VCSEL Market Size

VCSEL Market Size

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

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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 the market growth.

The COVID-19 has severely affected the VCSEL 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 accelerated the demand for computing devices, such as laptops and smartphones, adding an opportunity for the industry growth.