The vertical cavity surface emitting laser (VCSEL) market size is projected to reach US$ 4.663 billion by 2030 from US$ 1.361 billion in 2022. The market is expected to register a CAGR of 17.0% during 2023–2030. Miniaturization in electronics is likely to remain key trends in the market.
Rise in internet penetration and loT devices and emerging telecommunication industry are driving the market. The market is projected to expand at a significant pace during the forecast period, due to the rising adoption of VCSEL for 3D sensing applications. Moreover, expanding medical device industry and increasing number of data centers are creating lucrative opportunities for the market.
Vertical cavity surface emitting laser (VCSEL) is a type of semiconductor laser diode that generates a laser beam perpendicular to the surface, as opposed to edge-emitting laser diodes, which emanate from surfaces generated by cleaving individual chips from a wafer. Thus, VCSEL outperforms edge-emitting laser diodes. The edge emitter laser cannot be evaluated until the deposition process is completed; if a flaw is discovered later, repairs can be time-consuming and costly. Signal processing is a crucial functionality of VCSEL devices for sensing and communications applications, which drives the demand for VCSEL in sensing applications.
Due to the rise in internet penetration and loT devices, the need for high-speed data communication is increasing. Efficient networking and data communication provides seamless data exchange between any two points in the world. VCSEL are the ideal optical sources for data communication and sensing. Due to lower power consumption, it is a promising source for photonic integrated circuits, contributing to its adoption for data communication networks. To cater to the rising demand, market players are launching new products. In February 2023, US-based Coherent Corp. launched 100G PAM4 VCSEL and photodiode (PD) arrays for 800G short-reach datacom pluggable transceivers and active optical cables (AOCs). These lower power VCSEL and PD enable lower energy consumption per bit, providing efficient data communications. In addition, the presence of several VCSEL market players, such as Lumentum Operations LLC, Coherent Corp, Broadcom, and RPMC Lasers, will likely contribute to the VCSEL market growth.
According to the International Trade Administration in August 2022, the medical devices industry in Canada is highly diversified and homes several large, small, and medium-sized enterprises (SMEs). Some of these include INNOVA Medical, Clarius, Starkey, and BIOS Medical. Due to the wide presence of medical device manufacturers, Canada's medical device market was valued at approximately US$ 6.5 billion in 2021 and is estimated to expand by 2.1% annually until 2026. The attribute of VCSEL to provide a broader range of available wavelengths improves the performance and reliability of medical devices. Thus, the rising medical device market encourages the demand for VCSEL, propelling its growth during the forecast period.
Key segments that contributed to the derivation of the vertical cavity surface emitting laser (VCSEL) market analysis are type, material, data rate, wavelength, application, and end-use industry.
The geographic scope of the vertical cavity surface emitting laser (VCSEL) market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The market in Asia Pacific is projected to expand during the forecast period, due to the growing demand for semiconductors among various industries. China is one of the leading players in the semiconductor industry due to several government initiatives, such as “Made in China 2025,” to promote local manufacturing across the country. China's semiconductor industry comprises various companies contributing to the growing demand for semiconductors in multiple sectors, such as automotive, consumer electronics, telecommunications, and aerospace. Some of the major electronics manufacturers in the country include BYD Electronics and Huawei Technologies Co., Ltd. Thus, electronic companies invest in procuring technologies from China to boost local production, contributing to market growth.
The regional trends and factors influencing the Vertical Cavity Surface Emitting Laser (VCSEL) Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Vertical Cavity Surface Emitting Laser (VCSEL) Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1.56 Billion |
| Market Size by 2031 | US$ 5.53 Billion |
| Global CAGR (2023 - 2031) | 17.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Vertical Cavity Surface Emitting Laser (VCSEL) Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Vertical Cavity Surface Emitting Laser (VCSEL) Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The vertical cavity surface emitting laser (VCSEL) market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the vertical cavity surface emitting laser (VCSEL) market are listed below:
The “Vertical Cavity Surface Emitting Laser (VCSEL) Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The global vertical cavity surface emitting laser (VCSEL) market is expected to reach US$ 5.53 billion by 2031.
The global vertical cavity surface emitting laser (VCSEL) market is estimated to register a CAGR of 17.1% during the forecast period 2023–2031.
North America dominated the vertical cavity surface emitting laser (VCSEL) market in 2023.
The key players holding majority shares in the global vertical cavity surface emitting laser (VCSEL) market are Lumentum Holdings Inc, Coherent Corp, TRUMPF SE + Co KG, Broadcom Inc, ams-OSRAM AG, Vertilite Co Ltd, Leonardo SpA, IQE Plc, VERTILAS GmbH, and Hamamatsu Photonics KK.
Miniaturization in electronics to play a significant role in the global vertical cavity surface emitting laser (VCSEL) market in the coming years.
Rise in internet penetration and loT devices and emerging telecommunication industry are the major factors that propel the global vertical cavity surface emitting laser (VCSEL) market.