HOME Top Market Reports VCSEL Market by Material (GaAs, InP, GaN), Type (Single Mode and Multimode), Application (Data Communication, Sensing, IR Illumination, Pumping, Industrial Heating, and Emerging Applications), End User, and Geography - Global Forecast to 2023

VCSEL Market by Material (GaAs, InP, GaN), Type (Single Mode and Multimode), Application (Data Communication, Sensing, IR Illumination, Pumping, Industrial Heating, and Emerging Applications), End User, and Geography - Global Forecast to 2023

By: marketsandmarkets.com
Publishing Date: July 2018
Report Code: SE 3835

 

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The VCSEL market was valued at USD 1.48 billion in 2017 and is expected to reach USD 3.89 billion by 2023, at a CAGR of 16.9% during the forecast period. The VCSEL market is mainly driven by factors such as the rising adoption of VCSELs in proximity sensing and medical applications, increasing use of VCSELs for data communication, growing usage of VCSELs in infrared illumination, and surge in demand for VCSELs with advancements in automotive electronics. The base year considered for this study is 2017, and the forecast period is 2018–2023.

The Prime Objectives of this report can be summarized as follows:

  • To describe, segment, and forecast the global vertical-cavity surface-emitting laser (VCSEL) market, in terms of value and volume, by type, application, and end user
  • To describe, segment, and forecast the market, in terms of value, by material
  • To forecast the market, in terms of value and volume, for the aforementioned segments, by region - Americas, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
  • To strategically analyze micromarkets with regard to individual growth trends, prospects, and contribution to the VCSEL market
  • To provide detailed information regarding the major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing market growth
  • To analyze opportunities in the market for stakeholders and detail the competitive landscape for leaders in the market

The VCSEL market size has been estimated using top-down and bottom-up approaches. The bottom-up approach has been employed to arrive at the overall size of the VCSEL market from the revenues of key players (companies) and their shares in the market. Calculations are made on the basis of the number of VCSELs used in each type of industrial and service application. Finally, the volume is multiplied by the average selling price (ASP) of each VCSEL to arrive at the overall market size. In the top-down approach, the overall market size has been used to estimate the size of the individual markets (mentioned in the market segmentation) through percentage splits from secondary research (including the study of associations, databases, and journals). Major secondary sources include the Indian Laser Association (ILA), Ecma International, Semiconductor Industry Association, and Institute of Electrical and Electronics Engineers. For the calculation of the size of specific market segments, the most appropriate parent market size has been used to implement the top-down approach.

In the process of determining and verifying the market size for several segments and subsegments obtained through secondary research, extensive primary interviews have been conducted with key opinion leaders. The breakup of the profiles of primary participants is given below.

VCSEL Market

To know about the assumptions considered for the study, download the pdf brochure

Finisar (US), Lumentum (US), Broadcom (US), Philips Photonics (Germany), II-VI (US), IQE (UK), AMS Technologies (Germany), Vixar (US), Santec (Japan), VERTILAS (Germany), Agiltron (US), Alight Technologies (Denmark), Ultra Communications (US), Laser Components (Germany), Litrax Technology (Taiwan), Coherent (US), TT Electronics (UK), Newport (US), NeoPhotonics (US), and Necsel Intellectual Property (PD-LD) (US) are the major players in the VCSEL market.

Most of these companies have robust R&D facilities and extensive sales offices and distribution channels. The report provides the competitive landscape of key players, which indicates their growth strategies in the VCSEL market.

Most Recent Product Launches in VCSEL Market


Month & Year

Company

Development

March 2018

Vixar (US)

Vixar introduced an integrated VCSEL/diffuser/photodiode product line. The product family encompasses a number of options, including 850nm/940nm wavelength, power levels from 0.3W to 4W, multiple ceramic package sizes from 1.9mmΧ2.2mm to 2.8mmΧ3.5mm, options with or without monitor diode, and a variety of diffuser designs.

