Vertical Cavity Surface Emitting Laser Market by Type, Material, Wavelength, Die-Size, Application, End-User

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[189 Pages Report] The Vertical Cavity Surface Emitting Laser Market size was estimated at USD 2.79 billion in 2023 and expected to reach USD 3.23 billion in 2024, at a CAGR 18.20% to reach USD 9.02 billion by 2030.

Vertical-cavity surface-emitting lasers (VCSELs) are semiconductor devices that emit laser light through the top surface of a vertical cavity. The technology offers advantages such as lower cost, higher power efficiency, smaller form factor, and increased reliability compared to conventional edge-emitting lasers (EEL). VCSELs are used in various industries, including consumer electronics, optical storage, healthcare, automotive, and aerospace, and are also utilized for LiDAR systems for autonomous vehicles. Applications for VCSELs include fiber optic communications systems, scanning systems for consumer electronics such as iris recognition on smartphones and tablets, 3D printing, biometric sensing, and laser projection displays, among others. However, the limited data transmission range of VCSELs and the shortage of technical professionals to support their production has impeded product penetration. Manufacturers are constantly improving the performance and quality of VCSELs with more accessible procedures to keep up with the changing end-user demands. Over the past few years, major semiconductor vendors have invested heavily in developing new VCSEL products and technologies. With the rapid adoption of IoT technologies across commercial and government institutes, the need for VCSELs is expected to rise further.

KEY MARKET STATISTICS
Base Year [2023]	USD 2.79 billion
Estimated Year [2024]	USD 3.23 billion
Forecast Year [2030]	USD 9.02 billion
CAGR (%)	18.20%

Type: Growing adoption of multi-mode VCSEL for applications requiring significant power output

A multi-mode vertical cavity surface emitting laser (VCSEL) is a type of semiconductor laser diode. It disperses light through multiple guided modes or paths, thus the term "multi-mode." These VCSELs provide a broader spatial light profile, making them suitable for applications requiring significant power output or not requiring ultra-precise accuracy. Multi-mode VCSELs thrive in applications such as fiber channel systems, illumination, and medical sensing. Their high capacity for data rate transmission up to 25Gbps is preferred by many consumer electronics and data center applications. In terms of manufacturing costs, single-mode VCSELs enable light to propagate in a singular pathway or mode. This propagating characteristic allows the laser to have a narrow spectral width, offering high coherence and low beam divergence. Resultantly, Single-mode VCSELs deliver a more focused beam of light, granting them a high degree of precision and efficiency. With a usual emission wavelength ranging from 650 to 1310 nm, Single-mode VCSELs are exceptionally effective in niche applications such as high-resolution printing, atomic clock technology, and precise sensing applications. They are primarily appreciated for their unparalleled accuracy, manageable power requirements, and reliability.

Material: Rising usage of gallium nitride-based VCSELs for applications requiring variable color outputs

Gallium arsenide (GaAs) is one of the primary materials used in the production of VCSELs. GaAs semiconductor lasers are known for their high-energy efficiency, high light conversion rate, and high-speed response. They are particularly useful in the telecommunications industry due to their near-infrared emission wavelengths correlating well with the transmission windows of optical fibers. Gallium nitride-based VCSELs are emerging as strong performers in the market. Gan offers a broad emission wavelength range, from ultraviolet (UV) to green, making it a desirable choice for applications requiring variable color outputs, such as LED lights and displays. Indium phosphide (InP) is another material of primary importance in VCSEL fabrication. InP-based VCSELs are recognized for low noise operation and high-speed modulation performance. Additionally, they possess properties such as greater resistance to radiation and higher operating temperatures that make them an optimal choice for space and defense applications.

Wavelength: Increasing adoption of near-infrared wavelengths based VCSEL for long-distance optical communications systems

VCSELs utilizing near-infrared wavelengths are particularly common for data communication, notably in fiber optic networks. It allows high data transmission speeds over short distances. Moreover, their lower energy requirements render them efficient in minimizing heat distribution, thereby maintaining the integrity of surrounding devices. VCSELs emitting red light operate around wavelengths of 650 nanometers. Such lasers are indispensable in medical therapeutic areas, notably in photodynamic therapy and low-level laser therapy. Their superficial penetration depths make them optimal for treatments focusing on skin and near-surface tissues. Furthermore, they are copiously used in consumer electronics for optical mice and laser printers due to their high visibility and coherent illumination. VCSELs operating in the shortwave infrared (SWIR) spectrum play a critical role in high-end surveillance applications, material sorting, and biomedical imaging due to their ability to capture intricate details. By differing light absorption by varying materials, SWIR lasers provide detailed images that are not visible to the human eye or cameras operating in other spectral ranges.

