13 December 2016

VCSEL market growing at 21.3% CAGR from $760m in 2015 to $2414.91m in 2021

The global vertical-cavity surface-emitting laser (VCSEL) market is rising at a compound annual growth rate (CAGR) of about 21.3% from $760m in 2015 to $2414.91m in 2021, forecasts Zion Research in its report 'VCSEL Market by Application for Data Centers, Consumer Electronics, Automotive, Industrial, Healthcare and Others End Users: 2015 - 2021'.

The VCSEL has gained a reputation as a superior technology for short-reach applications such as infrared illumination, fiber-channel and intra-systems links and automotive. VCSELs have become the technology of choice for short-range datacoms, local-area networks (LANs), and are effective in displacing edge-emitter lasers. Usage of VCSEL is mainly due to the VCSEL's lower manufacturing costs and higher reliability compared to edge-emitters.

Advances in automotive electronics, the growing number of data centers and increasing demand from high-end applications such as gesture recognition and 3D imaging are some of the major drivers expected to propel the growth of the VCSEL market in coming years. Ongoing technological advances are enabling the use of VCSELs in huge quantities in infrared illumination. Also, increasing demand for cloud computing is expected to lead to a surge in growth of the VCSEL market in the near future. However, restriction to short-distance communications due to the limited range of VCSELs is expected to have impact the market. Nonetheless, technology such as the laser-assisted hard disk drive is expected to open up new growth opportunities for the VCSEL market in the coming years.

Data communication was the leading application segment in 2015 with over 57% market share, and is expected to maintain its dominance throughout the forecast period owing to the construction of new data centers for data analytics coupled with cloud computing. The sensing application segment is expected to see high growth in the China market. Technical advances in VCSELs and greater use in infrared illumination is expected to fuel demand for infrared illumination applications in the coming years.

By application, the data-center and automotive end-user segments are expected to be the most attractive in the forecast period. The automotive end-user segment is expected to grow at the highest CAGR of 25.11%, while rising demand for VCSELs in consumer electronics is expected to boost the growth of the consumer electronics application segment.

North America was the largest geographical market for VCSEL in 2015 and is expected to continue its dominance throughout the forecast period. Europe is expected to show remarkable growth, driven mainly by rising use of VCSELs in consumer electronics. Asia Pacific is considered to be the fastest-growing regional market for VCSELs, and growth in this region is mainly attributed to the growing number of data centers, paired with significant growth of the automotive sector in China and India.

The report lists some of the key players in the VCSEL market as JDS Uniphase Corp, Philips Photonics, Princeton Optronics Inc, Avago Technologies, II-VI Inc, Vixar Inc, and Ultra Communications Inc.

Tags: VCSELs

Visit: www.zionmarketresearch.com/report/vcsel-market