January 2018

Finisar (US)

Finisar demonstrated VCSEL technology for 3D depth-sensing applications such as 3D facial recognition in consumer mobile devices at Photonics West 2018.


5 Most Recent Acquisitions and Expansions in VCSEL Market


Month & Year

Company

Development

March 2018

Lumentum (US)

Lumentum acquired Oclaro (US), a leader in optical components and modules for the long-haul, metro, and data center markets, for USD 1.8 billion in cash and stock. The acquisition is expected to strengthen and broaden R&D capabilities and product portfolio of Lumentum.

March 2018

II-VI (US)

II-VI acquired CoAdna (US), a leading provider of smart photonic components, modules, and systems. The acquisition is expected to expand the company’s product portfolio for ROADMs.


3 Most Recent Collaborations and Partnerships in VCSEL Market


Month & Year

Company

Development

December 2017

Finisar (US)

Finisar collaborated with Apple (US), in which Apple invested USD 390 million in Finisar for VCSELs to be used in iPhone X. This collaboration is expected to strengthen Finisar’s R&D and increase production volumes.

September 2017

Philips Photonics (Germany)

Philips Photonics completed the “VCSEL Pilot Line for IR Illumination, Datacom and Power Applications (VIDaP)” project, in association with IQE (UK), STMicroelectronics (Switzerland), Sidel (Italy), SICK (Germany), Mellanox Technologies (Israel), and the Technical University of Eindhoven (Netherlands). It was a USD 30-million project, jointly sponsored by the German Federal Ministry of Education and Research (BMBF) and the European Union, and executed under the umbrella of the European ECSEL program.


Source: Press Releases

Target Audience

  • Raw material suppliers
  • Original equipment manufacturers (OEMs)
  • Technology, service, and solution providers
  • Intellectual property (IP) core and licensing providers
  • Suppliers and distributors
  • System integrators
  • Government and other regulatory bodies
  • Forums, alliances, and associations
  • Technology investors
  • Research institutes and organizations
  • Analysts and strategic business planners
  • Market research and consulting firms

“The study answers several questions for stakeholders, primarily which market segments to focus on in the next 2–5 years for prioritizing efforts and investments.”

Report Scope

The market covered in this report has been segmented as follows:

VCSEL Market, by Material

  • GaAs
  • InP
  • GaN
  • Others

VCSEL Market, by Type

  • Single Mode
  • Multimode

VCSEL Market, by Application

  • Data Communication
  • Sensing
  • Infrared Illumination
  • Pumping
  • Industrial Heating
  • Emerging Applications

VCSEL Market, by End User

  • Data Center
  • Consumer Electronics
  • Automotive
  • Industrial
  • Healthcare
  • Military

VCSEL Market, by Region

  • Americas
  • Europe
  • APAC
  • RoW

Available Customizations:

  • Detailed analysis and profiling of additional market players on the basis of various blocks of the value chain


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Table of Contents

1 Introduction (Page No. - 14)
    1.1 Study Objectives
    1.2 Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Geographic Scope
    1.4 Years Considered for This Study
    1.5 Currency
    1.6 Limitations
    1.7 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Major Secondary Sources
                    2.1.1.2 Key Data From Secondary Sources
           2.1.2 Primary Data
           2.1.3 Primary Interviews With Experts
                    2.1.3.1 Key Data From Primary Sources
                    2.1.3.2 Key Industry Insights
           2.1.4 Breakdown of Primaries
           2.1.5 Secondary and Primary Research
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
                    2.2.1.1 Approach for Arriving at Market Size By Bottom-Up Analysis (Demand Side)
           2.2.2 Top-Down Approach
                    2.2.2.1 Approach for Arriving at Market Size By Top-Down Analysis (Supply Side)
    2.3 Market Player Share Estimation
    2.4 Market Breakdown and Data Triangulation
    2.5 Research Assumptions

