VCSEL Market Key Business Strategies | Broadcom Limited, Lumentum Holdings Inc., II-VI Incorporated, Vertilas GmbH

Vertical cavity surface emitting laser (VCSEL) refers to a specialized laser diode that is envisaged to transform fiber optic communications in terms of improved efficiency and increased data speed.

VCSELs offer several advantages over older edge-emitting diodes. This includes their low manufacturing cost, easier testing, and higher efficiency. In addition, VCSELs require low electrical current to generate a desired coherent energy output. VCSELs emit a narrow nearly circular beam than what traditional edge-emitting diodes deliver, which makes it easier to transfer energy from a device to an optical fiber.

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Global VCSEL Market: Key Trends

VCSELs are used across a wide range of applications due to their advantages of compact size, low power requirements, high reliability, and low manufacturing costs. This, along with the rising use of electrical systems in automobiles is fuelling the growth of the global VCSEL market.

VCSELs are extensively used in medical applications and proximity sensing due to their high-power efficiency and additional capabilities of low diversion, low heat, high beam light, and greater accuracy.

VCSEL are used across several end users such as consumer electronics, automotive, data center, industrial, and healthcare. Low manufacturing cost and high reliability of VCSEL have led to their increased use in consumer electronics. However, the data center segment stood as the leading segment in the recent past due to surging high data transfer rates leading to the greater use of VCSELs.

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Multimode VCSELs are expected to be the leading product segment in the near future due to several offerings. Multimode VCSELs offer better modulation and high speed, which makes them preferable over single-mode VCSELs. Multimode VCSELs are used in data communication and 3D imaging applications. On the other hand, single-mode VCSELs are mainly used in sensing applications such as bar code, printing, and others.

The limitation pertaining to data transmission range is one of the major drawbacks of VCSELs. While the attenuation is elevated in multimode fiber the signal degrades as the distance increases. As a result, transmission of data becomes difficult over a certain distance due to weak signal strength. These factors are challenging the growth of the VCSEL market.

However, development of advanced lasers is underway to increase transmission range using VCSELs, which would augment their implementation for applications.

Global VCSEL Market: Market Potential

Mergers and acquisitions and strategic partnerships are key growth strategies that top companies in the market are focused on. In a recent industry development, Austrian semiconductor manufacturer ams has completed discussions to acquire U.S. –based Princeton Optronics Inc. The latter designs and develops high-power VCSELs in both single and multimode and also VCSEL arrays for consumer electronics, automotive, and industrial applications.

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Global VCSEL Market: Regional Outlook

North America has been the leading market for VSCEL over the past few years. The presence of some of the leading companies has been the major factor for the dynamic growth of the region.

Asia Pacific is expected to display significant growth in the VCSEL market in the near future. The increasing per capita income and increasing affordability for premium automobiles are indirectly driving the growth of the VCSEL market. Countries such as India, China, and Singapore are contributing to the VCSEL market owing to the modernization of infrastructure and support from respective governments. These factors are collectively aiding the growth of the APAC VCSEL market.

Global VSCEL Market: Competitive Landscape

Some top players in the global VSCEL market are Broadcom Limited, Lumentum Holdings Inc., II-VI Incorporated, Vertilas GmbH, Vixar Inc., Finisar Corporation, Royal Philips Electronics N.V., IQE PLC, Princeton Optronics Inc., and Santec Corporation.

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