Abstract
Revenue Growth Requires Diversification of Technology and Product Base
Fierce internal competition between different laser media has strengthened
the laser industry, making it more competitive against non-laser technologies.
However, laser system manufacturers are compelled to diversify their technology
and product base to prevent declining market shares and ensure consistent
revenue growth. With the market preference shifting toward the higher efficiency
laser sources, companies that manufacture laser systems using more than one
laser medium are likely to witness stronger, long-term growth.
This Frost & Sullivan research on the world laser systems markets
provides comprehensive analyses of different kinds of laser systems including
carbon dioxide (CO2), solid-state, diode, and others. The report also presents
analyses based on end users, applications, and geographic regions for these
different laser systems and their sub segments. In addition, readers can benefit
from a snapshot of the latest geographic and market trends.
Broad Focus on Applications and Products to Counter Slowdown in End-User
Industries
Certain end-user industries such as semiconductor and machine tools are
likely to follow a cyclic growth pattern, often resulting in fluctuating demand
for laser systems. Therefore, it is necessary for manufacturers to have a wide
product portfolio that will bolster revenues from other industry applications
during these particular, industry-specific cyclical downturns. The analyst says,
"When selective industries tend to slip into negative growth, it pays to
have a wide focus on applications and products. Along with this, the knowledge
about present competitive landscape will be critical for future growth".
The growing demand for innovative laser systems with higher price-performance
ratio is forcing manufacturers to increase their focus on research and
deveopment. The analyst adds, "There is an increasing need to outsource
non-critical activities, and concentrate on key product technologies that will
enable manufacturers to conserve funds for the development of advanced,
cost-effective products". Manufacturers need to promote user groups and
industry associations to increase end-user awareness and thereby, market
acceptance.
Market Reconsolidation - The Way Ahead
Companies, with a finger on the market pulse, try to recoup revenues from new
geographic regions and applications, as market conditions deteriorated due to a
slow economy. Strategic alliances and acquisitions have enabled manufacturers to
plug gaps in the product value chain. With the sluggish economy curtailing
prolific growth, the reconsolidation process is likely to continue with a strong
focus on the development of next-generation laser systems. Pre-sales and
post-sales experience coupled with increased reliability will be key features of
product differentiation in the coming years.
Industry participants are geared for the upcoming market growth as the
economy recovers. This growth will be fuelled by the demand for micro and macro
material-processing laser applications that are widely utilized by the medical,
automotive, fabrication and semiconductor industries. Manufacturers should keep
track of the dynamic market conditions and understand the geographic
polarizations that have emerged in terms of specializations, technologies, and
customer base to leverage emerging opportunities.
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