VCSEL Market Overview:
The global VCSEL market size was valued at $1,977 million in 2017 and is projected to reach $ 4,749 million by 2023, registering a CAGR of 15.7% from 2017 to 2023.
A Vertical Cavity Surface Emitting Laser (VCSEL) is a semiconductor-based laser diode that emits high-power optical laser beam vertically from its top surface. Such devices replace edge emitting lasers (EEL) offering a wide range of applications, especially in networks. A VSCEL device operates within a wavelength of 850 nm to 1310 nm and at a transmission rate of 2.125-150 Gbps.
The scope of VCSEL market is derived from multiple VCSEL including configuration, managed support, and portable services. It discusses the potential opportunities for market players to enter the VCSEL market. The report also provides an in-depth market analysis of VCSEL market, outlining current trends, key driving factors, and potential areas for product investments.
The surge in demand for VCSEL in data communication is expected to boost the market. Further, a rise in the usage of VCSELs in infrared illumination owing to technological advancements is also anticipated to fuel the market growth. However, the high cost and limitations in the data range of VCSELs hinder the VCSEL market. Furthermore, demand for VCSELs in consumer electronics is expected to boost the VCSEL market in the upcoming years.
In Porter’s Five Forces model, VCSEL service providers are considered suppliers, while organizations such as large and small & medium enterprises are considered buyers. This analysis includes the impact of the threat of substitutes, the threat of new entrants, and the intensity of rivalry within the industry on the growth of the VCSEL market.
Significant players operating in the VCSEL market are Finisar Corporation, Avago Technologies, JDS Uniphase Corporation, Royal Philips Electronics N.V., II-VI Incorporated, IQE PLC, Vertilas GmbH, Princeton Optronics, Vixar Inc., Ultra Communications Inc. These key players have adopted product launch and acquisition strategies to strengthen their VCSEL market share. For instance, In August 2017, Philips acquired Spectranetics Corporation—a U.S.-based global leader in vascular intervention and lead management solutions—to strengthen its healthcare product portfolio. In September 2017, II-VI Incorporated launched a flexible structure optical module (FlexSOM) Erbium Doped Fiber Amplifier (EDFA) platform designed to manufacture next-generation 100, 200, and 400G coherent transceivers. In December 2015, IQE PLC partnered with Cornell University and the University of Notre Dame to manufacture gallium nitride (GaN) power diodes.
This strategic move helped the company to strengthen its semiconductor product portfolio.
Segment Overview
The VCSEL market size is segmented based on type, application, and region. By type, the market is divided into single mode and multimode VCSEL. By application, the VCSEL market is classified into data communications, infrared illumination, sensing, pumping, GPS, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
In 2016, North America held the largest market share in the VCSEL market, due to innovation in advanced technologies and growth in data communication applications. North America includes the U.S., Canada, and Mexico. Growth in enterprise mobility and extensive wireless connectivity contribute to the growth of the VCSEL in this region. SMEs are expected to dominate the VCSEL market during the forecast period.
Asia-Pacific witnessed the highest growth rate during the forecast period due to lucrative opportunities offered by countries such as China, India, Singapore, South Korea, Japan, and other countries. These countries have adopted VCSEL solutions owing to the growth in penetration of mobility and cloud deployment by small and mid-sized companies
By application, the data communication segment held the highest market share in the 2016 period due to the high implementation of VCSEL. However, the sensing segment is expected to register the highest CAGR during the forecast period.
Top Impacting Factors
Factors that are expected to drive the global VCSEL market during the forecast period are a surge in demand for VCSEL in data communication and a rise in usage of VCSELs in infrared illumination owing to technological advancements. However, the high cost and limitations in the data range of VCSELs is expected to impede the VCSEL market growth during the forecast period
Drivers
The surge in demand for VCSEL in data communications and the rise in usage of infrared illumination owing to technological advancements majorly drive the Global VCSEL Market. VCSEL is compressed, quick, and consumes low power proving high quality. All these factors differ VCSEL from light emitting diodes (LEDs) making it more efficient.
Restraints
Limitations in the data range of VCSELs majorly hamper the growth of the VCSEL market
Opportunities
An increase in demand for VSCELs in consumer electronics and advancement in automotive electronics are major opportunities for the VCSEL market. VCSEL devices are used extensively for sensing applications.
Key Benefits for VCSEL Market:
- This study comprises an analytical depiction of the global VCSEL market with current trends and future estimations to depict the imminent investment pockets.
- The overall market potential is determined by understanding the profitable trends to gain a stronger foothold.
- The VCSEL market report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current market is quantitatively analyzed from 2017 to 2023 to highlight the financial competency of the market.
VCSEL Market Report Highlights
| Aspects | Details |
 By Type |
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 By Application |
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 By Region |
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 Key Market Players | BROADCOM, IQE PLC, VERTILAS GMBH, PRINCETON OPTRONICS, II-VI INCORPORATED, FINISAR CORPORATION, VIXAR INC., ULTRA COMMUNICATIONS, VIAVI SOLUTIONS INC., KONINKLIJKE PHILIPS N.V. |
Analyst Review
The global VCSEL market is expected to witness high growth owing to surge in demand of VCSEL in data communication, and rise in usage of VCSELs in infrared illumination owing to technological advancements. However, high cost and limitations in data range of VCSELs which impedes the market growth.
A vertical cavity surface emitting laser (VCSEL) is a specialized laser diode that emits a high-power optical beam vertically from its top surface. VCSEL is constructed in a way that emits energy at 850 nm to 1300 nm with transmission rate of 2.2 Gbps to 150 Gbps. At present, VSCEL are available in 2 types-single mode and multimode VSCELs. A single-mode VCSEL produces a light beam of high spectral purity, lower divergence, and high power of coherence than a multimode VCSEL.
Multimode VCSEL in the VCSEL market has higher potential for growth in the global market due to increased applications in comparison to single mode VCSEL. Key market players have adopted efficient techniques to develop innovative offerings.
Finisar Corporation, Avago Technologies, JDS Uniphase Corporation, Royal Philips Electronics N.V., II-VI Incorporated, IQE PLC, Vertilas GmbH, Princeton Optronics, Vixar Inc., and Ultra Communications Inc. are key market players that occupy a significant revenue share in the VCSEL market.
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