Vertical Cavity Surface Emitting Laser (VCSEL) Market Report | 2023-2030

Vertical Cavity Surface Emitting Laser (VCSEL) Market Forecast to 2030 - Global Analysis by Type (Single Mode and Multi-Mode), Material [Gallium Arsenide (GaAs), Indium Phosphide (InP), and Others], Data Rate (Up to 10 GBPS, 10.1 to 25 GBPS, and Above 25 GBPS), Wavelength [Red, Near Infrared (NIR), and Short Wave Infrared (SWIR)], Application (Sensing, Data Communication, Industrial Heating & Printing, and Others), and End-use Industry (Mobile & Consumer, Telecom & Infrastructure, Industrial, Defense & Aerospace, Medical, and Automotive & Mobility)

Publication Month : Jun 2023

  • Report Code : TIPEL00002373
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 239
Inquire Before Buy

PRICING

$4550

$3640

[Research Report] The vertical cavity surface emitting laser (VCSEL) market size was valued at US$ 1.361 billion in 2022 and is projected to reach US$ 4.663 billion by 2030; it is estimated to record a CAGR of 17.0% from 2023 to 2030.

Analyst Perspective

The growing adoption of VCSEL for 3D sensing applications, such as smartphones for gesture control and facial recognition features, contribute to the growth of the vertical cavity surface emitting laser (VCSEL) market . In addition, the use of VCSEL for data communication and LiDAR system for automotives propels the market growth. The rising integration of technologies such as IoT across various industries such as healthcare, automotive, and building necessitates using fiber optics communication technologies, contributing to the demand and adoption of VCSE. Many companies are investing in VCSEL owing to the wide application for 3D sensing technologies and data communications across several end-use industries such as telecommunication, medical, and automotive. The global VCSEL market includes companies operating in various segments. Each segment has some well-established key players. Owing to different markets, in which they operate and compete, it is not feasible to determine key five players in the overall VCSEL market. However, by giving weightage to parameters such as overall revenue, brand image, product/service portfolio, geographic reach, customer base, technology adoption & integration, new product/service/feature launches, R&D investments, partnerships, merger & acquisitions, and other market-related activities.

Market Overview

Vertical cavity surface emitting laser (VCSEL) is a type of semiconductor laser diode that emits the laser beam in a perpendicular direction from the surface, unlike edge-emitting laser diodes that emit from surfaces formed by cleaving the individual chip out of a wafer. Hence, VCSEL is more beneficial than edge-emitting laser diodes. The edge emitter laser cannot be examined till its deposition process is complete; if any defect is detected later, the repairs can be time-consuming and expensive. VCSEL can be tested at various stages of its production cycle, leading to greater product efficiency and lower costs. Another benefit of VCSEL is its ability to provide larger power output and consume less power than other lasers/light-emitting devices, contributing to its demand for various laser-based products such as computer mouse, face IDs, laser printers, and smart glasses. VCSELs have various applications across numerous industries and markets, both industrial and commercial. The key functionality of VCSEL devices is signal processing for sensing and communications applications, further increasing the demand for VCSEL for sensing applications.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Vertical Cavity Surface Emitting Laser (VCSEL) Market: Strategic Insights

vertical-cavity-surface-emitting-laser-vcsel-market
Market Size Value inUS$ 1.361 billion in 2022
Market Size Value byUS$ 4.663 billion by 2030
Growth rateCAGR of 17.0% from 2023 to 2030
Forecast Period2023-2030
Base Year2022
Analyst Image

Naveen

Have a question?

Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

Analyst Image  Speak to Analyst

Market Driver

Rising Adoption of VCSEL for 3D Sensing Applications to Drive Growth of Vertical Cavity Surface Emitting Laser (VCSEL) Market

VCSELs are used widely as light sources in 3D sensing applications. 3D sensing technologies are used in various industries such as consumer electronics, medical, industrial, automotive, and automotive to gain high precision and accuracy for the required task. For example, the technologies are used in cameras, commonly in smartphones, automobiles, drones, and robots, to scan and render objects in 3D. In consumer electronics such as smartphones, VCSEL widely used for facial recognition and gesture control applications. In industrial automation, VCSEL is used for accurate sensing technologies. It is also employed in virtual reality and gaming applications. Thus, the growth of these industries propels the requirement for 3D sensing technologies, positively influencing the demand for VCSEL.

