Impact of COVID-19 on VCSEL Market
The novel COVID-19 has spread from China to all the countries of the world. The declaration of the COVID-19 as a pandemic has resulted in a lockdown and stopped the operational activities of the businesses. The outbreak of COVID-19 profoundly impacts the VCSEL market. VCSEL is a type of laser diode which produces a high beam light quality. The factors driving the growth of the market include increasing technological advancement in consumer electronics and automotive applications. Companies are focusing on the advancement of the products and investing heavily in R&D activities to meet the needs of the customer. However, the COVID-19 pandemic has changed the entire scenario. The effects of the epidemic have slowed down the economy of various nations, due to which the companies have to relook on their strategies in order to deal with the revenue losses and fight against COVID-19. The lockdown imposed by the government due to pandemic has caused a pause or delay in the production of consumer electronics products and cars. This has negatively impacted the growth of the market. The continuation of the lockdown in the Q2 and Q3 quarter of 2020 would lead to the closing of manufacturing activities owing to the disruption in the supply chain activities, unavailability of the workforce, and revenue loss.
Moreover, the increase in the demand for data communication is driving the need for the vertical-cavity surface-emitting laser (VCSEL) market. Data communication is the exchange of data between two devices through the transmission medium. Besides, various companies are investing heavily in the expansion of the data centers across the globe, which is expected to drive the market growth. However, the spread of COVID-19 has temporarily closed the company’s operations. Post pandemic, the expansion of data centers, and the development of advanced products are expected to drive the market demand.
Estimated Worldwide Automotive Production from 2015 to 2019 (In Million Vehicles)