Pune, Aug. 22, 2024 (GLOBE NEWSWIRE) -- The SNS Insider report indicates that, “The Vertical Cavity Surface Emitting Laser (VCSEL) Market is witnessing rapid growth, with the market size valued at USD 1.75 billion in 2023 and projected to reach USD 8.48 billion by 2032 & market is set to grow at a remarkable CAGR of 19.22% from 2024 to 2032.”
Overview of VCSEL Market Growth and Projections
Technological Innovations and Market Leaders in VCSEL Development
Technological improvements and government backing are driving rapid growth in the VCSEL market. The growing need for optical transceivers based on VCSEL technology is being fueled by the rising demand for high-bandwidth internet services. PICadvanced and EFFECT Photonics are at the forefront of the industry, paving the way with cutting-edge VCSEL solutions. The IPCEI ME/CT program of the European Commission, backed by €8.1 billion in public funds and €13.7 billion in private investments, continues to promote the development of VCSEL technology and its various uses.
Driving Factors behind the Rapid Expansion of the VCSEL Market
Advancements in automotive technology, such as autonomous vehicles utilizing LiDAR systems, and the consumer electronics industry’s growing reliance on VCSELs for secure facial recognition in smartphones, are propelling market growth. The U.S.'s significant military budget, which amounted to USD 877 billion in 2022, also contributes to the demand for VCSELs in defense applications.
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Key Players
- Santec Corporation
- Philips GmbH Photonics
- Lumentum Holdings
- Newport Corporation
- Necsel Laser
- AMS Technologies
- Broadcom
- Finisar Corporation
- NeoPhotonics Corporation
- TRUMPF
Vertical Cavity Surface Emitting Laser (VCSEL) Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | USD 1.75 Billion |
| Market Size by 2032 | USD 8.48 Billion |
| CAGR | CAGR of 19.22% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Type (Multimode, Single-Mode) • By Material (Gallium Arsenide (Gaas), Gallium Nitride (Gan), Indium Phosphide (Inp), Others) • By Application (Data Communication, Sensing, Industrial Heating, Laser Printing) • By Industry (Consumer Electronics, Automotive, Healthcare, Data Center, Commercial & Industrial, Military) |
| Key Drivers | • Efforts toward Enhanced Efficiency in the VCSELs Market • The Rise of 5G and the Need for VCSEL Technology |
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Multimode VCSEL Dominance & GaAs-Based VCSELs Gain Traction
Multimode VCSELs dominated the market with a 58% share in 2023, owing to their ability to achieve high power densities and fast rise times, making them ideal for Time of Flight (TOF), LiDAR, and data center optical transceivers. Companies like Coherent Corp. are at the forefront, advancing multimode VCSEL technology to meet the growing demands of AI and HPC applications.
GaAs-based VCSELs are increasingly popular in consumer appliances like televisions and computer displays due to their high resolution and thin profiles. Companies like TRUMPF are expanding their GaAs-based VCSEL portfolios, focusing on volume manufacturing to remain competitive.
The prominence of North America contrasted with the swift expansion of Asia Pacific.
North America holds a dominant position in the VCSEL market, driven by rapid advancements in 5G technology and significant investments in telecom infrastructure. Telecom giants such as AT&T, Verizon, and T-Mobile, along with technology companies like Nokia, are heavily investing in 5G infrastructure, further fueling market growth. Government programs like the U.S. government's 5G FAST Plan also contribute to this momentum.
The Asia Pacific region, holding a 28% market share in 2023, is the fastest-growing market for VCSELs. The region’s robust consumer electronics manufacturing industry and extensive use of 5G technology drive this growth. Countries like China and South Korea are leading the adoption of VCSEL technology in 5G infrastructure and electric vehicles, with initiatives such as China’s "Made in China 2025" boosting market expansion.
Significant Innovations Driving VCSEL Market Growth
- In March 2024: Coherent Corp. The United States made a major advancement in VCSEL technology, increasing bandwidth to facilitate 200 Gbps per lane for future optical connections, allowing for 1.6 Tbps optical transceivers.
- In January 2024: Coherent Corp. launched a new illumination module platform for short- and mid-range LiDAR to improve automotive safety and robotic vision.
- In January 2024: TRUMPF introduced TruHeat VCSEL laser heating systems for surface heating and e-mobility applications, improving the efficiency of battery electrode material drying.
- In November 2023: Japan announced plans to allocate JPY 2 trillion (USD 13 billion) to enhance its chip industry, supporting VCSEL development.
- In September 2023: AMS OSRAM AG and the Malaysian Investment Development Authority (MIDA) announced a partnership to support ongoing investments and growth in Malaysia.
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Strategic Insights for Businesses in the VCSEL Market
- The VCSEL market is poised for significant growth, offering lucrative opportunities for companies in the telecom, automotive, and consumer electronics sectors.
- Businesses can capitalize on the rising demand for VCSELs in 5G infrastructure, LiDAR systems, and high-speed data communication networks.
- Government initiatives and investments in 5G and military applications present further avenues for market expansion.
- Companies that invest in advancing VCSEL technology, such as developing multimode and GaAs-based VCSELs, will be well-positioned to lead in this growing market.
Conclusion
This comprehensive analysis of the VCSEL market highlights the rapid growth and vast opportunities available for businesses. By understanding the key drivers, market segments, and regional dynamics, companies can strategically position themselves to benefit from the burgeoning VCSEL market.
Table of Contents – Major Key Points
1. Introduction
1.1 Market Definition
1.2 Scope (Inclusion and Exclusions)
1.3 Research Assumptions
2. Executive Summary
2.1 Market Overview
2.2 Regional Synopsis
2.3 Competitive Summary
3. Research Methodology
3.1 Top-Down Approach
3.2 Bottom-up Approach
3.3. Data Validation
3.4 Primary Interviews
4. Market Dynamics Impact Analysis
4.1 Market Driving Factors Analysis
4.2 PESTLE Analysis
4.3 Porter’s Five Forces Model
5. Statistical Insights and Trends Reporting
5.1 VCSEL Production Volumes, by Region (2023)
5.2 VCSEL Design Trends (Historic and Future)
5.3 VCSEL Capacity Utilization (2023)
5.4 Supply Chain Metrics
6. Competitive Landscape
6.1 List of Major Companies, By Region
6.2 Market Share Analysis, By Region
6.3 Product Benchmarking
6.4 Strategic Initiatives
6.5 Technological Advancements
6.6 Market Positioning and Branding
7. Vertical Cavity Surface Emitting Laser (VCSEL) Market Segmentation, by Type
8. Vertical Cavity Surface Emitting Laser (VCSEL) Market Segmentation, by Material
9. Vertical Cavity Surface Emitting Laser (VCSEL) Market Segmentation, by Application
10. Vertical Cavity Surface Emitting Laser (VCSEL) Market Segmentation, by Industry
11. Regional Analysis
12. Company Profiles
13. Use Cases and Best Practices
14. Conclusion
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