worldwide market for lasers · 2020-02-06 · 9.6 illuminators, gun sights, and dazzlers ... figure...

The Worldwide Market for Lasers Trends and Five-Year Forecast (2017 – 2023)

Copyright © 2018 a research unit of 3

Table of Contents

Chapter 1: Executive Summary & Totals ............................................................................................. 13 1.1 The Overall Laser Market ....................................................................................................... 13 1.2 Good News From 2017 .......................................................................................................... 13 1.3 Things Troubling in 2017 ....................................................................................................... 14 1.4 Historic Laser Revenue .......................................................................................................... 14

1.4.1 The Laser Market by Segment .......................................................................................... 15 1.5 Laser Market by Laser Type ................................................................................................... 20

1.5.1 Fiber Lasers .................................................................................................................... 21 1.5.2 Low-Power Diode Lasers .................................................................................................. 23

1.5.3 High-Power Laser Diodes ................................................................................................. 24 1.5.4 Solid-State Lasers ............................................................................................................ 25 1.5.5 CO2 Lasers ...................................................................................................................... 26 1.5.6 Excimer Lasers ................................................................................................................ 28 1.5.7 Quantum Cascade Lasers ................................................................................................. 28 1.5.8 Total Laser Revenue ........................................................................................................ 29

1.6 Laser Market Summary .......................................................................................................... 30 Chapter 2: Introduction ........................................................................................................................ 31

2.1 Methodology ......................................................................................................................... 31 2.2 Comparison of Laser Types .................................................................................................... 31

2.2.1 Solid-State lasers............................................................................................................. 32 2.2.2 Lamp-Pumped Solid-State Lasers (LPSSLs) ........................................................................ 33 2.2.3 Diode-Pumped Solid-State Lasers (DPSSLs) ....................................................................... 34 2.2.4 Thin-Disk Lasers .............................................................................................................. 34 2.2.5 Slab Lasers ..................................................................................................................... 34 2.2.6 OPSLs ............................................................................................................................ 35 2.2.7 Fiber Lasers .................................................................................................................... 35 2.2.8 Quantum-Cascade Lasers ................................................................................................. 36 2.2.9 CO2 Lasers ...................................................................................................................... 36 2.2.10 Excimer Lasers ................................................................................................................ 38 2.2.11 Other Laser Types ........................................................................................................... 38

2.3 Pulsed Lasers ........................................................................................................................ 38 2.3.1 Pump or Seed Modulation ................................................................................................ 39 2.3.2 Q-Switching .................................................................................................................... 39 2.3.3 Mode-Locking ................................................................................................................. 39 2.3.4 Ultrafast Pulses ............................................................................................................... 40

2.4 Eye-Safe Operation ............................................................................................................... 40 Chapter 3: KW Materials Processing.................................................................................................... 41

3.1 Highlights ............................................................................................................................. 41 3.2 Background .......................................................................................................................... 42


3.2.1 Segment Definition .......................................................................................................... 42 3.2.2 Prices for Laser-Based Machine Tools ................................................................................ 42 3.2.3 A Comment on Beam Quality ............................................................................................ 42 3.2.4 Laser Type ...................................................................................................................... 43

3.3 Laser Metal Cutting ............................................................................................................... 43 3.3.1 Laser Metal Cutting is Both a High Value and High-Volume Application ................................. 43 3.3.2 Lasers Provide a Big Advantage Over Other Tools for Metal Cutting ..................................... 43 3.3.3 Job Shops Buy Most of These Lasers ................................................................................. 44 3.3.4 2D Laser Cutters ............................................................................................................. 44 3.3.5 3D Laser Cutters ............................................................................................................. 44 3.3.6 Laser Tube Cutters .......................................................................................................... 44 3.3.7 Fiber Lasers .................................................................................................................... 45

3.3.8 Power Levels and Fiber vs. CO2 ........................................................................................ 45 3.3.9 Fiber Laser Revenue Will Well Exceed CO2 Revenue in 2017 ................................................ 45 3.3.10 Lamp Pumped Solid-State Lasers ...................................................................................... 46 3.3.11 Direct Diode Lasers ......................................................................................................... 46 3.3.12 Thin Metal vs. Thick Metal Cutting .................................................................................... 46

3.4 Metal Welding and Brazing ..................................................................................................... 47 3.4.1 Auto Industry .................................................................................................................. 47 3.4.2 2D vs. 3D Welding ........................................................................................................... 47 3.4.3 Alternatives to Laser Welding ........................................................................................... 48 3.4.4 Fiber Lasers Offer New Opportunities ................................................................................ 48 3.4.5 Disk Lasers ..................................................................................................................... 49 3.4.6 CO2 Lasers ...................................................................................................................... 49 3.4.7 Solid-State Lasers ............................................................................................................ 50 3.4.8 Direct Diode Lasers ......................................................................................................... 50 3.4.9 Power Levels................................................................................................................... 50 3.4.10 Fiber and Switched Fiber Delivery ..................................................................................... 51

3.5 Surface Treatment and Other Processes .................................................................................. 51 3.5.1 Surface Treatment Processes ........................................................................................... 51 3.5.2 Heat Treatment and Other Surface Treatment Processes .................................................... 51 3.5.3 Laser Cladding ................................................................................................................ 51 3.5.4 Laser Shot Peening .......................................................................................................... 51 3.5.5 Non-Metal Materials Processing ........................................................................................ 51 3.5.6 Fringe Applications .......................................................................................................... 52

3.6 High-Power Industrial Laser Forecast ...................................................................................... 52 3.6.1 2018 .............................................................................................................................. 53 3.6.2 Laser Company Revenues ................................................................................................ 53 3.6.3 KiloWatt+ Industrial Laser Forecast by Process Application 2017 – 2023 .............................. 54 3.6.4 KiloWatt+ Industrial Laser Forecast by Laser Type 2017 – 2023 .......................................... 55 3.6.5 CO2 Advantages and Disadvantages .................................................................................. 57 3.6.6 Fiber Lasers .................................................................................................................... 58 3.6.7 Direct Diode Lasers ......................................................................................................... 60


