Laser Applications Enter New Tracks: From Advanced Packaging to Controlled Nuclear Fusion, Billions in Incremental Markets Are Being Activated

The Driving Force Shifts: From Equipment to Application

Entering 2026, the growth driver of the laser industry has shifted from the equipment side to the application side. Semiconductor manufacturing upgrades, new energy capacity expansion, and the build‑out of AI computing infrastructure are building a multi‑engine growth flywheel for the industry. In 2025, China‘s domestic laser equipment market reached RMB 168 billion, with a five‑year compound annual growth rate of 12.3%.

Lasers are evolving from a core power source into the “optical edge” of high‑end manufacturing. Advances in power, pulse width, wavelength, and integration directly affect trillions of yuan in downstream manufacturing industries. Breakthroughs in domestic laser crystals, specialty optical fibers, and precision components are becoming the foundational pillars of the laser industry’s resilience.

Mid‑Infrared Lasers Open New Space in Medical and Advanced Manufacturing

At the research frontier, mid‑infrared laser technology is also achieving critical breakthroughs. The Anhui Institute of Optics and Fine Mechanics, Hefei Institutes of Physical Science, Chinese Academy of Sciences, has made progress in 2.7‑micron (µm) high‑energy and Q‑switched laser performance, achieving the highest Q‑switched and free‑running pulse energies among LD‑pumped mid‑infrared erbium‑doped solid‑state lasers. The results were published in Optics Express.

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