Japan VCSEL Market Size, Share, and COVID-19 Impact, By Type (Multi-mode, Single-mode), By Material Type (Gallium Arsenide, Gallium Nitride, Indium Phosphide, Other Materials), By Application Type (Sensing, Data Communication, Industrial Heating & Printing, Lidar, Pulse Oximetry, Other Applications), By Industry Verticals (Data Centers, IT & Telecom, Automotive, Mobile and Consumer Electronics, Healthcare, Industrial Equipment Manufacturing, Aerospace & Defense, Others) and Japan VCSEL Market Insights Forecasts to 2030

Market Overview

VCSEL stands for Vertical-Cavity Surface-Emitting Laser. A VCSEL laser is a semiconductor that emits a laser perpendicular to its top surface. It is not the same as an edge-fired laser, which emits the laser from the edge. LEDs, for example, are widely used in traditional photoelectric conversion technology. Such light-emitting devices are difficult to integrate with semiconductor technology because they are typically edge-emitting and large. Vertical cavity surface emitting laser (VCSEL) technology solved the problem of combining light-emitting devices and semiconductor technology.

The VCSEL is widely recognized as one of Japan's most successful inventions in the field of optoelectronic semiconductor devices. Since the 1970s, Japan has been at the forefront of VCSEL technology. Fuji Xerox, for example, demonstrated the first 2 dimensional 48 VCSEL printer array for high speed and ultra-fine resolution laser printing: 14 pages/minute and 2400 dots/inch.

Report Coverage

This research report categorizes Japan's VCSEL Market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan VCSEL Market. Recent market developments and competitive strategies such as market expansion, product launch and development, partnership, merger, and acquisition have all been included to depict the market's competitive landscape. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan VCSEL Market.

Driving Factors

In comparison to edge-emitting lasers (EELs) and light-emitting diodes, VCSELs provide a compact and cost-effective optical source for a wide range of applications (LEDs). Because of the increasing use of biometric systems in various organizations as a result of security breaches, the adoption of VCSELs for mapping an individual's facial features and storing the data as a faceprint is accelerating. Apart from this, VCSELs can be incorporated into light detection and ranging (LIDAR) technology, which is a crucial component in advanced driver assistance systems (ADAS). Additionally, the growing popularity of autonomous vehicles is encouraging the usage of VCSELs to supply data for completely driverless vehicles without endangering their safety.

Restraining Factors

Major VCSEL technology adopters have seen market disruptions and significant shifts in purchasing patterns as a result of growing smartphone adoption. The demand for VCSEL technology must keep up with the development of new functionalities in smartphones. The demand for widespread VCSEL use in low-cost smartphones is also anticipated to be hampered by the shortage of semiconductors.

COVID 19 Impacts

The COVID-19 pandemic outbreak in 2020 had a significant impact on investments and technology breakthroughs in a variety of industry sectors. Many end consumers and industries were impacted by the COVID-19 pandemic, which also caused supply chain disruptions, manufacturing industry closures, and economic slowdowns. Additionally, the pandemic had a negative impact on several businesses, including manufacturing, retail, healthcare, and consumer electronics.

Market Segment

• In 2022, the single-mode segment is witnessing a higher growth rate over the forecast period. 

Based on the type, the Japan VCSEL Market is segmented into multi-mode and single-mode. The single-mode segment is expected to grow at a faster rate during the forecast period, owing to the increasing penetration of mobiles and mobile apps, as well as the ability of single-mode VCSELs to save power, prolong battery life, and optimize the user experience. They are utilized in mobile industrial applications, wireless laser mice, and mobile phones due to their low power consumption, high output, and efficiency.

• In 2021, the gallium arsenide segment is witnessing significant CAGR growth over the forecast period.

On the basis of material type, the Japan VCSEL Market is segmented into gallium arsenide, gallium nitride, indium phosphide, and other materials. Among these, gallium arsenide is witnessing significant CAGR growth over the forecast period. Gallium arsenide-based VCSELs can match the demands for high resolution and quick speed in multimedia applications, and there is a growing market for new GaAs-based VCSELs in the Japanese consumer electronics sector. Several industries are seeing a sharp increase in the demand for GaAs in the production of VCSELs for 5G, 3D sensing, LiDAR, and high-speed photodetector applications.

• In 2021, the sensing segment is witnessing significant growth over the forecast period.

Based on application type, the Japan VCSEL Market is segmented into sensing, data communication, industrial heating & printing, LIDAR, pulse oximetry, and other applications. Among these, the sensing segment is witnessing significant growth over the forecast period, due to rising demand for face and object recognition, as well as developments in logistics, home and building automation, and Industry 4.0 technologies. VCSEL-based sensors are also employed to improve speed and accuracy in surveillance, smartphone, automotive, manufacturing, and consumer electronics applications.

• In 2022, the consumer electronics segment is dominating the market with the largest market share of 33% over the forecast period.

According to industrial verticals, The Japan VCSEL Market is divided into data centres, IT & telecom, automobiles, mobile phones, consumer electronics, healthcare, industrial equipment manufacture, aerospace & defence, and others. The consumer electronics segment dominates the market with a 33% market share over the forecast period. In Japan, there is a considerable demand for VCSELs due to the growing incorporation of VCSELs with cutting-edge features into proximity and laser-focusing sensors in consumer electronics devices. Features like facial recognition and 3D sensing are made possible by VCSELs.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan VCSEL Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Lumentum K.K.
• Shimadzu Corp. 
• Santec Corporation
• Rohm Semiconductor
• Ichikoh Industries, Ltd.
• Stanley Electric Co., Ltd.
• Sanken Electric Co., Ltd.
• Allegro MicroSystems
• LAPIS Semiconductor Co., Ltd.
• Renesas Electronics Corporation
• Shindengen Electric Manufacturing
• KOITO MANUFACTURING CO., LTD.

Key Target Audience

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

Recent Developments

• In April 2021, Furukawa Electric Co., Ltd. and Nichia Corporation agreed to a long-term business alliance aimed at strengthening a sustainable collaborative relationship in core technologies (laser processing) that will support the promotion of the electrification of mobilities. A laser oscillator that fuses an infrared fibre laser oscillator with a blue laser oscillator.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2030. Spherical Insights has segmented the Japan VCSEL Market based on the below-mentioned segments:

Japan VCSEL Market, By Type

• Multi-mode
• Single-mode 

Japan VCSEL Market, By Material Type

• Gallium Arsenide
• Gallium Nitride
• Indium Phosphide
• Other Materials

 Japan VCSEL Market, By Application Type

• Lidar
• Sensing
• Data Communication
• Industrial Heating & Printing
• Pulse Oximetry
• Other Applications

Japan VCSEL Market, By Industry Verticals

• Data Centres
• IT & Telecom
• Automotive
• Healthcare
• Aerospace & Defense
• Mobile and Consumer Electronics
• Industrial Equipment Manufacturing
• Others