3 Executive Summary (Page No. - 29)

4 Premium Insights (Page No. - 34)
    4.1 Attractive Opportunities for VCSEL Market Growth
    4.2 VCSEL Market, By Material
    4.3 VCSEL Market in APAC, By Application and Country
    4.4 VCSEL Market, By End User
    4.5 VCSEL Market, By Region
    4.6 Country-Wise Analysis of VCSEL Market

5 Market Overview (Page No. - 37)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Rising Adoption in Proximity Sensing and Medical Applications
                    5.2.1.2 Increasing Use of VCSELs for Data Communication
                    5.2.1.3 Growing Usage of VCSELs in Infrared Illumination
                    5.2.1.4 Surge in Demand for VCSELs With Advancements in Automotive Electronics
           5.2.2 Restraints
                    5.2.2.1 Limited Data Transmission Range
           5.2.3 Opportunities
                    5.2.3.1 Technological Advancements in Consumer Electronics Sector
                    5.2.3.2 Evolution of Laser-Based Hard Disc Drive Technology
           5.2.4 Challenges
                    5.2.4.1 to Overthrow the Limitations of Gallium Nitride Restricting the Performance of VCSELs
    5.3 Value Chain Analysis

6 VCSEL Market, By Material (Page No. - 43)
    6.1 Introduction
    6.2 Gallium Arsenide (GAAS)
    6.3 Indium Phosphide (INP)
    6.4 Gallium Nitride (GAN)
    6.5 Others

7 VCSEL Market, By Type (Page No. - 46)
    7.1 Introduction
    7.2 Single Mode
    7.3 Multimode

8 VCSEL Market, By Application (Page No. - 50)
    8.1 Introduction
    8.2 Data Communication
    8.3 Sensing
           8.3.1 Optical Sensor
                    8.3.1.1 Reflective Sensor
                    8.3.1.2 Scattering Sensor
           8.3.2 Interference Sensor
    8.4 Infrared Illumination
           8.4.1 Camera
                    8.4.1.1 3D Camera
                    8.4.1.2 Security and Surveillance Camera
    8.5 Pumping
    8.6 Industrial Heating
    8.7 Emerging Applications
           8.7.1 Display
           8.7.2 High-Power Applications
                    8.7.2.1 LiDAR
                    8.7.2.2 Night Vision
           8.7.3 Atomic Clock
           8.7.4 GPS
           8.7.5 Magnetometer

9 VCSEL Market, By End User (Page No. - 65)
    9.1 Introduction
    9.2 Data Center
    9.3 Consumer Electronics
    9.4 Automotive
    9.5 Industrial
    9.6 Healthcare
    9.7 Military

10 VCSEL Market, By Region (Page No. - 75)
     10.1 Introduction
     10.2 Americas
             10.2.1 US
             10.2.2 Canada
             10.2.3 Mexico
             10.2.4 South America
     10.3 Europe
             10.3.1 Germany
             10.3.2 UK
             10.3.3 France
             10.3.4 Netherlands
             10.3.5 Rest of Europe
     10.4 Asia Pacific
             10.4.1 China
             10.4.2 Japan
             10.4.3 India
             10.4.4 Rest of APAC
     10.5 Rest of the World
             10.5.1 Middle East
             10.5.2 Africa

11 Competitive Landscape (Page No. - 97)
     11.1 Overview
     11.2 Market Share Analysis
     11.3 Competitive Scenario
             11.3.1 Product Launches
             11.3.2 Acquisitions and Expansions
             11.3.3 Collaborations and Partnerships

12 Company Profiles (Page No. - 102)
     12.1 Introduction
(Business Overview, Products Offered, Recent Developments, SWOT Analysis, and MnM View)*
     12.2 Key Players
             12.2.1 Finisar
             12.2.2 Lumentum
             12.2.3 Broadcom
             12.2.4 Philips Photonics
             12.2.5 II-VI
             12.2.6 IQE
             12.2.7 AMS Technologies
             12.2.8 Vixar
             12.2.9 Santec
             12.2.10 Vertilas
     12.3 Other Key Players
             12.3.1 Coherent
             12.3.2 TT Electronics
             12.3.3 Newport
             12.3.4 Neophotonics
             12.3.5 Necsel Intellectual Property
     12.4 Key Innovators
             12.4.1 Agiltron
             12.4.2 Alight Technologies
             12.4.3 Ultra Communications
             12.4.4 Laser Components
             12.4.5 Litrax Technology Co.

