Laser Diode Market - Forecasts from 2021 to 2026

The global laser diode market is evaluated at US$10.077 billion for the year 2019 and is projected to grow at a CAGR of 11.71% reaching the market size of US$21.882 billion by the year 2026. A laser diode is a semiconductor device that can directly convert electrical energy into light. It is similar to a light-emitting diode wherein the diode is pumped with the electrical current can produce lasing conditions at the junction of the device. It uses a p-n junction to emit coherent light in which all the waves are at the same frequency and phase. This coherent light is produced by the laser diode using a process termed as “Light Amplification by Stimulated Emission of Radiation”, which is abbreviated as LASER. And since a p-n junction is used to produce laser light, this device is named a laser diode. Moreover, the rising awareness about the advantages posed by the device is expected to drive the market in the coming years. For instance, the light consists of a single frequency, it can be focused on a very small point by using a simple lens system. Laser diodes are small in size, light in weight, and have low power requirements which make them highly efficient in nature and ideal for portable electronic equipment. Due to this, they are used in various devices such as barcode readers, autonomous vehicles, laser printers, fiber optic communications, and security systems.

The demand for laser diodes has witnessed significant growth in various industrial sectors across the world. For instance, the demand for laser diodes in the healthcare sector has witnessed growth. A laser diode can assist physicians to focus the beam with better precision on targeted areas, preventing any kind of damage to the surrounding area. As a result, the employment of semiconductor laser diodes is continuously expanding in the spine, cardiovascular, and cataract surgeries. Besides this, laser diodes also find vast applications in hair removal, body contouring, LASIK surgery, skin resurfacing, tattoo removal, and wrinkle and pigmentation reduction.

The market has been significantly driven by the exponential rise witnessed in the healthcare sector in recent years. Moreover, the advantage of the laser diode is finding new applications in various other industries as well.

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.

The advent of COVID-19 had an adverse impact on the global laser diode market. The immense downturn in several industries worldwide has been a significant reason for the decline in the demand for the laser diode. 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 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 operational activities across industries came to a standstill owing to the lockdowns in several countries which caused severe disruptions in the supply chains. These disruptions caused the shipments to be delayed and hence postponing and slowing down the overall manufacturing process of the diodes. With the world recovering from the pandemic, several industries have shown recovery signs in recent times. Similarly, the market for the laser diode is expected to witness significant growth during the forecast period.

The segmentation of the global laser diode market has been done into doping material, end-user, technology, wavelength, and geography. By doping material, the classification of the market has been done into InGaN, AlGalnP, GaAs, GaAIAs, GaInAsSb. By end-users, the classification of the market has been done into Automotive, Aerospace and Defense, Healthcare, Consumer Goods, Industrial. By technology, the classification of the market has been done into VCSEL Diode, VECSEL Diode, Quantum Well Laser Diode, Quantum Cascade Laser Diode. By wavelength, the classification of the market has been done into, Infrared Laser Diode, Ultraviolet Laser Diode, Red Laser Diode, Blue Laser Diode, Green Laser Diode. Furthermore, on the basis of geography, the global market has been distributed as North America, South America, Europe, Middle East and Africa, and the Asia Pacific.

The exponential rise in the adoption rate by the automotive industry for various applications at a global level will drive the market during the forecast period

The growth of the laser diode market is fuelled by the exponential rise in the adoption of the semiconductor by the automotive industry in recent years for various applications. The increasing adoption of high-power laser diodes in autonomous vehicle technologies drives the market. laser diodes are now being used in the manufacturing of automotive headlamps as they offer the driver improved visibility, resulting in increased road traffic safety. Apart from this, they also provide the longest range in comparison with any other current headlight technology. In the upcoming years, the sales of laser diodes are expected to rise significantly in this industry on account of mounting demand for luxury vehicles, driven by inflating income levels and improving living standards. 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.

Competitive Insights

The players in the global laser diode market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the market.

Segmentation

By Doping material

• InGaN
• AlGalnP
• GaAs
• GaAIAs
• GaInAsSb

By End-users

• Automotive
• Aerospace And Defense
• Healthcare
• Consumer Goods
• Industrial

By Technology

• VCSEL Diode
• VECSEL Diode
• Quantum Well Laser Diode
• Quantum Cascade Laser Diode

By Wavelength

• Infrared Laser Diode
• Ultraviolet Laser Diode
• Red Laser Diode
• Blue Laser Diode
• Green Laser Diode

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• UK
• Others
• Middle East & Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others