VCSEL Market Report
VCSEL Market, by Raw Material Type (Gallium Nitride, Gallium Arsenide, Indium Phosphide, Other Raw Material Types), By Application (Datacom, Proximity Sensors, 3D Sensing, Industrial, Others), By Regional Analysis (North America, Europe, Asia-Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2019–2026
VCSEL Market Analysis:
VCSEL or vertical cavity surface emitting laser is a semiconductor-based laser diode that transmits a profoundly effective optical beam vertically from its top surface. VCSEL has replaced the old edge-emitting semiconductor lasers as VCSEL is cheap to produce and is more efficient as compared to edge-emitting semiconductors. VCSEL emits a narrow circular beam compared to traditional edge emitters, which makes energy flow extremely simple from the device to an optical fiber. Also, VCSEL emits energy ranging from 850 nm to 1300 nm. Moreover, VCSEL has the capacity to transform the fiber optic communications sector by improving efficiency and increasing data transfer speed.
Massively growing data centers and technological innovations are key drivers for VCSEL Market success
The worldwide need for data transfer or information exchange has increased exponentially, eventually leading to the development of various data centers across the globe. Also, these data centers ensure the availability of accurate data with high-speed results may surge the demand for VCSEL, which will ultimately augment the growth of the global VCSEL market, during the forecast period. Moreover, the new-age automotive sector is also incorporating VCSEL in its electronic parts for its high performance and efficient results. Furthermore, the old semiconductors were inefficient and slow, on the other hand, VCSEL has provided an opportunity to these data centers by providing a high-speed data transfer platform using optical fiber, which has created a huge demand for VCSEL, which positively impact the global market. In addition, technology advances such as infrared illumination, laser enabled HDD technology, gesture recognition, and 3D imaging have opened new opportunities for VCSEL market growth.
High Costs and Limited range are negatively impacting VCSEL Market
The availability of substitutes along with the high cost of VCSEL technology to manufacture is expected to hamper the growth of the global VCSEL industry, during the forecast period. In addition, the limited range of VCSEL (Maximum-1300 nm) as compared to optical fibers transfer energy (Maximum-1500 nm) is also projected to obstruct the growth of the global market.
Increasing Demand From Consumer Electronics is expected to provide a significant opportunity for the global VCSEL Market
The consumer electronics sector has opened up a whole new segment for VCSEL market growth. The advancement in smartphone technology related to 3D sensing has created a lucrative opportunity for the VCSEL market to grow as this technology uses VCSEL. Mobile phone manufacturers worldwide are incorporating 3D sensing and facial recognition technology in their products, as customers are finding it excessively useful. Major smartphone manufacturers such as Samsung, One Plus, Xiaomi, Apple, and Oppo have incorporated facial recognition and retina scan technology in their smartphones. VCSEL is one of the most important materials for the development of these technologies and hence it is increasingly consumed by consumer electronics manufacturers because of the popularity such technologies are gaining worldwide.
VCSEL Market, by Raw Material Type:
Gallium Nitride segment will be most lucrative till 2026
Gallium nitride segment will have a dominating share in the global market and is expected to register a significant revenue during the forecast timeframe. Gallium nitride-based VCSEL can be used as an energy source for projectors, optical storage, displays, laser printers, optical communications, solid-state lighting, and biosensors. Also, gallium nitride has shown much more positive outcomes than other substitutes such as arsenide and phosphide.
VCSEL Market, by Application:
Datacom segment will register a significant growth till 2026
The Datacom segment will have a dominating share in the global market and is expected to register a significant revenue during the forecast timeframe. Due to the increased need for data exchange worldwide,
various data centers are coming into existence. These data centers provide data communication at high speeds to various customers globally. The VCSEL Market will see major investments inflow because of Datacom as the demand for the latter is growing exponentially.
VCSEL Market, by Region:
Asia-Pacific region will have exponential growth in the VCSEL market
Asia-Pacific region will be the most lucrative for the VCSEL market’s growth during the forecasted period. Growing population, better and increased internet connectivity, and growing mobile users have all contributed to the VCSEL market’s growth. The increased population is investing more in consumer electronics which use 3D imaging and other sensory applications. Moreover, extensively growing demand for VCSEL for 3D sensing technology, particularly from notable smartphone players such as Oppo, Vivo, Huawei, Xiaomi is also expected to drive the growth of the market, in this region. Also, Asian countries such as India, China, and Japan are getting technologically advanced, which has led to the opening up of various data communication centers to fulfill the demand for information exchange. These factors may create massive demand for the VCSEL in the Asia-Pacific region.
North America region holds the largest market share
North America region has the largest market share in the VCSEL market and is anticipated to grow steadily during the forecasted period. This region has a lot of data centers, and also the consumer electronics players such as Apple Inc., which use 3D sensing applications. Furthermore, the presence of the biggest VCSEL manufacturers like Broadcom and Lumentum is also projected to surge the demand for the VCSEL in the North America region which will eventually foster the market.
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Key participants in the global VCSEL Market:
Merger & acquisition and advanced product development are the frequent strategies followed by the market players
Some of the significant VCSEL market players include SANTEC CORPORATIONS, Lumentum Operations LLC, VERTILAS GmbH, ams AG, VIAVI Solutions Inc., Broadcom, Vertilite, Alight Technologies ApS, II-VI Incorporated, and TRUMPF.
VCSEL market players are preferring more for strategic merger & acquisition, integrated product development and technology innovations. These are the several strategies followed by emerging as well established companies. To emphasize more on the competitor analysis of market players, the porter’s five force model is explained in the report.
Historical Market Estimations
Base Year for Market Estimation
Forecast timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Raw Material Type
Segmentation by Application
Key Countries Covered
U.S., Canada, Germany, France, Spain,
Russia, Japan, China, India, South Korea, Australia, Brazil, and Saudi Arabia
Key Companies Profiled
Source: Research Dive Analysis
Q1. Which are the leading companies in the VCSEL market?
A. SANTEC CORPORATIONS, Lumentum Operations LLC, and VERTILAS GmbH are the leading companies in the VCSEL market.
Q2. Which region possesses greater investment opportunities in the coming future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q3. What are the strategies opted by the leading players in this market?
A. Technological advancements, product development, along with joint ventures, are the key strategies opted by the operating companies in this market.
Q4. Which companies are investing more in R&D practices?
A. ams AG and VIAVI Solutions Inc. are investing more in R&D practices.