Global Vertical Cavity Surface Emitting Laser (VCSEL) Market Size to worth USD 13.91 Billion by 2033: Market Insight Report

Global Vertical Cavity Surface Emitting Laser (VCSEL) Market Size to worth USD 13.91 Billion by 2033

According to a research report published by Spherical Insights & Consulting, the Global Vertical Cavity Surface Emitting Laser (VCSEL) Market Size is Expected to Grow from USD 2.05 Billion in 2023 to USD 13.91 Billion by 2033, at a CAGR of 21.10% during the forecast period 2023-2033.  

Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Vertical Cavity Surface Emitting Laser (VCSEL) Market Size, Share, and COVID-19 Impact Analysis, By Material (Gallium Nitride and Gallium Arsenide), By Application (Data Communication, 3D Sensing, Lidar Systems, Industrial Heating & Laser Printing, Infrared Illuminations, and Others), By End-user (Consumer Electronics, Automotive, Industrial, Healthcare, Military & Defense, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.           

Vertical cavity surface emitting laser (VCSEL) is a monolithic kind of semiconductor laser with beam emission perpendicular to the wafer surface. Computer mice, fiber-optic communications, laser printers, face ID, and smart glasses are some of the laser products that use VCSELs. Applications for these technologies include optical communication, sensing, and 3D imaging. These include data communication, LiDAR systems in autonomous cars, and facial recognition technology in smartphones. The rising adoption of VCSEL in medical imaging and biomedical applications is bolstering the lucrative market growth opportunity. The growing demand for facial recognition and biometric systems among several applications is driving the market growth. The increasing adoption of VCSEL in data centers and demand for 3D sensing applications in smartphones are driving the vertical cavity surface emitting laser (VCSEL) market. On the contrary, limited adoption of InP-based VCSELs and higher deployment costs are restraining the VCSEL market.

The gallium arsenide segment accounted for the largest share of the global vertical cavity surface emitting laser (VCSEL) market in 2023.

Based on the material, the global vertical cavity surface emitting laser (VCSEL) market is divided into gallium nitride and gallium arsenide. Among these, the gallium arsenide segment accounted for the largest share of the global vertical cavity surface emitting laser (VCSEL) market in 2023. The growing application of gallium arsenide (GaAs) VCSEL in consumer electronics, IT & telecom, automotive, industrial, healthcare, aerospace & defense applications is driving the market.

The data communication segment accounted for the largest revenue share in 2023.

Based on the application, the global vertical cavity surface emitting laser (VCSEL) market is divided into data communication, 3D sensing, LiDAR systems, industrial heating & laser printing, infrared illuminations, and others. Among these, the data communication segment accounted for the largest revenue share in 2023. With the frequent deployment of data centers by large organizations, there is an increasing demand for VCSEL technology. Further, the surging demand for wireless connectivity is expected to drive the market in the data communication segment.

The consumer electronics segment dominated the market with the largest share in 2023.

Based on the end-user, the global vertical cavity surface emitting laser (VCSEL) market is divided into consumer electronics, automotive, industrial, healthcare, military & defense, and others. Among these, the consumer electronics segment dominated the market with the largest share in 2023. 3D sensing, optical mice, touchless sensors, and printing & scanning devices are some of the consumer electronic applications. The increasing consumer demand for advanced features and functions in electrical products is significantly contributing to propelling the market in the consumer electronics segment.

North America is projected to hold the largest share of the global vertical cavity surface emitting laser (VCSEL) market over the forecast period.

North America is projected to hold the largest share of the global vertical cavity surface emitting laser (VCSEL) market over the forecast period. The increasing adoption of the VCSEL technology in medical applications as well as proximity sensing is driving the market. The rising application of VCSELs for data communication and infrared illuminations is propelling the market growth. In addition, the upsurging advancements in automotive electronics are promoting the market in the region.

Asia Pacific is predicted to grow at the fastest CAGR in the vertical cavity surface emitting laser (VCSEL) market over the forecast period. The increasing data generation that led to the rise in the construction of data centers for handling large data volumes is driving the market growth. Further, the increasing demand for energy-efficient and high-performance semiconductors is driving the market growth.

Competitive Analysis

Major key players in the vertical cavity surface emitting laser (VCSEL) market include Coherent Corp., Lumentum Operations LLC, ams OSRAM AG, TRUMPF, Broadcom, MKS Instruments, Santec Holdings Corporation, Leonardo Electronics US, Inc., Vertilas Gmbh, RP Photonics AG, and Others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In January 2024, ams OSRAM to showcase its high-performance LEDs, lasers, sensors and integrated circuits at SPIE Photonics West in San Francisco, Calif.

• In January 2024, Coherent Corp., a leader in semiconductor lasers for depth sensors, announced the introduction of an illumination module platform for short- and mid-range light detection and ranging (LiDAR) in automotive safety and robotic vision in industrial applications.

• In February 2023, Coherent Corp., a leader in datacom transceiver components, announced the introduction of its 100G PAM4 vertical-cavity surface-emitting laser (VCSEL) and photodiode (PD) arrays for 800G short-reach datacom pluggable transceivers and active optical cables (AOCs.)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the global vertical cavity surface emitting laser (VCSEL) market based on the below-mentioned segments:

Global Vertical Cavity Surface Emitting Laser (VCSEL) Market, By Material

• Gallium Nitride
• Gallium Arsenide

Global Vertical Cavity Surface Emitting Laser (VCSEL) Market, By Application

• Data Communication
• 3D Sensing
• Lidar Systems
• Industrial Heating & Laser Printing
• Infrared Illuminations
• Others

Global Vertical Cavity Surface Emitting Laser (VCSEL) Market, By End-User

• Consumer Electronics
• Automotive
• Industrial
• Healthcare
• Military & Defense
• Others

Global Vertical Cavity Surface Emitting Laser (VCSEL) Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa