What Has Been the Growth of the Vertical Cavity Surface-Emitting Laser (VCSEL) Market So Far?
The vertical cavity surface-emitting laser (vcsel) market has seen considerable growth due to a variety of factors.
•The market for the vertical cavity surface-emitting laser (VCSEL) has experienced remarkable growth in previous years. The forecast suggests it will expand from a size of $2.38 billion in 2024 to $2.71 billion in 2025, recording a compound annual growth rate (CAGR) of 13.8%.
Factors like optical interconnects, usage in medical applications, involvement in industrial production, cost trimming, and scalability, plus its application in automotive lidar systems, have contributed to growth during the historical period.
What Are the Future Growth Projections for the Vertical Cavity Surface-Emitting Laser (VCSEL) Market?
The vertical cavity surface-emitting laser (vcsel) market is expected to maintain its strong growth trajectory in upcoming years.
• The market for vertical cavity surface-emitting lasers (VCSEL) is projected to experience a swift expansion in the upcoming years, escalating to $4.35 billion by 2029 with an annual compound growth rate of 12.5%.
The predicted surge during the forecast period can be attributed to factors such as the proliferation of the 5g network, the rise of the Internet of Things (IoT), growth in augmented reality (AR) and virtual reality (VR) technologies, advancements in biomedical and healthcare devices, and the trend towards device miniaturization and integration. Noteworthy trends expected during the forecast period include standardization and interoperability, progressive packaging solutions, engaging in environmental monitoring solutions, integration into smart home systems, and an increase in multi-functionality in consumer electronics.
What Factors Are Driving Growth In The Vertical Cavity Surface-Emitting Laser (VCSEL) Market?
The VCSEL market's expansion is anticipated to be boosted by the rise in cloud computing. This form of computing provides internet-based services such as servers, storage, databases, networking, software, analytics, and intelligence. VCSELs improve the performance, scalability, and energy efficiency of data communication in cloud computing, ensuring high-speed, reliable, effective transmission for smooth operation of cloud services. Eurostat, an organization based in Europe, reported that in December 2023, 42.5% of EU businesses employed cloud computing services predominantly for email, file storage, and office software. Consequently, the rise in cloud computing is advancing the growth of the VCSEL market.
What Are The Main Segments Of The Global Vertical Cavity Surface-Emitting Laser (VCSEL) Market?
The vertical cavity surface-emitting laser (VCSEL) market covered in this report is segmented –
1) By Type: Single Mode, Multimode
2) By Material: Gallium Arsenide (GaAs), Indium Phosphide (InP), Gallium Nitride, Other Materials
3) By Wavelength: Red (650-750 nm), Near-Infrared (750-1400 nm), Shortwave-Infrared (1400-3000 nm)
4) By Application: Sensing, Data Communication, Infrared Illumination, Industrial Heating, Pumping, Other Applications
5) By Industry: Consumer Electronics, Automotive, Data Center, Commercial And Industrial, Healthcare, Military
Subsegments:
1) By Single Mode VCSELs: High-Bandwidth Applications, Optical Interconnects
2) By Multimode VCSELs: Data Center Applications, Short-Range Communication
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What Emerging Trends Are Influencing The Growth Of The Vertical Cavity Surface-Emitting Laser (VCSEL) Market?
A key trend emerging in the VCSEL market is the adoption of automotive-grade 4D LiDAR sensors. Top companies in this arena are leveraging cutting-edge technology to create items such as automotive-grade 4D LiDAR sensors tailored for broad-scale automotive applications, maintaining their standing in the market. For example, Aeva Inc., an American firm specialising in revolutionary sensing and perception tech, introduced Aeva Atlas in January 2024, marking the first instance of a 4D LiDAR sensor being developed for mass production in automotive scenarios. Engineered to accelerate the progression of safer advanced driver assistance systems (ADAS) and autonomous driving, Atlas complies with automotive-grade criteria and features Aeva’s state-of-the-art silicon innovations, including the next-generation LiDAR-on-Chip module, Aeva CoreVision, and the high-performance System-on-Chip (SoC) LiDAR processor, the Aeva X1.
Who Are the Key Players in the Vertical Cavity Surface-Emitting Laser (VCSEL) Market?
Major companies operating in the vertical cavity surface-emitting laser (VCSEL) market include:
• 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
What Is The Most Dominant Region In The Vertical Cavity Surface-Emitting Laser (VCSEL) Market?
North America was the largest region in the vertical cavity surface-emitting laser (VCSEL) market in 2024. 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.
