Laser Marking Machine Market Growth & Trends
The global laser marking machine market size is estimated to reach USD 5.03 billion by 2028, expanding at a CAGR of 8.0% over the forecast period, according to a study conducted by Grand View Research, Inc. Rising adoption of advanced marking technologies across industries such as machine tools and aerospace and the growing demand for precision marking on manufactured products to improve product’s traceability are some of the factors driving the market growth. Wide-scale applications in the marking of machine tools and equipment especially in the automotive and semiconductor and electronics industries are anticipated to fuel the market demand from 2020 to 2027.
Governments are implementing regulations for permanent marking on products for identification and traceability purposes across defense as well as healthcare industry. For instance, the U.S. Department of Defense has a MIL-STD-130 standard, under which, the military property comprising weapons, artillery, and other equipment should be marked for tracking purposes. Similarly, in 2007, the Food and Drug Administration (FDA) added the requirement of Unique Device Identification System to Federal Food, Drug, and Cosmetic Act (FD&C Act) by section 226 of the Food and Drug Administration Amendments Act of 2007 (FDAAA). Such stringent government norms across economies are expected to spur the demand for laser marking machines and systems over the forecast period.
Growing focus on factory automation to enhance productivity, conserve energy, and reduce downtime is anticipated to propel the overall market demand. Moreover, emerging economies such as India are the primary markets where the trend for mass production can be witnessed over the next couple of years. Mass production can be carried out with the help of automation technologies and quick rollout assembly lines, hence attributing to the demand for automated laser marking machines. For instance, the demand for smartphones in the country has forced the manufacturers to start the local production or assembly of smartphone components.
On the flip side, the safety and health issues related to the use of laser marking technology acts as a restraint for the market. The most prominent safety issues associated with these machines are burns and smoke. Laser burns are often observed on operators working on CO2 laser engraving and marking machines. Thus, the need for precautionary measures for ensuring safety and health, in turn, increases the operational cost. As a result, factors such as high initial investments, safety and health-related issues, and high operational costs involved in the use of laser marking machines may hamper the market growth of over the forecast period.
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Laser Marking Machine Market Report
Laser Marking Machine Market Report Highlights
- The fiber type segment dominated the market in 2019 and is projected to continue its dominance over the forecast period, expanding at a CAGR of 9.8% from 2020 to 2027. It is owing to its extensive use on metals, thus finding prominent share in the automotive, aerospace, and machine tools industry
- The machine tools segment dominated the market in 2019 and is anticipated to reach USD 1.3 billion by 2027. Increasing demand for robotics and sensors has augmented the need for tool identification and recognition, thus driving the segment growth
- Asia Pacific region dominated the laser marking machine market with a share of 41.8% in 2019 and is expected to continue its dominance over the forecast period. Growth in the region is primarily driven by the adoption of enhanced manufacturing techniques in the Chinese machine tools industry and the flourishing aerospace & military industry