*Details on Business Overview, Products Offered, Recent Developments, SWOT Analysis, and MnM View Might Not Be Captured in Case of Unlisted Companies.

13 Appendix (Page No. - 131)
     13.1 Discussion Guide
     13.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
     13.3 Available Customizations
     13.4 Related Reports
     13.5 Author Details


List of Tables (68 Tables)

Table 1 VCSEL Market, By Material, 2015–2023 (USD Million)
Table 2 VCSEL Market, By Type, 2015–2023 (USD Million)
Table 3 VCSEL Market, By Type, 2015–2023 (Million Units)
Table 4 Single-Mode VCSEL Market, By Application, 2015–2023 (USD Million)
Table 5 Multimode VCSEL Market, By Application, 2015–2023 (USD Million)
Table 6 VCSEL Market, By Application, 2015–2023 (USD Million)
Table 7 VCSEL Market, By Application, 2015–2023 (Million Units)
Table 8 VCSEL Market for Data Communication, By Type, 2015–2023 (USD Million)
Table 9 VCSEL Market for Data Communication, By Region, 2015–2023 (USD Million)
Table 10 VCSEL Market for Data Communication, By Region, 2015–2023 (Thousand Units)
Table 11 VCSEL Market for Sensing, By Type, 2015–2023 (USD Million)
Table 12 VCSEL Market for Sensing, By Region, 2015–2023 (USD Million)
Table 13 VCSEL Market for Sensing, By Region, 2015–2023 (Thousand Units)
Table 14 VCSEL Market for Infrared Illumination, By Type, 2015–2023 (USD Million)
Table 15 VCSEL Market for Infrared Illumination, By Region,2015–2023 (USD Million)
Table 16 VCSEL Market for Infrared Illumination, By Region, 2015–2023 (Thousand Units)
Table 17 VCSEL Market for Pumping, By Type, 2015–2023 (USD Million)
Table 18 VCSEL Market for Pumping, By Region, 2015–2023 (USD Million)
Table 19 VCSEL Market for Pumping, By Region, 2015–2023 (Thousand Units)
Table 20 VCSEL Market for Industrial Heating, By Type, 2015–2023 (USD Million)
Table 21 VCSEL Market for Industrial Heating, By Region, 2015–2023 (USD Million)
Table 22 VCSEL Market for Industrial Heating, By Region, 2015–2023 (Thousand Units)
Table 23 VCSEL Market for Emerging Applications, By Type, 2015–2023 (USD Million)
Table 24 VCSEL Market for Emerging Applications, By Region, 2015–2023 (USD Million)
Table 25 VCSEL Market for Emerging Applications, By Region, 2015–2023 (Thousand Units)
Table 26 VCSEL Market, By End User, 2015–2023 (USD Million)
Table 27 VCSEL Market, By End User, 2015–2023 (Million Units)
Table 28 VCSEL Market for Data Center, By Region, 2015–2023 (USD Million)
Table 29 VCSEL Market for Data Center, By Region, 2015–2023 (Thousand Units)
Table 30 VCSEL Market for Consumer Electronics, By Region, 2015–2023 (USD Million)
Table 31 VCSEL Market for Consumer Electronics, By Region, 2015–2023 (Thousand Units)
