Vertical Cavity Surface Emitting Laser (VCSELs) Market: Snapshot
VCSEL stands for vertical cavity surface emitting lasers. There is a current demand for efficient, low-cost, and compact illumination systems, replacing traditional thermal imaging systems. VCSELs are used for infrared illuminations since they offer a host of advantages, including low cost, high reliability, efficiency, narrow emission spectrum, and a low diverging cylindrical beam. Infrared illuminators, in turn, find application in surveillance, imaging, covert operations, and detection in several end-use industries such as the military. This has had a considerable impact on the demand for VCSELs.
The global market for VCSELs was valued at US$775.2 mn in 2015 and is expected to reach US$4,728.8 mn by 2024, growing at an impressive CAGR of 22.3% during the forecast period.
Optical Fiber Data Transmission Accounts for Dominant Share by Application
By raw material, the global VCSELs market is segmented into indium phosphide (InP), gallium arsenide (GaAs), gallium nitride (GaN), and others materials such as InGaAsN and AlGaAs. Gallium arsenide (GaAs) wafer-based VCSELs held the dominant share in the market in 2015 due to their compatibility with cavities between 800nm and 900nm. This has enabled the raw material to gain significant demand in the optical communications market.
On the basis of application, the global VCSELs market is categorized into chip scale atomic clocks, biological tissue analysis, computer mice, laser printers, absorption spectroscopy, analog broadband signal transmission, optical fiber data transmission, and others. Optical fiber data transmission held the leading share in 2015 and is expected to expand at a steady pace during the forecasted period. This is can be attributed to a growing network bandwidth worldwide.
Investments by U.S. Government in VCSEL Development Driving North America Market
In 2015, Europe dominated the global VCSELs market, primarily due to the recovery of several European economies from the debt-crisis. Countries in the region have been showing signs of recovery and as the euro strengthens, many manufacturers are renewing their production. This has provided the VCSELs market a vital boost.
The VCSELs market in North America has grown significantly over the years. The major trend that has supported this growth is heavy investments by the U.S. government in new VCSEL defense developments. Another factor driving the market in North America is the research undertaken by universities in this region to develop more efficient and stable laser diodes. The presence of many global semiconductor companies specializing in laser diodes has also benefited this market.
Asia Pacific is estimated to be a significantly attractive market for VCSELs manufacturers mainly because of the large-scale industrialization in this part of the world. Large companies are often inclined to opening subsidiaries or branches in emerging economies such as India in order to take advantage of cheap labor. The rapid growth of industrial automation in Asia is another factor boosting the demand for VCSELs in this region. The increasing demand for computers, LED displays, and communication devices in developing APAC countries is likely to lend a boost to the VCSELs market.
Key players in the VCSELs market include IQE Public Limited Company (United Kingdom), Finisar Corporation (United States), Broadcom Limited (Singapore), II-VI Incorporated (United States), Coherent, Inc. (United States), Panasonic Corporation (Japan), Newport Corporation (United States), Royal Philips Electronics N.V (Netherlands), Princeton Optronics Inc (United States), and Lumentum Holdings, Inc. (United States).
Vertical Cavity Surface Emitting Laser (VCSELs) Market: Overview
Vertical Cavity Surface Emitting Lasers (VCSEL) are semiconductor lasers, or more precisely laser diodes with monolithic laser resonator, where the light emitted leaves the device in a perpendicular direction to the chip surface. This is in contrast to the conventional edge-emitting lasers where the beam is emitted by splitting the single chip out of the wafer. VCSELs have a number of advantages over its conventional counterparts. These include high compatibility with other circuitry and detectors, high reliability, scalability, package ability, and consumption of low power. Moreover, manufacturers prefer VCSELs because it can be tested at a number stages throughout the production process to check for processing issues and material quality. This is a key advantage of VCSELs over edge-emitting lasers and helps in lowering significant production cost. The above mentioned advantages increase the demand for VCSELs and boost the global VCSELs market.
The growth of the VCSELs market can also be attributed to the increasing rate of adoption of VCSELs in emerging applications, such as atomic clocks, GPS, magnetometers, and proximity sensing.
Vertical Cavity Surface Emitting Laser (VCSELs) Market: Segmentation
The global VCSELs market is segmented on the basis of raw materials, applications, and geography. By raw materials the global VCSELs market is segmented into gallium nitride (GaN) indium phosphide (InP), gallium arsenide (GaAs), and others (AlGaAs, InGaAsN, etc.). The gallium arsenide (GaAs) based VCSELs hold a significant share of the market and is expected to so during the forecast period. The gallium nitride (GaN) based VCSELs have a number of advantages but suffer from lack of conductivity due to which its growth will be limited. Indium phosphide (InP) based VCSELs have great potential and is expected to grow with a significant CAGR.
On the basis of applications the global VCSELs market is categorized into eight parts. These include chip scale atomic clocks, biological tissue analysis, computer mice, laser printers, absorption spectroscopy, analog broadband signal transmission, and optical fiber data transmission. By applications optical fiber data transmission holds the largest market share and is expected to hold its position during the forecasted period from 2016 to 2024. Laser printers hold the second largest market share followed by computer mice. Chip scale atomic clocks is relatively new application of VCSELs but is expected to gain popularity during the forecast period. Biological tissue analysis is also a potentially attractive market for VCSEL especially with the rise in the public awareness regarding health issues and the increase in the incidence of diseases, such as cancer.
Vertical Cavity Surface Emitting Laser (VCSELs) Market: Regional Outlook
By geography, the VCSELs market has been classified into four regions namely Asia Pacific, Europe, North America, and Rest of the World (RoW). Currently, Europe held the major share of the market, followed by North America, Asia Pacific and Rest of the World (RoW). Countries of Europe are bouncing back from the recent depression and as the economy is stabilizing it is strengthening the VCSEL market in this region. The VCSEL market in North America is expected to grow and remain strong during the forecast period from 2016 to 2024. With emerging economies like that of India, China, and Japan the VCSEL market in Asia Pacific is expected to be the most attractive during the forecasted period. Countries in Rest of the World (RoW), which includes countries in South America, Middle East, and Latin America are also showing promise and the growth of VCSELs market in this part of the world is expected to be impressive.
Vertical Cavity Surface Emitting Laser (VCSELs) Market: Companies Mentioned in the Report
Key players profiled in this report include IQE Public Limited Company (United Kingdom), Finisar Corporation (United States), Broadcom Ltd (Singapore), II-VI Incorporated (United States), Coherent, Inc (United States), Panasonic Corporation (Japan), Newport Corporation (United States), Royal Philips Electronic N.V (Netherlands), Princeton Optronics, Inc. (United States), and Lumentum Holdings, Inc. (United States).
The segments covered in the VCSELs market are as follows:
Global VCSELs Market: By Raw Materials
- Gallium Nitride (GaN)
- Gallium Arsenide (GaAs)
- Indium Phosphide (InP)
- Others (InGaAsN, AlGaAs, etc.)
Global VCSELs Market: By Applications
- Optical fiber data transmission
- Analog broadband signal transmission
- Absorption Spectroscopy
- Laser printers
- Computer mice
- Biological tissue analysis
- Chip scale atomic clocks
- Other applications
Global VCSELs Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Rest of the World (RoW)
- Middle East
- Latin America