1. Competitive factions in the fiber laser industry

Fiber laser refers to a laser that uses rare earth-doped glass fiber as a gain medium. It can be used in a variety of fields such as material processing, communication, sensing, research and development, military, and medical treatment. After years of development, companies in my country's fiber laser industry have been able to firmly occupy a certain domestic market and compete with international leading brands.

At present, my country's fiber lasers are mainly divided into two factions, namely domestic fiber lasers represented by Raycus Laser and Maxphotonics, and international fiber laser leading companies represented by IPG of the United States and SPI of the United Kingdom.

2. Regional competition analysis of China's fiber laser industry

From Qicha.com, we searched for "fiber laser" as the keyword and found the regional distribution of fiber laser enterprises. From the regional distribution of enterprises in my country's fiber laser industry chain, they are mainly distributed in Guangdong Province, followed by Jiangsu, Hubei and other places; the number of enterprises in other places is relatively small.

Note: Qichamao data is up to July 4, 2024

Judging from the distribution of representative listed companies, Guangdong Province has many representative companies, such as JPT, Optoelectronics, Lianying Laser, Maxphotonics, and Han's Laser.

3. Market concentration of China’s fiber laser industry

China is the world's largest single laser market, and it is still the largest single market for industrial laser products, accounting for about 1/3 of the industrial lasers (mainly fiber lasers), and the proportion is still increasing. Most industrial lasers are produced in China or exported to China. According to the "2024 China Laser Industry Development Report" released by the Wuhan Documentation and Information Center of the Chinese Academy of Sciences, the overall sales volume of my country's fiber laser market will steadily increase in 2023, reaching 13.59 billion yuan, a year-on-year increase of 10.8%. Among them, IPG's market size decreased by 25% year-on-year, while Raycus Laser and Chuangxin Laser both achieved growth, both surpassing IPG.

According to the market share calculation of my country's fiber laser industry, in 2023, the market concentration of my country's fiber laser industry CR2 will be close to 50%, CR3 will exceed 60%, and CR5 will exceed 75%. It can be seen that the market concentration of my country's fiber laser industry is relatively high, the industry competition pattern is relatively stable, and the leading enterprises have obvious advantages.

4. Enterprise layout and competitiveness evaluation of China's fiber laser industry

Judging from the product layout of representative fiber laser companies in my country, in 2023, Raycus Laser's fiber laser business revenue will exceed 3 billion yuan, which is highly competitive.

Note: The full score for business competitiveness is ★★★★★, and ☆ is half a star.

5. Summary of the competitive status of China's fiber laser industry

From the perspective of the five-force competition model, at present, some core components of China's fiber laser industry still need to be imported from overseas in large quantities, and the market share of overseas leading manufacturers is relatively high. Overall, the bargaining power of upstream suppliers in the industry is strong; the buyers in the fiber laser industry are mostly backward integrated and the concentration of buyers is high, and the degree of product differentiation of suppliers is small, so consumers have strong bargaining power.

Although the demand prospects for fiber lasers are broad and the industry is attractive, fiber lasers are technology-intensive and capital-intensive industries with high barriers to entry and general threats from potential entrants in the industry; since fiber lasers are core components of the laser industry, they have excellent performance in cutting, welding, marking, medical treatment and other fields, so the threat of substitutes is small; currently, there are few competitors in the fiber laser industry, and the industry market concentration is high, the barriers to entry are large and the industry growth rate is high. Overall, the degree of competition among existing companies is generally fierce.

Based on the above analysis, the competition in various aspects is quantified, 5 represents the maximum and 0 represents the minimum. The current five-force competition in my country's fiber laser industry is summarized as follows:

For more research and analysis on this industry, please refer to the "China Fiber Laser Industry Market Outlook and Investment Strategy Planning Analysis Report" by Forward-looking Industry Research Institute.