VCSEL market to ‘see’ double digit growth, driven by emerging applications

VCSEL market to ‘see’ double digit growth, driven by emerging applications

Market news |
By Wisse Hettinga

This growth can be attributed to 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. However, limited data transmission range restricts the growth of the VCSEL market.

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.

Data centre accounted for the largest share of the VCSEL market, by end user, in 2017. Data centres largely use 850nm-emitting VCSELs, especially for applications where the size of the data transmitted over a network is extremely large.

In data centres, high data transfer rates are extremely important as they allow fast transmission of data for processing and obtaining results. As the adoption of data analytics is increasing in businesses across the world to improve decision-making capabilities, demand for VCSELs in data centres is further expected to rise during the forecast period.

The Americas accounted for a major share of the overall VCSEL market in 2017. The Americas is the largest market for VCSELs 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.

The VCSEL market is expected to grow at the highest CAGR in APAC from 2018 to 2023. This growth can be attributed to the rising number of data centres 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 centres owing to advancements in basic telecom infrastructure and encouragement from respective governments.

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