VCSELs are basically the latest type of semiconductor that is similar to LED which has gained momentum owing to its excellent properties such as superior efficiency, higher wavelength and high-performance computing which enables their application in sensing, infrared illumination, pumping, and industrial heating. The VCSEL uses the less electrical current to produce a given coherent energy output. Also, VCSELs help in reducing the operating costs as well as power consumption.
According to the Value Market Research, the Global VCSEL Market was valued at USD 1,120.4 MN in 2017 and is projected to reach USD 4,340.3 MN by 2024, with a CAGR of 21.3%. In terms of volume, the market was estimated at XX.X Million Units and is expected to reach XX.X Million Units with a CAGR of X.X%.
MULTI-MODE IS THE HIGHLY PREFERRED TYPE OF VCSEL
Multimode to reach XX.X USD MN by 2024. Multimode VCSEL chips are designed for high-speed data communications. Growing applications of multi-mode VCSEL in a wide range of industries including consumer application and AOC & transceivers is driving the market growth. Robust demand for OEM applications such as sensing, motion control, medical devices, printing, and barcode scanners is also playing as the key factor that accelerating the demand for multi-mode VCSEL.
DATA COMMUNICATION TO BE THE LARGEST APPLICATION AREA
The utmost demand for VCSELs is from the optical data communication sector on account of its capacity to modulate at high frequencies in a wide range of data communication applications. Owing to its ability to transmit data over a short range with high data transfer rates and reliability, making them ideal for data centers is another major factor that drives the market demand. Also, the rising number of new data centers for data analytics coupled with cloud computing solutions is expected to generate increased demand VCSEL for data communication applications. Therefore, data communication is considered to be the largest application in 2017.
DATA CENTER STOOD AS THE LEADING SEGMENT
The data center is dominating segment in 2017 owing to rise in high data transfer rates leading to the greater use of VCSELs as most of the VCSELs operate nearly 800 nm. VCSELs have been widely adopted in the data communications industry owing to its better efficiency, longer wavelength emission, and power-saving and low-cost solution for the link. Also, the market of VCSEL is growing on the ground of rising demand for VCSELs with low-energy optical storage and fast switching in servers and high-capacity data centers as it offers high-performance computing.
NORTH AMERICA ACCOUNTED FOR THE HIGHEST MARKET SHARE IN GLOBAL VCSEL MARKET
North America accounted for the leading share in the VCSELs market and expected to continue its dominance throughout the forecast period, due to the presence of major manufacturers such as II-VI Incorporated, Vixar Inc., Lumentum Holdings Inc., Broadcom Limited, and Finisar Corporation among others, have been responsible for the dynamic growth of the market in the region. Additionally, data communication is a major application driving the demand for VCSEL in North America. Besides, the rising adoption of the Internet of Things (IoT) for effective performance has resulted in the generation of huge amounts of data. This has increased the implementation of data centers. For instance, Microsoft and Google, Inc. (U.S.) both are constructing major data centers in this region which would eventually boost the growth of the overall market. Therefore, the data communication application holds the largest share of the North America market.
ACTIVE MAJOR PLAYERS IN MARKET
JDS Uniphase Corporation, Royal Philips Electronics N.V, Finisar Corporation, Avago Technologies, II-VI Inc., IQE PLC, Princeton Optronics, Inc., Ultra Communications, Inc., Vertilas GmbH, and Vixar, Inc.
As per this study the Global VCSEL Market was valued USD 3.39 MN (by revenue) in 2021 and is anticipated to reach USD 10.87 MN by 2028 with a CAGR of 18.1%. By volume, the market was estimated at XX Million Units in 2021 and is expected to reach XX Million Units by 2028 with a CAGR of XX%.
Vertical-Cavity Surface-Emitting Lasers (VCSELs) is a specialized diode widely adopted in fiber optic communications owing to its improving efficiency and increasing data speed. VCSEL offers significant advantages when compared to the edge-emitting lasers owing to its cost-efficient manufacturing process and higher reliability. In addition, the VCSEL needs less electrical current to produce a given coherent energy output.
Market Dynamics
Rising adoption of VCSELs in data communication along with technological advancements in the consumer electronics sector are the key factors that drive the market demand. In addition to this, rising number of data centers and growing demand from end-use applications such as gesture recognition and 3D imaging is expected to propel the market growth during the forecast period. Though, emerging technology such as laser-assisted hard disk drive is anticipated to create potential opportunities for VCSEL market in the coming year. However, the limited data transmission range of VCSEL may hamper the market growth.
This detailed market study is centered on the data obtained from multiple sources and is analyzed using numerous tools including porter's five forces analysis, market attractiveness analysis and value chain analysis. These tools are employed to gain insights of the potential value of the market facilitating the business strategists with the latest growth opportunities. Additionally, these tools also provide a detailed analysis of each application/product segment in the global market of VCSEL.
Market Segmentation
The broad VCSEL market has been sub-grouped into type, application and end-user. The report studies these subsets with respect to the geographical segmentation. The strategists can gain a detailed insight and devise appropriate strategies to target specific market. This detail will lead to a focused approach leading to identification of better opportunities.
By Type
- Single-Mode VCSEL
- Multimode VCSEL
By Application
- Data Communication
- Industrial Heating
- Infrared Illumination
- Pumping
- Sensing
- Others
By End-User
- Data Centers
- Consumer Electronics
- Automotive
- Industrial
- Healthcare
- Others
Regional Analysis
Furthermore, the report comprises of the geographical segmentation which mainly focuses on current and forecast demand for VCSEL in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report further focuses on demand for individual application segments in all the regions.
Global VCSEL Market Research Share by Region (Representative Graph)
The report also covers detailed competitive landscape including company profiles of key players operating in the global market. The key players in the VCSEL market includes Lumentum Operations LLC,Coherent Inc., BROADCOM, TRUMPF, Leonardo S.p.A., MKS Instruments., VERTILAS GmbH, Vertilite., Santec Corporation., Alight, Inneos LLC, IQE PLC, Thorlabs Inc., TT Electronics, Others. An in-depth view of the competitive outlook includes future capacities, key mergers & acquisitions, financial overview, partnerships, collaborations, new product launches, new product developments and other developments with information in terms of H.Q.
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