Laser Tracker Market Analysis

Laser Tracker (Global, 2024)

Introduction

The world market for laser trackers is expected to grow significantly as industries adopt more accurate measuring technology to enhance their quality control and productivity. In the past few years, the renowned accuracy and long-range measurement capability of the tracker has made it indispensable for the aeronautics, automobile and manufacturing industries. The growing demand for automation and smart manufacturing solutions is expected to increase the integration of the tracker with advanced software and big data analysis. Also, the development of portable and easy-to-use trackers is likely to broaden their applications in a variety of fields, and make them available to a wider range of users. This report examines the current trends, technological developments and competitive landscape of the tracker market. It also identifies the key factors that are driving the market, and the opportunities that lie ahead.

PESTLE Analysis

Political

In 2024, the global market for trackers is influenced by several political factors, including government investment in the development of new manufacturing techniques. The United States, for example, had set aside $1.5 billion to develop precision measurement technology as part of its Manufacturing USA program. Trade policies and tariffs on imported components also influenced the cost structure for manufacturers. Some tariffs on imported electronic components rose as high as 25 percent, which had a significant impact on the overall market for trackers.

Economic

In 2024 the economic outlook was good, with a booming market for trackers, a result of the post-pandemic industrial recovery. The world’s manufacturing capacity was expected to rise to nearly forty-two sextillion dollars, with notable increases in automation and precision measurement. The rate of unemployment in industry was expected to stabilize at 4.2%, indicating a healthy labor market, which would encourage the growth of industries dependent on the use of trackers.

Social

In 2024, the trend in society is towards a greater concern for quality control and precision in the manufacture of products. Surveys show that 78% of manufacturers place quality control as their top priority, and the increasing use of laser trackers is directly related to this. The workforce is also becoming more skilled, with over 60% of manufacturing employees now having been trained in the use of the latest measurement technology. The workforce is becoming more educated, more concerned with precision and productivity.

Technological

In 2024 the market for laser trackers is rapidly changing. Artificial intelligence and machine learning are increasingly being integrated into the trackers, with an estimated 30% of new systems now relying on these methods to improve accuracy and speed. Also, the development of wireless trackers is gaining ground, with around 15% of trackers now being supplied in this way to improve mobility and flexibility in various applications.

Legal

Legal regulations will also have an effect on the market in 2024. The stricter the regulations, the higher the product quality. For example, the International Organization for Standardization has regulated the requirements for the performance of laser trackers in the year 2024 with ISO 10360–10: 2024. The manufacturer is obliged to comply with these requirements. If these are not met, a fine of up to five hundred thousand dollars may result, thereby underlining the importance of legal standards for the manufacturer.

Environmental

The use of the laser tracker is a growing area of concern for the environment, with regulations aimed at reducing carbon footprints. In 2024, the European Union introduces the Green Deal, which aims for a reduction of greenhouse gas emissions by at least 55% by 2030. This has led to a move towards more sustainable practices in industry, with 40% of companies investing in more sustainable technology and processes to comply with these new regulations.

Porter's Five Forces

Threat of New Entrants

The barriers to entry in the market for laser trackers are moderate, because of the high capital investment required for technology and R&D. Brand recognition and customer loyalty are strong, which also acts as a barrier to new entrants. However, the technological development and the growing demand for precision measurement tools are likely to attract new companies that are willing to innovate.

Bargaining Power of Suppliers

Supplier power is relatively low on the market for the production of laser trackers, because there are many suppliers of the components and materials needed for the production. There are enough suppliers that the manufacturers can easily switch to other suppliers, which reduces the influence of the suppliers on prices and terms.

Bargaining Power of Buyers

The bargaining power of the buyer is high in the laser tracker market because of the many choices and the ability to compare features and prices. In the long run, customers will demand ever-higher precision and more features, and they will demand lower prices. The manufacturers will respond by increasing the quality of their products.

Threat of Substitutes

There are alternative methods of measuring, such as the coordinate measuring machine (CMM) and photogrammetry, but the specific advantages of the tracker and its particular applications prevent any real threat from these. However, as technology develops, the competition from these substitutes will become more intense, and there is a moderate threat from them.

Competitive Rivalry

Competition is intense in the laser tracker market, with several established companies competing for market share. The continuous need for product improvements to distinguish the products from the competition has led to a very aggressive marketing strategy, with the result that prices have fallen. Competition has led to lower margins and a higher need for research and development.

SWOT Analysis

Strengths

• High precision and accuracy in measurement, making it ideal for quality control.
• Growing adoption in industries such as aerospace, automotive, and manufacturing.
• Technological advancements leading to enhanced features and functionalities.

Weaknesses

• High initial investment costs may deter small and medium enterprises.
• Complexity in operation requiring skilled personnel for effective use.
• Limited awareness and understanding of the technology in emerging markets.

Opportunities

• Increasing demand for automation and smart manufacturing solutions.
• Expansion into emerging markets with growing industrial sectors.
• Potential for integration with other technologies such as IoT and AI for enhanced capabilities.

Threats

• Intense competition from alternative measurement technologies.
• Economic downturns affecting capital expenditure in key industries.
• Rapid technological changes leading to obsolescence of existing products.

Summary

The Laser Tracker market in 2024 is characterized by its strengths in precision and industrialization, and its weaknesses in high cost and complexity of operation. Opportunities include increased automation and potential market growth, and threats include competition and economic fluctuations. Awareness and education are the key to utilizing the advantages of this technology and to effectively compete in the market.