VCSEL Market Global Report 2023: Growing Adoption of 3D Sensing Applications in Smartphones Boosts Sector

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May 16, 2023, 11:15 ET

DUBLIN, May 16, 2023 /PRNewswire/ -- The "VCSEL Market by Type (Single-mode and Multimode), Material (GaAs, InP, GaN), Wavelength, Application (Sensing, Data Communication, Industrial Heating & Printing, Emerging), Data Rate, Industry and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.

The global VCSEL market is projected to grow from USD 1.6 billion in 2023, to USD 2.9 billion by 2028, at a CAGR of 13.6% between 2023 and 2028.

One of the factors driving the growth of the VCSEL market high preference for adopting 3D sensing technologies, and integration of the Internet of Things (IoT) across buildings, utilities, manufacturing, logistics, retail, and healthcare.

VCSELs are made of gallium arsenide (GaAs) and indium phosphide (InP) with single-mode and multimode functionality. VCSELs are highly efficient and cost-effective for applications, such as data communication, industrial heating, and 3D sensing & gesture recognition. They are widely used in consumer electronics, data centers, automobiles, commercial & industrial applications, as well as healthcare and military industries.

VCSEL for red wavelength is the second largest segment of VCSEL market during the forecast period

Red VCSELs offer benefits, such as improved performance and low power consumption, and are used in applications that include laser printing, optical mouse, and low-cost, high-speed interconnects based on plastic optical fiber (POF). However, material design challenges make it more difficult to achieve the desired performance than at the well-developed wavelength of 850 nm. Ams-OSRAM (Austria) is one of the market players offering VCSELs in the red band segment.

Emerging and application segment is the fastest-growing segment of the VCSEL market during the forecast period

This segment includes VCSELs for emerging applications, such as LiDAR, driver monitoring/gesture recognition, 3D sensing in vehicles, security & night vision systems/cameras, pulse oximeter, and OCT. The growth in the emerging and other application segments is closely tied to the use of VCSELs in automotive LiDARs. For instance, in August 2020, automotive LiDAR specialist Ibeo Automotive Systems (Germany) announced that it would deploy VCSELs in LiDAR for 'Level 3' semi-autonomous driving in cars built by the automotive manufacturer Great Wall Motors (China). Hence, VCSEL-based solid-state LiDAR systems show great potential as the next evolution in LiDAR technology, which can replace traditional bulky and expensive mechanical spinning and microelectromechanical systems (MEMs) that are currently in use. The size of VCSELs also makes it easier to integrate photonic and electronic components in a LiDAR system. These factors are projected to contribute to the high growth rate of emerging and other applications.

The above 25 Gbps segment is the fastest-growing segment of VCSEL market by 2028

With the growing adoption of 5G networks and smart city developments, data traffic is increasing at a significant rate. This is increasing the connectivity load on data centers, wherein a faster data transmission medium for a short distance is required. Hence, many hyperscale data centers operators, such as Facebook (US), Apple (US), Microsoft (US), Amazon (US), and Google (US), as well as government institutions, are focusing on the adoption of high-speed transceivers and AOCs, which operate at 100G, 200G, and 400G data rates. These optical transceivers initially used edge-emitting lasers (EELs) that are now being quickly replaced by VCSELs. VCSELs capable of 25 Gbps data rate are the most widely deployed type due to their lower cost. However, it is expected that VCSELs with data rates above 25 Gbps will be adopted at a faster rate due to the increase in traffic on data communications worldwide.

The automotive segment is the fastest-growing application of VCSEL market by 2028

Surge in the adoption of VCSELs in automobiles for driver monitoring and infotainment systems results in high growth in the automotive segment for VCSEL market. VCSELs are finding increased applications in systems, such as advanced driver assistance systems (ADAS), due to the evolution of autonomous vehicles. . LiDAR is one of the latest technology used in automotive safety developments and solutions that are being used to make solid-state LiDARs using VCSELs. This evolution toward the adoption of autonomous vehicles in the long term is projected to drive the growth of the automotive segment.

Market Dynamics

Drivers

Growing Adoption of 3D Sensing Applications in Smartphones
Increasing Application of VSCELs in Data Communication
Increased Market Investment for VSCEL Manufacturing

Restraints

Limited Data Transmission Range
Limitations of Semiconductor Materials Hampering Performance of VSCELs

Opportunities

Use of VSCELs in Lidar Systems for Automotive Applications
Growing IoT Market and Data Processing Across Commercial and Government Sectors
Growing Adoption of VSCELs in Consumer Electronic Devices

Challenges

Manufacturing Defects in VSCELs
Recession Impact on Smartphone Market

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

5 Market Overview

6 VSCEL Fabrication Methods
6.1 Introduction
6.2 Selective Oxidization
6.2.1 Leads to Production of Strong Electrical and Optical Confinement
6.3 Ion Implantation
6.3.1 Provides Highly Controlled Aperture That Leads to Higher and More Stable Productivity of VSCELs

7 Applications of VSCEL Technology in Smartphones
7.1 Introduction
7.2 Dot Projector
7.2.1 Enables Facial Recognition Feature in Smartphones
7.3 Time-Of-Flight (Tof)
7.3.1 Tof Modules Use VSCELs to Release Infrared Light
7.3.2 Proximity Sensing
7.4 Flood Illuminator
7.4.1 VSCELs Used by Flood Illuminators to Project Infrared Light Used to Illuminate Face of Users

