PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514939
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514939
Vertical Cavity Surface Emitting Laser Market size was valued at USD 1,897.34 Million in 2023, expanding at a CAGR of 14.5% from 2024 to 2032.
A Vertical Cavity Surface Emitting Laser (VCSEL) is a type of semiconductor laser diode. Unlike edge-emitting lasers, which emit light perpendicular to the junction plane of the semiconductor material, VCSELs emit light perpendicular to the surface of the semiconductor chip.
Vertical Cavity Surface Emitting Laser Market- Market Dynamics
Increasing demand from consumer electronics, 3D sensing, and automotive technologies are expected to propel market demand
The integration of VCSELs in consumer electronics is a significant driver. They are used in facial recognition systems like Face ID, gesture recognition for gaming consoles and smartphones, and proximity sensors. The demand for these features in smartphones, tablets, and other smart devices continues to propel the VCSEL market. VCSELs are crucial in the data communication sector, especially in data centers and high-speed optical networks. Their ability to provide high-speed data transmission, low power consumption, and reliability makes them ideal for applications like optical interconnects and fibre-optic communication. Thus, data storage needs and high demand for electronic components are expected to foster market growth.
VCSELs play a crucial role in 3D sensing technologies, such as in-depth sensing cameras for augmented reality (AR) and virtual reality (VR) applications, as well as in automotive applications for LiDAR (Light Detection and Ranging) systems. The increasing adoption of these technologies in automotive safety systems and consumer electronics is driving the demand for VCSELs. Besides consumer electronics, VCSELs are used in industrial applications such as industrial automation, robotics, and sensing. In automotive applications, VCSELs are utilized in LiDAR systems for autonomous driving and driver assistance systems, leveraging their high precision and reliability.
Vertical Cavity Surface Emitting Laser Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 14.5% over the forecast period (2024-2032)
Based on Wavelength segmentation, the near-infrared (750-1500 nm) segment was predicted to show maximum market share in the year 2023, owing to the high adoption of near field devices in the electronic segment.
Based on Application segmentation, the data communication segment was the leading Application in 2023, due to the high utilization of AI, and IoT in data communication technologies.
Based on End User segmentation, the automotive segment was the leading End User in 2023, owing to its high demand for laser devices in the military and other automobiles.
Based on region, North America was the leading revenue generator in 2023, owing to high demand from industrial and electronic industries.
The Global Vertical Cavity Surface Emitting Laser Market is segmented based on Wavelength, Application, End User, and Region.
The market is divided into three categories based on Wavelength: red (650-750 nm), near-infrared (750-1400 nm), and shortwave infrared (1400-3000 nm). The near infrared (750-1400 nm), segment dominates the market. The high demand from the electronics sector is boosting the market demand.
The market is divided into five categories based on Application: data communication, facial recognition, gesture recognition, industrial, and others. The data communication segment dominates the market. Rising demand from data centers, and data management applications are contributing to segment growth.
The market is divided into five categories based on End Users: telecom, automotive, medical, aerospace & military, and others. The automotive segment dominates the market and is expected to maintain its high dominance during the forecast period. The adoption of ADAS and LiDAR technologies is boosting the demand for VCSEL lasers.
Vertical Cavity Surface Emitting Laser Market- Geographical Insights
Globally, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. North America leads in terms of technological innovation and deployment across various applications such as data centers, consumer electronics, and automotive sectors. Strong demand from data communication data centers, consumer electronics, and automotive industries drives the VCSEL market growth. In Europe, increasing investments in advanced manufacturing, and automotive safety regulations favoring LiDAR adoption and devices.
The Vertical Cavity Surface Emitting Laser market is highly competitive. The VCSEL market is competitive with companies like II-VI, Lumentum, ams AG, Broadcom, Osram Opto Semiconductors, and formerly Finisar (now part of II-VI) leading in various segments such as data communication, 3D sensing, automotive LiDAR, and industrial automation. These companies compete based on technological innovation, product performance, global reach, and strategic partnerships to expand their business.
In June 2023, AMS Osram, the world's largest supplier of optical solutions, announced the launch of the TARA2000-AUT-SAFE family of vertical cavity surface emitting lasers (VCSELs) to add to their portfolio.
In October 2023, TRUMPF Photonic Components presented its first 980 nm multi-gigabit interconnect system for automotive systems at the European Conference for Optical Communication (ECOC), which was held in Glasgow.