The vertical cavity surface emitting laser (VCSEL) is a type of semiconductor laser diode with a laser beam that emits light or an optical beam vertically from its top surface. Vertical cavity surface emitting laser (VCSEL) is used in various laser products, including computer mics, optics communication, smart glasses, etc. Some of the significant advantages of vertical cavity surface emitting laser (VCSEL) technology are wavelength stability, wavelength uniformity and spectrum width, wavelength temperature sensitivity, high-temperature operation, more power per unit area, higher beam quality, high reliability, scalability, and low cost.
According to this analysis, the Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market was valued at ~US$ 1 billion in 2017. It is estimated to be ~US$ 2 billion in 2022 and is expected to reach a market size of ~US$ 5 billion by 2028 growing with a CAGR of ~15% during 2022 to 2028. Some of the major factors that are likely to propel the growth of the market include increasing rising adoption of vertical cavity surface emitting lasers in data centers and the growing demand for 3d sensing applications.
The rising adoption of vertical cavity surface emitting lasers in data centers and the growing demand for 3D sensing applications are likely to propel the growth of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
Global demand for data centers has increased due to growth in internet traffic and digital data production. The foundation of many optical networks used in data centers is multi-mode fiber and VCSELs due to their high-speed data transmission capabilities.
Furthermore, the high data transmission rates, excellent durability, and low power consumption make them ideal for use as optical transceivers and make it possible to apply data analytics to enhance decision-making.
The Low Data Transmission Range of the Vertical Cavity Surface Emitting Lasers (VCSEL) is one of the major challenges hindering the growth of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
Limited data-transmission range is hindering the growth of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market as the distance between locations increases directly affects the speed of data transmission. Only short-range applications, which can only transmit data over 100 meters, are believed to benefit from using VCSEL.
Furthermore, these devices limited optical power makes it impossible for sensors to transmit data over long distances such as optical data transfer, LAN, intra-system connections, and Ethernet connection.
The COVID-19 pandemic slowed the growth of the Global vertical cavity surface emitting laser (VCSEL) Market, owing to the worldwide lockdown by governments, which led to the shutdown of production and manufacturing activities as well as the unavailability of workers in various industries. As a result, production showed a decline in the Global vertical cavity surface emitting laser (VCSEL) market.
By Material: Gallium Arsenide Material is projected to be the fastest-growing segment during the forecast period in the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
The growth is primarily due to the ability of Gallium Arsenide to meet the requirements for high quality and fast speed in multimedia applications as well as the increased demand for GaAs-based VCSELs in the consumer electronics sector.
Gallium Arsenide (GaAs) based VCSELs are increasingly being used due to their benefits in a variety of consumer electronics applications, which include a low current threshold, low power requirements, and a tiny divergence angle.
By Application: The sensing segment is expected to be the fastest-growing segment during the forecast period for the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
The growth is primarily due to the rise in demand for Advances in logistics, home & building automation, and Industry 4.0 technologies for face and objects recognition.
VCSELs are widely being adopted for sensing applications in smartphones, automotive, manufacturing, and consumer electronics industries due to the increasing speed and accuracy of VCSEL-based sensors.
By End-User: The Consumer Electronics segment dominated the global Vertical Cavity Surface Emitting Lasers (VCSEL) market in 2021.
The rapid development of digital technologies and the rising global demand for consumer electronics products are credited for this segment's strong growth rate.
Global demand for VCSELs has increased since VCSELs with cutting-edge capabilities are being increasingly integrated into laser autofocus and proximity sensors in consumer electronics gadgets that includes 3D sensing, face recognition, and visual imaging.
By Geography: Asia Pacific accounted for the largest market share among all regions within the within the total Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market in 2021.
The greatest consumer electronics and automotive markets, the proliferation of data centers, and significant industrial growth are all contributing to the rapid expansion of VCSEL adoption in the Asia-Pacific region.
As the major markets for electronics in the world are China, Japan, South Korea, Taiwan, Malaysia, and Vietnam, which account for the majority of production investments. Given that Consumer Electronics are the primary application for VCSELs, the market in Asia-Pacific is expected to expand rapidly over the coming years.