Table 32 VCSEL Market for Automotive, By Region, 2015–2023 (USD Million)
Table 33 VCSEL Market for Automotive, By Region, 2015–2023 (Thousand Units)
Table 34 VCSEL Market for Industrial, By Region, 2015–2023 (USD Million)
Table 35 VCSEL Market for Industrial, By Region, 2015–2023 (Thousand Units)
Table 36 VCSEL Market for Healthcare, By Region, 2015–2023 (USD Million)
Table 37 VCSEL Market for Healthcare, By Region, 2015–2023 (Thousand Units)
Table 38 VCSEL Market for Military, By Region, 2015–2023 (USD Million)
Table 39 VCSEL Market for Military, By Region, 2015–2023 (Thousand Units)
Table 40 VCSEL Market, By Region, 2015–2023 (USD Million)
Table 41 VCSEL Market, By Region, 2015–2023 (Million Units)
Table 42 VCSEL Market in Americas, By Application, 2015–2023 (USD Million)
Table 43 VCSEL Market in Americas, By Application, 2015–2023 (Thousand Units)
Table 44 VCSEL Market in Americas, By End User, 2015–2023 (USD Million)
Table 45 VCSEL Market in Americas, By End User, 2015–2023 (Thousand Units)
Table 46 VCSEL Market in Americas, By Country/Region, 2015–2023 (USD Million)
Table 47 VCSEL Market in Americas, By Country/Region, 2015–2023 (Million Units)
Table 48 VCSEL Market in Europe, By Application, 2015–2023 (USD Million)
Table 49 VCSEL Market in Europe, By Application, 2015–2023 (Thousand Units)
Table 50 VCSEL Market in Europe, By End User, 2015–2023 (USD Million)
Table 51 VCSEL Market in Europe, By End User, 2015–2023 (Thousand Units)
Table 52 VCSEL Market in Europe, By Country, 2015–2023 (USD Million)
Table 53 VCSEL Market in Europe, By Country, 2015–2023 (Million Units)
Table 54 VCSEL Market in APAC, By Application, 2015–2023 (USD Million)
Table 55 VCSEL Market in APAC, By Application, 2015–2023 (Thousand Units)
Table 56 VCSEL Market in APAC, By End User, 2015–2023 (USD Million)
Table 57 VCSEL Market in APAC, By End User, 2015–2023 (Thousand Units)
Table 58 VCSEL Market in APAC, By Country, 2015–2023 (USD Million)
Table 59 VCSEL Market in APAC, By Country, 2015–2023 (Million Units)
Table 60 VCSEL Market in RoW, By Application, 2015–2023 (USD Million)
Table 61 VCSEL Market in RoW, By Application, 2015–2023 (Thousand Units)
Table 62 VCSEL Market in RoW, By End User, 2015–2023 (USD Million)
Table 63 VCSEL Market in RoW, By End User, 2015–2023 (Thousand Units)
Table 64 VCSEL Market in RoW, By Region, 2015–2023 (USD Million)
Table 65 VCSEL Market in RoW, By Region, 2015–2023 (Million Units)
Table 66 5 Most Recent Product Launches in VCSEL Market
Table 67 5 Most Recent Acquisitions and Expansions in VCSEL Market
Table 68 3 Most Recent Collaborations and Partnerships in VCSEL Market


