PUBLISHER: The Business Research Company | PRODUCT CODE: 1428059
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428059
A Vertical Cavity Surface-Emitting Laser (VCSEL) is a semiconductor device that emits a laser perpendicular to its top surface. VCSELs find applications in long-distance, high-speed optical fiber communication systems and are capable of high-speed modulation.
The main types of Vertical Cavity Surface-Emitting Lasers (VCSELs) are single-mode and multimode. Single-mode VCSELs emit a single mode of light, producing a narrow and focused beam. They are commonly used in applications that require high precision and long-distance transmission, such as fiber optics, optical communication systems, and sensing applications. These lasers are manufactured using materials such as Gallium Arsenide (GaAs), Indium Phosphide (InP), Gallium Nitride, and others. They operate in wavelengths ranging from red (650-750 nm) to near-infrared (750-1400 nm) and shortwave-infrared (1400-3000 nm). Single-mode VCSELs are utilized in various applications, including sensing, data communication, infrared illumination, industrial heating, and pumping. End-user industries for VCSELs encompass consumer electronics, automotive, data centers, commercial and industrial sectors, healthcare, and military applications.
The VCSEL research report is one of a series of new reports from The Business Research Company that provides VCSEL market statistics, including the VCSEL industry's global market size, regional shares, competitors with a VCSEL market share, detailed VCSEL market segments, market trends and opportunities, and any further data you may need to thrive in the VCSEL industry. This VCSEL market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The vertical cavity surface-emitting laser (vcsel) market size has grown rapidly in recent years. It will grow from $2.12 billion in 2023 to $2.42 billion in 2024 at a compound annual growth rate (CAGR) of 13.9%. The expansion observed in the historical period can be attributed to several factors, including the adoption of VCSELs in optical interconnects, medical applications, industrial manufacturing, cost reduction and scalability, as well as their utilization in automotive LiDAR (Light Detection and Ranging) systems.
The vertical cavity surface-emitting laser (vcsel) market size is expected to see rapid growth in the next few years. It will grow to $3.95 billion in 2028 at a compound annual growth rate (CAGR) of 13.0%. The anticipated growth in the forecast period for Vertical Cavity Surface-Emitting Lasers (VCSELs) can be attributed to the expansion of 5G networks, the proliferation of the Internet of Things (IoT), the development of augmented reality (AR) and virtual reality (VR) technologies, increased use in biomedical and healthcare devices, and advancements in miniaturization and integration. Key trends expected during the forecast period include a focus on standardization and interoperability, the adoption of advanced packaging solutions, the emergence of environmental monitoring solutions, increased integration into smart home systems, and the pursuit of multi-functionality in consumer electronics.
The expansion of cloud computing is set to drive the growth of the VCSEL market in the foreseeable future. Cloud computing involves delivering computer services over the Internet, encompassing servers, storage, databases, networking, software, analytics, and intelligence. VCSELs contribute to the efficiency, scalability, and energy conservation of data communication in cloud computing, facilitating high-speed, dependable, and energy-efficient transmission crucial for the smooth functioning of cloud-based services. Notably, Eurostat reported a 41% adoption of cloud computing by EU enterprises in 2021, particularly for hosting e-mail systems and storing electronic files, reflecting a 5% increase from 2020. Hence, the burgeoning cloud computing sector is a key driver behind the growth of the VCSEL market.
The increasing prevalence of the Internet of Things (IoT) is anticipated to be a significant driver for the vertical cavity surface-emitting laser (VCSEL) market. IoT, a networked system of interconnected computing devices and machinery capable of data transfer without human-to-human or human-to-computer contact, relies on VCSELs for precise and energy-efficient sensing capabilities, enhancing data communication. Ericsson's report in September 2022 indicated global IoT connections reaching 13.2 billion, with expectations of a substantial increase to 34.7 billion connections by 2028. As a result, the rising adoption of IoT technologies is a substantial factor fueling the growth of the VCSEL market.
Key trends gaining momentum in the VCSEL market include 3D sensing and automotive LiDAR applications. Major companies in the VCSEL market are leveraging advanced technologies to innovate products tailored for automotive and 3D sensing applications, solidifying their market positions. For instance, Lumentum, a US-based telecommunications company, launched advanced VCSEL array devices in March 2021, catering to applications in consumer electronics, automotive LiDAR, and other 3D sensing domains. These devices offer lower power consumption, exceptional slope efficiencies, and record-breaking optical peak outputs compared to existing solutions.
Major players in the vertical cavity surface-emitting laser (VCSEL) market are placing increased emphasis on the introduction of narrow-linewidth VCSEL devices to gain a competitive advantage. Narrow-linewidth VCSELs emit laser light with a very narrow spectral width, and companies are actively developing such devices to meet specific market demands. Integrated Compound Semiconductors Ltd., a UK-based semiconductor manufacturing company, introduced its VCS894.6-DP product in February 2022. This planar device emits a single longitudinal mode at 894.6nm, offering high mode stability, a side mode suppression ratio (SMSR) of 25 dB, and a narrow spectral linewidth of 40 MHz. This product caters to customers requiring stable and narrow linewidth devices for quantum applications, such as atomic clocks and magnetometers.
In May 2021, Teledyne Technologies Inc., a US-based telecommunications company, completed the acquisition of FLIR Systems Inc. for $8.2 billion. This strategic move aimed to enhance Teledyne's capabilities in thermal imaging and expand its portfolio of advanced sensing solutions, including high-power VCSEL arrays, offered by FLIR Systems Inc., a prominent provider of thermal imaging and infrared solutions.
Major companies operating in the vertical cavity surface-emitting laser (vcsel) market report are Sony Group Corporation, Panasonic Corporation, Broadcom Inc., Sumitomo Electric Industries Ltd., NEC Corporation, Sharp Corporation, Leonardo S.p.A., ams OSRAM AG, Coherent Corp., TRUMPF GmbH, Vishay Intertechnology Inc., II-VI Incorporated, MKS Instruments Inc., Alight Solutions LLC, FLIR Systems Inc., Hamamatsu Photonics K.K, TT Electronics PLC, WIN Semiconductors Corp., Lumentum Operations LLC, IQE PLC, Thorlabs Inc., Santec Corporation, AMS Technologies AG, VERTILAS GmbH, Vixar Inc., Vertilite Co. Ltd., HLJ Technology Co. Ltd
North America was the largest region in the vertical cavity surface-emitting laser (VCSEL) market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vertical cavity surface-emitting laser (vcsel) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the vertical cavity surface-emitting laser (vcsel) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The vertical cavity surface-emitting laser (VCSEL) market consists of sales of laser diodes and VCSEL die. Values in this market are 'factory gat' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Vertical Cavity Surface-Emitting Laser (VCSEL) Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on vertical cavity surface-emitting laser (vcsel) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for vertical cavity surface-emitting laser (vcsel) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vertical cavity surface-emitting laser (vcsel) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.