2016 Laser market review--a final look

March 31, 2017
2016 will go down as quite a good year for lasers, in most respects, but there were some troubling signs of problems as well.
Allen Nogee 720 5d264b0022b67

2016 will go down as quite a good year for lasers, in most respects, but there were some troubling signs of problems as well. Both Rofin and Newport were acquired by other companies and in both of their cases, in my opinion, it was because their revenue growth was lacking. Neither company was in dire shape, but both companies could benefit from a makeover, which is what these sales can offer these companies.

While 2016 was a year when some large laser companies struggled, it was also a year when many smaller laser companies did really well. In most cases, what separated the hot from the not-so-hot had to do with the markets which they were in. The more a company was a “laser company” the more it struggled, the more a company was a “medical laser company” or a “communications laser company” or even a focused “material processing laser company” the better it performed. You don’t want to be a company that sells hammers, you want to be a company that sells specialized tools to specific markets. There is a very fine distinction between the two, but a very important one nevertheless.

The best material processing segment in 2016 in terms of laser revenue growth turned out to be with the KW+ class of lasers. As a whole, this segment grew in laser revenue about 5% in 2016, quite a bit lower than the 9.5% laser revenue growth we experienced in 2015. What changed was high amount of economic uncertainty we experienced in 2016, the purchase of Rofin by Coherent which caused even more uncertainty, and the slow-down of fiber lasers purchased to replace CO2 lasers, since at this point, many that will be replaced have already been replaced.

For the full blog by Allen Nogee, click here.


About the Author

Allen Nogee | President, Laser Markets Research

Allen Nogee has over 30 years' experience in the electronics and technology industry including almost 20 years in technology market research. He has held design-engineering positions at MCI Communications, GTE, and General Electric, and senior research positions at In-Stat, NPD Group, and Strategies Unlimited.

Nogee has become a well-known and respected analyst in the area of lasers and laser applications, with his research and forecasts appearing in publications such as Laser Focus World, Industrial Laser Solutions, Optics.org, and Laser Institute of America. He has also been invited to speak at conferences such as the Conference on Lasers and Electro-Optics (CLEO), Laser Focus World's Lasers & Photonics Marketplace Seminar, the European Photonics Industry Consortium Executive Laser Meeting, and SPIE Photonics West.

Nogee has a Bachelor's degree in Electrical Engineering Technology from the Rochester Institute of Technology, and a Master's of Business Administration from Arizona State University.

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