VCSEL for Data Communication Market to Reach $358.4 Million, Globally, by 2027 at 13.5% CAGR

Allied Market Research recently published a report, titled, “VCSEL for Data Communication Market by Type (Single Mode and Multi-Mode) and Material (Gallium Nitride, Gallium Arsenide, Indium Phosphide, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027”. According to the report, the global VCSEL for data communication industry was pegged at $120.5 million in 2019, and is projected to reach $358.4 million by 2027, growing at a CAGR of 13.5% from 2020 to 2027.

Major determinants of market growth

Surge in demand for VCSELs in data centers, upsurge of industry revolution 4.0, and rise in leveraging data communications for utility operational effectiveness have boosted the growth of the global VCSEL for data communication market. However, lack of standardization between equipment manufacturers hampers the market growth. On the contrary, increase in demand for wireless connectivity is expected to create lucrative opportunities for the market players in the future.

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Covid-19 scenario:

  • The mass migration of remote working employees to their homes have negatively impacted the business processes in the electronic devices manufacturing industry.
  • Disrupted supply chain has caused shipment delays for the electronics manufacturers. If shipments are not delayed, the ripple effect will increase the spread of Coronavirus. This will force more countries to restrict border access and raw materials.
  • However, the increasing demand for remote monitoring devices due to adoption of work from home culture would positively affect the market growth.

The multi-mode segment held the largest share

By the multi-mode segment dominated the global VCSEL for data communication market in 2019, accounting for nearly three-fourths of market. Moreover, the segment is expected to register the highest CAGR of 14.0% during the forecast period, owing to high demand for increasing data rates and increasing use of VCSELs and multimode optical fibers.

The indium phosphide segment to manifest the highest CAGR through 2027

By material, the indium phosphide segment is expected to portray the highest CAGR of 16.5% during the forecast period, due to high advancement in indium phosphide for applications that demand high performance, especially high output power, including free-space communications and microwave photonics. However, the gallium arsenide segment held the lion’s share in 2019, contributing to nearly three-fourths of the global VCSEL for data communication market. This is owing to their most important advantage such as speed, electrons travel about five times faster in gallium arsenide than they do in silicon, and has a high resistance to electrical current before it is doped with any impurities to form circuit elements.

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North America dominated the market

By region, the global VCSEL for data communication market across North America held the largest share in 2019, accounting for around one-third of the market, owing to rise in performance of optoelectronic devices and wavelength ranges from 480 to 1300 nm and advent of advanced technologies in data communication. However, the market across Asia-Pacific is expected to register the highest CAGR of 15.5% during the forecast period, due to rising per capita income and affordability for automobiles sector and low manufacturing cost and high reliability of VCSEL.

Major market players

  • Hamamatsu Photonics K.K
  • II-VI Incorporated
  • Bandwidth10
  • RPMC Lasers
  • Vixar Inc. (Osram Opto semiconductor)
  • Ushio America, Inc.
  • VI Systems GmbH
  • Vertilite

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

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