by Laser diodes find extensive application in optical fibre communication systems, scanning operations, bar code readers, medical and industrial fields due to their high output power, small size, reliability and ability to directly convert electrical energy to light. Laser diodes are compact coherent light sources that convert electrical energy into light very efficiently. They produce a narrow, low-divergence laser beam which can be focused to a very small spot. Laser diodes can also be easily modulated to transmit digital data through fiber optic networks or barcode scanners. The global laser diode market is growing steadily owing to the increasing deployment of fiber optic communication systems in telecommunications, internet service provision and LAN networks. Fiber optic networks have emerged as a backbone technology for broadband internet, cloud services, streaming media etc.
The global Laser Diode Market is estimated to be valued at US$ 16.79 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend driving the growth of the laser diode market is the increasing R&D towards developing high power laser diodes with improved efficiency and lifetime. Manufacturers are focusing on advancing the design of laser diodes to achieve higher output power levels with lower electrical power consumption and longer operational lifetimes. This is enabling applications in new industrial fields like materials processing, medical procedures, sensing etc. Another important trend is the miniaturization of laser diodes to enable their integration in compact instrumentation, consumer electronics and hand-held devices.
Porter’s Analysis
Threat of new entrants: The laser diode market is moderately difficult to enter as it requires large investments in R&D. Established players enjoy economies of scale which make it tough for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as the products are differentiated. Buyers have a reasonable choice of suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many component suppliers and switching costs are low.
Threat of new substitutes: The threat of substitutes is low as laser diodes have distinct performance advantages over other lighting technologies.
Competitive rivalry: The competitive rivalry is high among the key global players. The players compete based on product performance, quality, and pricing.
Key Takeaways
The Global Laser Diode Market Size is expected to witness high growth over the forecast period. The global Laser Diode Market is estimated to be valued at US$ 16.79 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030.
Asia Pacific region currently dominates the laser diode market owing to the large consumer electronics and automobile industry in countries such as China and India. The Asia Pacific laser diode market is the largest and fastest growing region owing to burgeoning electronic and automobile sectors, presence of top diode manufacturers, and increasing applications of laser diodes in various industries. China dominates the Asia Pacific laser diode market.
Key players: Key players operating in the laser diode market are Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group Gmb. These players are focusing on developing innovative systems to strengthen their product portfolios and market positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
