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3. VCSEL Companies - Coherent Corp. (US) and Lumentum Operations LLC (US) are the Key Players

The VCSEL market was valued at USD 1.3 billion in 2024 and is expected to reach USD 1.9 billion by 2029, registering a CAGR of 8.1% during the forecast period. Growth in the application of VCSELs in data communication, increased adoption of 3D sensing applications in smartphones, and increased usage of facial recognition and biometric security systems are some of the major factors for the growth of the VCSEL market.  The key growth strategies adopted by the market players in the VCSEL market ecosystem to expand their presence in the market, enhance their product portfolios, and increase their market share in the market mainly include new product launches, collaborations, partnerships and acquisitions.

For instance,  In November 2023, Lumentum Operations LLC (US) acquired Cloud Light Technology Limited. As the optical module market in cloud data centers expands, particularly with increasing AI/ML demands, the acquisition of Cloud Light positions Lumentum as the world leader. This acquisition will enhance the scale of Lumentum's product portfolio while also advancing its ability to manage AI workloads by combining Cloud Light's design and assembly expertise with scale and customer reach on a global level.

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Major VCSEL companies include:

• Coherent Corp. (US)
• Lumentum Operations LLC (US)
• ams-OSRAM AG (Austria)
• TRUMPF (Germany)
• Broadcom (US)
• MKS Instruments (US)
• Santec Holdings Corporations (Japan)
• Leonardo Electronics US, Inc. (US)
• VERTILAS GmbH (Germany)
• Vertilite (China)

In November 2023, VMware was acquired by Broadcom (US). The company strongly focused to empower the enterprise customers to modernize private and hybrid cloud environments. This investment focused on driving innovation and simplifying the portfolio, facilitating customers' ability to acquire and manage their cloud infrastructure.

Coherent Corp.:

Coherent Corp. supplies engineered materials, optoelectronic components, and optical systems, providing vertically integrated solutions for a wide range of applications. It specializes in developing and manufacturing photonic and optoelectronic components and products for a wide range of sectors. The product offerings of the company include laser systems, VCSELs, dot projectors, optical components, and photonics solutions. The company operates via three segments: Networking, Materials, and Lasers. Coherent Corp. provides lasers and laser technology for a great number of applications including materials processing, instrumentation, and communications. Coherent offers VCSELs, VCSEL arrays, and optical filters to the consumer electronics markets by using a world-class 6-inch GaAs platform for epitaxial wafer growth and fabrication. Its VCSELs are used in products such as computer mice, mobile phones, data centers, HDMI optical cables, and vehicle steering wheels. Coherent operates multiple six-inch GaAs VCSEL fabs and produces 100G/lane VCSELs for 400G and 800G transceivers, with plans for 200G/lane VCSELs requiring significant design and fabrication changes. With technology catering to vastly diversified markets like consumer electronics, automotive, medical, industrial manufacturing, and telecommunications, Coherent Corp. is at the forefront of customer satisfaction. The company has approximately 3,000 patents worldwide as of June 2023. The company performs the majority of the manufacturing and research & development work from locations in the US, Germany, China, Australia, India, Finland, Singapore, Malaysia, South Korea, the Philippines, Sweden, Spain, the United Kingdom, Switzerland, Vietnam, and Thailand.

Lumentum Operations LLC:

Lumentum Operations LLC designs, develops, and manufactures optical communication products and industrial lasers. Lumentum Operations LLC operates through two business segments, Optical Communications and Commercial Lasers. Lumentum offers VCSELs under Optical Communications segment. They provide optical transceivers equipped with VCSELs and subsystems for enterprise, telecom, data center, metro optics, and other applications. The Lasers segment includes a variety of commercial lasers as well as 3D sensing and industrial diode lasers. The company’s diode lasers include edge-emitting diode lasers, fiber-coupled diode lasers, and VCSELs. These VCSELs, made from gallium arsenide (GaAs), operate at a wavelength of 850 nm and support data rates ranging from 25 Gbps to 50 Gbps. Lumentum Operations has manufacturing facilities in China, Italy, Japan, Thailand, the UK, and the US. Prominent customers include Apple (US), Ciena Corporation (US), Huawei Technologies Co., Ltd. (China), and Nokia (Finland). Lumentum Japan Inc. (Japan), Lumentum Asia Limited (Hong Kong),  Lumentum Netherlands B.V. (Netherlands), and Lumentum Canada Ltd. (Canada) are the subsidiaries of Lumentum Operations LLC. The company maintains an operational presence across the Asia Pacific, Americas, Europe, and the Middle East & Africa. The Company has a patent portfolio of 1,000 United States issued patents, 1,100 foreign issued patents, and 660 pending patent applications as of July 31, 2023.

Related Reports:

VCSEL Market by Type (Single-mode, Multimode), Material (Gallium Arsenide, Indium Phosphide), Data Rate (Up to 10 Gbps, 10.1 to 25 Gbps, Above 25 Gbps), Wavelength (Red, Near-Infrared (NIR), Shortwave Infrared (SWIR)) & Region – Global Forecast to 2029

Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
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