Chapter 4: Micro Materials Processing ................................................................................................ 61 4.1 Highlights ............................................................................................................................. 61 4.2 Background .......................................................................................................................... 61

4.2.1 Semiconductors, PC Boards, and Displays .......................................................................... 62 4.2.2 Fine Metal Processing ...................................................................................................... 63 4.2.3 Non-Metal Processing ...................................................................................................... 63 4.2.4 Additive Manufacturing .................................................................................................... 63 4.2.5 Solar .............................................................................................................................. 66

4.3 Forecast ............................................................................................................................... 66 Chapter 5: Marking ................................................................................................................................ 70

5.1 Highlights ............................................................................................................................. 70 5.2 Marking Trends ..................................................................................................................... 70

5.3 Marking Laser Forecasts ........................................................................................................ 71 Chapter 6: Photolithography ................................................................................................................ 74

6.1 Highlights ............................................................................................................................. 74 6.2 Background .......................................................................................................................... 74 6.3 3D Packaging ........................................................................................................................ 76 6.4 Photolithography Laser Forecasts............................................................................................ 77

Chapter 7: Printing ................................................................................................................................ 79 7.1 Highlights ............................................................................................................................. 79 7.2 Background and Trends ......................................................................................................... 79 7.3 Printing Laser Forecast .......................................................................................................... 81 7.4 Key Laser Suppliers ............................................................................................................... 83 7.5 Summary .............................................................................................................................. 83

Chapter 8: Medical Lasers ..................................................................................................................... 84 8.1 Highlights ............................................................................................................................. 84 8.2 Background .......................................................................................................................... 84

8.2.1 Medical Laser Delivery ..................................................................................................... 85 8.2.2 How Medical Lasers Are Counted ...................................................................................... 86

8.3 Cosmetic & Dermatology Lasers ............................................................................................. 86 8.3.1 PicoSure ......................................................................................................................... 86 8.3.2 Types of Cosmetic Lasers for Skin ..................................................................................... 87 8.3.3 Dermatology and Cosmetic System Vendors ...................................................................... 89 8.3.4 At Home Lasers ............................................................................................................... 89

8.4 Ophthalmic Lasers ................................................................................................................. 90 8.4.1 Laser Vision Correction .................................................................................................... 90 8.4.2 Cataract Treatment ......................................................................................................... 91 8.4.3 Glaucoma Treatment ....................................................................................................... 92 8.4.4 Ophthalmic System Vendors ............................................................................................. 92

8.5 Surgical Lasers ...................................................................................................................... 93 8.5.1 General Surgery .............................................................................................................. 93 8.5.2 Photodynamic Therapy (PDT) ........................................................................................... 93 8.5.3 Revascularization (Improving Blood Flow in Heart Muscle) .................................................. 93


8.5.4 Cardiovascular Photoablation (Clearing Arteries)................................................................. 94 8.5.5 Surgical Laser Saws ......................................................................................................... 94 8.5.6 BPH (Benign Prostatic Hypertrophy) Treatment .................................................................. 94 8.5.7 General Laser-Based Surgical System Vendors ................................................................... 95 8.5.8 Mid-IR Surgical System Vendors ....................................................................................... 95

8.6 Dental Lasers ........................................................................................................................ 96 8.6.1 Dental Laser Uses............................................................................................................ 96 8.6.2 Dental Laser Prices .......................................................................................................... 96 8.6.3 Dental Laser System Vendors ........................................................................................... 97

8.7 Medical Laser Forecasts ......................................................................................................... 98 Chapter 9: Military ............................................................................................................................... 102

9.1 Highlight ............................................................................................................................ 102

9.2 Overview ............................................................................................................................ 103 9.3 Directed Energy Weapons .................................................................................................... 103

9.3.1 Types and Laser Powers ................................................................................................ 105 9.3.2 Recent Laser Projects in Development ............................................................................. 106 9.3.3 Directed Energy Contractors ........................................................................................... 108

9.4 Mid-Infrared Missile Countermeasures ................................................................................... 108 9.4.1 IRCM Deployment ......................................................................................................... 109 9.4.2 IRCM Challenges ........................................................................................................... 109 9.4.3 IRCM Types .................................................................................................................. 109 9.4.4 Other Solutions ............................................................................................................. 110 9.4.5 IRCM Contractors .......................................................................................................... 111 9.4.6 IRCM Forecasts ............................................................................................................. 113 9.4.7 IRCM Laser Suppliers ..................................................................................................... 114

9.5 Rangefinders, Designators, and LIDAR .................................................................................. 115 9.5.1 Laser Ranging System Forecasts ..................................................................................... 115 9.5.2 Laser Ranging System Vendors ....................................................................................... 116

9.6 Illuminators, Gun Sights, and Dazzlers .................................................................................. 116 9.6.1 Dazzler History .............................................................................................................. 117 9.6.2 Military Illumination Suppliers ......................................................................................... 118

9.7 Military Laser Diode Manufacturers ....................................................................................... 118 9.8 Free-Space Communications ................................................................................................ 119 9.9 Military Free-Space Communications Laser Diode Manufacturers.............................................. 119 9.10 Other Military Laser Projects ................................................................................................. 119 9.11 Military Laser Forecasts........................................................................................................ 120 9.12 Military Laser Suppliers ........................................................................................................ 122

Chapter 10: Research & Development ................................................................................................ 125 10.1 Highlights ........................................................................................................................... 125 10.2 R&D Laser Applications ........................................................................................................ 125 10.3 R&D Laser Forecast ............................................................................................................. 126

Chapter 11: Sensors .............................................................................................................................. 130 11.1 Highlights ........................................................................................................................... 130