End-User: Emerging application of VCSELs in consumer electronics for optical communication

Enabling real-time, high-speed communication systems, VCSELs are transforming the landscape in aerospace & defense. They assist in high-precision measurements, sensing, navigation, and targeting, improving overall system efficiency. VCSELs play an indispensable role in automotive applications, serving safety, efficiency, and comfort needs. Ubiquitous in advanced driver assistance systems (ADAS), VCSELs contribute to LiDAR, data communication, and interior sensing applications, promoting semi-autonomous and autonomous vehicles. Their compact size, energy efficiency, and cost-effectiveness make them attractive for automotive manufacturers. Within the consumer electronics space, VCSELs are found in smartphones, tablets, PCs, and other devices used for biometric security, 3D sensing, data communication, and other functions. Their widespread adoption has been spurred by advantages such as high speed, consistent performance, and power efficiency. The climb in consumer demand for smart and connected devices is estimated to continue propelling VCSEL usage. Healthcare has embraced VCSEL technology for its precision and consistency. Found in therapeutic applications, surgery, diagnostics, and medical instrument sterilization, these lasers help improve patient outcomes. Especially in optical coherence tomography (OCT) for diagnostics, VCSELs' high-speed scanning abilities make them indispensable. Industrial applications harness the power of VCSELs for material processing, sensing, and measurement, enhancing productivity and reducing operational costs. Given their ability to work in harsh industrial environments and their potential in Industry 4.0, VCSELs are increasingly adopted in factories. However, their deployment demands attention to laser safety standards and appropriate training. In the IT & telecom sector, VCSELs are crucial for enabling high-speed data communication and networking, including data centers and fiber-to-the-home (FTTH) architectures. Their capacity to handle dense wavelength division multiplexing boosts their indispensability.

Application: Expanding the potential of VCSEL for industrial heating due to their incredible power density and precise control

Vertical cavity surface emitting lasers (VCSELs) have significantly revolutionized data communication due to their high data rate transmission capacity. Expectations are profound in the implementation of VCSELs for faster Ethernet links, data centers, and fiber channel applications offering superior performance coupled with lower power consumption. In the industrial heating sphere, VCSELs serve as versatile tools due to their incredible power density and precise control. They are increasingly being utilized for heat processing and precision welding in various industries such as automotive, manufacturing, and electronics. Their incorporation in industrial heating has improved efficiency, reduced power usage, and minimized operational costs. VCSEL technology has improved the quality and speed of laser printing. VCSELs emit multiple beams simultaneously, thus effectively reducing printing time and enhancing spatial resolution for high-definition images. The high wavelength stability of VCSELs is conducive to consistent and accurate printing results. LiDAR technology benefits greatly from VCSELs as they contribute to a wider field of view, better resolution, lower power consumption, and a longer lifespan. VCSELs are expected to make LiDAR systems more compact and cost-effective, prompting their increased usage for environmental monitoring, autonomous vehicles, and aerospace applications. VCSELs have made significant strides in medical technology, particularly in pulse oximetry. Their rapid modulation capabilities provide more precise blood oxygen level measurements, enabling accurate diagnostics and monitoring. Furthermore, VCSELs can be modulated directly by current, eliminating the need for an external modulator and thus reducing system complexity. In sensing applications, VCSELs provide immense opportunities for sensor-based products. Their use in 3D sensing, facial recognition, gesture recognition, or biological sensing is rapidly gaining momentum.

Die-Size: Increasing adoption of 0.06 - 0.4 mm2 die-size VCSELs for optical tracking and biomedical imaging

0.02 - 0.06 mm2 die-size VCSELs are utilized in precision-oriented industries such as fiber telecommunications and data communications where a compact size is crucial. These miniaturized VCSELs are aligned with reducing the footprint in high-density applications, making them an ideal choice for small-scale integration. 0.06 - 0.4 mm2 die-size range represents a balance between performance, efficiency, and scalability for VCSELs. Such medium-sized dies are often utilized in applications such as optical tracking and biomedical imaging. 0.4 - 1.3 mm2 die-size VCSELs are often employed in high-power applications such as industrial heating and illumination. They provide a larger emitting surface area, thus facilitating higher power output and improved heat dissipation. 10 - 75 mm2 die-size is the largest class of VCSEL die-sizes and is used in specific, niche markets where extremely high power combined with excellent reliability and lifespan is necessary, such as in automotive lidar systems or materials processing. The large surface area enhances thermal management and permits the highest power generation amongst VCSELs.

