Vertical Cavity Surface Emitting Laser (VCSEL) Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

Vertical Cavity Surface Emitting Laser (VCSEL) Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Single Mode and Multi-Mode), Material (Gallium Arsenide (GaAs), Indium Phosphide (InP), and Others), Data Rate (Up to 10 GBPS, 10.1 to 25 GBPS, and Above 25 GBPS), Wavelength (Red, Near Infrared (NIR), and Short Wave Infrared (SWIR)), Application (Sensing, Data Communication, Industrial Heating & Printing, and Others), and End-use Industry (Mobile & Consumer, Telecom & Infrastructure, Industrial, Defense & Aerospace, Medical, and Automotive & Mobility), and Geography

  • Report Code : TIPEL00002373
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 239
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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.

Vertical Cavity Surface Emitting Laser (VCSEL) Market Analysis

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) Market Overview

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.

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Vertical Cavity Surface Emitting Laser (VCSEL) Market: Strategic Insights

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Vertical Cavity Surface Emitting Laser (VCSEL) Market Drivers and Opportunities

Rise in Internet Penetration and loT Devices to Favor Market

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.

Expanding Medical Device Industry

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.

Vertical Cavity Surface Emitting Laser (VCSEL) Market Report Segmentation Analysis

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.

  • Based on type, the vertical cavity surface emitting laser (VCSEL) market is divided into single mode and multi-mode. The single mode segment held a larger market share in 2023.
  • By material, the market is segmented into gallium arsenide (GaAs), indium phosphide (InP), and others. The gallium arsenide (GaAs) segment held a larger market share in 2023.
  • In terms of data rate, the market is divided into up to 10 GBPS, 10.1 to 25 GBPS, and above 25 GBPS. The above 25 GBPS segment held a larger market share in 2023.
  • On the basis of wavelength, the vertical cavity surface emitting laser (VCSEL) market is segmented into red, near infrared (NIR), and short wave infrared (SWIR). The near infrared (NIR) segment held a larger market share in 2023.
  • Based on application, the market is segmented into sensing, data communication, industrial heating & printing, and others. The sensing segment held a larger market share in 2023.
  • By end-use industry, the market is divided into mobile & consumer, telecom & infrastructure, industrial, defense & aerospace, medical, and automotive & mobility. The mobile & consumer segment held a larger market share in 2023.

Vertical Cavity Surface Emitting Laser (VCSEL) Market Share Analysis by Geography

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.

Vertical Cavity Surface Emitting Laser (VCSEL) Market Regional Insights

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.

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Vertical Cavity Surface Emitting Laser (VCSEL) Market Market Report Scope

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
  • Single Mode and Multi-Mode
By Material
  • Gallium Arsenide
  • Indium Phosphide
By Data Rate
  • Up to 10 GBPS
  • 10.1 to 25 GBPS
  • Above 25 GBPS
By Wavelength
  • Red
  • Near Infrared
  • Short Wave Infrared
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Lumentum Holdings Inc
  • Coherent Corp
  • TRUMPF SE + Co KG
  • Broadcom Inc
  • ams-OSRAM AG
  • Vertilite Co Ltd
  • Leonardo SpA
  • IQE Plc
  • VERTILAS GmbH
  • Hamamatsu Photonics KK
  • Market Players Density: Understanding Its Impact on Business Dynamics

    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:

    1. Lumentum Holdings Inc
    2. Coherent Corp
    3. TRUMPF SE + Co KG
    4. Broadcom Inc
    5. ams-OSRAM AG
    6. Vertilite Co Ltd

    Disclaimer: The companies listed above are not ranked in any particular order.


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    Vertical Cavity Surface Emitting Laser (VCSEL) Market News and Recent Developments

    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:

    • TRUMPF demonstrated outstanding results regarding the efficiency of infrared laser components with long wavelengths beyond 1300 nm on an industrial-grade manufacturing level. This makes TRUMPF one step further towards mass production of indium-phosphide-based (InP) VCSELs in the range from 1300 nm to 2000 nm. (Source: TRUMPF SE + Co KG, Company Website, January 2023).
    • The introduced product M30 reference design combines the M52-100 multi-junction vertical cavity surface emitting laser (VCSEL) array from Lumentum with the LCM beam steering chip from Lumotive. (Source: Lumentum Holdings Inc, Company Website, January 2023).

    Vertical Cavity Surface Emitting Laser (VCSEL) Market Report Coverage and Deliverables

    The “Vertical Cavity Surface Emitting Laser (VCSEL) Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

    • Vertical cavity surface emitting laser (VCSEL) market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Vertical cavity surface emitting laser (VCSEL) market trends as well as market dynamics such as drivers, restraints, and key opportunities
    • Detailed PEST/Porter’s Five Forces and SWOT analysis
    • Vertical cavity surface emitting laser (VCSEL) market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the vertical cavity surface emitting laser (VCSEL) market
    • Detailed company profiles
    • Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
    • PEST and SWOT Analysis
    • Market Size Value / Volume - Global, Regional, Country
    • Industry and Competitive Landscape
    • Excel Dataset
    Report Coverage

    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered

    Segment Covered

    Type, Material, Data Rate, Wavelength, Application, and End-use Industry

    Regional Scope

    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope

    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions


    What would be the estimated value of the vertical cavity surface emitting laser (VCSEL) market by 2031?

    The global vertical cavity surface emitting laser (VCSEL) market is expected to reach US$ 5.53 billion by 2031.

    What is the expected CAGR of the vertical cavity surface emitting laser (VCSEL) market?

    The global vertical cavity surface emitting laser (VCSEL) market is estimated to register a CAGR of 17.1% during the forecast period 2023–2031.

    Which region dominated the vertical cavity surface emitting laser (VCSEL) market in 2023?

    North America dominated the vertical cavity surface emitting laser (VCSEL) market in 2023.

    Which are the leading players operating in the vertical cavity surface emitting laser (VCSEL) market?

    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.

    What are the future trends of the vertical cavity surface emitting laser (VCSEL) market?

    Miniaturization in electronics to play a significant role in the global vertical cavity surface emitting laser (VCSEL) market in the coming years.

    What are the driving factors impacting the vertical cavity surface emitting laser (VCSEL) market?

    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.

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    The List of Compnies - Vertical Cavity Surface Emitting Laser (VCSEL) Market

    1. Lumentum Holdings Inc
    2. Coherent Corp
    3. TRUMPF SE + Co KG
    4. Broadcom Inc
    5. ams-OSRAM AG
    6. Vertilite Co Ltd
    7. Leonardo SpA
    8. IQE Plc
    9. VERTILAS GmbH
    10. Hamamatsu Photonics KK