11.2 Why is Sensing So Important? .............................................................................................. 130 11.3 Fiber Sensors ...................................................................................................................... 132

11.3.1 Fiber Sensor Application Description ................................................................................ 135 11.3.2 Fiber Sensor Success ..................................................................................................... 136 11.3.3 Fiber Sensor Laser Forecasts .......................................................................................... 137 11.3.4 Suppliers ...................................................................................................................... 138

11.4 Lasers for Telecom Instrumentation ...................................................................................... 139 11.4.1 Telecom Instrumentation Laser Forecast ......................................................................... 140 11.4.2 Key Customers .............................................................................................................. 140 11.4.3 Key Equipment Vendors ................................................................................................. 140 11.4.4 Key Laser Suppliers ....................................................................................................... 140

11.5 CW and Ultrafast Lasers for Spectroscopy.............................................................................. 141

11.5.1 Biomedical and Instrumentation Spectroscopy Applications ............................................... 141 11.5.2 Lower-Cost CW Lasers for Biomedical Instruments ........................................................... 141 11.5.3 Ultrafast lasers for Biomedical Instruments & Spectroscopy ............................................... 142 11.5.4 Raman Spectroscopy ..................................................................................................... 143 11.5.5 Key Customers .............................................................................................................. 146 11.5.6 CW and Ultrafast Lasers for Spectroscopy Suppliers .......................................................... 146

11.6 Mid-IR Lasers for Spectroscopy ............................................................................................ 147 11.6.1 Micro Spectroscopy........................................................................................................ 147 11.6.2 Mid-IR Lasers Applications ............................................................................................. 148 11.6.3 Mid-IR Lasers for Spectroscopy Forecast ......................................................................... 149 11.6.4 Mid-IR Spectroscopy Laser Suppliers ............................................................................... 151

11.7 UV Lasers for Wafer and Mask Inspection .............................................................................. 151 11.7.1 Lasers for Semiconductor Inspection and Metrology ......................................................... 151 11.7.2 The Need for More UV Light Sources ............................................................................... 152 11.7.3 DPSSL Reliability Remains an Issue ................................................................................. 152 11.7.4 Forecast for Laser-Based Inspection Tools ....................................................................... 153

11.8 Flow Cytometry ................................................................................................................... 153 11.8.1 Flow Cytometry Uses ..................................................................................................... 154 11.8.2 How Flow Cytometry Works ........................................................................................... 154 11.8.3 Flow Cytometry Forecast ................................................................................................ 154

11.9 Light Detection and Ranging ................................................................................................ 155 11.9.1 LIDAR Uses .................................................................................................................. 155 11.9.2 LIDAR Problems ............................................................................................................ 155 11.9.3 LIDAR Laser Forecasts ................................................................................................... 156 11.9.4 LIDAR Laser Manufacturers ............................................................................................ 157

11.10 Mice & Gesture Recognition ........................................................................................ 157 11.10.1 Laser Mice .................................................................................................................... 158 11.10.2 Mice & Gesture Recognition Forecasts ............................................................................. 158

11.11 Barcode & Levelers .................................................................................................... 158 11.11.1 Barcode Readers ........................................................................................................... 158 11.11.2 Levelers........................................................................................................................ 158


11.11.3 Barcode Reader and Leveler Laser Forecast ..................................................................... 159 11.12 Sensor and Instrumentation Laser Summary................................................................. 159

Chapter 12: Displays .............................................................................................................................. 162 12.1 Highlights ........................................................................................................................... 162 12.2 Background ........................................................................................................................ 162 12.3 Pico Projectors .................................................................................................................... 163

12.3.1 Types of Pico Projectors ................................................................................................. 164 12.3.2 Problems with Laser Pico Projectors ................................................................................ 164 12.3.3 The Future of Laser Pico Projectors ................................................................................. 165 12.3.4 Laser Pico Projector Manufacturers ................................................................................. 166

12.4 Office/Home Theater Projectors ............................................................................................ 166 12.4.1 Hybrid LED-Laser Projectors ........................................................................................... 167

12.4.2 Laser-Based Projection TVs ............................................................................................ 167 12.5 Digital Cinema Laser Lighting ............................................................................................... 168

12.5.1 Type of Laser Cinema .................................................................................................... 168 12.5.2 Laser Digital Cinema Cost Savings ................................................................................... 169 12.5.3 Better Movie Experience ................................................................................................. 169 12.5.4 Laser Theaters Have Arrived........................................................................................... 169 12.5.5 Laser Cinema Requirements ........................................................................................... 170

12.6 Laser Light Shows ............................................................................................................... 170 12.6.1 Galvanometers and Software .......................................................................................... 171 12.6.2 Laser Light Show Forecast.............................................................................................. 171 12.6.3 Laser Light Show Vendors .............................................................................................. 171 12.6.4 Laser Light Show Laser Suppliers .................................................................................... 171

12.7 Laser Pointers ..................................................................................................................... 171 12.7.1 Laser Pointer Problems .................................................................................................. 172 12.7.2 Laser Pointer Forecast ................................................................................................... 172

12.8 Laser Christmas Lights ......................................................................................................... 172 12.9 Other Display Applications .................................................................................................... 173 12.10 Laser Forecasts .......................................................................................................... 174

Chapter 13: Data Storage ..................................................................................................................... 178 13.1 Highlights ........................................................................................................................... 178 13.2 Optical Storage ................................................................................................................... 178 13.3 Laser Magnetic Storage ....................................................................................................... 180

13.3.1 Heat-Assisted Magnetic Recording .................................................................................. 180 13.3.2 Requirements on Lasers for Magnetic Storage .................................................................. 180 13.3.3 Forecast for Diode Lasers for HAMR ................................................................................ 180

13.4 Optical Storage Laser Forecast ............................................................................................. 181 13.5 The Future ......................................................................................................................... 184

