Zhongtai: Laser engraving, an emerging track, is accelerating its growth; domestically made smart manufacturing leads the way overseas.

Zhongtai released a research report stating that the global consumer-grade laser engraving market has entered a period of accelerated penetration, with a compound annual growth rate of 21.0%, making it a core incremental track for the laser industry's extension from industrial to consumer applications. This growth is driven by a two-way resonance between supply-side domestic substitution breakthroughs and demand-side scenario expansion. Upstream lasers and galvanometers are where the core value of the industry chain lies. The downstream consumer-grade laser engraving market has formed a clear landscape of "top-tier leadership + diversified competition." Zhongtai's main views are as follows: The consumer-grade laser engraving market is growing rapidly, with demand released by overseas scenario adaptation The global consumer-grade laser engraving market has entered a period of accelerated penetration. The global consumer-grade laser engraving market size is estimated at approximately US$1 billion in 2026 and is expected to grow to US$2.2 billion by 2030. With a compound annual growth rate of 21.0%, it has become a core incremental track for the laser industry's extension from industrial to consumer applications. This growth is driven by a two-way resonance between supply-side domestic substitution breakthroughs and demand-side scenario expansion. The core of consumer-grade laser engraving companies going overseas lies in achieving deep adaptation between supply capabilities and diversified overseas scenario demand. Supply side: most core industry players are concentrated in Shenzhen, leveraging the advantages of regional industrial supporting facilities, with products primarily sold in overseas markets; Demand side: the low-cost, highly integrated, and customized production model of laser engraving allows it to adapt to multiple needs across different scenarios. First, personal hobby creation, meeting enthusiasts' needs for DIY handmade crafts and personalized gift making; second, commercial customization, used for cultural and creative souvenirs, small-batch orders of corporate gifts, or on-site instant processing of souvenirs at markets and scenic spots; third, education and training and sample prototyping, serving maker education at schools. Industry chain value is concentrated upstream, domestic substitution continues to deepen, with focus on lasers and galvanometers Upstream lasers and galvanometers are where the core value of the industry chain lies. Laser modules account for about half of the total cost of the whole machine, and the domestic substitution process has shifted from "scale supply" to "performance catch-up": lasers, as the core light source of equipment, have domestic manufacturers such as Shenzhen JPT Opto-Electronics and Wuhan Raycus Fiber Laser Technologies achieving mass supply in mainstream power ranges, with technical levels gradually approaching international standards; galvanometers determine engraving precision and efficiency, and Beijing JCZ Technology, a leading domestic laser galvanometer company, leads in market share and is accelerating substitution of overseas brands. Evolution trends of consumer-grade laser engraving products: In terms of lasers, top brands such as xTool benchmark their high-end models against industrial-grade products, focusing on high-power performance, directly driving premium orders for high-power lasers, while mid- and small-brand entry-level models pursuing volume generate demand for cost-effective products, driving mass shipments of conventional lasers; in terms of galvanometers, downstream requirements for improved engraving precision make precision galvanometers the preferred choice for top-tier high-end models. The downstream consumer-grade laser engraving market has formed a clear landscape of "top-tier leadership + diversified competition" xTool occupies the first tier of the market. Officially established in 2021, it has established itself as an industry benchmark through a high-end premium route and DTC global channel layout, with its market share in core overseas markets firmly ranking first globally. Public information shows that the company's operating revenue in 2024 was RMB2.475 billion, and revenue in the first three quarters of 2025 increased by 18.6% year-on-year to RMB1.777 billion; on a GMV basis, its market share in the global consumer-grade laser engraving and cutting machine segment reached 47% in the first three quarters of 2025, six times the size of the second-ranked player. The second tier of the global consumer-grade laser engraving market is mainly composed of Chinese overseas brands such as LaserPecker, Wainlux, Atomstack, and Ortur, with relatively fragmented shares. These companies rely on differentiated product positioning and high cost-effectiveness to capture niche tracks, focusing respectively on portable handheld and entry-level desktop models, targeting individual enthusiasts and small micro-merchants, and lagging behind the first tier in software ecosystem and brand strength. 3D printing companies are making cross-sector forays, bringing new players to the laser engraving track Bambu Lab and CREALITY in the 3D printing field are accelerating their layout in the laser engraving market. Bambu Lab has launched the H2D device integrating 3D printing and laser engraving functions on its official website; it has also launched its first standalone single-category laser engraving machine, the R1, which features a 55W high-power CO2 laser and dual cameras to meet high-precision processing needs. CREALITY continues to increase its investment in the laser engraving business, launching models such as the Falcon A1 Pro to expand application scenarios. This cross-sector trend will further enrich the market competition ecosystem, especially bringing new competitive pressure to the leading brand xTool, driving industry technological iteration and market expansion. Investment recommendations: Focus on lasers: Shenzhen JPT Opto-Electronics, Wuhan Raycus Fiber Laser Technologies; galvanometers: Beijing JCZ Technology. Risk warnings: Downstream expansion of consumer-grade laser engraving equipment falling short of expectations; risk of deterioration in the macroeconomic environment; trade friction risks in overseas business; risk of intensified market competition, and risk of untimely updates to research report information.