In February 2022, TRUMPF Group acquired Active Fiber Systems that is a fiber laser-based company located in Jena, Germany with This acquisition Trumpf group will able to expand in living fiber laser technology, which is focused on data communication and industrial heating applications such as precision welding and additive manufacturing.
Note:This is an On-Demand/Planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients, and the report delivered within a maximum of two working weeks.
According to this analysis, the Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market was valued at ~US$ 1 billion in 2017. It is estimated to be ~US$ 2 billion in 2022 and is expected to reach a market size of ~US$ 5 billion by 2028 growing with a CAGR of ~15% during 2022 to 2028. Some of the major factors that are likely to propel the growth of the market include increasing rising adoption of vertical cavity surface emitting lasers in data centers and the growing demand for 3d sensing applications.
The rising adoption of vertical cavity surface emitting lasers in data centers and the growing demand for 3D sensing applications are likely to propel the growth of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
Global demand for data centers has increased due to growth in internet traffic and digital data production. The foundation of many optical networks used in data centers is multi-mode fiber and VCSELs due to their high-speed data transmission capabilities.
Furthermore, the high data transmission rates, excellent durability, and low power consumption make them ideal for use as optical transceivers and make it possible to apply data analytics to enhance decision-making.
The Low Data Transmission Range of the Vertical Cavity Surface Emitting Lasers (VCSEL) is one of the major challenges hindering the growth of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
Limited data-transmission range is hindering the growth of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market as the distance between locations increases directly affects the speed of data transmission. Only short-range applications, which can only transmit data over 100 meters, are believed to benefit from using VCSEL.
Furthermore, these devices limited optical power makes it impossible for sensors to transmit data over long distances such as optical data transfer, LAN, intra-system connections, and Ethernet connection.
The COVID-19 pandemic slowed the growth of the Global vertical cavity surface emitting laser (VCSEL) Market, owing to the worldwide lockdown by governments, which led to the shutdown of production and manufacturing activities as well as the unavailability of workers in various industries. As a result, production showed a decline in the Global vertical cavity surface emitting laser (VCSEL) market.
Scope of the Report
The global Vertical Cavity Surface Emitting Lasers (VCSEL) market is segmented by type, Material, Application, and end-user. In addition, the report also covers market size and forecasts for the four major regions for global Vertical Cavity Surface Emitting Lasers (VCSEL) markets. The revenue used to size and forecast the market for each segment is US$ billion.By Type
- Multi-mode
- Single-mode
By Material
- Gallium Arsenide
- Gallium Nitride
- Indium Phosphide
- Other
By Application
- Sensing
- Data Communication
- Industrial Heating
- Laser Printing
- LiDAR
- Others
By End-User
- Consumer Electronics
- IT & Telecom
- Industrial Equipment Manufacturing
- Aerospace & Defense
- Healthcare
- Automotive
By Region
- North America (USA, Canada, and Mexico)
- Europe (France, Italy, Germany, Spain, UK, and Rest of Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, and Rest of Asia Pacific)
- LAMEA (Latin America, Middle East, and Africa)
Key Players
- TRUMPF Group
- Coherent Corp
- Lumentum Operations LLC
- Hamamatsu Photonics KK
- OSRAM AG
- Vixar Inc
- HLJ Technology Co Ltd
- Teledyne FLIR LLC
- Vertilite
- Alight Technologies ApS
Key Trends by Market Segment
- By Type: The single-mode segment by type held the largest market share in 2021 in the global Vertical Cavity Surface Emitting Lasers (VCSEL) market
- The growth is primarily due to the rising usage of mobile apps and single-mode VCSELs capacity to reduce power consumption, prolong battery life, and enhance user experience Due to their low power consumption, high output, and efficiency, they are employed in mobile industrial applications, wireless laser mice, and mobile phones
By Material: Gallium Arsenide Material is projected to be the fastest-growing segment during the forecast period in the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
The growth is primarily due to the ability of Gallium Arsenide to meet the requirements for high quality and fast speed in multimedia applications as well as the increased demand for GaAs-based VCSELs in the consumer electronics sector.