Chapter 14: Communications ............................................................................................................... 186 14.1 Highlights ........................................................................................................................... 186 14.2 Technology and Application Trends ....................................................................................... 187 14.3 Industry Challenges ............................................................................................................. 188


14.4 Methodology ....................................................................................................................... 189 14.5 Market Forecast .................................................................................................................. 190

14.5.1 Optical Transceivers ...................................................................................................... 190 14.5.2 Pump Lasers for Optical Amplifiers .................................................................................. 191 14.5.3 Total Telecom Lasers ..................................................................................................... 193

14.6 Communication Laser Suppliers ............................................................................................ 194 14.6.1 Transceiver Suppliers ..................................................................................................... 194 14.6.2 Optical Amplifier Suppliers .............................................................................................. 195


List of Figures

Figure 1.1 Historic Worldwide Revenue 1972 – 2017 ....................................................................... 15 Figure 1.2 Laser Revenue Segmentation by Application for 2017 ...................................................... 16 Figure 1.3 Laser Revenue by Segment 2017 – 2023 (US$M) ............................................................ 17 Figure 1.4 Laser Revenue Segmentation by Laser Type for 2017 ...................................................... 20 Figure 1.5 Relative Laser Revenue Growth Rate by Laser Type ........................................................ 21 Figure 1.6 Fiber Laser Revenue Split in 2017 by Application ............................................................. 23 Figure 1.7 Low-Power Diode Laser Revenue Split by Application in 2017 ........................................... 24 Figure 1.8 High-Power Laser Diode Revenue Split by Application in 2017 .......................................... 25 Figure 1.9 Solid-State Revenue Split by Application ......................................................................... 26 Figure 1.10 CO2 Revenue Split by Application ................................................................................... 27 Figure 1.11 Geographic Distribution of Industrial Laser Consumption 2017 ......................................... 29 Figure 1.12 Total Laser Market (US$M)............................................................................................ 30 Figure 3.1 Laser Company Revenues (US$M) ................................................................................. 54 Figure 3.2 Industrial KW+ Laser Revenue Forecast Chart by Process (US$M) .................................... 55 Figure 3.3 Industrial KW+ Laser Revenue Forecast Chart by Laser Type (US$M) ............................... 57 Figure 4.1 Micro Materials Laser Revenue by Application (US$M) ..................................................... 68 Figure 4.2 Micro Materials Laser Revenue by Laser Type (US$M) ..................................................... 69 Figure 5.1 Laser Marked Sweet Potato ........................................................................................... 71 Figure 5.2 Laser Marking Laser Forecast by Laser Type (US$M) ....................................................... 73 Figure 7.1 Forecast of Printing Laser Revenue (US$M) .................................................................... 83 Figure 8.1 Number of LASIK Procedures Performed in the U.S. & Europe .......................................... 91 Figure 8.2 Medical Laser Revenue by Laser Type (US$M) .............................................................. 101 Figure 9.1 Military Laser Revenue by Laser Type (US$M) ............................................................... 122 Figure 10.1 R&D Laser Revenue by Laser Type (US$M) .................................................................. 129 Figure 11.1 Fiber Sensor Applications ............................................................................................ 138 Figure 11.2 NanoRam Handheld Raman Spectrometer .................................................................... 143 Figure 11.3 CW and Ultrafast Laser Forecast for Spectroscopy ......................................................... 145 Figure 11.4 Mid-IR Laser Forecast for Spectroscopy ........................................................................ 150 Figure 11.5 Total Sensor & Instrumentation Laser Revenue by Application (US$M) ............................ 160 Figure 11.6 Total Sensor and Instrumentation Laser Revenue by Laser Type (US$M) ........................ 161 Figure 12.1 MicroVision Laser Pico Projector & Scanner ................................................................... 164 Figure 12.2 Laser Phosphor Business Projector ............................................................................... 167 Figure 12.3 Example of Laser Christmas Lights ............................................................................... 173 Figure 12.4 Laser Revenue for Cinema Projection (US$M) ............................................................... 176 Figure 12.5 Laser Display Revenue by Application (US$M) ............................................................... 177 Figure 13.1 Optical Storage Laser Revenue by Wavelength ............................................................. 184 Figure 14.1 Optical Transceiver Revenue by Type (US$M) ............................................................... 191 Figure 14.2 Optical Amplifier Pump Laser Revenue (US$M) ............................................................. 193


