The VCSEL for data communication market size is expected to grow from US$ 524.64 million in 2023 to US$ 1906.18 million by 2031; it is anticipated to expand at a CAGR of 17.5% from 2024 to 2031. The adoption of VCSELs in automotive electronics applications is likely to remain a key VCSEL for data communication market trends.
VCSEL for Data Communication Market Analysis
The rise of industry revolution 4.0, including technologies like automation, artificial intelligence, and the Internet of Things (IoT), has contributed to the growth of the VCSEL for data communication market.
VCSEL for Data Communication Market Overview
A Vertical-Cavity Surface Emitting Laser (VCSEL) is a semiconductor-based laser diode that produces a strong laser beam vertically from its top surface. These devices have gained popularity in a variety of sectors, notably for networking applications. VCSELs have a wavelength range of 850 nm to 1310 nm and can carry data at rates ranging from 2.125 Gbps to 150 Gbps. They provide a distinct mix of high power density, small packaging, narrow spectral breadth, and quick operation. Compared to typical laser diodes, VCSELS are less impacted by temperature variations. The vast majority of commercially available VCSELs operate at 850 nm and are particularly engineered to suit the stringent requirements of high-speed data transmission
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VCSEL for Data Communication Market: Strategic Insights
Market Size Value in US$ 284.05 Million in 2017 Market Size Value by US$ 1,135.68 Million by 2027 Growth rate CAGR of 19.7% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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VCSEL for Data Communication Market: Strategic Insights
| Market Size Value in | US$ 284.05 Million in 2017 |
| Market Size Value by | US$ 1,135.68 Million by 2027 |
| Growth rate | CAGR of 19.7% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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VCSEL for Data Communication Market Drivers and Opportunities
Surge in demand for VCSELs in data centers to Favor Market
Data centers are critical components of the Internet infrastructure, serving as storage, compute, and data access points. The need for VCSELS in data centers is rising, fueling the expansion of the VCSEL for data communication market. VCSELS are utilized in data centers for a variety of purposes, including high-speed data transfer, optical interconnects, and sensing. They have fast data speeds, low power consumption, and a small size, making them ideal for data center operations. Several reasons contribute to the increased demand for VCSELS in data centers. One of the primary causes is the expansion of the internet and the growing need for data storage and processing capacity.
Upsurge of Industry Revolution 4.0
The advent of Industry Revolution 4.0 has resulted in substantial advances in technologies such as automation, artificial intelligence, and the Internet of Things (IoT). These technologies have had a significant influence on a variety of sectors, including the VCSEL data transmission business. Industry 4.0, also known as the Fourth Industrial Revolution, is distinguished by the integration of digital, physical, and biological systems. It entails using innovative technology to develop smart factories and optimize manufacturing processes. One of the primary objectives of Industry 4.0 is to achieve IoT-enabled production optimization in smart factories. This implies that equipment, devices, and systems are connected and interact with one another over the Internet, allowing for real-time data collection and analysis.
VCSEL for Data Communication Market Report Segmentation Analysis
Key segments that contributed to the derivation of the VCSEL for Data Communication market analysis type and material.
- Based on type, the market is bifurcated into single mode and multi-mode. The multi-mode segment held a larger market share in 2023.
- Based on material, the market is bifurcated into gallium nitride, gallium arsenide, indium phosphide, and other. The gallium arsenide segment held a larger market share in 2023.
VCSEL for Data Communication Market Share Analysis by Geography
The geographic scope of the VCSEL for data communication market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. North America dominated the VCSEL for data communication market in 2023. North America has witnessed innovation in advanced technologies, which has contributed to the growth of the VCSEL for data communication market in the region. Furthermore, the increasing demand for data communication applications has fuelled the growth of the VCSEL market in North America. Data centers, in particular, have driven the demand for VCSELs, as they are a crucial component of internet infrastructure for storage, computation, and data access.
VCSEL for Data Communication Market Report Scope
VCSEL for Data Communication Market News and Recent Developments
The VCSEL for data communication market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
- In August 2023, VI Systems, in collaboration with Ruhr University in Bochum, the Institute of Electronics, Computer, and Telecommunication Engineering in Turin, and the Warsaw University of Technology, showcased the latest generation of 850nm vertical surface emitting lasers (VCSEL) at the International Conference on Transparent Optical Networks (ICTON) in Bucharest, Romania. These VCSELs are capable of intensity modulation at bandwidths of up to approximately 75GHz.
(Source: VI Systems, Press Release, 2023)
VCSEL for Data Communication Market Report Coverage and Deliverables
The "VCSEL for Data Communication Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type ; Material
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Canada, China, France, Germany, India, Italy, Japan, MEA, Mexico, Russian Federation, SAM, United Kingdom, United States
Frequently Asked Questions
The global VCSEL for data communication market is expected to reach US$ 1906.18 million by 2031.
The key players holding the majority of shares in global VCSEL for data communication are Bandwidth10, Broadcom, Inc., Hamamatsu Photonics K.K., Coherent, and Lumentum Operations LLC.
The adoption of VCSELs in automotive electronics applications is likely to remain a key VCSEL for data communication market trends.
The rise of industry revolution 4.0, which includes technologies like automation, artificial intelligence, and the Internet of Things (IoT), has contributed to the growth of the VCSEL for data communication market.
The VCSEL for data communication market size is expected to grow from US$ 524.64 million in 2023 to US$ 1906.18 million by 2031; it is anticipated to expand at a CAGR of 17.5% from 2024 to 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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