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VCSEL Market Analysis

  • Report ID: GMI4920
  • Published Date: Jan 2021
  • Report Format: PDF

VCSEL Market Analysis

The multi-mode segment held 35% of the VCSEL market share in 2020 and is projected to witness 17.5% growth rate through 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 spur the growth opportunities of the multimode segment.

Gallium Arsenide (GaAs) in the VCSEL market dominated more than 65% of revenue share in 2020 and is expected to attain a CAGR of 20% till 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.

The 850 - 940nm will account for 65% of the VCSEL market share and is poised to expand at 20% CAGR during 2021 to 2027. Growth is credited to 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 the segment growth.

VCSEL Market Share

The VCSEL market for sensing segment captured 75% of revenue share in 2020 and is anticipated to register growth of 25% by 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 impel 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.

 VCSEL Market Size

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

North America VCSEL Market

North America VCSEL market accounted for 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 industry demand. 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 fuel market revenue in the region. Additionally, rising initiatives and funding from the regional governments to accelerate the telecom infrastructure for 5G will impel the industry value.

Authors: Suraj Gujar

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.

VCSEL Market Scope

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 20
  • Tables & Figures: 578
  • Countries covered: 17
  • Pages: 280
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