The report forecasts the global laser diode market to grow at a CAGR of 11.07% during the period 2016-2020. The global laser diode market has been broadly divided into six application segments:
Communication and optical storage
Instrumentation and sensor
A trend that is bringing about change in the market and boosting growth is the number of M&A deals between vendors. The laser diode market is experiencing a rise in the number of M&A deals between the vendors. These collaborations help vendors expand their product portfolio as well as improve their respective market shares. The companies involved attain economies of scale and produce better technological systems.
According to the report, a key driver which is helping to boost market growth is the rising demand for laser diodes in material processing. The manufacturing of products in industries such as automotive, heavy engineering, general manufacturing, aerospace, and consumer electronics requires material processing. Material processing applications involve metal welding, metal hardening, laser brazing, cladding or repair welding, and cutting of metals for the machine tooling, automobile, and medical sectors. Laser diodes are versatile and can easily be adopted due to their modular design, which enables simple field replacement of components in case of failure of the machine.
Further, the report states that one challenge that could curtail market growth is intense competition from different types of lasers.