Rising demand in defense, healthcare, and communication sectors fuels growth, with Asia-Pacific leading the way and green laser technology poised for rapid adoption.
The global semiconductor lasers market has increased sustainably in the last couple of years. Owing to the increase in usage among defense, healthcare, and other industries, the market is forecasted to have high growth opportunities in the years to come. Allied Market Research, titled, Global Semiconductor Lasers Market by Type and End User Application: Opportunity Analysis and Industry Forecast, 2014-2022, the semiconductor lasers market is expected to reach $8.9 billion by 2022 from $5.5 billion in 2015, growing at a CAGR of 6.9% during the forecast period. In 2015, Asia-Pacific dominated the overall market with over 38% share and is anticipated to continue this trend during the forecast period.
The semiconductor laser is a type of solid-state laser light-producing device that differs from conventional lasers based on the mechanism used for light amplification. In a semiconductor laser, the active semiconductor components are used for amplifying the light, which enables it to have a compact size. In addition, it requires less power and is more efficient than conventional lasers.
The rise in demand for semiconductor lasers in the defense sector, increased usage in the medical sector, dedicated assembly, and low tolerance for packaging errors fuel the market. However, the market growth is largely restrained by reliability issues and complexities in testing processes. However, increasing demand for data storage where semiconductor lasers are used opens new opportunities for the players.
In 2015, fiber optic laser (FOL) contributed over 40% market share largest in terms of revenue. FOL serves analog and digital fiber communications, radio frequency links, and research applications. The laser allows a link length of over 30km and does not require any amplifiers or signal distribution to multiple receivers as the power levels in lasers are higher than the conventional signal sources. However, green laser is anticipated to grow at a faster CAGR of 8.34% during the forecast period.
By end-user application, the communication segment held over 30% revenue share and dominated the semiconductor lasers market in 2015. Green lasers can be used for various roles such as pointing devices. Its ability to form a line in the dark has led to its usage as a rescue light as it can be seen from miles. In addition, it has been used for laser light shows and sky gazing as a person can pinpoint a star by using the green laser. It can also be used as a laser pointer for guns and rifles.
By geography, Asia-Pacific dominated the global semiconductor lasers market with over 35% share in overall revenue; followed by North America, Europe, and LAMEA. Furthermore, it is anticipated to grow at the highest CAGR of 8.2% during the forecast period.
- The fiber optic laser segment dominated the market in 2015, with over 45% of market share. However, green laser and HPDL are expected to grow at a higher CAGR of 8.3%, during the forecast period.
- The communication application segment accounted for over 32% of the market in 2015.
- LAMEA is anticipated to be among one of the fast-growing regions owing to the presence of a rapidly growing automotive industry.
- Asia-Pacific dominated the market in 2015 due surge in demand for semiconductor lasers in China, South Korea, and Japan.