CHICAGO, July 23, 2024 /PRNewswire/ --
The VCSEL market is projected to grow
from USD 1.3 billion in 2024 and is
estimated to reach USD 1.9 billion by
2029; it is expected to grow at a Compound Annual Growth Rate
(CAGR) of 8.1% from 2024 to 2029 according to a new report by
MarketsandMarkets™. The growth of the VCSEL market is
driven by rise in adoption of 3D sensing applications in
smartphones, and the higher market investment for
VCSEL manufacturing. Several smartphone manufacturers have
shown interests in integrating VCSEL technology into their end
products. This is driving market opportunities for wafer
manufacturers, equipment providers, foundries, testing and
inspection companies further supporting the growth of
VCSEL ecosystem. Adding to this, the VCSELs are essential
for creating detailed 3D maps, critical for high-precision
biometric systems. The expanding use of facial recognition and
biometric security systems will further amplify the market
growth.
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Browse in-depth TOC on "VCSEL Market"
214 – Tables
78 – Figures
307 – Pages
VCSEL Market Report Scope:
Report
Coverage
|
Details
|
Market Revenue in
2024
|
$ 1.3
billion
|
Estimated Value by
2029
|
$ 1.9
billion
|
Growth Rate
|
Poised to grow at a
CAGR of 8.1%
|
Market Size Available
for
|
2020–2029
|
Forecast
Period
|
2024–2029
|
Forecast
Units
|
Value (USD
Million/Billion)
|
Report
Coverage
|
Revenue Forecast,
Competitive Landscape, Growth Factors, and Trends
|
Segments
Covered
|
By Type, Material, Data
Rate, Wavelength, & Region
|
Geographies
Covered
|
North America, Europe,
Asia Pacific, and Rest of World
|
Key Market
Challenge
|
Managing intellectual
property rights and patent issues
|
Key Market
Opportunities
|
Rise in adoption of
VCSEL into medical imaging and biomedical sensing
applications
|
Key Market
Drivers
|
Expanding use of facial
recognition and biometric security systems
|
By data rate, the above 25 Gbps segment is projected to
grow at high CAGR of the VCSEL market during the forecast
period.
The market for VCSELs above 25 Gbps data rate is projected to
grow at the highest CAGR during the forecast period. VCSELs in this
category are tailored for ultra-high-speed data communication,
which is crucial for next-generation data centers, large-scale
cloud computing environments, and advanced telecommunications
networks. These VCSELs boast extremely high modulation speeds,
advanced wavelength stability, and the ability to support very high
data rates over short and long distances. VCSELs are designed to
meet the stringent demands of emerging technologies like 5G
networks, artificial intelligence (AI), and machine learning (ML)
applications, which require rapid and reliable data transfer. In
February 2023, Coherent Corp. (US)
introduced 100G PAM4 VCSEL and photodiode (PD) arrays designed for
800G short reach datacom pluggable transceivers and active optical
cables (AOCs), setting a new benchmark in high-speed data
communication technology. These VCSELs, manufactured on a
vertically integrated 6-inch gallium arsenide platform, are at the
forefront of the industry, addressing the increasing demand from
cloud and AI service providers for ultra-high-speed data
transmission solutions. The deployment of such transceivers and
AOCs in hyperscale data center expansions is driving the growth of
VCSELs above 25 Gbps.
By type, the single-mode segment is projected to grow at a
significant rate during the forecast period.
The single-mode VCSEL market is expected to register a
significant growth rate during the forecast period. The precision
and stability of single-mode VCSELs make them suitable for emerging
applications in sensing and metrology. They are used in
environmental monitoring, medical diagnostics, and industrial
process control. As these fields continue to advance and require
more accurate sensing solutions, the demand for single-mode VCSELs
is expected to rise. For instance, in June
2024, TRUMPF (Germany), a
leading provider of VCSEL solutions for industrial and consumer
sensing, demonstrated the performance of their single-mode VCSEL
solutions at Sensor Test, a trade fair in Germany. These compact and robust laser
sources support optical sensing systems, offering wavelengths from
760 nm to 940 nm, suitable for industrial environments. Single-mode
VCSELs provide precise measurements due to their narrow spectral
linewidth, enabling accurate detection of small changes. Their
compactness and energy efficiency make them ideal for portable
devices and reduce power consumption in larger systems. With fast
modulation capabilities, they enhance real-time monitoring and
response across various applications.
The Indium-Phosphide segment is projected to grow at a
significant CAGR of the VCSEL market during the forecast
period.
The InP-based VCSEL segment will grow at a significant rate
during the forecast timeframe. Increasing demand for high-speed
data transmission in data centers and telecom sectors will drive
the InP VCSELs market growth. The InP-based VCSELs offer superior
performance at longer wavelengths. The rising need for
longer-wavelength VCSELs in medical and industrial sensing
applications favors InP-based devices. Adding to this, the
companies are extensively focusing on enhancing their InP materials
and wafer manufacturing capabilities to stay competitive in the
market. In March 2024, Coherent Corp.
(US) established capability for 6-inch indium phosphide (InP) wafer
fabrication in the company's Sherman,
Texas and Järfälla, Sweden
wafer fabs. The company plans to transition most of its production
from 3-inch to 6-inch InP wafers soon. This move aims to take
advantage of the benefits that come with larger wafers, such as
better yields and improved performance. By doing so, the company
hopes to maintain a strong competitive position in its
communications and sensing markets.
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North America is poised for
significant growth in the VCSEL market by 2029.
The US, Canada, and
Mexico are the major contributors
to the North American VCSEL industry. North America is a dominant contributor to the
VCSEL market in terms of market share. Leading companies in
North America, such as Coherent
Corp. (US), Lumentum Operations LLC (US), Broadcom (US), and MKS
Instruments (US), provide VCSELs to various industries. These
companies invest significantly in R&D to improve the
efficiency, reliability, and performance of VCSEL technology. This
includes advancements in materials science, manufacturing
processes, and design techniques to meet the evolving demands of
different industries in the region. VCSEL companies in North America collaborate with government
agencies research institutions, and industry partners to drive
technological innovation and expand market reach. These players are
participating in consortiums, standardization efforts, and
strategic alliances to accelerate the adoption of VCSEL technology
in emerging sectors thus supporting the market growth in
North America.
Key Market Players
Key companies operating in the VCSEL companies are Coherent
Corp. (US), Lumentum Operations LLC (US), ams-OSRAM AG
(Austria), TRUMPF (Germany), Broadcom (US), MKS Instruments (US),
Santec Holdings Corporations (Japan), Leonardo Electronics US, Inc. (US),
VERTILAS GmbH (Germany), and
Vertilite (China).
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