Vertical-Cavity Surface-Emitting Lasers (VCSEL) Market Size, By Type (Single Mode, Multi-Mode), By Material Type (Gallium Arsenide (GaAs), Indium Phosphide (InP), Gallium Nitride), By Wavelength (< 850 nm, 850 - 940 nm, 940 - 1,050 nm, > 1,050 nm), By Application (Sensing, Data Communication, Industrial Heating & Laser Printing), By Industry Verticals (Consumer Electronics, IT & Telecom, Automotive, Industrial, Healthcare, Aerospace & Defense), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jan 2021  |  Report ID: GMI4920  |  Authors: Preeti Wadhwani, Shubhangi Yadav

Report Format: PDF   |   Pages: 280   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Vertical-Cavity Surface-Emitting Lasers (VCSEL) Market size valued at around USD 1 billion in 2020 and is estimated to grow at a CAGR of over 20% from 2021 to 2027. The global industry unit shipments will reach more than 3.5 billion units annually by 2027.


Vertical-Cavity Surface-Emitting Lasers (VCSEL) Market

Get more details on this report - Request Free Sample PDF

The increasing adoption of emerging technologies, such as Virtual/Augmented Reality (VR/AR), Artificial Intelligence (AI), and the Internet of Things (IoT), has accelerated data traffic rates in data centers. This will increase the requirement for high-end optical interconnect infrastructure, such as vertical-cavity surface-emitting lasers (VCSEL), to deliver high-speed data rates of up to 400 Gbit/s in data centers. Companies are continuously innovating new products to meet the growing demand for high-speed communication networks, adding an opportunity for market growth.

The COVID-19 has severely affected the market due to a halt in operations of several automotive and consumer electronics facilities. China, India, South Korea, and Taiwan are some of the major regions of semiconductor and electronics production. The COVID-19 outbreak in these regions has led the majority of foreign manufacturers to temporarily shut down their production or relocate their facilities to less affected areas. The decline in consumer buying power along with weakening per capita income has also affected production capabilities, restraining market opportunities for vertical-cavity surface-emitting lasers. However, the increasing trend for work from home and online education has boosted the demand for computing devices, such as laptops and smartphones, adding an opportunity for the market expansion.

Vertical-Cavity Surface-Emitting Lasers (VCSEL) Market Report Coverage
Report Coverage Details
Base Year:2020
Market Size in 2020:1 Billion (USD)
Forecast Period:2021 to 2027
Forecast Period 2021 to 2027 CAGR:20%
2027 Value Projection:5 Billion (USD)
Historical Data for:2016 to 2020
No. of Pages:280
Tables, Charts & Figures:578
Segments covered:Type, Material Type, Wavelength, Application, Industry Verticals
Growth Drivers:
  • Rising adoption of VCSEL in data centers
  • Increasing 3D sensing application in smartphones
  • Rising adoption of automotive electronics and safety systems in vehicles
  • Proliferation of of InGaN based VCSEL
  • Growing consumer electronics manufacturing in Asia Pacific
  • Increasing demand in medical diagnostic applications
Pitfalls & Challenges:
  • Limited data transmission range of VCSEL

Get more details on this report - Request Free Sample PDF

Rising acceptance of multi-mode VCSEL in LIDAR applications will fuel the market value

The multi-mode segment held a VCSEL market share of 35%in 2020 and is projected to witness 17.5% growth rate till 2027. Multi-mode VCSELs can achieve high-power densities with improved rise time, thus increasing their usage in Time of Flight (TOF), LiDAR, and other high-power applications. The continuous efforts of market leaders to enhance the power & efficiency of vertical-cavity surface-emitting lasers will drive the growth opportunities of the multimode segment.

Increasing demand for high-resolution output in consumer electronics will impel the market for GaAs VCSEL

VCSEL Market

Get more details on this report - Request Free Sample PDF

Gallium Arsenide (GaAs) dominated 65% of the market share in 2020 and will grow at a CAGR of 20% through 2027. GaAs-based vertical-cavity surface-emitting lasers deliver high-resolution, thin profiles, and larger displays for high-speed data cables that connect a screen to remotely located electronics. These features will increase their opportunities in consumer appliances such as televisions and computer display. The rising demand for high-resolution outputs and improved data rates will positively influence companies to enhance their offerings for GaAs-based VCSELs.

Technological advancements in 850 - 950nm vertical-cavity surface-emitting laser will boost the market demand

The 850 - 940nm will account for 65% of VCSEL market share and is anticipated to attain a CAGR of 20% during 2021 to 2027 led by the rising adoption in short-reach optical interconnect applications such as High-Performance Computers (HPC) and data communication applications. Continuous technological advancement by companies to improve data rates and temperature stability are propelling segment growth. For example, an oxidized vertical-cavity surface-emitting laser at 850 nm wavelength delivers high-speed data transmission and improved temperature stability. These technological advancements will accelerate the vertical-cavity surface-emitting laser demand for new application verticals such as fiber channel for storage area network and Ethernet, among others.

