With more than $5 billion in 2029, semiconductor laser market is evolving rapidly.
Telecom & infrastructure remains the most important segment: more than $2.5 billion in 2029 with a significant 18% 2023-2029 CAGR.
The ecosystem is highly diversified and fragmented: the wide array of applications requires unique laser system specifications.
Advancing semiconductor laser technology is crucial for realizing the full potential of the markets.
The semiconductor laser market is projected to grow from $3.1 billion in 2023 to more than $5 billion in 2029. Yole Group announces a 9% CAGR(1) during this period. This growth will continue to be driven by several factors. Indeed, analysts underline significant and rapid technological advancements, a growing demand across multiple industries, and a push for higher performance at lower cost. Trends such as the expansion of applications using lasers, the shift toward energy efficiency, compact size and precision, and the growth in integration with multiple technology platforms including SOI(2) , SiN(3) , InP(4) and TFLN(5) are shaping the future of the semiconductor laser market, announces Yole Group.
At the same time, geopolitical factors and supply chain challenges are prompting manufacturers to adopt more resilient production strategies. Overall, the semiconductor laser industry is positioned for significant growth, driven by innovations in both established and emerging markets.
Photonics has taken its place alongside electronics as a critical enabling technology for the twenty-first century. Photonics-based solutions are entrenched in a broad array of industries, including microelectronics, flat-panel displays, machine tools, automotive, and medical diagnostics, with adoption continuing in ever more diverse applications.
Martin ValloPhD, Senior Technology & Market Analyst, Photonics at Yole Group
In this dynamic context, the laser market has grown significantly during the last 40 years. At Yole Group, we announce a few millions to few billion dollars! Without doubt, laser technologies represent huge potential. That is why, at Yole Group, we investigate this domain by analyzing the innovative solutions and the applications.
Yole Group has unveiled its first semiconductor laser-focused report, Semiconductor Laser Industry 2024, offering a comprehensive analysis of semiconductor laser markets across key sectors: communication, industrial, medical, consumer, automotive, and aerospace and defense. This in-depth report provides an overview of main applications and sub-applications, explores technical and market trends, and identifies key growth drivers. The analysts at Yole Group assess the evolving roles of laser solutions compared to traditional approaches. Additionally, the report examines the entire supply chain, segmented by market sectors, technology, and material systems, and includes a detailed regional analysis. This latest photonics-focused report provides critical insights for understanding the semiconductor laser industry’s dynamics.
Behind the biggest segment in 2023 and 2029, telecom & infrastructure, the consumer applications represent a significant $1.75 billion market in 2029. But the CAGR related, 1%, is less impressive than the ones dedicated to the automotive sector for example.
Ali JaffalPhD, Senior Analyst, Compound Semiconductors
In the consumer segment, the moderate market growth is due to the volume drop in optical sensing applications in the 2022-2024 period due to technology replacement. In the opposite, semiconductor lasers in automotive are anticipated to see significant expansion, with a double digit CAGR during the same period, mainly driving by automotive LiDAR, especially in China.
Semiconductor laser technologies are at the heart of the photonics industry. Although widely adopted in communication and sensing applications, the photonics market remains a challenging landscape for new entrants. Yole Group’s deep expertise in the semiconductor industry and especially the photonic domain, backed by a team of dedicated analysts and an extensive collection of reports, offers valuable insights into the market’s technical challenges and key business issues.