List of Tables

Table 1.1 Laser Revenue Forecast by Market Segment (US$M) ....................................................... 16 Table 1.2 Fiber Laser Revenues by Application (US$M) .................................................................. 22 Table 1.3 Low-Power Diode Laser Revenues by Application (US$M) ................................................ 23 Table 1.4 High-Power Laser Diode Revenue by Application (US$M) ................................................. 24 Table 1.5 Solid-State Laser Revenue by Application (US$M) ........................................................... 25 Table 1.6 CO2 Laser Revenue by Application (US$M)...................................................................... 27 Table 1.7 Excimer Laser Revenue by Application (US$M) ................................................................ 28 Table 1.8 QCL Revenue by Application (US$M) .............................................................................. 28 Table 1.9 Total Laser Revenue by Laser Type (US$M) .................................................................... 29 Table 2.1 Features of Key Laser Types ......................................................................................... 32 Table 2.2 Types of Commercial CO2 Lasers ................................................................................... 37 Table 3.1 Industrial KW+ Laser Unit Forecast by Process (Units) .................................................... 54 Table 3.2 Industrial KW+ Laser ASP Forecast by Process (US$M) .................................................... 54 Table 3.3 Industrial KW+ Laser Revenue Forecast by Process (US$M) ............................................. 55 Table 3.4 Industrial KW+ Laser Unit Forecast by Laser Type (Units) ................................................ 56 Table 3.5 Industrial KW+ Laser ASP Forecast by Laser Type (US$) ................................................. 56 Table 3.6 Industrial KW+ Laser Revenue Forecast by Laser Type (US$M) ........................................ 56 Table 3.7 KW+ Fiber Laser Breakout by Application (US$M) ........................................................... 59 Table 3.8 KW+ Fiber Laser Metal Cutting Breakout (US$M) ............................................................ 59 Table 3.9 KW+ Fiber Laser Welding Breakout (US$M) .................................................................... 59 Table 4.1 Summary of Major Materials Processing Segments .......................................................... 62 Table 4.2 Micro Material Lasers by Application (Units) .................................................................... 67 Table 4.3 Micro Materials Laser ASPs by Application (US$) ............................................................. 67 Table 4.4 Micro Materials Laser Revenue by Application (US$M) ..................................................... 68 Table 4.5 Micro Materials Lasers by Laser Type (Units) .................................................................. 68 Table 4.6 Micro Materials Laser ASPs by Laser Type (US$) ............................................................. 69 Table 4.7 Micro Materials Laser Revenues by Laser Types (US$M) .................................................. 69 Table 5.1 Laser Marking Laser Unit Forecast by Laser Type ............................................................ 71 Table 5.2 Laser Marking ASP Forecast by Laser Type (US$) ............................................................ 72 Table 5.3 Laser Marking Laser Revenue Forecast by Laser Type (US$M) .......................................... 72 Table 6.1 UV, DUV, and EUV Technology Table ............................................................................. 76 Table 6.2 Photolithography Lasers and Service Revenue (Units and US$M) ...................................... 78 Table 6.3 DUV vs. EUV Revenue (US$M)....................................................................................... 78 Table 7.1 Key Printing Technologies ............................................................................................. 80 Table 7.2 Forecast of Diode Lasers for Printing (Units) ................................................................... 82 Table 7.3 Forecast of Diode Laser ASP for Printing (US$) ............................................................... 82 Table 7.4 Forecast of Diode Lasers for Printing Revenue (US$M) .................................................... 82 Table 8.1 Laser-Based Dermatology and Cosmetic System Vendors ................................................. 89 Table 8.2 Laser-Based Ophthalmic System Vendors ....................................................................... 92 Table 8.3 Laser-Based Surgical System Vendors ............................................................................ 95 Table 8.4 Mid-IR Surgical System Vendors .................................................................................... 95 Table 8.5 Dental Laser System Vendors ........................................................................................ 97 Table 8.6 Map of Laser Types by Medical Application ..................................................................... 98


Table 8.7 Medical Laser Unit Sales by Application (Units) ............................................................... 99 Table 8.8 Medical Laser ASP by Application (US$) .......................................................................... 99 Table 8.9 Medical Laser Revenue by Application (US$M) ................................................................ 99 Table 8.10 Medical Laser Unit Sales by Laser Type (Units) ............................................................. 100 Table 8.11 Medical Laser ASP by Laser Type (US$)........................................................................ 100 Table 8.12 Medical Laser Revenue by Laser Type (US$M) .............................................................. 100 Table 9.1 IRCM Requirements ................................................................................................... 111 Table 9.2 Forecast for Laser Sales for IRCM Systems (Units, US$, and US$M) ................................ 114 Table 9.3 Military Laser Unit Sales by Application ......................................................................... 120 Table 9.4 Military Laser ASP by Application (US$) ........................................................................ 120 Table 9.5 Military Laser Revenue by Application (US$M) ............................................................... 121 Table 9.6 Military Lasers by Laser Type (Units, and US$M) ........................................................... 121 Table 9.7 Military Suppliers and Contractors ................................................................................ 123 Table 10.1 R&D Laser Sales by Laser Type (Units) ........................................................................ 127 Table 10.2 R&D Average Laser ASP Used by Laser Type (US$) ....................................................... 127 Table 10.3 R&D Laser Revenue by Laser Type (US$M) .................................................................. 128 Table 11.1 Light Sources for Fiber Sensors ................................................................................... 134 Table 11.2 Narrowband Lasers for Fiber Sensors (US$M) ............................................................... 137 Table 11.3 Fiber Sensor Laser Suppliers ....................................................................................... 138 Table 11.4 Fiber Sensor Suppliers ................................................................................................ 139 Table 11.5 Forecast for Lasers Used in Telecom Instrumentation .................................................... 140 Table 11.6 CW and Ultrafast Laser Forecast for Spectroscopy (US$M) ............................................. 144 Table 11.7 Mid-IR Laser Forecast for Spectroscopy ........................................................................ 150 Table 11.8 Lasers Used for Wafer and Mask Inspection.................................................................. 152 Table 11.9 Forecast of UV Laser Sales Semiconductor Inspection .................................................... 153 Table 11.10 Flow Cytometry Laser Revenue (US$M) ........................................................................ 154 Table 11.11 LIDAR Laser Revenue (US$M) ..................................................................................... 157 Table 11.12 Gesture Recognition Laser Revenue (US$M) ................................................................. 158 Table 11.13 Laser Leveler & Barcode Reader Laser Forecast (US$M) ................................................ 159 Table 11.14 Total Sensor & Instrumentation Laser Revenue by Application (US$M) ............................ 159 Table 11.15 Total Sensor and Instrumentation Laser Revenue by Laser type (US$M) ......................... 160 Table 12.1 Display Laser Brightness and Power ............................................................................. 174 Table 12.2 Laser Display Revenue by Application (US$M) ............................................................... 175 Table 12.3 Laser Display Revenue by Laser Type (US$M) ............................................................... 176 Table 13.1 Optical and Magnetic Storage Types ............................................................................ 179 Table 13.2 Magnetic and Optical Storage Devices (M) .................................................................... 182 Table 13.3 Optical Storage Laser Forecast (M, US$, US$M) ............................................................ 183 Table 14.1 Optical Transceiver Revenue by Type (US$M) ............................................................... 191 Table 14.2 Optical Amplifier Pump Laser Revenue (US$M) ............................................................. 193 Table 14.3 Total Semiconductor Lasers Used in Communications (M) .............................................. 193 Table 14.4 Total Communications Laser Revenue (US$M) .............................................................. 194


