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

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

Vertical Cavity Surface Emitting Laser (VCSEL) Market

• 
  CAGR (2023 - 2031)

  17.1%
• Market Size 2023
  US$ 1.56 Billion
• Market Size 2031
  US$ 5.53 Billion

Market Dynamics

GROWTH DRIVERS

• Rise in Internet Penetration and loT Devices

FUTURE TRENDS

• Miniaturization in electronics

OPPORTUNITIES

• Expanding Medical Device Industry

Key Players

• 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

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Single Mode and Multi-Mode

Material

• Gallium Arsenide
• Indium Phosphide

Data Rate

• Up to 10 GBPS
• 10.1 to 25 GBPS
• Above 25 GBPS

Wavelength

• Red
• Near Infrared
• Short Wave Infrared

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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 Report Scope

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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