The global vertical-cavity surface-emitting lasers market is poised to surpass USD 1.7 billion by 2023. The market is expected to surge at a remarkable CAGR of 17.1% through 2033 to reach USD 8.0 billion. As per our analyst, photonic-enabled systems are expanding rapidly due to the increase in cloud computing and 3D sensing and imaging.
Key Market Highlights
| Attributes | Details |
|---|---|
| Vertical-Cavity Surface-Emitting Lasers Market CAGR (2023 to 2033) | 17.1% |
| Vertical-Cavity Surface-Emitting Lasers Market Size (2023) | USD 1.7 billion |
| Vertical-Cavity Surface-Emitting Lasers Market Size (2033) | USD 8.0 billion |
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In the comparative outlook between the global vertical-cavity surface-emitting lasers (VCSELs) market spanning from 2018 to 2022 and the thriving forecast projected for 2023 to 2033, a discernible transformation is evident.
| Attributes | Details |
|---|---|
| Vertical-Cavity Surface-Emitting Lasers Market CAGR (2018 to 2022) | 15% |
| Vertical-Cavity Surface-Emitting Lasers Market Size (2022) | USD 1.4 billion |
The former period witnessed significant advancements in applications like data communication, consumer electronics, and automotive LiDAR, propelled by demands for enhanced performance and efficiency.
As we look ahead to the latter period, the VCSEL market is poised to experience even more robust growth, fueled by burgeoning sectors like quantum communication, advanced sensing technologies, and expanded applications in diverse industries, underlining the technology's pivotal role in shaping the future of laser-based solutions.
As per the vertical-cavity surface-emitting lasers (VCSELs) market analysis, the industry is poised to attain revenue of about USD 8.0 billion by 2033 at 17.1% CAGR from 2023 to 2033.
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The market in China emerges as a pivotal VCSEL technology hub, asserting dominance in semiconductor, smartphone, and consumer electronics manufacturing, in turn, swaying the country's vertical-cavity surface-emitting lasers market share of USD 1.8 billion by 2033.
| China Market Size (2033) | USD 1.8 billion |
|---|---|
| CAGR (2023 to 2033) | 16.5% |
Many global smartphone giants are headquartered in the country. The rise of organic electronic production in China fosters surged demand for VCSEL technology.
This trend is driven by the growth in smartphone and consumer electronics manufacturers establishing production facilities in China. The datacom VCSELs, essential for optical high-definition multimedia interface (HDMI) cables in consumer electronics, facilitate higher-resolution, larger-sized, and thinner-profile displays in televisions and computers.
The technology enables high-speed data cables that connect screens with remote driver electronics, spurring investments in the market. The substantial adoption of smartphones, tablets, and AI-enhanced electronics further propels the development of the VCSEL market within the country.
The market in the United States likely hold USD 1 billion by 2033, where the country is intensifying efforts to fortify its telecommunication sector by augmenting government expenditures within the industry.
| The United States Market Size (2033) | USD 1 billion |
|---|---|
| CAGR (2023 to 2033) | 13.7% |
As an illustration, the ‘Internet for All Initiative’ was introduced with a substantial investment of USD 45 billion, aiming to ensure widespread, affordable, high-speed internet accessibility for all Americans by 2029.
Oversight for this initiative rests with the United States Department of Commerce's National Telecommunications and Information Administration (NTIA). A crucial element of this initiative involves constructing internet infrastructure, where VCSELs find versatile applications as optical sources within optical transmitters, fostering the expansion of the VCSEL market within the nation.
Notably recognized as a technological hub, the United States places significant emphasis on its manufacturing sector, a substantial contributor to its economy. This is evidenced by the ‘Made in America’ initiative, unveiled by the United States President in January 2021, which focuses on bolstering technologically advanced and automated manufacturing domains.
The VCSEL market in Japan is expected to register a growth of 15.2% with a valuation of USD 1.2 billion by 2033.
| Japan Market Size (2033) | USD 1.2 billion |
|---|---|
| CAGR (2023 to 2033) | 15.2% |
The increasing use of smartphones and mobile apps in the country is accelerating the demand for single-mode VCSELs. It is primarily used to optimize the user experience due to its prolonged battery life and ability to save power.
Single-mode VCSELs are also utilized in industrial applications and wireless laser mice as their power consumption is low and output efficiency is high. The rising development in Industry 4.0 technologies and logistics is raising the demand for object recognition in Japan.
The VCSELs market is expected to record an absolute dollar growth of USD 123.3 million by 2033 in the United Kingdom.
| The United Kingdom Market Size (2033) | USD 172.9 million |
|---|---|
| CAGR (2023 to 2033) | 13.3% |
A noteworthy investment of USD 300 billion has been earmarked for research and development endeavors, alongside the infusion of cutting-edge technologies to amplify national production output.
These advancements, including automation, possess the potential to heighten revenue streams for manufacturing enterprises, consequently driving the adoption of automation in manufacturing facilities. For instance, IQE plc, a supplier of semiconductor wafers and materials, witnessed a sudden jump in 2022 due to the shortage of semiconductor wafers for chips that are used in smartphones. The company also deals in the photonics market, such as sense light, and in CMOSS++, it serves the market of automotive and healthcare.
The country's 70% of mobile data traffic is carried by 5G networks, and the count of 5G subscribers in South Korea has been growing since its launch in 2019. The VCSEL market in South Korea is expected to be worth around USD 421.3 million by 2033.
| South Korea Market Size (2033) | USD 421.3 million |
|---|---|
| CAGR (2023 to 2033) | 15.5% |
The country has seen massive growth in sensor applications, allowing vertical-cavity surface-emitting lasers to be produced. Furthermore, increasing customer awareness and interest in AR/VR and camera-applied ToF is enhancing the 5G environment in South Korea.
