The Zhitong Finance App learned that Zhongtai Securities released a research report saying that the global consumer-grade laser engraving market has entered a period of accelerated penetration, with a compound annual growth rate of 21.0%, becoming the core incremental track for the laser industry to extend from industry to consumer side. This growth is a two-way resonance between supply-side localization breakthroughs and demand-side scenario expansion. Upstream lasers and galvanometers are the core values of the industrial chain. The downstream consumer laser engraving market has formed a clear pattern of “head leading+diversified competition”.
The main views of Zhongtai Securities are as follows:
The consumer laser engraving market is growing at a high rate, and demand for adapting to overseas scenarios is being released
The global consumer laser engraving market has entered a period of accelerated penetration. The global consumer laser engraving market is expected to be around 1 billion US dollars in 2026, and the market size will grow to 2.2 billion US dollars in 2030. With a compound annual growth rate of 21.0%, it has become the core incremental track for the laser industry to extend from industry to consumer side. This growth is a two-way resonance between supply-side localization breakthroughs and demand-side scenario expansion.
When consumer-grade laser engraving companies go overseas, the core is to achieve a deep adaptation of supply capacity to the needs of diverse overseas scenarios. ① Supply side: Most of the core manufacturers in the industry are concentrated in Shenzhen. Relying on the supporting advantages of location and industry, the products are mainly sold in overseas markets; ② Demand side: laser engraving has a low cost, integrated and customized production model that adapts to various needs in different scenarios. The first is personal interest creation to meet the needs of enthusiasts for DIY handicrafts and personalized gift production; second, commercial customization, for small-batch orders of cultural and creative souvenirs, corporate gifts, or instant processing of souvenirs at markets and scenic spots; third, educational training and sample proofing to serve the teaching of creators in colleges and universities.
The value of the industrial chain is concentrated upstream, and localization substitution continues to be deepened, focusing on lasers and galvanometers
Upstream lasers and galvanometers are the core values of the industrial chain. Laser module costing accounts for about half of the total machine, and the localization process has moved from “large-scale supply” to “performance catch-up”: lasers are used as the core light source of equipment, and domestic manufacturers such as JP and Rayco lasers have achieved batch supply in the mainstream power segment, and the technical level is gradually approaching international standards; galvanometers determine engraving accuracy and efficiency, and the domestic laser galvanometer leader Jinzhangzi takes the lead in market share and is speeding up the replacement of overseas brands.
Trends in the evolution of consumer laser engraving products: In terms of lasers, leading brands such as xTOOL target the industrial grade, focusing on high power performance, directly driving premium orders for high-power lasers, while entry-level models of small and medium brands spur demand for cost-effective products and drive batch shipments of conventional lasers; in terms of galvanometers, downstream requirements for improved engraving accuracy make precision galvanometers the preferred choice for leading high-end models.
The downstream consumer laser engraving market has formed a clear pattern of “head leading+diversified competition”
xTool occupies the first tier of the market. It was formally established in 2021. It has established an industry benchmark through high-end premium routes and DTC global channel layout, and has steadily ranked first in the world in terms of market share in core overseas markets. According to public information, the company's revenue in 2024 was 2,475 billion yuan, and revenue for the first three quarters of 2025 increased 18.6% year-on-year to 1,777 billion yuan; according to GMV caliber, in the first three quarters of 2025, its market share in the global consumer laser engraving machine and cutting machine segment reached 47%, six times the size of the second place.
The second tier of the global consumer laser engraving market is dominated by domestic overseas brands such as LaserPecker, Wainlux, Atomstack, and Ortur. The enterprise share is relatively scattered, relying on differentiated product positioning and high cost performance to seize the segmented circuit, focusing on portable handheld and entry-level desktop models, focusing on individual enthusiasts and small and micro merchants. There is a gap with the first tier in terms of software ecology and brand power.
Cross-border layout of 3D printing companies, laser-engraved racetracks welcome new players
In the field of 3D printing, Tuozhu Technology and Creative 3D are speeding up the layout of the laser engraving market. Tuozhu Technology launched an H2D device with integrated 3D printing and laser engraving functions on its official website; it also launched the first independent single-product laser engraver R1, which is supported by a 55W high-power carbon dioxide laser and dual cameras to meet high-precision processing.
Creative 3D continues to increase its laser engraving business and expand application scenarios by launching models such as the Falcon A1 Pro. This cross-border trend will further enrich the market competition ecosystem. In particular, it will put new competitive pressure on the leading brand xTOOL, and promote technological iteration and market expansion in the industry.
Investment advice: Focus on ① Lasers: JP, Radico lasers; ② Galvanometer: Golden Orange.
Risk warning: Downstream expansion of consumer-grade laser engraving equipment falls short of expectations; risk of deterioration of the macroeconomic environment; risk of trade friction in overseas business; risk of increased risk in market industry competition, and risk of untimely updates of research information.