Moreover, to cater to the demand for VCSEL, several market players are introducing new VCSEL products. For instance,

  • In April 2022, TRUMPF launched new VCSEL products to expand its VCSEL product portfolio for 3D sensing in consumer and industrial applications.
  • In March 2021, IQE PLC unveiled an IQVCSELTM product line to expand its VCSEL portfolio for service communication and advanced sensing markets.
  • In March 2021, Lumentum Operations LLC launched five and six-junction VCSEL array products for the advanced consumer and other 3D sensing applications.

The use of VCSEL-based imaging increases the power and wavelength for 3D sensing. Further, it is considered an ideal solution for face and gesture recognition. Its ability to produce high-power outputs makes it an optimal solution in robotics and autonomous vehicle application. Such benefits of VCSEL encourage new product launches and contribute to its demand, which drives the VSCEL market growth.

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
  • Request discounts available for Start-Ups & Universities

Segmental Analysis

Based on wavelength, the VCSEL market is categorized into red, near infrared (NIR), and short wave infrared (SWIR). Red VCSEL or VCSEL emitting in the red spectral range is one of the key devices for data transmission via polymer optical fibers (POF) and high-density optical storage systems. It offers the benefits such as improved performance and lower power consumption for medical and industrial sensing, faster printing and scanning, lower cost, and higher speed interconnects based upon polymer optical fiber (POF). It can be modulated at higher frequencies and a circular output beam with low divergence as well as tested at the water level, making red-based VCSEL lasers suitable for applications requiring small compact diodes and low operating currents such as portable scanners. Such features of red VCSEL contribute to its demand in various applications, thereby contributing to the segment growth in the VCSEL market.

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
  • Request discounts available for Start-Ups & Universities

Regional Analysis

The North American VCSEL market was valued at US$ 594.09 million in 2022 and is projected to reach US$ 1872.15 million by 2030; it is expected to grow at a CAGR of 15.7% during 2023–2030. North America is focused on strengthening its telecommunication sector by increasing government spending in the industry. For instance, the US government announced the launch of the “Internet For All Initiative,” with an investment of US$ 45 billion to ensure that all Americans are accessible to reliable, affordable, high-speed internet by the 2029. The US Department of Commerce’s National Telecommunications and Information Administration (NTIA) implements and monitors this initiative. This initiative aims to build the internet infrastructure requiring optical communications where VCSELs has wide applications as optical sources in optical transmitters, fueling the VCSEL market growth in North America. The North America VCSEL Market is segmented into the US, Canada, and Mexico. These countries are a hub of technological development in the region. The manufacturing industry is one of the significant contributors to the region’s economy. Thus, governments of various countries in the region are investing in the development of the manufacturing industry. In January 2021, the US President announced plans to strengthen the US manufacturing sector under the “Made in America” initiative, which focused on making technologically advanced and automated manufacturing sectors. The President announced an investment of US$ 300 billion for R&D activities, and the inclusion of advanced technologies to boost the country's production output. These technological advancements, including automation, can increase the revenue of manufacturing companies, leading to the adoption of automation by the manufacturing facilities.

In addition, VCSELs are widely used in light detection and ranging (LiDAR)-based technologies to measure or sense the ranges and distances in sensing applications. Thus, the rising adoption of automation in manufacturing facilities fuels the demand for LiDAR-based systems. For instance, to cater to this demand, market players are launching VCSEL products that can be used in vehicle automation systems. In January 2022, Lumentum Operations LLC, a US-based provider of VCSEL arrays, partnered with HESAI, a global leader in 3D light detection and ranging (LiDAR) solutions. This partnership aims to develop hybrid solid-state LiDAR AT128 for advanced driver-assistance systems (ADAS), which are equipped with VCSEL-based designs to attain high-affordability, automotive grade reliability, and consistency requirements. The use of VCSEL array light sources improves the scalability of LiDAR, which increases the demand for above applications by the end-users. Thus, such partnerships are contributing to the VCSEL market growth in North America. North America has a robust medical device manufacturing industry. According to the National Library of Medicine, the US was among the top countries to export medical devices from 1990 to 2020. The region comprises major medical device manufacturers such as Johnson & Johnson Services, Inc.; Abbott; Boston Scientific Corporation; and General Electric. Thus, the use of VCSEL in various sensing and laser applications in the medical devices industry contributes to the VCSEL market growth in the region.

