DUBLIN--(BUSINESS WIRE)--The "VCSEL Market by Type (Single-Mode, Multimode), Material (GaAs, InP, Others), Wavelength, Application (Sensing, Data Communication), Industry (Consumer Electronics, Automotive, Data Center, Commercial & Industrial), and Geography - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The global VCSEL market size is expected to grow from USD 1.0 billion in 2020 to USD 2.9 billion by 2025, at a CAGR of 23.7%.
One of the major driving factors for the market growth is the growing adoption of 3D sensing applications in smartphones. Also, due to the rising applications of VCSELs in data communication, the need for VCSELs is increasing. Moreover, the use of VCSELs in LiDAR systems of autonomous vehicles will provide significant opportunities for market players. However, the limited data transmission range offered by VCSELs is expected to restrain the market growth.
Based on wavelength, VCSEL market for near-infrared (NIR) range to grow at the highest CAGR during the forecast period
The VCSELs operating in the NIR wavelength range is expected to grow at the highest CAGR during the forecast period. VCSELs in the NIR wavelength are majorly used in smartphones for 3D sensing applications, such as face and gesture recognition. With the increasing adoption of these advanced technologies in smartphones by major smartphone manufacturers, such as Apple (US), Samsung (South Korea), Huawei (China) Oppo (China), and Xiaomi (China), the demand for VCSELs functioning in the NIR band is expected to increase significantly in the coming years. Also, these VCSELs are used in the automotive industry in advanced driver assistance systems (ADAS) and autonomous vehicles. With the growing advancements in the automotive industry related to autonomous vehicles, these VCSELs are expected to witness high adoption during the forecast period.
Based on application, sensing segment to hold significant share from 2020 to 2025
The sensing application is expected to hold the largest market share during the forecast period. Since the adoption of VCSELs by Apple for iPhone X, it created ample opportunities for the epiwafer, foundry, and VCSEL players. Other smartphone manufacturers, such as Xiaomi, Oppo, and Vivo, showed interest in the adoption of 3D sensing modules in their smartphones. For instance, Xiaomi Mi 8 Explore Edition supports facial recognition technology. Apple for iPhone X uses structured light technology for 3D sensing applications, such as facial recognition, security, gaming, or real-time filter applications. Increasing interests of various OEMs to drive the growth of the market for VCSEL sensing application.
APAC VCSEL market to grow at significant CAGR during the forecast period
The VCSEL market in APAC is expected to exhibit the highest CAGR during the forecast period. The global market players are experiencing high demand from countries such as China, Japan, and South Korea. APAC's large population, along with increasing penetration of the internet, has spurred the demand for smartphones in recent years. APAC is a leading manufacturer and end user of consumer devices. The increasing importance of VCSELs and the increasing interest of OEMs to adopt these VCSELs in smart devices are expected to drive the growth of the market. Also, the development of data centers in these countries by companies such as Google (US), Facebook (US), and Microsoft (US) is projected to fuel the demand for VCSELs.
Market Dynamics
Drivers
- Increasing Application of VCSELs in Data Communication
- Growing Adoption of 3D Sensing Applications in Smartphones
Restraints
- Limited Data Transmission Range
Opportunities
- Technological Advancements and Growing Interest of OEMs to Adopt VCSEL in Consumer Devices
- Growing Adoption of VCSELs by Wafer Manufacturers, Mocvd System Providers, and Testing & Inspection Companies
- Use of VCSELs in the Lidar System of Autonomous Vehicles
Challenges
- Limitations Associated with Gallium Nitride Are Hampering the Performance of VCSELs
Companies Profiled
- II-VI
- Lumentum
- AMS
- Trumpf
- Broadcom
- Leonardo Electronics (Lasertel)
- Mks Instruments
- Santec
- Vertilas
- Vertilite
- Alight Technologies
- Coherent
- Flir
- Inneos
- IQE
- Thorlabs
- Trilumina
- TT Electronics
- Ushio America
- Win Semiconductors
For more information about this report visit https://www.researchandmarkets.com/r/mlnc2j