List of Figures (35 Figures)

Figure 1 VCSEL Market: Research Design
Figure 2 Process Flow
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Gallium Arsenide and Multimode VCSELs to Hold Major Market Share Throughout Forecast Period
Figure 6 Data Center to Hold Largest Market Size in 2023
Figure 7 VCSEL Market for Sensing to Grow at Highest CAGR During Forecast Period
Figure 8 VCSEL Market to Grow at Highest CAGR in APAC During Forecast Period
Figure 9 Rising Adoption in Proximity Sensing and Medical Applications Driving VCSEL Market Growth
Figure 10 Gallium Arsenide to Hold Largest Size of VCSEL Market Throughout Forecast Period
Figure 11 Sensing and China to Account for Largest Market Share in APAC in 2018
Figure 12 Data Center to Hold Largest Share of VCSEL Market Throughout Forecast Period
Figure 13 VCSEL Market to Grow at Highest CAGR in APAC During Forecast Period
Figure 14 US to Account for Largest Share of VCSEL Market in 2018
Figure 15 Growing Adoption in Proximity Sensing and Medical Applications Driving VCSEL Market Growth
Figure 16 VCSEL Value Chain: Major Value Added During Oem Phase
Figure 17 Indium Phosphide to Grow at Highest CAGR During Forecast Period
Figure 18 Single Mode to Grow at Higher CAGR During Forecast Period
Figure 19 Emerging Applications to Grow at Highest CAGR During Forecast Period
Figure 20 Consumer Electronics to Grow at Highest CAGR During Forecast Period
Figure 21 VCSEL Market: Geographic Analysis
Figure 22 VCSEL Market Snapshot: Americas
Figure 23 VCSEL Market Snapshot: Europe
Figure 24 VCSEL Market Snapshot: APAC
Figure 25 VCSEL Market Snapshot: RoW
Figure 26 Companies Adopted Expansions and Acquisitions as Key Growth Strategies Between January 2016 and March 2018
Figure 27 Market Share of Top 5 Players (2017)
Figure 28 VCSEL Market Evaluation Framework
Figure 29 Finisar: Company Snapshot
Figure 30 Lumentum: Company Snapshot
Figure 31 Broadcom: Company Snapshot
Figure 32 Philips Photonics: Company Snapshot
Figure 33 II-VI: Company Snapshot
Figure 34 IQE: Company Snapshot
Figure 35 Santec: Company Snapshot

The VCSEL market is expected to reach USD 3.89 billion by 2023 from USD 1.78 billion in 2018, at a CAGR of 16.9%. The VCSEL market is mainly driven by factors such as the rising adoption of VCSELs in proximity sensing and medical applications, increasing use of VCSELs for data communication, growing usage of VCSELs in infrared illumination, and surge in demand for VCSELs with advancements in automotive electronics.

By material, the VCSEL market is segmented into gallium arsenide (GaAs), gallium nitride (GaN), indium phosphide (InP), and others (gallium indium nitrogen arsenide (GaInNAs), indium gallium arsenide (InGaAs), indium aluminum gallium arsenide (InAlGaAs), and aluminum gallium arsenide (AlGaAs)). The market for InP is expected to grow at the highest CAGR during the forecast period. VCSELs operating in 1,300–1,550nm wavelength range are rapidly evolving and are mostly InP-based. The high growth of this material can be attributed to its high wavelength compatibility and use in high-speed communication applications.

By type, the VCSEL market is segmented into single mode and multimode. The market for single-mode VCSELs is expected to grow at a higher CAGR during the forecast period. This growth can be attributed to the ability of single-mode VCSELs to provide solutions to many sensing applications, especially in the consumer electronics industry.

By application, the VCSEL market is segmented into data communication, sensing, IR illumination, pumping, industrial heating, and emerging applications. The market for emerging applications is expected to grow at the highest CAGR during the forecast period. VCSELs are being widely used in emerging applications such as LiDAR, night vision, atomic clock, GPS, magnetometer, and display. Presently, this market is in the nascent stage, but it is expected to witness high growth in the coming years owing to the use of VCSELs for high-quality vision and obstacle detection, among others.

By end user, the VCSEL market is segmented into data center, consumer electronics, automotive, industrial, healthcare, and military. The market for consumer electronics is expected to grow at the highest CAGR during the forecast period. With the increasing implementation of VCSELs for advanced features such as laser autofocus and proximity sensors in smartphones, the consumer electronics segment has created a huge shift in the overall VCSEL market. Also, other applications such as video signal to display, video signal from one or more cameras, low-noise microphone, and gesture recognition are expected to create huge demand for VCSELs in consumer electronics.