Key Player Analysis

The vertical cavity surface emitting laser (VCSEL) market analysis consists of the players such as Lumentum Holdings Inc, Coherent Corp, TRUMPF SE + Co KG, Broadcom Inc, Ams-OSRAM AG, Vertilite Co Ltd, Leonardo SpA, IQE Plc, VERTILAS GmbH, and Hamamatsu Photonics KK. Among the players in the vertical cavity surface emitting laser (VCSEL) Coherent Corp and Vertilite Co Ltd are the top two players owing to the diversified product portfolio offered.

Recent Developments

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the vertical cavity surface emitting laser (VCSEL) market. A few recent key market developments are listed below: 

  • In June 2023, TRUMPF demonstrated outstanding results regarding the efficiency of infrared laser components with long wavelengths beyond 1300 nm on an industrial-grade manufacturing level. This makes TRUMPF one step further towards mass production of indium-phosphide-based (InP) VCSELs in the range from 1300 nm to 2000 nm.
  • In August 2022, the SOSLAB’s team worked with Vertilite to develop ML LiDAR (Mobility LiDAR) with 180-degree wide-angle and long-range measuring performance, breaking solid-state LiDAR limits on distance and angle. SOSLAB is accelerating to enter the global market with ML LiDAR. The system contains addressable VCSELs for controlling pixels individually in units.
  • In April 2022, Ambarella announced a new joint reference design that uniquely combines edge artificial intelligence (AI) with privacy, enabling new possibilities for smart building applications. Called Vision-D, this design combines Lumentum’s flood illuminator module for accurate time-of-flight (ToF) 3D sensing with Ambarella’s CV22 edge AI SoC.
  • In January 2022, Cepton Technologies, a US-based supplier of lidar-based technologies, and ams OSRAM expanded their collaboration. Working together to deliver LiDAR solutions is a component of the collaboration. The businesses hope to revolutionise the automobile sector with this alliance.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, Material, Data Rate, Wavelength, Application, and End-use Industry

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


Which is the leading type segment in the global Vertical Cavity Surface Emitting Laser (VCSEL) market?

The single mode segment led the Vertical Cavity Surface Emitting Laser (VCSEL) market with a significant share in 2022.

What are the driving factors impacting the global Vertical Cavity Surface Emitting Laser (VCSEL) market?

Rising adoption of Vertical Cavity Surface Emitting Laser (VCSEL) for 3D sensing applications and the emerging telecommunication industry are the major factors that propel the VCSEL market growth.

Which are the key players holding the major market share of global Vertical Cavity Surface Emitting Laser (VCSEL) market?

The key players, holding majority shares, in Vertical Cavity Surface Emitting Laser (VCSEL) market includes Honeywell International Inc, SITA Switzerland SaRl, Amazon Web Services Inc, Collins Aerospace, Amadeus IT Group SA, Embross Systems Pvt Ltd, Materna IPS GmbH, ADB Safegate BV, TAV Technologies Ltd, and Cisco Systems Inc.

What is the estimated global market size for the global Vertical Cavity Surface Emitting Laser (VCSEL) market in 2023?

The global Vertical Cavity Surface Emitting Laser (VCSEL) market was estimated to be US$ 1.55 billion in 2023 and is expected to grow at a CAGR of 17.0 %, during the forecast period 2023 - 2030.

What will be the global market size for Vertical Cavity Surface Emitting Laser (VCSEL) market by 2030?

The Vertical Cavity Surface Emitting Laser (VCSEL) market is expected to reach US$ 4.66 billion by 2030.

Which is the fastest growing regional market?

APAC is anticipated to grow with the highest CAGR over the forecast period.

What are the future trends of the global Vertical Cavity Surface Emitting Laser (VCSEL) market?

Miniaturization in electronics is anticipated to play a significant role in driving Vertical Cavity Surface Emitting Laser (VCSEL) market in the coming years.

The List of Compnies - Vertical Cavity Surface Emitting Laser (VCSEL) Market

  1. Lumentum Holdings Inc
  2. Coherent Corp
  3. TRUMPF SE + Co KG
  4. Broadcom Inc
  5. ams-OSRAM AG
  6. Vertilite Co Ltd
  7. Leonardo SpA
  8. IQE Plc
  9. VERTILAS GmbH
  10. Hamamatsu Photonics KK

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

Trends and growth analysis reports related to Vertical Cavity Surface Emitting Laser (VCSEL) Market