Growing integration of safety systems in vehicles will spur VCSEL demand for sensing applications

Europe VCSEL Market

Get more details on this report - Request Free Sample PDF

The sensing application dominated an industry share of 75% in 2020 and is poised to expand at 25% CAGR till 2027. Vertical-cavity surface-emitting laser offers fast scanning, high efficiency, and high resistance to ambient light. These features will increase their acceptance in various sensing applications such as gesture recognition, driver fatigue detection, facial recognition, among others. The rising electrification in vehicles and integration of safety systems will fuel market opportunities in the coming years.

Vertical-cavity surface-emitting lasers are adopted for sensing applications in vehicle control systems such as answering/hanging calls, adjusting audio volume, and driver fatigue detection, among others. Several governments are introducing regulations and policies to integrate safety systems in vehicles, driving opportunities for the industry.

Rising demand for VCSELs in smartphones will influence the industry growth

 India VCSEL Market

Get more details on this report - Request Free Sample PDF

The consumer electronics segment in the VCSEL market will hold 45% of the revenue share by 2027 impelled by the increasing usage of VCSELs in smartphones for proximity sensors and front camera modules, among others. The growing demand for 3D sensing among major smartphone manufacturers, such as Apple, Samsung, and Vivo, among others is leveraging the market expansion. The rising smartphone manufacturing in developing nations will also drive the industry value in the coming years.

Increasing investments by telecom operators and governments to augment5G network technology in North America region

North America VCSEL Market

Get more details on this report - Request Free Sample PDF

North America VCSEL market accounted for over 20% of revenue share in 2020. In the advent of 5G technology, several telecom providers in the region are planning to invest huge amounts to upgrade their telecom infrastructure, propelling the market growth. In October 2019, Nokia has rolled out a time-sensitive package switch supporting cloud-native architecture and Time-Sensitive Networking (TSN) for components used in the 5G application. These initiatives will help telecom operators in the region to upgrade their existing network to the 5G cloud and foster the regional growth. Additionally, rising initiatives and funding from the regional governments to accelerate the telecom infrastructure for 5G will impact the market demand.

New product launch to stay competitive in the market

Key players operating in the market are II-VI Incorporated, Lumentum Operations LLC, ams AG, TRUMPF, Broadcom, VERTILAS GmbH, TT Electronics, OSRAM Opto Semiconductors GmbH, and Leonardo Electronics US, Inc., among others. Companies are continuously involved in research & development activities and new product innovation to compete against other payers.

The VCSEL market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Type

  • Single-mode
  • Multi-mode

Market, By Material Type

  • Gallium Arsenide (GaAs)
  • Indium Phosphide (InP)
  • Gallium nitride
  • Others

Market, By Wavelength

  • < 850 nm
  • 850 - 940 nm
  • 940 – 1,050 nm
  • > 1,050 nm

Market, By Application

  • Sensing
  • Data communication
  • Industrial heating & laser printing
  • Others

Market, By Industry Verticals

  • Consumer electronics
  • IT & telecom
  • Automotive
  • Industrial
  • Healthcare
  • Aerospace & defense

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Russia
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • South Africa
    • GCC


Frequently Asked Questions (FAQ) :

The global VCSEL industry size surpassed USD 1 billion in 2020 and is projected to register a 20% CAGR up to 2027.
The annual revenue from the multi-mode segment reached 35% of the total VCSEL industry share in 2020 and will rise at a 17.5% CAGR up to 2027 owing to their higher adoption in TOF, LiDAR, and other high-power applications.
VCSEL uses across the sensing applications contributed to 75% of the industry share in 2020 and is slated to rise at a CAGR of 25% through 2027 with the increasing demand across gesture recognition applications.
The revenue from the Gallium Arsenide segment was 65% of the total market share in 2020 and will strike a CAGR of over 20% up to 2027 driven by the across consumer appliances like televisions and computer display.
The VSCEL industry in North America was over 20% of the global market share in 2020 and will grow with the investments by telecom operators and governments to accelerate 5G network.

Premium Report Details

  • Published Date: Jan 2021
  • Pages: 280
  • Tables: 551
  • Charts / Figures: 27
  • Companies covered: 20
  • Countries covered: 20

Get a report that explains COVID-19 impact on this market

Buy Now

Need a Discount? Get in touch with us for special pricing

Request Discount

 Connect with our sales team

Chat with us
We use cookies to enhance user experience. (Privacy Policy) X