8 VSCEL Market, by Type
8.1 Introduction
8.2 Single-Mode
8.2.1 Single-Mode VSCELs Used for Low-Power Applications
8.3 Multimode
8.3.1 Multimode VSCELs Used for High-Power Applications

9 VSCEL Market, by Wavelength
9.1 Introduction
9.2 Red
9.2.1 VSCELs in Red Band Have Wavelengths in Between 650 Nm and 750 Nm
9.3 Near-Infrared (Nir)
9.3.1 VSCELs in Nir Band Have Wavelengths Between 750 Nm and 1,400 Nm
9.4 Shortwave Infrared (Swir)
9.4.1 VSCELs in Swir Band Have Wavelengths Between 1,400 Nm and 3,000 Nm

10 VSCEL Market, by Material
10.1 Introduction
10.2 Gallium Argeside (Gaas)
10.2.1 Gaas-Based VSCELs to Register Highest CAGR During Forecast Period
10.3 Indium Phosphide (Inp)
10.3.1 More Expensive Than Gaas Due to Material Costs and Small Wafer Size
10.4 Others
10.4.1 VSCELs in the Swir Band Have Wavelength Between 1,400 Nm and 3,000 Nm

11 VSCEL Market, by Application
11.1 Introduction
11.2 Sensing
11.2.1 3D Sensing
11.2.1.1 Tof Camera
11.2.1.1.1 Proximity Sensing
11.2.1.1.1.1 Proximity Sensing Widely Used in Smartphones
11.2.1.2 Structured Light Illumination
11.2.1.2.1 Increasing Adoption of Face Recognition Technologies in Smart Devices to Create Lucrative Opportunities
11.2.1.3 Facial & Gesture Recognition
11.2.1.3.1 Increase in Adoption of Biometric Technologies in Smart Devices to Drive Market
11.2.2 Gas Sensing
11.2.2.1 Single-Mode VSCELs Used for Gas Sensing in Industrial Environments
11.2.3 Optical Mice
11.2.3.1 VSCEL-Based Optical Mouse Enables Operations on Various Surfaces
11.3 Data Communication
11.3.1 Optical Transceivers & Active Optical Cables
11.3.1.1 Growing Adoption of High Data Rate Optical Components in Data Centers to Propel Market
11.4 Industrial Heating & Laser Printing
11.4.1 Additive Manufacturing
11.4.1.1 VSCEL Heating Reduces Thermal Gradient in Additive Manufacturing
11.4.2 Laser Printing
11.4.2.1 Laser Printing Requires Low-Cost, Single-Mode VSCELs
11.5 Emerging & Other Applications
11.5.1 Lidar
11.5.1.1 Developments in Autonomous Vehicles to Create Opportunities for Applications of VSCELs in Automotive Lidars
11.5.2 In-Cabin Sensing
11.5.2.1 Innovations in Vehicle Infotainment Systems to Boost Demand for VSCELs
11.5.3 Atomic Clock & Gps
11.5.3.1 VSCELs Make for Compact and Low-Cost Solutions for Use in Atomic Clocks
11.5.4 Magnetometer
11.5.4.1 Highly Accurate Detection of Magnetic Fields Made Possible With Use of VSCEL-Based Magnetometers
11.5.5 Infrared Illumination for Surveillance
11.5.5.1 VSCELs Improve Performance and Visibility in Security & Surveillance Applications
11.5.6 Pulse Oximetry
11.5.6.1 VSCELs Provide Benefits of Narrower Spectral Linewidth Emission for Pulse Oximetry Applications

12 VSCEL Market, by Data Rate
12.1 Introduction
12.2 Up to 10 Gbps
12.2.1 VSCELs With Data Rates Up to 10 Gbps Used in Data Communication Applications
12.3 10.1 to 25 Gbps
12.3.1 VSCELs With Data Rate of 10.1 to 25 Gbps Dominated Market in 2022
12.4 Above 25 Gbps
12.4.1 VSCELs With Data Rate Above 25 Gbps to Record Highest Growth During Forecast Period

13 VSCEL Market, by Industry
13.1 Introduction
13.2 Consumer Electronics
13.2.1 Consumer Electronics Held Dominant Market Share in 2022
13.3 Data Center
13.3.1 Increase in Data Bandwidth in Data Centers to Drive Demand for VSCELs
13.4 Automotive
13.4.1 Adoption of VSCELs in Automotive Lidar to Boost Market in Rest of the World
13.5 Commercial & Industrial
13.5.1 Adoption of VSCELs Across Various Industrial Applications to Favor Market
13.6 Healthcare
13.6.1 VSCELs Used for Scanning and Imaging Applications in Healthcare Industry
13.7 Military
13.7.1 VSCELs Used for Tactical Surveillance and Obstacle Detection in Military Tasks

14 VSCEL Market, by Region

15 Competitive Landscape

16 Company Profiles

17 Appendix

Companies Mentioned

Alight Technologies
ams-OSRAM
Broadcom
Coherent Corporation
Frankfurt Laser Company
IQE
Inneos
Leonardo Electronics
Lumentum
MKS Instruments
Santec
TRUMPF
TT Electronics
Thorlabs
Ushio America
VERTILAS
Vertilite
WIN Semiconductors

For more information about this report visit https://www.researchandmarkets.com/r/au6j44

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