Market Report China: Analysis and Perspective of the Laser Industrial Market during 2015-2016

Author / Editor: Industry investment alliance of military and civilian integration / Susanne Hertenberger

Various laser applications have been developed as the growing of the laser industry and some unpopular applications become popular.

Changes of Market Shares of Various Laser Applications in China
Changes of Market Shares of Various Laser Applications in China
(Bild: Industry investment alliance of military and civilian integration)

The market shares of various laser applications has changed and the current share distribution of laser applications can be calculated according to the products and sales of most laser enterprises nationwide. People often say that laser marking occupies half of the industry, actually, the earlier industrial laser application in China started from the simple laser marking (including laser engraving) and then developed to cutting, welding, etc. In 2005, laser marking occupied more than 65% of the market shares and there was no optical fiber laser cutting machine then; the metal plate industry gradually popularized laser cutting (mainly YAG and CO2 laser cutting) and the market shares of laser cutting was about 20%. In 2015, the market shares of laser marking were lower than 40% and the shares of laser cutting and laser welding increased.

The laser industry in China got warm quickly in the first half year of 2016 and the semiyearly reports of some listed laser companies were also encouraging: HAN’S LASER achieved a year-on-year growth of 22.69%, HGTECH got a year-on-year growth of 30.43%, U.W.LASER had the year-on-year growth of 70.55% and TIANHONG LASER had a year-on-year growth of 10.9%. It was said that the short supply situation of fiber lasers and ultraviolet lasers occurred in the industry. Many manufacturers received more orders and had to extend the date of delivery, these are all delightful.

It is foreseeable that the development state in the laser industry will be gradually improved in 2016 and the following years, and will be more healthy and stable than that in the past years. The R&D ability of the local enterprises is stronger with larger capacity and improved sales and service network.

As the fast development of local enterprises, the foreign companies, especially such powerful nations in laser industry as Germany and America, are faced with larger challenges in China. PRUMPF’s performance in China for the fiscal year of 2015/16 was €360 million, suffering a reduction of 2% on year-on-year basis; IPG Photonics, as another magnate, achieved a performance increase of 4% only in the second quarter of 2016 in China, instead its quarterly/annual increase of 20% in the past years as it occupied most of the fiber laser market shares in China.

Based on the fact that the laser industry in China ushers its best development situation after 2011 in 2016, it is predicted that the increase speed of Chinese laser industry can reach over 20% in 2016. By seizing the opportunity of the government vigorously promoting intelligent manufacturing and the plan of “Made in China 2025”, it is hopeful for Chinese laser industry to continue the rapid development in 2017.