United States VCSEL Market 2025 | Growth Drivers, Market Forecast, Competitive Landscape & Business Opportunities

Market Size and Growth

The Global "VCSEL Market" is expected to grow at a CAGR of 18.2% during the forecast period (2024-2031).

Key Development:

United States: VCSEL Industry Developments

✅ In August 2025, Apple announced a $100 billion commitment to the United States, bringing its total investment over the next four years to $600 billion, including the launch of the American Manufacturing Program (AMP).

✅ In August 2025, Coherent Corporation entered a multiyear strategic supply agreement with Apple to continue producing VCSELs for features like Face ID on iPhone and iPad devices.

Japan: VCSEL Industry Developments

✅ In August 2025, Japan's VCSEL illuminator market was estimated at $950 million in 2025 and is projected to reach $3.05 billion by the end of the forecast period in 2033.

✅ In May 2025, Mitsubishi Electric launched a fully automated state-of-the-art factory in Shisui, Kumamoto Prefecture, Japan, scheduled for completion in September 2025.

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A VCSEL (Vertical-Cavity Surface-Emitting Laser) is a semiconductor laser that emits light vertically from its surface rather than from its edge. VCSELs are widely used in optical communications, 3D sensing, LiDAR, and consumer electronics due to their high efficiency, compact size, fast modulation, and low production cost.

Recent Mergers and acquisitions:

United States: VCSEL M&A Developments

✅ In October 2025, Thorlabs expanded its photonics portfolio by acquiring Nu Opto, Inc., a leading designer and manufacturer of acousto-optic components. This acquisition enhances Thorlabs' capabilities in acousto-optic technology, complementing its existing VCSEL offerings.

✅ In January 2025, Thorlabs acquired Praevium Research, a developer of high-speed tunable VCSELs. This acquisition strengthens Thorlabs' position in the VCSEL market, particularly in applications requiring high-speed tunability.

Key Players:

=> Incorporated, Royal Philips Electronics N.V., IQE PLC, Vertilas GmbH, Finisar Corporation, Avago Technologies, JDS Uniphase Corporation, Princeton Optronics, Vixar Inc., Ultra Communications Inc.

Growth Forecast Projected:

The Global VCSEL Market is anticipated to rise at a considerable rate during the forecast period, between 2024 and 2031. In 2023, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Research Process:

Both primary and secondary data sources have been used in the global VCSEL Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

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Key Segments:

➥ By Type: Single-Mode, Multimode, Infrared Illumination
➥ By Application: Data Communications, Sensing, GPS, Pumping, Others
➥ By End User: Data Centers, Automotive, Consumer Electronics, Healthcare, Others

Regional Analysis for VCSEL Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

Benefits of the Report:

Chapter 1: Sets the stage by outlining the report's coverage, summarizing key market segments by region, product type, and application. Presents a snapshot of market sizes, growth potential across segments, and anticipated industry evolution both short and long term.

Chapter 2: Highlights pivotal market insights and uncovers the most significant emerging trends driving change within the industry.

Chapter 3: Offers an in-depth look at the competitive landscape among VCSEL producers, including revenue shares, strategic moves, and recent mergers and acquisitions.

Chapter 4: Presents comprehensive profiles of the market's key players, delving into details such as revenue, profit margins, product portfolios, and company milestones.

Chapters 5 & 6: Analyze VCSEL revenue at both regional and country levels, providing quantitative breakdowns of market sizes, growth opportunities, and development prospects worldwide.

Chapter 7: Focuses on different market segments by type, examining their individual sizes and potential, guiding readers toward high-impact, untapped market areas.

Chapter 8: Explores segmentation by application, evaluating industry growth potential in various downstream markets and pinpointing promising sectors for expansion.

Chapter 9: Provides a thorough review of the industry's supply chain mapping out both upstream and downstream activities.

Chapter 10: Concludes with a summary of the report's key findings and highlights the most critical takeaways for industry stakeholders.

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FAQ

Q: What is the growth rate of the VCSEL Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 18.2% during the forecast period from 2024 to 2031.

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