By region, the VCSEL market is classified into the Americas, Europe, APAC, and RoW. The market in APAC is likely to grow at the highest CAGR during the forecast period. This growth can be attributed to the rising number of data centers and increasing demand for consumer electronic devices and premium automobiles. APAC countries such as China, India, Singapore, and Indonesia are emerging as hubs for data centers owing to advancements in basic telecom infrastructure and encouragement from respective governments. The largest size of the Americas VCSEL market is due to the demand for these devices from technology giants such as Facebook (US), Google (US), Apple (US), and Amazon (US). Moreover, the growing emphasis of businesses on the use of cloud infrastructure has contributed to the increasing demand for VCSEL-based optical transceivers in the Americas.

VCSEL Market

Limited data transmission range inhibits the VCSEL market growth. Furthermore, to overthrow the limitations of gallium nitride restricting the performance of VCSELs has been a key challenge facing the market. However, factors such as technological advancements in the consumer electronics sector and the evolution of laser-based hard disc drive technology can generate significant opportunities for players in this market.

Some key players in the VCSEL market are Finisar (US), Lumentum (US), Broadcom (US), Philips Photonics (Germany), II-VI (US), IQE (UK), AMS Technologies (Germany), Vixar (US), Santec (Japan), VERTILAS (Germany), Agiltron (US), Alight Technologies (Denmark), Ultra Communications (US), Laser Components (Germany), Litrax Technology (Taiwan), Coherent (US), TT Electronics (UK), Newport (US), NeoPhotonics (US), and Necsel Intellectual Property (PD-LD) (US).

Drivers

Rising adoption in proximity sensing and medical applications

The VCSEL market is expanding rapidly owing to the innovative use of VCSELs in a majority of applications, such as industrial heating, infrared illumination, and laser pumping. VCSELs are fast and compact, have low beam divergence, and consume low power. All these features make VCSELs more efficient than light emitting diodes (LEDs). VCSELs can increase the range of proximity sensors used in a manufacturing line, provide high-resolution encoding, as well as improve speed and resolution of laser printers. Hence, they are best suited for proximity sensing, as well as mobile applications. These advantages of VCSELs over LEDs are encouraging the manufacturers of printing equipment, displays, and sensors to adopt VCSELs.

Increasing use of VCSELs for data communication

A high-speed data transmission infrastructure that can accommodate the ever-growing volume of data has become a necessity. Data centers are services that store and distribute the data on the Internet. There are ~2 billion users accessing the websites and videos, which leads to the generation of huge volumes of data. To prevent energy consumption by data centers, it is necessary to develop more dependable high-speed data transmission links. Initially, this led to the use of edge-emitting lasers (EELs). The output from EELs was an elliptical beam profile, which made it difficult and costly to collimate. Since VCSELs overcome such limitations of EELs, they are considerably deployed in data centers.

Opportunities

Technological advancements in consumer electronics sector

VCSEL devices have been extensively adopted for sensing applications as it was the core technology for optical mouses. These devices improve the point-and-click operations in graphical user interface (GUI)-based computers because of their high sensitivity, long functional life, and low power consumption. These devices have led to the exit of mechanical mouse devices from the market. The data communication industry has also observed rise in demand for low-cost VCSELs due to the growing demand for 1Gbps plastic optical fiber (POF)-based home networking. Since POF-based home networking products are consumers’ preference, cost-efficient VCSELs are anticipated to boost the growth of the VCSEL market.

Evolution of laser-based hard disc drive technology

A hard disk drive (HDD) is a low-cost, high-capacity physical storage device used for random-access data in PCs and enterprise data centers. The increasing use of HDDs is expected to boost the growth of the VCSEL market. VCSELs have several advantages over EELs, especially when used in an energy-assisted magnetic recording (EAMR) system. Often, during the overall operations process, the temperature inside a HDD is ~60°C, and during the writing operations, the temperature on the magnetic head to which the laser is attached is slightly higher. Generally, VCSELs can operate consistently up to 80°C or higher; therefore, they do not require any cooling system. Hence, an EAMR hard drive consisting of VCSELs would be more dependable.

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