve risks and uncertainties that include but are not limited to technical risks associated with technology development, government regulatory approvals, and access to capital.  The author assumes no responsibility for any losses or damages that may result from one’s reliance on this material.