Laser Diode Market Size (2024 - 2029)

Diode Laser Market Analysis

The global laser diode market was valued at USD 8.84 billion in 2020, and it is expected to reach USD 16.25 billion by 2026, registering a CAGR of 11.2%, between 2021 - 2026. According to the laser-focus world, the market for laser materials-processing systems grew by an incredible 50% from 2016 to 2018. In 2019, one of the key trends is the rise of VCSEL technology for applications like facial recognition in smartphones. VCSELs are a type of laser diode that offers superior beam properties, thermal stability, and device scalability compared to products like Fabry Perot laser diodes.

• The increasing adoption of high-power laser diodes in autonomous vehicle technologies drives the market. The optical technologies are in demand for autonomous vehicles, such as high laser beam, which is converted into white light and directed onto the road via tiny reflectors by the high light density of the laser that helps the drivers to see 600 meters ahead of them (about double the distance possible with the previous LED high beams). LiDAR systems are the key to the development of autonomous vehicles. Research institutes, photonics companies, and traditional suppliers of automotive parts are currently positioning themselves with new LiDAR technology to play a part in this market in the future.
• Fraunhofer Institute for Microelectronic Circuits and Systems IMS presented a Flash LiDAR Instead of directing the laser beam onto a rotating mirror for a 360 degrees view, the system emits laser flashes that expose a rectangular measuring field up to 100 meters wide. Highly sensitive single-photon avalanche diodes (SPADs) detect reflected light.
• Growing directed energy application of laser diode is driving the market. The use of lasers for directed energy (DE) applications is increasing, while diversity in requirements and technology is continuously evolving. Directed energy applications, such as to eliminate airborne drones and intercontinental ballistic missiles, among other missions are increasing significantly, are witnessing the application of DE.
• High-power laser weapons are becoming an increasingly important component within the United States' defense arsenal. The use of lasers for DE is a broad and diverse space. DE applications range from comparatively lower-powered, man-portable lasers offering powers on the order of 10 kW of optical output power with the mission of eliminating airborne drones, to extremely high-powered lasers with megawatt-class (MW) power levels mounted on high-altitude platforms for the destruction of boost-phase intercontinental ballistic missiles.
• With the outbreak of COVID-19, the demand for laser diodes decreased, due to nationwide lockdowns imposed in countries. Additionally, the shortages in the supply of raw material, along with a significant decrease in the demand are expected to continue until the end of 2020, due to the disruption in the supply chain across worldwide. According to IPC's survey of electronics businesses, around 69% of the respondents are informed by their suppliers that there will be delays in shipments due to COVID-19.
• Moreover, the major manufacturers in North America and Europe extended the shutdowns in plants, and some are working with minimal workforce. For instance, Osram, Coherent, IPG, and Sharp Corporation decided to continue the production process with a limited workforce. This is suggestive of a decreased demand for laser diodes in various industrial applications.

Diode Laser Industry Segmentation

A laser diode produces coherent radiation when current passes through it, which is very similar to the concept of light-emitting diodes (LEDs). Unlike bulky, high intensity, and high powered lasers that are used for advanced industrial applications and market study comprises of end-users such as Healthcare/Medical, Telecommunication, Industrial, etc.