Report : VCSEL for Data Communication Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Type (Single Mode, Multi-Mode); Material (Gallium Nitride, Gallium Arsenide, Indium Phosphide, Other)
Multi-mode VCSELto continue dominate market for data communication
According to our latest market study on “VCSEL for data communication Market to 2027 – COVID-19 Impact and Global Analysis and Forecast –by Type (Single Mode, Multi-Mode); Material (Gallium Nitride, Gallium Arsenide, Indium Phosphide, Other), and Geography,” the market was valued at US$ 284.05 millionin 2019 and is projected to reach US$ 1,135.68millionby 2027; it is expected to grow at a CAGR of 19.7% from 2020 to 2027.The report highlights the key factors driving the market growth, and prominent players and their developmentsin the market.
The global VCSEL for data communication market comprises numerous companies specializing in broad range of offerings. However, strong presence of companies manufacturing electronics and their subsequent components, as well as parts,in Asia has empowered the region to hold the largest share of the overall market. Further, APAC is expected to continue to retain its market leadership in the coming years. In addition, the operation of a large number of manufacturing facilities of consumer electronics, data center,and fiber optics-related products across Asia, especially in China, has been contributing to the notable share of the region in the global market.
Certain countries in the rest of world have started rolling-out 5G connectivity, although with a limited coverage. Operators are aggressively upgrading their 5G network coverage, in the Middle East in 2019. The roll-out of 5G services and expansion of 5G networks are expected to boost the demand for VCSELs. Moreover, the region is experiencing growth in its data center market. For instance, in 2019, Microsoft opened two data centers in the Middle East—in Abu Dhabi and Dubai. Also, AWS opened a new data center in Bahrain.
COVID-19 Impact on VCSEL for data communication Market
The impact of COVID-19 pandemic across the electronics value chain will probably be far-reaching—and strongly affecting parties involved with semiconductor industry. COVID-19 is underlining the possible risks and vulnerability of present electronics and semiconductor value chain,thereby challenging the industry to consider altering its global supply chain model. For instance, in APAC, many countries have imposed lockdowns after March 2019 to contain the COVID-19 infection spread; this has paralyzed economic activities throughout the region due to factory shutdown, resulting in suspended manufacturing. In March,factories in Japan contracted at the fastest pacein around a decade, signifying that the world’s third-largest economy is possibly already in recession.
The report segmentsthe global VCSEL for data communication market as follows: