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2020
Vcsel For Data Communication Market

VCSEL for Data Communication Market by Type (Single Mode and Multi-Mode) and Material (Gallium Nitride, Gallium Arsenide, Indium Phosphide, and Other): Global Opportunity Analysis and Industry Forecast, 2020–2027
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A06645
Pages: 334
Jul 2020 | 4293 Views
Author(s) : Avinash Savekar, Ruchal Humbare , Vineet Kumar
Tables: 133
Charts: 56
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VCSEL for Data Communication Market Overview:

The global VCSEL for data communication market size is expected to reach $358.41 million by 2027 from $120.52 million in 2019, growing at a CAGR of 13.54% from 2020 to 2027. 

Automotive sector spending on data communication will shrink especially in LAMEA due to COVID 19 impact

A vertical-cavity surface emitting laser (VCSEL) is a semiconductor-based laser diode that emits the 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 VCSEL device operates within a wavelength of 850 nm to 1310 nm and at transmission rate of 2.125-150 Gbps. In addition, the VCSELs combine the high power density and simple packaging of an IRED with the spectral width and speed of a laser. Unlike laser diodes, the VCSELs are much less sensitive to temperature fluctuations. Majority of the commercially available VCSELs operate at 850 nm and are designed to meet demanding specifications for high speed data communications.

VCSEL-for-Data-Communication-Market-2020-2027

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The rapid growth in the demand for wireless technologies is opening up new growth opportunities for the VCSEL for data communication market. The advancements in wireless communication technologies, especially cellular technologies, are helping various industries to monitor their assets all over the world. These technologies enable efficient and universal communication for several applications. In process and infrastructure applications, the wireless device simplifies the process of recording data from remote stations and field devices. The speed and simplicity of installation of wireless networks have also made them popular among industries as they can be deployed to facilitate M2M communication even under extreme environments. All these factors have contributed to the growth of the market for VCSEL for data communication, especially in highly industrialized regions.

The prominent factor that drives the VCSEL for data communication market growth include surge in demand for VCSELs in data centers. Data centers are the base component of Internet infrastructure, which is used for storage, computation and access to data. The simplest data center is a small server room and further advanced is a high-performance computing (HPC) system; upsurge of industry revolution 4.0; and leveraging data communications for utility operational effectiveness. Data communications infrastructure has evolved into a powerful strategic asset, which can enhance core capabilities and generate new business opportunities for the VCSEL technology. The strategic development in data communication and expansion of existing telecommunications capabilities can help power utilities improve the reliability, reduce operating costs, optimize operating efficiencies, and open new revenue streams. However, one of the major restraints is the lack of standardization between the equipment manufacturers companies. On the contrary, surging demand for wireless connectivity is anticipated to provide lucrative opportunities for the expansion of the VCSEL for data communication industry during the forecast period.

The global VCSEL for data communication market is segmented into type, material, and region. On the basis of type, the market is classified into single-mode and multi-mode. By material, it is categorized into gallium nitride, gallium arsenide, indium phosphide, and other. Gallium Arsenide segment contributed the largest revenue in 2019. The demand for gallium arsenide has increased as compare to other materials, due to their most important advantage such as speed. Electrons travel about five times faster in gallium arsenide than they do in silicon. 

Region wise, the VCSEL for data communication market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Spain, Italy, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).North America accounted for the highest share, due to innovation in advanced technologies and growth in data communication application. Asia-Pacific is expected to witness 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.

Top Impacting Factors

The prominent factors that drive the growth of the VCSEL for data communication market include demand for VCSELs in data centers, rise of industrial revolution 4.0, and leveraging data communications for utility operational effectiveness. However, lack of standardization between equipment manufacturers companies restricts the market growth. Conversely, surging demand for wireless connectivity are expected to create lucrative opportunities for the VCSEL for data communication industry.

Competition Analysis

Competitive analysis and profiles of the major Hamamatsu Photonics K.K, TRUMPF, II-VI Incorporated, RPMC Lasers, Bandwidth10, Vixar Inc. (Osram Opto semiconductor), VERTILAS GmbH, VI Systems GmbH, Ushio America, Inc., and Vertilite are provided in this report. 

VCSEL for Data Communication Market
By Type

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Multi-Mode segment is projected as one of the most lucrative segments.

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Covid-19 Impact Analysis

Global VCSEL market has been significantly impacted by the covid-19 outbreak, due to the shutdown of manufacturing units globally. The new production throughout the world have delayed which in turn have the significant demand in the several industries including automotive, consumer electronics, industrial, and others.

VCSEL for Data Communication Market
By Material

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Gallium Arsenide segment is expected to secure leading position during forecast period.

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The manufacturing sector is expected to be disrupted due to the COVID-19 outbreak as the global supply chains have been congested and some of the leading companies are shutting down their factories. The manufacturers of the automobile, electronics, industrial sectors are facing concerns regarding the availability of raw material. These factors may slow down the growth of the global VCSEL for data communication market.

VCSEL for Data Communication Market
By Region

2027
Europe 
North America
Asia-pacific
Lamea

Asia-Pacific region would exhibit the highest CAGR of 15.5% during 2020-2027

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Key Benefits For Stakeholders

  • This study comprises analytical depiction of the global VCSEL for data communication market size along with the current trends and future estimations to depict the imminent investment pockets.
  • The overall VCSEL for data communication market analysis is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and VCSEL for data communication market opportunities with a detailed impact analysis.
  • The current VCSEL for data communication market forecast is quantitatively analyzed from 2017 to 2027 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and the VCSEL for data communication market share of key vendors.
  • The report includes the market trends and the market share of key vendors.

Key Market Segments & Key Market Players

Segments Sub-segments
By Type
  • Single Mode
  • Multi-Mode

By Material
  • Gallium Nitride
  • Gallium Arsenide
  • Indium Phosphide
  • Others

By Region
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Market Players
  • Hamamatsu Photonics K.K.
  • TRUMPF
  • II-VI Incorporated
  • RPMC Lasers
  • Bandwidth10
  • .Vixar Inc. (Osram Opto semiconductor)
  • VERTILAS GmbH
  • VI Systems GmbH
  • Ushio America, Inc.
  • Vertilite
 

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According to the insights of the CXOs of leading companies, the VCSEL for data communication market holds a substantial scope for growth globally. Currently, it is in its growing stage. There is an increase in demand for VCSELs in data centers. Data centers widely use 850nm-emitting VCSELs, especially for the applications wherein the size of the data transmitted over a network is extremely large. Also, rise of industrial revolution 4.0 and leveraging data communications for utility operational effectiveness drive the VCSEL for data communication market. 

In 2019, North America held the largest market share in the VCSEL for data communication market, due to innovation in advanced technologies and growth in data communication application. Asia-Pacific witnesses 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. 

The market is consolidated by the presence of major key players such as Hamamatsu Photonics K.K, TRUMPF, II-VI Incorporated, RPMC Lasers, Bandwidth10, Vixar Inc. (Osram Opto semiconductor), VERTILAS GmbH, VI Systems GmbH, Ushio America, Inc., and Vertilite. 

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