Regional Insights

The Americas VCSELs market is advancing driven by the presence of well-established market players serving multiple industries and constant reserach initiatives for developing advanced VCSELs. The U.S. and Canada are investing in VSCELs technologies for their aerospace and automotive sectors. The growth of VCSELs in Asia is attributed to the fueling demand from the consumer electronics sector and automotive industry in areas such as Japan, South Korea, China, India, and Taiwan. Increasing production of medical devices and optical sensing capabilities drive demand for VCSELs across Europe. Many of the countries in Europe have established advanced research and development facilities for VCSELs. Market players in the region have introduced that are better suited for different application areas such as 3D sensing, automotive, and optical communication.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Vertical Cavity Surface Emitting Laser Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Vertical Cavity Surface Emitting Laser Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Vertical Cavity Surface Emitting Laser Market, highlighting leading vendors and their innovative profiles. These include Agiltron Inc., Alight Technologies ApS, Broadcom Inc., FLIR Systems Inc., Hamamatsu Photonics K.K., II-VI Incorporated by Coherent Corp., Inneos LLC, IQE PLC, Konica Minolta Sensing Americas Inc., Kyoto Semiconductor Co., Ltd., Laser 2000 SAS, Leonardo S.p.A., Lumentum Operations LLC, Octlight ApS, Ophir Optronics Solutions Ltd., Optilab, Ricoh Company, Ltd., Roithner Lasertechnik GmbH, RPMC Lasers, Inc., Sacher Lasertechnik GmbH, Santec Corporation, Shenzhen Optico Communication Co.,Ltd., Stanley Electric Co., Ltd., Thorlabs, Inc., TRUMPF SE + Co. KG, TT Electronics PLC, Vertilas GmbH, Vertilite Inc., Vixar Inc. by OSRAM Licht AG, and Wurth Elektronik GmbH & Co. KG.

Market Segmentation & Coverage

This research report categorizes the Vertical Cavity Surface Emitting Laser Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- Multi-Mode VCSEL
- Single-Mode VCSEL

Material
- Gallium Arsenide
- Gallium Nitride
- Indium Phosphide

Wavelength
- Near-Infrared
- Red
- Shortwave Infrared

Die-Size
- 0.02 - 0.06 mm2
- 0.06 - 0.4 mm2
- 0.4 - 1.3 mm2
- 10 - 75 mm2

Application
- Data Communication
- Industrial Heating
- Laser Printing
- LiDAR
- Pulse Oximetry
- Sensing
  - 3D Sensing
  - Gas Sensing
  - Optical Mice
End-User
- Aerospace & Defense
- Automotive
- Consumer Electronics
- Healthcare
- Industrial
- IT & Telecom

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Vertical Cavity Surface Emitting Laser Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Vertical Cavity Surface Emitting Laser Market?

3. What are the technology trends and regulatory frameworks in the Vertical Cavity Surface Emitting Laser Market?

4. What is the market share of the leading vendors in the Vertical Cavity Surface Emitting Laser Market?

5. Which modes and strategic moves are suitable for entering the Vertical Cavity Surface Emitting Laser Market?

Product Code: MRR-50124643644C

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing adoption of 3D sensing applications in smartphones and tablets
  - 5.1.1.2. Growing application of VCSELs in data communication
  - 5.1.1.3. Rising investment in investment in aerospace & defense sectors
- 5.1.2. Restraints
  - 5.1.2.1. Limited data transmission range of vertical-cavity surface-emitting laser
- 5.1.3. Opportunities
  - 5.1.3.1. Growing investment in IoT across commercial and government sector
  - 5.1.3.2. Technological advancement in vertical-cavity surface-emitting laser for high-speed data communication
- 5.1.4. Challenges
  - 5.1.4.1. Lack of skilled workers for manufacturing of VCSEL
5.2. Market Segmentation Analysis
- 5.2.1. Type: Growing adoption of multi-mode VCSEL for applications requiring significant power output
- 5.2.2. Material: Rising usage of gallium nitride-based VCSELs for applications requiring variable color outputs
- 5.2.3. Wavelength: Increasing adoption of near-infrared wavelengths based VCSEL for long-distance optical communications systems
- 5.2.4. End-User: Emerging application of VCSELs in consumer electronics for optical communication
- 5.2.5. Application: Expanding the potential of VCSEL for industrial heating due to their incredible power density and precise control
- 5.2.6. Die-Size: Increasing adoption of 0.06 - 0.4 mm2 die-size VCSELs for optical tracking and biomedical imaging
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Vertical Cavity Surface Emitting Laser Market, by Type

