Laser Focus World - January 2015

Materials processing and lithography

Industrial laser systems in 2014 represented about 14% of global machine tool sales, so there is no question that the health of the world’s manufacturing sector implies overall health for the industrial laser industry. Projections for 2014 machine tool consumption were in the 5–7% range, and the industrial laser systems market is expected to follow.

In the markets of interest to the industrial laser communi-
ty, China’s priority was to remake their economy with more
domestic demand, less reliance on exports, and investments
in capital-intensive state-owned companies. European man-
ufacturing, in recession territory even with modest growth in
Germany, started showing the first signs of recovery mid-year
with slightly positive indications as the year ended. In North
America, the U.S. was one of the “bright lights” with the
economy on the mend, housing and non-residential strength
growing into 2015, and an energy boom for at least the next
three years. The BRIC nations that were projected to drive
the 2014 industrial laser market underperformed with Russia
and Brazil stagnant and China and India slowing down to
5–7% growth. And for 2015, the International Monetary
Fund spotlighted the U.S., India, and the UK as the most
likely positive growth regions, but cautioned about global
capital investment increases.

As 2014 ended, the total market for the industrial lasers that power the systems used in manufacturing operations exceeded $2.6 billion, a 6% increase over 2013 revenues (see table). In 2014, fiber lasers used in materials processing applications comprised 29% of the total revenues in the global laser market, trailing only lasers used in communications applications (32%). The vagaries of the world’s manufacturing industries are thus closely followed by those who track lasers in photonics.

Clearly evident is the influence of the continued strong growth of fiber lasers, which increased their share of the to- tal industrial laser market to 36% at the expense of solid-state and CO2 lasers. As the largest revenue-producing category, the fiber lasers sector is the most watched in the Industrial Laser Solutions annual market survey.

Fiber lasers used as the power source in metal cutting applications—especially sheet metal cutting, where systems are priced in excess of $650,000—will generate more than $1.3 billion of revenue in 2014. Adding in the revenue from high-power CO2 lasers in that same application (but rapidly losing market share to high-power fiber lasers) results in a capital equipment investment of almost $4 billion—about a third of all industrial laser systems sold in 2014.

Also notable in 2014 is the 13% share of the total market held mostly by high-power direct diodes. This relatively new- to-the market product is being used in on-line applications such as brazing the roofs and other sheet metal components on automobiles. Quietly, this highly efficient laser is carving out a niche in the market.

Not so quietly making a market entrance in 2014 is the high-brightness, high-power direct diode lasers that are being offered as an alternative to fiber lasers in sheet metal fabrication, with cutting results equal in quality and speed to equivalent-power fiber and disk lasers. Sales were miniscule, but interest was high at the fabricating shows in 2014.

As fiber lasers continue their relentless penetration into established markets such as marking, revenues from solid-state laser sales are decreasing. The $750+ million marking/engraving

Materials processing & lithography

Includes lasers used for all types of metal processing (welding, cutting, annealing, drilling); semiconductor and microelectronics manufacturing (lithography, scribing, defect repair, via drilling); marking of all materials; and other materials processing (such as cutting and welding organics, rapid prototyping, micromachining, and grating manufacture). Also includes lasers for lithography.

Lasers for industrial use had a strong year in 2014, helped both by an improving economy in most regions of the world, especially in Europe, and increased adoption of laser technology in more manufacturing processes, including additive manufacturing. While metal welding and cutting were strong, some segments like solar were particularly weak, while smartphones and flat panel displays—large contributors to lasers in past years—have become close to flat.

Demand for semiconductors was strong in 2014, with the SIA reporting that worldwide semiconductor sales were up around 7% over 2013. This increased demand for semiconductors has increased demand for excimer lasers and supplies. Extreme UV photolithography continues to evolve and improve, but is nowhere near the point where it is taking away any demand for deep-UV excimer lasers.