VCSEL Market will exhibit a CAGR of 17.1% in the forecast period of 2018-2023 and is expected to reach 4.86 Billion Million by 2023
Globally, the size of VCSEL Market is set to grow at a CAGR of 17.1% from a value of USD 1.65 Billion in 2018 to hit USD 4.86 Billion by 2027.
Vertical cavity surface-emitting laser (VCSEL) is a type of laser diode that produces a high beam light quality for small mode areas. A VCSEL includes a laser resonator that helps the diode to emit light perpendicular to the chip surface where it is deployed. Although VCSELs can have high beam quality, these generally produce less output power with a large possibility for modulation in high frequencies, making it ideal for use in optical fiber communication. VCSELs are semiconductor devices with an operating wavelength of 750–980 nm when used with gallium arsenide (GaAs) material system. This wavelength is also helpful for applications such as gas sensing and quantum wells using dilute nitrides and indium phosphide material.
The major applications of VCSEL lie in high-speed communications, data centers, precision sensing applications, enterprise networks, touchless sensing, gesture recognition, and chip-to-chip interconnects, among others. The factors responsible for the growth of the VCSEL market include the growing adoption of VCSEL in automotive electronics applications and increasing usage of VCSEL in data communications. The usage of VCSEL market also lies in two-dimensional fabrication array making in an individual die with separate light sources, increasing the power output.
The Key Players in the VCSEL Market are identified across all the major regions based on their country of origin, presence, recent key developments, product diversification, and industry expertise. Some of them are Vertilas GmbH, Santec Corporation, Vixar Inc, AMS Technologies AG, IQE PLC, II-VI Inc., Philips GmbH Photonics, Broadcom Inc., Lumentum Holdings, Finisar Corporation, Coherent Inc., TT Electronics PLC, Newport Corporation, NeoPhotonics Corporation, and Necsel Laser. These players contribute significantly to VCSEL Market growth. Apart from the top key players, the other players contribute nearly 30–40% in the VCSEL market.
The Vertical cavity surface-emitting laser (VCSEL) Market has been segmented based on Type, Material, End-User, and Region.
By Type, the VCSEL Market has been segmented into single-mode and multi-mode.
By Material, the VCSEL Market has been segmented into gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN), and others.
By end-user, the VCSEL Market is segmented into consumer electronics (mobile devices & peripherals, face recognition, cameras, and others), automotive (driver monitoring, infotainment control, air quality monitoring, LiDAR, and others), healthcare (pulse oximeter, eye tracking, and others), industrial (gas sensing, industrial printing, heating systems, and others), military (surveillance, lidar, and others), IT & telecom (data communications, active optical cables, and others), and others.
By region, the VCSEL Market is segmented into North America, Europe, Asia-Pacific, and the rest of the world.
Globally, the Vertical cavity surface-emitting laser (VCSEL) Market has been categorized into five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Among the aforementioned regions, North America dominated the VCSEL market in 2018. However, Asia-Pacific is expected to dominate the Vertical cavity surface-emitting laser (VCSEL) Market by 2023. This growth is majorly due to demand for RF amplifiers with a high rate of data transmission, higher frequency, and power leading to the adoption of the VCSEL market. Moreover, the growth of the VCSEL market are the increasing adoption of devices for energy & power applications and rising demand for IT & telecommunication equipment that use VCSEL.
VCSEL Market, USD Billion
Source: MRFR Analysis
The market players are adopting several organic and inorganic growth strategies, such as product development and launches, expansion, agreements, and contracts to improve their position and excel in the VCSEL market. In 2019, NXP Semiconductors NV and Movandi entered into a partnership to collaborate on millimeter wave (mmWave) solutions for 5G networks. The partnership combines NXP’s digital networking and signal processing portfolio with Movandi’s innovative RF transceiver and systems architecture to deliver high-performance 5G solutions based on VCSEL. Similarly, ROHM started the construction of its production building at its Apollo plant in Chikugo, Japan. The expanded production capacity is to meet the growing demand for silicon carbide (SiC) power devices.
The global VCSEL market is expected to record a substantial market valuation of up to USD 11 billion by 2022.
The global VCSEL market is projected to register a moderate 20% CAGR in the forecast period.
The titanium-sapphire segment is slated to expand as the fastest-growing segment.
The biomedical deployment segment is expected to witness substantial growth.
A few major market players operating in the global VCSEL market are Resonetics (U.S.), Sheaumann Laser Inc. (U.S.), Rofin-Sinar Laser GmbH (Germany), and Spectra-Physics (U.S.) among others.