Gallium Arsenide (GaAs) based VCSELs are increasingly being used due to their benefits in a variety of consumer electronics applications, which include a low current threshold, low power requirements, and a tiny divergence angle.
By Application: The sensing segment is expected to be the fastest-growing segment during the forecast period for the global Vertical Cavity Surface Emitting Lasers (VCSEL) market.
The growth is primarily due to the rise in demand for Advances in logistics, home & building automation, and Industry 4.0 technologies for face and objects recognition.
VCSELs are widely being adopted for sensing applications in smartphones, automotive, manufacturing, and consumer electronics industries due to the increasing speed and accuracy of VCSEL-based sensors.
By End-User: The Consumer Electronics segment dominated the global Vertical Cavity Surface Emitting Lasers (VCSEL) market in 2021.
The rapid development of digital technologies and the rising global demand for consumer electronics products are credited for this segment's strong growth rate.
Global demand for VCSELs has increased since VCSELs with cutting-edge capabilities are being increasingly integrated into laser autofocus and proximity sensors in consumer electronics gadgets that includes 3D sensing, face recognition, and visual imaging.
By Geography: Asia Pacific accounted for the largest market share among all regions within the within the total Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market in 2021.
The greatest consumer electronics and automotive markets, the proliferation of data centers, and significant industrial growth are all contributing to the rapid expansion of VCSEL adoption in the Asia-Pacific region.
As the major markets for electronics in the world are China, Japan, South Korea, Taiwan, Malaysia, and Vietnam, which account for the majority of production investments. Given that Consumer Electronics are the primary application for VCSELs, the market in Asia-Pacific is expected to expand rapidly over the coming years.
Competitive Landscape
The global Vertical Cavity Surface Emitting Lasers (VCSEL) market is fairly competitive with ~100 players, which include globally diversified players, regional players as well as a large number of country-niche players each with their niche in Vertical Cavity Surface Emitting Lasers (VCSEL) manufacturers. Large global players constitute ~25% of competitors, while country-niche players represent ~40% of competitors. Most of the country-niche players and regional players are suppliers of components or assembling partners of global players. Some of the major players in the market include TRUMPF Group, Coherent Corp., Lumentum Operations LLC, Hamamatsu Photonics K.K, OSRAM AG, Vixar Inc., HLJ Technology Co. Ltd, Teledyne FLIR LLC, Vertilite, Alight Technologies ApS, and among others.Recent Developments Related to Major Players
In November 2020, Vixar Inc. launched a reference module for the time of flight (TOF) applications. The module will consist of a VCSEL die along with driver electronics that will able to generate 80w of optical power in a 50 ns pulse width.In February 2022, TRUMPF Group acquired Active Fiber Systems that is a fiber laser-based company located in Jena, Germany with This acquisition Trumpf group will able to expand in living fiber laser technology, which is focused on data communication and industrial heating applications such as precision welding and additive manufacturing.
Conclusion
The Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market is forecasted to grow significantly with a CAGR of ~15% during the forecast period primarily due to the rising adoption of vertical cavity surface emitting lasers in data centers and the growing demand for 3d sensing applications. Though the market is highly competitive with ~ 100 participants, few global players control the dominant share, and regional players hold a significant share. Asia Pacific is expected to be thefastest-growing market in the global Vertical Cavity Surface Emitting Lasers (VCSEL) market during the forecast period.Note:This is an On-Demand/Planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients, and the report delivered within a maximum of two working weeks.
