Laser Diode Market to Benefit from Escalating Demand in Developing Countries of Asia Pacific and RoW

Laser diodes have multifaceted use in telecommunications, apart from which they are also used in different measuring instruments, such as range-finders and others. Another popular use of laser diodes is in barcode readers. Laser pointers in red or green also use laser diodes. The printing industry uses both high and low power diodes as light sources for scanning images for high resolution printing plates. Red and infrared lasers are commonly used in CD-ROMs, DVD Technologies, and CD Players. Violet lasers find use in Blu-ray technology. The Laser Diode (LD) is an electrically pumped semiconductor in which the active media is produced by the p-n junction of semiconductor diode, which is very similar to that found in a LED. 

 Rapid Growth in Applications across Industrial and Commercial Segments to Propel Laser Diode Market 

Escalating use of laser diodes across several end-user markets has been noted in the last couple of years. The benefits that LDs offer over its contemporaries are believed to be instrumental in this increased demand for the technology. Additionally, the rapid growth of electronic and automotive manufacturing around the world, especially in the developing Asia Pacific and Rest of the World countries has spurred the growth of the global laser diode market. In recent years, sectors such as military and defense, medical and healthcare, telecommunications, and fiber optic communications have also emerged as potential application segments for laser technology, have augmented its demand in the global market. 

High Initial Cost Might Hamper the Steady Growth of the Market 

Installing the laser processing machines requires high initial investments. Moreover, one cannot eliminate the environmental concerns associated with mining of the rare earth elements. These factors might inhibit the smooth growth run of the market. 

AlGaInP Diodes and Automotive to Continue their Run as Dominant Segments 

On the basis of doping material, the laser diode market is segmented into InGaN, GaAlAs, GaN, GaInAsSb, InGaN, and AlGaInP. In 2013 AlGaInP diodes dominated the global market owing to its increasing application in the optical discs, DVD player, data communications, and laser pointers among others. The segment is expected to register the highest demand over the next couple of years as well. 

In terms of application, the global laser diode market can be segmented into automotive, consumer electronics, healthcare, industrial, defense, and medical. The automotive sector registered maximum demand for laser technology in 2013 owing to its utility for lighting purposes as well as across multiple operations such as marking, engraving, and molding of automotive plastic into respective manufacturing units. The automotive segment accounted for 25.35% of the global market share on the basis of revenue and the segment is expected to lead the market in the next couple of years.

Rapid growth in popularity and application of laser diodes globally is attributed to a number of factors. The relentless endeavor of many companies led to the recent developments in the field of laser technology, which has given impetus to the laser technology markets. Companies such as Sharp Corporation, Coherent, Sumitomo, SPI, and IPG among others have significantly contributed to the outstanding growth registered by the global laser diodes market.