6.1. Introduction
6.2. Multi-Mode VCSEL
6.3. Single-Mode VCSEL

7. Vertical Cavity Surface Emitting Laser Market, by Material

7.1. Introduction
7.2. Gallium Arsenide
7.3. Gallium Nitride
7.4. Indium Phosphide

8. Vertical Cavity Surface Emitting Laser Market, by Wavelength

8.1. Introduction
8.2. Near-Infrared
8.3. Red
8.4. Shortwave Infrared

9. Vertical Cavity Surface Emitting Laser Market, by Die-Size

9.1. Introduction
9.2. 0.02 - 0.06 mm2
9.3. 0.06 - 0.4 mm2
9.4. 0.4 - 1.3 mm2
9.5. 10 - 75 mm2

10. Vertical Cavity Surface Emitting Laser Market, by Application

10.1. Introduction
10.2. Data Communication
10.3. Industrial Heating
10.4. Laser Printing
10.5. LiDAR
10.6. Pulse Oximetry
10.7. Sensing

11. Vertical Cavity Surface Emitting Laser Market, by End-User

11.1. Introduction
11.2. Aerospace & Defense
11.3. Automotive
11.4. Consumer Electronics
11.5. Healthcare
11.6. Industrial
11.7. IT & Telecom

12. Americas Vertical Cavity Surface Emitting Laser Market

12.1. Introduction
12.2. Argentina
12.3. Brazil
12.4. Canada
12.5. Mexico
12.6. United States

13. Asia-Pacific Vertical Cavity Surface Emitting Laser Market

13.1. Introduction
13.2. Australia
13.3. China
13.4. India
13.5. Indonesia
13.6. Japan
13.7. Malaysia
13.8. Philippines
13.9. Singapore
13.10. South Korea
13.11. Taiwan
13.12. Thailand
13.13. Vietnam

14. Europe, Middle East & Africa Vertical Cavity Surface Emitting Laser Market

14.1. Introduction
14.2. Denmark
14.3. Egypt
14.4. Finland
14.5. France
14.6. Germany
14.7. Israel
14.8. Italy
14.9. Netherlands
14.10. Nigeria
14.11. Norway
14.12. Poland
14.13. Qatar
14.14. Russia
14.15. Saudi Arabia
14.16. South Africa
14.17. Spain
14.18. Sweden
14.19. Switzerland
14.20. Turkey
14.21. United Arab Emirates
14.22. United Kingdom

15. Competitive Landscape

15.1. Market Share Analysis, 2023
15.2. FPNV Positioning Matrix, 2023
15.3. Competitive Scenario Analysis
- 15.3.1. Coherent Unveils Patented Module Architecture for Ultracompact Dynamic Illumination and Sensing with Backside-emitting VCSEL Arrays
- 15.3.2. Ganvix, Inc. and BluGlass Limited Sign Collaboration Agreement to Develop GaN VCSELs
- 15.3.3. VI Systems to report on novel multi-aperture VCSELs with a narrow spectral width for Extended Reach 800G Ethernet over multimode fiber and on record energy-efficient VCSEL-based links.
- 15.3.4. AKM and Lumentum Collaborate to Develop a High-Power VCSEL Driver IC in dToF Sensor Technology
- 15.3.5. ITRI and Ganvix, Inc. Extend Their Joint Venture to Commercialize Innovative Laser Technology
- 15.3.6. IQE signs VCSEL deal with Asian consumer firm
- 15.3.7. Semtech Releases FiberEdge Linear Vertical-Cavity Surface-Emitting Laser (VCSEL) Driver for 400G and 800G Data Centers
- 15.3.8. Chinese Laser Chip Developer Vertilite Secures Fresh Funding
- 15.3.9. TRUMPF announces new VCSEL products for advanced 3D sensing applications
15.4. Strategy Analysis & Recommendation

16. Competitive Portfolio

16.1. Key Company Profiles
16.2. Key Product Portfolio