Key Topics Covered in the Report
- Snapshot of Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market
- Industry Value Chain and Ecosystem Analysis
- Market size and Segmentation of the Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market
- Historic Growth of the Overall Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market and Segments
- Competition Scenario of the Market and Key Developments of Competitors
- Porter’s 5 Forces Analysis of the Global Vertical Cavity Surface Emitting Lasers (VCSEL) Industry
- Overview, Product Offerings, and Strategic Developments of Key Competitors
- COVID-19 Impact on the Overall Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market
- Future Market Forecast and Growth Rates of the Total Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market and by Segments
- Market Size of Material/End-user Segments with Historical CAGR and Future Forecasts
- Analysis of the Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market
- Major Production/Supply and Consumption/Demand Hubs within Each Major Country
- Major Country-wise Historic and Future Market Growth Rates of the Total Market and Segments
- Overview of Notable Emerging Competitor Companies within Each Region
Key Players Mentioned in the Report
- TRUMPF Group
- Coherent Corp
- Lumentum Operations LLC
- Hamamatsu Photonics KK
- OSRAM AG
- Vixar Inc
- HLJ Technology Co Ltd
- Teledyne FLIR LLC
- Vertilite
- Alight Technologies ApS
- Nostics
- Marvel Fusion
- LongPath Technologies
- QLM TECHNOLOGY LTD
- Nuburu
Key Target Audience - Organizations and Entities Who Can Benefit by Subscribing This Report
- Vertical Cavity Surface Emitting Lasers (VCSEL) Manufacturers
- Vertical Cavity Surface Emitting Lasers (VCSEL) Products Manufacturers
- Vertical Cavity Surface Emitting Lasers (VCSEL) Raw Material Suppliers
- Vertical Cavity Surface Emitting Lasers (VCSEL) Industry Association
- Vertical Cavity Surface Emitting Lasers (VCSEL) Companies
- Venture Capitalists Targeting Vertical Cavity Surface Emitting Lasers (VCSEL) Industry
- Defense Electronics Research Organizations
- Navigation Technology Solutions Companies
- Potential Entrants into Advanced Electronics Industry
- Government Ministries and Departments of Electronics
- Defense Electronics Regulatory Authorities
Time Period Captured in the Report
- Historical Period: 2017-202
- Forecast Period: 2022E-2028F
Frequently Asked Questions
What is the Study Period of this Market Report?- The Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market is covered from 2017-2028 in this report, which includes a forecast for the period 2022-2028
- The Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market is expected to witness a CAGR of about ~15% over the next six years
- Increasing rising adoption of vertical cavity surface emitting lasers in data centers and the growing demand for 3d sensing applications is driving the growth of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market
- The Gallium Arsenide Material accounted for the largest share of the global Vertical Cavity Surface Emitting Lasers (VCSEL) market in 2021
- TRUMPF Group, Coherent Corp., Lumentum Operations LLC, Hamamatsu Photonics K.K, OSRAM AG, Vixar Inc., HLJ Technology Co. Ltd, Teledyne FLIR LLC, Vertilite, Alight Technologies ApS and among others are the major companies operating in the Global Vertical Cavity Surface Emitting Lasers (VCSEL) Market
Additional benefits of purchasing an enterprise license:
- TAM/SAM/SOM Analysis
- Customer Cohort Analysis
- Marketing Initiatives
- White Space Opportunity Analysis
- Interactive Data Visualizations
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- Complimentary Update Next Year
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Table of Contents
1. Executive Summary
2. Market Overview and Key Trends Impacting Growth
3. Global - Market Segmentation by Type, Historic Growth, Outlook & Forecasts
4. Global- Market Segmentation by Material, Historic Growth, Outlook & Forecasts
5. Global- Market Segmentation by Application, Historic Growth, Outlook & Forecasts
6. Global- Market Segmentation by End-User, Historic Growth, Outlook & Forecasts
7. Industry/Competition Analysis - Competitive Landscape
8. Key Competitor Profiles (Company Overview, Product Offerings, and Strength & Weakness)
9. Geographic Analysis & Major Region Market Historic Growth, Outlook, and Forecasts
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- TRUMPF Group
- Coherent Corp.
- Lumentum Operations LLC
- Hamamatsu Photonics K.K
- OSRAM AG
- Vixar Inc.
- HLJ Technology Co. Ltd
- Teledyne FLIR LLC
- Vertilite
- Alight Technologies ApS
- Nostics
- Marvel Fusion
- LongPath Technologies
- QLM TECHNOLOGY LTD
- Nuburu