Chapter 1: Executive Summary & Totals

1.1 The Overall Laser Market

This report attempts to cover the entire laser market, worldwide. With each issue of this

report, we encompass more and more of the expanding laser market. In this report, we

add more detailed coverage of laser cinema. In some of the other segments, we haven’t

added coverage, but rather we have broken down some subcategories into finer

granularity. We like to think we have it all covered, but the reality is the laser market is

so wide and diverse that it is difficult to know if everything is included in the analysis. As

if attempting to cover the entire industry isn’t hard enough, knowing exactly which

category to place each application in can be even more difficult. If you are looking for a

segmentation that isn’t covered in this report, please contact the author as we may have

it; if not, we could work to include it in a future report, and all feedback is welcome.

1.2 Good News From 2017

There was lots of good laser news in 2017. The very encouraging trend was that lasers

were more the “go-to” technology in 2017 than any time in the past. In materials

processing, not only did lasers have a strong year overall, but in many areas, laser cutting

and welding displaced non-laser cutting and welding in large numbers. Since lasers are

not devices that constantly wear out and need to be replaced, growth from replacement

laser purchases is rather limited, but lasers for uses that hadn’t formerly used lasers is

very encouraging.

In segments other than materials processing, there were very good results as well. Apple

and other smartphone manufacturers are using lasers for sensing in new and novel ways.

These sensors include measuring distances for camera autofocus, measuring object

distance for virtual reality applications, and measuring multiple distance points as Apple

does for its “Face ID” feature. In addition to laser sensors in phones, LIDAR sensors for

self-driving automobiles are becoming increasingly important.

A third strong area in 2017 was lasers used to anneal amorphous silicon into

polycrystalline silicon for OLED screens for smartphones. While larger OLED screens for

TVs generally don’t require this step, high-density OLED screens like those used for

smartphones do require this step, and excimer lasers are the most cost-effective method

available. Once Apple decided to produce the OLED iPhone X in 2017, sales of excimer

lasers for annealing have rapidly increased. With Coherent being the only manufacturer

of these (although it’s rumored that Gigaphoton will be entering the business as well),

volume has been brisk, and Coherent has increased production capacity as much as

possible.

Materials processing, smartphone sensors, and OLED screen annealing are just three

examples where lasers have become the mainstream solution to tough problems. Much

in the same way that microprocessors have become the solution to many problems in

the last few years, lasers are joining them as a tool with almost unlimited potential.

Overall, 2017 was the best year for laser revenue ever, and total laser revenue over 2016

jumped the largest percentage of any year in memory.


The outlook for each application segment is summarized below. More highlights are

presented in each chapter.

▪ High-Power Materials Processing (Chapter 3)

An increasing amount of KW+ materials processing lasers are being purchased

by Chinese companies, but in 2017, an almost equal increase in new lasers went

to Europe as well. Welding applications grew faster than cutting, but cutting still

makes up the largest segment of laser revenue.

▪ Micro Materials Processing (Chapter 4)

The micro materials processing segment was generally strong in 2017, driven

largely by excimer lasers purchased to anneal OLED flat screen displays for

smartphones. If you exclude the lasers for OLED screens, micro material revenue

was mostly flat in 2017.

▪ Marking (Chapter 5)

This segment has expanded through the years, but price pressure from Asian

manufacturers has greatly decreased the price of marking lasers. Most marking

lasers are fiber, and most of these lasers come from China, but U.S.

manufacturers are well represented here also, with SPI, IPG, and a few others

participating. The marking segment increased 6% in 2017.

▪ Photolithography (Chapter 6)

This segment entered the recession in 2007 and came back stronger than many

other segments; however, it has been down since 2011 and only started to

recover in the second half of 2013 through 2014. Up until 2015, the segment

was doing well, but it slowed a bit in 2015 and 2016. In 2017, it returned to life

with revenue growing almost 18%. Growth in 2018 is expected to be 15.6%.

▪ Printing (Chapter 7)

The commercial printing industry has been contracting but has stabilized. Diode

lasers dominate, both for prepress applications and in conventional laser printers.

The laser printing market has been stable with new printers being deployed in

developing countries, but this could quickly slow if their economies slowed, which

is happening in places like China. In 2017, laser revenue from printing was down

5.9%.

▪ Medical and Cosmetic (Chapter 8)

The last five years have been good ones for medical lasers. Although 2014

started off with a new 2.3% medical device tax that had been feared would

negatively impact medical device sales, this wasn't seen much at all, and this tax

was suspended in late 2015. Overall, two forces were at work increasing laser

medical equipment sales: first, the economy was strong in most regions, which

tends to drive elective procedures such as laser tattoo and hair removal; and

second, a growing middle class in developing nations drove much demand for

new medical equipment, especially for aesthetic lasers. Overall, in 2017, medical

laser revenue grew 10.1%, and cosmetic lasers grew the most, 14%.


between 4th Generation wireless deployments and 5th Generation deployments.

Today, wireless handles more data and voice traffic than wired communications.

1.5 Laser Market by Laser Type

Figure 1.4 below contains the laser revenue segmentation by laser type for 2017. As this

figure shows, low-power laser diode revenue was the largest slice in 2017. While these

lasers are among the least expensive lasers available, they are in everything from

communications and UHD Blu-Ray players to laser pointers and laser wrinkle removers.

Second largest are solid-state lasers, which represent a mainstay of the laser industry.

