Forecast by Yole Développement Market for Laser will flourish

»Wachstumstreiber ist noch immer die optische Kommunikation«, Dr. Martin Vallo, Analyst für Technik und Marktentwicklung bei Yole Développement.
»Indeed the growth is still driven by the optical communication market segment with optical systems for datacom and telecom«, Martin Vallo, PhD., Technology & Market Analyst at Yole.

The market for edge emitter lasers is expected to double by 2024, with optical communication as the biggest growth driver. According to Yole analysts, however, there will be no one market leader.

The global market volume for Edge Emitting Lasers (EEL) in 2018 was around 2.5 billion US dollars. According to market analysts from Yole Développement, this will be more than 5 billion US dollars in 2024. Most of today's laser diodes are edge emitters.
The most important sales market for EEL is optical communication with a current market share of 56 percent.

According to Yole Développement, this is where the greatest growth is expected to come from: While sales in 2018 were still 1,385 billion US-Dollars, six years later they are expected to be around 3,4 billion US-Dollars. The material processing and display segments, which represent further core markets with 16 percent and 14 percent market share in 2018, will lose market share according to the forecast.

Winners and Losers

Market analysts see the three areas of sensor technology, medical applications and lighting as a new growth market for edge emitter lasers. The market volume is expected to multiply from 183 million to 664 million US-Dollars by 2024. Shrinkage would result in applications in printing technology and optical data storage such as DVDs and Blue Ray discs.

No single player can target all EEL applications

EEL include various types with different application areas that compete with each other: Laser diodes, fiber lasers, CO2 lasers, solid-state lasers and excimer lasers. In most cases, there are also different EEL techniques with different supply chains behind the different applications. The Yole analysts therefore assume that the companies will continue to specialize in narrowly defined areas within their core markets.

This applies above all to the growing areas of sensor technology and lighting. Therefore, no single industrial player can cover all EEL applications and serve the market alone. A comprehensive market analysis is contained in the report »EEL market and technology trends« by Yole Développement.