Crossing the Red Sea: Welding Applications Surpass Cutting for the First Time
In 2024, a profound and historic shift quietly took place in China’s industrial fiber laser market.
That year, the number of fiber laser units deployed for welding applications accounted for 60% of the total market share, officially overtaking laser cutting, which made up the remaining 40%. This milestone marked the end of one era and the dawn of another: laser cutting, which had made remarkable contributions with its ability to cut through metal with unmatched speed and precision, stepped down from its dominant throne; while laser welding, which focuses on high-precision joining, officially took the torch to drive the future development of the industry. Having navigated the red sea of laser cutting, China’s fiber laser industry now stands on the horizon of the welding market.
The Red Sea of Cutting: Reaching the Limit of Growth
Rewind the clock five years, and laser cutting was the undisputed star of the industry. Leveraging its advantages in speed and precision over traditional plasma and flame cutting, it rapidly swept across numerous sectors such as sheet metal processing and mechanical equipment manufacturing, spawning a massive equipment market and an era of prosperity.
However, as technological barriers gradually lowered—especially with the successful localization of core laser components—the entry threshold for the market vanished. A flood of enterprises poured in, leading to rampant product homogenization. Market competition quickly shifted from technological rivalry to cutthroat price wars. Average product prices plummeted year after year, and gross profit margins followed suit. The market for standard 3 kW and below laser cutting machines became practically unprofitable. What was once a fertile ground nurturing countless laser enterprises has now turned into a red sea characterized by meager profits and fierce competition.
For fiber laser manufacturers, lingering in the cutting market means being trapped in a game of internal friction within the existing stock, facing stagnant growth and sustained profit pressure. Seeking a second growth curve is no longer a proactive precaution, but a matter of survival.
The Rise of Welding: A Synergy of Policy Support and Technological Advancement
Just as the cutting market reached an impasse, welding applications took over as the new growth driver. Its rise is the result of a perfect alignment of favorable policies, technological accessibility and proactive corporate strategies.
“Favorable Policies”: Strong National Industrial Support
The “timely policy boost” comes from China’s vigorous support for strategic emerging industries such as new energy vehicles (NEVs) and high-end equipment manufacturing. This has spurred an enormous demand for precision welding technologies. From the welding of lithium battery cells, modules and PACK assemblies, to the high-strength welding applications of hairpin motors and battery trays, laser welding has become an indispensable process, thanks to its high efficiency, precision and compatibility with automation. This has created a golden growth track for the explosive expansion of laser welding applications.
“Technological Accessibility”: Democratization of Laser Welding Technology
The “geographical advantage” lies in the popularization of welding technology. Once bulky and cumbersome, laser welding has successfully penetrated the vast small and medium-sized enterprise (SME) market through the innovative form of handheld laser welders. Easy to operate and relatively cost-effective, handheld laser welders have significantly lowered the user threshold, emerging as a powerful alternative to traditional processes like argon arc welding. In 2024, handheld welding accounted for 42% of total welding applications, serving as the absolute driving force behind welding’s market share surpassing that of cutting.
“Proactive Corporate Strategies”: Strategic Shift by Laser Manufacturers
The “human synergy” stems from the active strategic transformation of laser enterprises. Confronted with the red sea of cutting, mainstream manufacturers have shifted their R&D and marketing resources to welding in droves. Beyond supplying lasers, they are committed to developing comprehensive solutions such as welding process databases for different materials and intelligent weld seam tracking systems, continuously enhancing the stability, reliability and ease of use of laser welding. This proactive strategic pivot has accelerated the maturation and popularization of welding applications.
Beyond the Surpassing: Market Stratification and Future Challenges in Welding
Welding’s numerical surpassing of cutting is merely a new starting point. Beneath the surface of this market lies a clear power-based stratification and application segmentation map, testing the strategic resolve of every participant.
- 1–3 kW: The Largest Segment This is the primary battlefield for handheld welding, where competition is fiercest. The market landscape is already mirroring the past trajectory of the cutting market, gradually sliding toward price competition. Success here hinges on scale, distribution channels and cost control capabilities.
- 4–6 kW: Fast-Growing Segment This is the core area for NEV power battery welding, predominantly utilizing dynamic spot lasers with adjustable beam and controllable energy distribution. With higher technological barriers and relatively substantial profit margins, this segment has become a must-contest arena for technology-driven manufacturers.
- 6 kW to 10,000 kW: High-Potential Segment Applied in heavy industries such as automotive body-in-white manufacturing, rail transit and shipbuilding, this segment demands exceptional laser power, brightness, stability and system integration capabilities. It represents the ultimate test of technical strength and is currently dominated by a handful of top domestic and international enterprises.
- 10,000 kW and Above: Emerging Applications Targeting fields such as machinery manufacturing, automotive body and component processing, metallurgy, electronics, chemicals, medical devices, aerospace and packaging, these high-power lasers are mainly used for deep penetration welding. Companies including Raycus Laser, Maxphotonics and Han’s Photonics have already achieved practical applications in this domain.
Thus, the welding market is undergoing the same evolution that the cutting market once experienced. If enterprises rush headlong into the handheld welding segment, they are likely to repeat the same fate of the cutting market (a trend that is already underway). The winners of the future will undoubtedly be those that can preemptively secure positions in high-value-added tracks and possess profound process expertise.
Conclusion: The Starting Gun for a New Round of Competition Has Been Fired
Welding’s surpassing of cutting is a crucial milestone marking the maturation of China’s laser industry. It signals the end of an era when a single blockbuster application could drive the growth of the entire industry, and the dawn of a new era that relies more on technological innovation, application deepening and ecological collaboration.
The focus of competition has shifted from “who can cut faster and thicker” to “who can weld more precisely, deeply and intelligently”.
To make accurate decisions in this market full of opportunities and challenges, entrepreneurs, investors and industry researchers need more detailed data support, in-depth competitive analysis and forward-looking trend judgment.
Post time: Jan-13-2026