For instance, in 2023, Seoul Viosys, an optical semiconductor manufacturer, presented its one-chip micro-LED display technology at the IES 2023 Expo. The chip is expected to be a prominent one in the one-chip-based display category. Moreover, the company has utilized WICOP Pixel technology to improve the brightness to 4,000 nits.
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The multimode sub-segment recorded a market share of 17.3% during the historical period, whereas the market may witness a significant fall in CAGR from 2023 to 2033.
| Multimode VCSEL Market Share (2018 to 2022) | 17.3% |
|---|---|
| Multimode VCSEL (2023 to 2033) | 14.9% |
In the dynamic landscape of Vertical-Cavity Surface-Emitting Lasers (VCSELs), the pivotal role of market drivers for multi-mode VCSELs is paramount in shaping technological progress and market requisites.
These variants have captured substantial attention due to their adeptness in swiftly transmitting data across short distances, making them exceptionally suitable for data centers and bandwidth-intensive applications.
The escalating integration of cloud computing, IoT devices, and 5G infrastructure has spurred the need for effective data transmission solutions, further propelling the expansion of multi-mode VCSELs.
The advancements in manufacturing processes have engendered cost efficiencies, broadening the accessibility of multi-mode VCSELs across diverse applications.
With the continued surge in demand for accelerated and dependable data communication, the multi-mode VCSEL variety is anticipated to uphold its prominence as a pivotal component within the VCSEL sector. It continues to drive innovation and heighten the overall efficiency of contemporary communication systems.
The sensing application is expected to register an average growth rate of 5.7% CAGR from 2023 to 2033.
| Sensing Market Share (2018 to 2022) | 6.6% |
|---|---|
| Sensing (2023 to 2033) | 5.7% |
Within the vertical-cavity surface-emitting lasers (VCSEL) industry, the ascendancy of sensing applications arises as a robust market propeller, stemming from heightened requisites for accurate and dependable sensing technologies across various domains.
VCSELs offer a gamut of pivotal merits that render them exceptionally apt for sensing applications. Their capacity to emit precisely directed light with a limited spectral bandwidth facilitates the precise and efficient identification of specific wavelengths, underscoring their suitability for spectroscopic and gas-sensing deployments.
Amalgamating VCSELs with other sensing technologies like photodiodes and microelectromechanical systems (MEMS) bolsters their performance, expanding their purview in industrial, automotive, consumer electronics, and healthcare sectors. As industries persistently seek innovative sensing solutions to navigate evolving challenges, the indispensability of VCSEL-centric sensing technologies is poised to endure, propelling advancements in the VCSEL industry while fostering precision sensing progress.
The global market for vertical-cavity surface-emitting lasers (VCSELs) is undergoing substantial expansion, attributed to heightened investments in research and development aimed at elevating the efficiency, performance, and reliability of these laser devices.
Intensive efforts are directed toward amplifying output power, curtailing power consumption, and streamlining manufacturing procedures to curtail expenses. Concurrently, the emergence of novel applications such as facial recognition, gesture sensing, automotive LiDAR, and medical applications is fostering a favorable impact on the market landscape.
Collaborations between VCSEL manufacturers and various entities, including companies, research institutions, and industry stakeholders, further amplify their market presence by tapping into complementary expertise. Certain VCSEL market participants are opting for vertical integration strategies by either self-manufacturing semiconductor materials or acquiring entities within the VCSEL supply chain.
This approach bolsters control over production processes and component quality, influencing market dynamics. The infusion of customization and tailored solutions, allowing clients to procure laser devices meticulously optimized for distinct applications, further contributes to the market's positive trajectory.
Recent Developments in the Market:
The market is projected to experience a growth of 17.1% till 2033.
The multimode VCSEL segment is expected to lead the market with a CAGR of 14.9% through 2033.
By application, the sensing segment is likely to advance at a CAGR of 5.7% from 2023 to 2033.
China is anticipated to account for a market size of USD 1.7 billion in industry by 2033.
The industry generated a revenue of USD 0.7 billion in 2018.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Multi-mode VCSEL 5.2. Single-mode VCSEL 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material 6.1. Gallium Arsenide 6.2. Gallium Nitride 6.3. Indium Phosphide 6.4. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Wavelength 7.1. Red - 650-750 nm 7.2. Near-infrared - 750-1400 nm 7.3. Shortwave-infrared - 1400-3000 nm 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Sensing 8.2. Data Communication 8.3. Industrial Heating 8.4. Laser Printing 8.5. LiDAR 8.6. Pulse Oximetry 8.7. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use Industry 9.1. Telecom 9.2. Mobile and Consumer 9.3. Automotive 9.4. Medical 9.5. Aerospace and Defense 9.6. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. Asia Pacific 10.5. MEA 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. ams AG 18.2. Broadcom Inc. 18.3. II-VI Incorporated 18.4. Inneos LLC 18.5. IQE Plc 18.6. Leonardo Electronics US Inc. 18.7. Lumentum Operations LLC 18.8. Teledyne Technologies Incorporated 18.9. The TRUMPF Group 18.10. TT Electronics Plc 18.11. Vertilas GmbH 18.12. Vertilite Inc 19. Assumptions & Acronyms Used 20. Research Methodology
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Vertical-Cavity Surface-Emitting Lasers Market
