Market Survey

Analysis of the laser industry in China

| Editor: Susanne Hertenberger

There is tremendous potential for the laser industry in China.
There is tremendous potential for the laser industry in China. (Source: CC0 Public Domain)

China - There were great changes in the laser industry in China from 2015-2016, for example, many acquisitions or crucial scientific and technical developments took place.

Numerous laser enterprises accessed the capital market, including U.W.Laser, JG Technology, Laser-PWR, Jiatai Laser, Bodor Laser, Tianhong Laser and Miracle Laser and more. Another change was the significantly accelerated industry merger and integration, with main acquisition cases including that of JK Lasers by the Trumpf Group, Yifi Laser by Tianhong Laser, Newport Corporation by MKS Instruments, the merging of Coherent and the Rofin Group, the acquisition of DNE Laser by Bystronic and Strong Laser by Yawei Holding. The series of acquisitions not only turns the original competitors to be partners but also integrate the enterprises to work in the sector, perfecting the industry chain and refining the market.

The technology-intensive industry featured high standards and the development of laser depends on two conditions: science and technology, and application markets, which are the same as in the markets abroad. Even though the national territorial area is vast, the development area of the laser industry is relatively concentrated, mainly in Pearl River Delta, Wuhan, Yangtze River Delta and Circum-Bohai-Sea, with these four areas accounting for 90%, and the remaining being distributed in Chengdu, Chongqing, Xi'an, Hefei, Changchun and Fuzhou.

Outputs of laser industry

According to preliminary statistics, the gross output of the laser industry in China in 2015 was up to RMB 45.67 billion. As to the enterprises with wide business scopes and diversified business activities like in Han's Laser and HG Technology, apart from laser activities, some non-laser business was carried out too. According to the survey data, the proportion of the laser industry in the Guangdong Province was the largest, accounting for 31%, followed by Hubei (21%), and both together made more than 50%. In the last 5 years, the output value of the laser sector in the Guangdong Province has achieved vigorous growth, with a gross output surpassing that of the Hubei Province, and is gradually expanding the gap. The pure output value of laser in Shenzhen in 2015 was RMB 11 billion, far more than that of Wuhan. Even though the laser industry in Wuhan obtained energetic support from the local government, it was still confronted with a bottleneck due to it being a distance from the coastal laser application market. In contrast, the Shenzhen government made explicit measures to support the development of the laser industry, including building the Laser Industry Parks for Han's Laser and Maxlaser in the last two years, which may further expand the output value of laser between Shenzhen and Wuhan in the following three years.

Tremendous potential for the laser industry

The laser industry in Zhejiang and Jiangsu is another promising sector. Since Zhejiang and Jiangsu belong to the region with advanced manufacturing industry, there is still tremendous potential for the laser industry. According to the development trend in the recent years, the laser industry in Jiangsu is in the speed-up development stage, and some enterprises have developed to become medium-scale enterprises, and are even listed in the National Equities Exchange and Quotations (NEEQ). It is expected to maintain the rapid development status in future, with the market proportion further increasing, finally forming the tripartite market layout made up of Southern, Central and Eastern China.

According to the tough statistics, the proportion of laser device and laser optical elements account for 20%, and that of laser processing units and services outputs accounts for 80% recording the current laser output at RMB 46 billion.


Source: Military and Civilian Integration Industrial Investment Alliance

The article appeared in www.maschinenmarkt.international.

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