Vertical Cavity Surface Emitting Laser (VCSEL) Market- By Type (Single-Mode And Multimode), By Material (Gallium Arsenide (GAAS), Indium Phosphide (INP), Gallium Nitride (GAN)), By Application (Data Communications, Infrared Illumination, Sensing, Pumping, And Others), and By Region - Global Opportunity Analysis and Industry Forecast, 2020 – 2030

vertical cavity surface emitting laser (VCSEL) is a semiconductor based laser diode which radiates the light vertically from its upper surface. These devices having several benefits over edge emitting laser (EEL) diode such as more cost-effective, easier to experiment and more efficient by offering a wide range of applications in networking. This device operates on wavelength range 850nm to 1310nm and at transmission rate of 2.125-150Gbps. Furthermore, this laser needs less electrical current to offer a given coherent power output and also emits a slender, round beam than common aspect emitters. This makes it simpler to get the vigour from the device into an optical fiber. Furthermore, demand for this laser in consumer electronics and data communication is expected to boost the global market in the upcoming years. The global VCSEL market accounted 1 billion USD in 2020 and is anticipated to reach 6.2 billion USD by 2030 to grow at a CAGR of 20% during the forecast period.

Market Segmentation:

Based on the type, the global VCSEL market is bifurcated into single-mode and multimode. Depending on material, the market is categorized as Gallium Arsenide (GaAs), Indium Phosphide (InP), Gallium Nitride (GaN). On the basis of application, the global market is segmented data communications, infrared illumination, sensing, pumping, and others. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.  

Market Dynamics and Factors:

An increase adoption in proximity sensing, data communication and medical applications due to new features of VCSEL such as variety of package form factors, wider range of wavelength availability and small size are the major drivers for the growth of the global VCSEL market. Moreover, growing demand for laser based hard disc drives due to more power efficient, quick, and greater accuracy feature are some of the other factors which will drive the market during forecast time. Conversely, the limited data transmission range is responsible to restrain the market growth.  Additionally, rapid rise in demand for low energy VCSELs with fast switching capabilities in high-capacity data centers and servers are also boosting the growth of market during the next coming years. On the rather hand, the technological advancements in consumer electronics sector and evolution of laser-based hard disc drive technology among the population are creating immense opportunities for the market growth during forecast timeframe. However, the problem related to data transmission range is considered to be the challenge for market in upcoming years.

Geographic Analysis:

North America holds the largest market share in the global VCSEL market.  The growth in enterprise mobility and extensive wireless connectivity in some countries such as the U.S., Canada, and Mexico are responsible to the growth of the market in this region. An innovation in advanced technologies and growth in data communication application are creating immense growth opportunities for the market in this region. In addition, Asia pacific held the fastest market share due to increasing data centers and also increasing demand for consumer electronic devices and premium automobiles. Furthermore, ASPC witnesses the highest growth rate during the forecast time frame due to lucrative opportunities offered by countries including China, India, Singapore, South Korea, and Japan. These countries are emerging as hubs for data centers owing to advanced telecom infrastructure and support from government. Europe is expected to significant growth in the global market due to significant use of tablets and mobile devices which led to the rise in adoption of gesture recognition technology.

Competitive Scenario:

The key players of global VCSEL markets are Lumentum, Finisar, Hamamatsu, Broadcom, Princeton Optronics, Vixar, Philips Photonics, Alight Technologies A/S, Avago Technologies, Finisar Corporation, and Ultra Communications Inc.

Vertical Cavity Surface Emitting Laser (VCSEL) Market Report Scope