Solid-state lasers can be small or very large, like Nd:YAG lasers than can be used in

medical products or industrial manufacturing products. But as Figure 1.4 below shows,

while solid-state laser revenue is quite large now, it is not growing very quickly. In many

cases, fiber lasers, which operate on the same wavelength as Nd:YAG and Nd:YVO, are

replacing them in one direction, while high-power diode lasers are replacing them at the

other end.

Figure 1.4 Laser Revenue Segmentation by Laser Type for 2017

CO28%

LP Diode39%

HP Diode5%

Excimer10%

Fiber20%

QCL1%

Solid State13%

Other4%


1.6 Laser Market Summary

As a whole, the laser market has been growing steadily, in a few cases growing at a

much faster rate than the worldwide GDP growth, but not always. In 2017, several areas

saw unprecedented growth spurts, including KW+ materials processing, micro materials

processing, displays, and sensors.

Figure 1.12 Total Laser Market (US$M)

Overall, the laser marketplace is large, expanding, dynamic, and strong. Although lasers

have been available for more than 50 years, the number of uses for these very versatile

devices continues to grow, and their price continues to decrease. In many applications,

price is definitely a factor, and as prices drop, the number of possible applications

increases. Overall, the future continues to look good for lasers and their applications.

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

2017 2018 2019 2020 2021 2022 2023

(US$

M)


absorption at visible wavelengths for semiconductors and in nonferrous metals, such as

aluminum, titanium, copper, and gold. This is possible because solid-state lasers can be

frequency-shifted from 1.0 micron to 532 nm (green), 355 nm, or 266 nm (UV), using a

nonlinear crystal. Frequency-shifted lasers are used for many other applications, from

medical lasers and biomedical instrumentation to photoprocessing.

The most common gain material is Nd-doped YAG (with output at 1.064 micron), but a

number of other dopants and crystals are used. Yb-doped YAG is most commonly used

for disk lasers. Other well-known crystal materials include vanadate (Nd:YVO4), ruby, and

alexandrite.

Solid-state lasers include several types: lamp-pumped (LPSSLs) which generally aren’t

used outside of some lower-cost medical applications, diode-pumped (DPSSLs), and a

type of DPSSL called the thin-disk laser. In addition, the fiber laser is yet another type of

DPSSL, but because of its popularity, it is broken out as a type by itself. Sometimes disk

lasers are also separated from other solid-sate lasers as well.

In some areas, solid-state lasers are losing market share to fiber lasers and to diode

lasers. Fiber lasers are gaining share in the materials processing area and in several

others. Diode lasers, especially diode lasers in visible wavelengths, are replacing solid-

state lasers in display areas, especially as new diode lasers get more powerful and their

range of wavelengths expand.

2.2.2 Lamp-Pumped Solid-State Lasers (LPSSLs)

As noted above, LPSSLs are a mature technology and are slowly being phased out, but

they are still used in low-cost applications like medical equipment and some research

applications in which high pulse power is required. The lamps used can be inefficient and

have short lifetimes. Short lamp lifetimes increase the maintenance, and lamp failure is

catastrophic to the operation. LPSSLs have poor beam quality, particularly at high output

power. This makes them a poor choice for high-volume cutting and welding applications

compared to a CO2 laser of equal power.

LPSSLs remain an inexpensive, robust, and mature laser design that is still well-suited for

some applications. LPSSLs are superior for producing the highest energy pulses because

the lamps can be driven with a large stored electrical charge that is more cost effective

than having a large bank of pump diodes reserved for the same purpose. Even in this

area, DPSSLs are overtaking LPSSLs; in a few years, they might go the way of a CRT TV

set. Still, LPSSLs are considered easier and less costly to repair, which is important in

remote locations, although the costs of diode pumps are dropping to the point where the

cost benefit is quite small. The market share of LPSSLs is declining, but they will remain

in the market in some applications indefinitely, particularly for those requiring high peak

power (such as cutting nonferrous metals and drilling) and many legacy medical system

designs.


Perhaps the only thing that is certain is that thick metal cutting is a highly dynamic

process. In a practical system, it is likely to be less stable, which yields a lower quality

cut.

While improved performance can increase the cutting speed, faster is not necessarily

better. The actual cutting speed depends not only on the nominal straight cut speed, but

also on the contour of the cut, the cutting head design (for example, how much inertia

it has), and the desired cut quality, including distortion of the sheet due to the dwell

time.

We believe that systems engineers will gradually solve the challenges to make fiber lasers

increasingly competitive with CO2 lasers in all metal thicknesses.

3.4 Metal Welding and Brazing

Welding joins two metals using a similar filler material, while brazing joins two metals

with a dissimilar filler material. Brazing usually requires a lower temperature than welding

and has more relaxed requirements on beam quality. Metal welding also overlaps with

other processes, such as metal cladding and metal cutting.

3.4.1 Auto Industry

The auto industry comprises only a minority of the high-power laser segment, and that

segment itself is only a minority of the overall laser industry. So why is the auto industry

so important?

One reason is the sheer volume and complexity of metal that goes into a vehicle. The

auto industry produces about 65 million vehicles per year, and each vehicle requires a

great number of pieces to be cut, formed, and joined. Due to the large number of models,

there are an estimated 56,000 blanking dies required each year, which are used to

assemble about two vehicles per second, assuming 24-hour, 7-day-per-week production.

The cost of making and maintaining the blanking die alone may amount to as much as

$2 billion per year, not counting the time required to change the die in the manufacturing

line.

In addition, automobiles must be assembled mostly as curvy three-dimensional objects,

not as sheets that are folded and welded as rectilinear forms. This makes some of the

cutting and nearly all of the welding a complex process, often involving robotics. The

automotive industry is unusual for its need for such complex welding.

In addition to body components, in the last few years, components for electric and hybrid

cars have required laser welding. Tesla has opened a mega battery manufacturing plant

in Nevada, and many other automotive batteries are being manufactured in China.

The auto industry had strong years from 2013 to 2016, and it remained strong in 2017.

In 2016 – 2017 oil prices started to rise, but still prices are considered relatively cheap.

At the time of this writing, oil hovers around $62/barrel.

3.4.2 2D vs. 3D Welding

Most laser and non-laser welding today is done with 2D systems and not 3D. Despite the

appeal of using lasers to remotely weld or robotically weld auto parts, and the widespread


Table 3.4 Industrial KW+ Laser Unit Forecast by Laser Type (Units)

Table 3.5 Industrial KW+ Laser ASP Forecast by Laser Type (US$)

Table 3.6 Industrial KW+ Laser Revenue Forecast by Laser Type (US$M)

Units CAGR2017 2018 2019 2020 2021 2022 2023 '18 - '23

CO2 1,533 1,410 1,368 1,341 1,341 1,341 1,341 -1.0%

y-to-y -8% -3% -2% 0% 0% 0%

Fiber 13,144 14,564 15,874 17,303 18,341 19,442 20,608 7.2%

y-to-y 11% 9% 9% 6% 6% 6%

Solid State/Disk 3,100 3,379 3,683 4,015 4,316 4,639 4,987 8.1%

y-to-y 9% 9% 9% 8% 8% 8%

Direct Diode/Other 4,050 4,487 4,972 5,599 6,102 6,652 7,250 10.1%

y-to-y 11% 11% 13% 9% 9% 9%

Total 21,827 23,840 25,897 28,257 30,100 32,073 34,186 7.5%

y-to-y 9.2% 8.6% 9.1% 6.5% 6.6% 6.6%

Source: Strategies Unlimited

Average Price CAGR(US$) 2017 2018 2019 2020 2021 2022 2023 '18 - '23

CO2 $110,241 $107,845 $106,066 $103,901 $103,901 $103,901 $103,901 -0.7%

y-to-y -2% -1% -1% -1% -1% -1%

Fiber $96,564 $92,381 $88,991 $85,725 $84,107 $82,521 $80,964 -2.6%

y-to-y -4% -4% -4% -2% -2% -2%

Solid State/Disk $135,484 $131,755 $128,129 $124,602 $121,704 $118,874 $116,110 -2.5%

y-to-y -3% -3% -3% -2% -2% -2%

Direct Diode/Other $110,003 $105,237 $100,678 $95,671 $92,160 $88,778 $85,520 -4.1%

y-to-y -4% -4% -5% -4% -4% -4%

Average $105,546 $101,296 $97,703 $94,081 $92,012 $89,971 $87,957 -2.8%

y-to-y -4.0% -3.5% -3.7% -2.2% -2.2% -2.2%


Revenue CAGR (US$M) 2017 2018 2019 2020 2021 2022 2023 '18 - '23

CO2 $169.0 $152.1 $145.1 $139.3 $139.3 $139.3 $139.3 -1.7%

y-to-y -10% -5% -4% 0% 0% 0%

Fiber $1,269.2 $1,345.4 $1,412.7 $1,483.3 $1,542.6 $1,604.3 $1,668.5 4.4%

y-to-y 6% 5% 5% 4% 4% 4%

Solid State/Disk $420.0 $445.2 $471.9 $500.2 $525.2 $551.5 $579.1 5.4%

y-to-y 6% 6% 6% 5% 5% 5%

Direct Diode/Other $445.5 $472.2 $500.6 $535.6 $562.4 $590.5 $620.0 5.6%

y-to-y 6% 6% 7% 5% 5% 5%

Total $2,303.7 $2,414.9 $2,530.3 $2,658.4 $2,769.6 $2,885.6 $3,006.9 4.5%

y-to-y 4.8% 4.8% 5.1% 4.2% 4.2% 4.2%



When this is the case, these lasers are counted in the KW materials processing segment,

not here.

Also included here are excimer lasers for annealing on flat-panel displays. While two or

four 600 W lasers are synced together to produce a higher-power output, they are

included here because the base lasers are 600 W.

Table 4.1 Summary of Major Materials Processing Segments

4.2.1 Semiconductors, PC Boards, and Displays

The semiconductor/PC board/Displays subsection includes the lasers used in the

manufacture of electronics, semiconductors, and flat panel displays. This includes lasers

for annealing, via hole drilling, glass cutting, and all other machining processes, as long

as the laser is not over 1 KW. This section does include excimer lasers used to anneal

silicon flat panel displays because the Coherent VYPER lasers are composed of smaller

600 W excimer lasers. Two 600 W excimer lasers are linked together to create a 1200 W

VYPER laser, and two 1200 W VYPER lasers are combined to create a TwinVYPER.

Although not listed on Coherent's web site, we know they are also selling a Triple-VYPER

totaling 3600 W. As panel sizes grow, more laser power is required to adequately anneal

the panel in a speedy fashion.

In late 2015, Coherent first announced that it had received a quite substantial order for

excimer lasers for flat panels displays. The company wasn't specific as to the customer,

but said the panels were OLED and smaller, as used for either automotive or smartphones

and tablets. Samsung predominately uses OLED displays for its smartphones, but at the

time Apple did not.

It is now known that the driving force to produce more OLED smartphone screens was

Apple, who at the time was planning to produce the iPhone X. While over 400M OLED

Marking Micro KW+

Optical Power Usually 20 W or lessUnder 1 kW, usually

under 400w1 kW or more

Typical Applications

Marks for human or

machine vision,

decorative

engraving

All sub-kilowatt

materials processing,

except marking and

decorative engraving

Kilowatt cutting,

welding, and surface

treatment

Typical LasersSealed CO2 lasers,

fiber lasers

All types: sealed CO2

lasers, fiber lasers,

SSLs, excimer lasers

Flowing gas CO2, fiber

lasers, disk lasers,

direct diode systems


worldwide market for lasers · 2020-02-06 · 9.6 illuminators, gun sights, and dazzlers ... figure...

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