According to a new report by Zion Research, the global VCSEL market accounted for around $760.00 million in 2015 and is expected to reach $2.4 billion by 2021, growing at a CAGR of around 21.3 percent between 2016 and 2021.
VCSEL has gained a reputation as a superior technology for short reach applications such as infrared illumination, fibre channel and intra-systems links, due to the VCSEL's low manufacturing costs and high reliability.
Advancement in automotive electronics, growing numbers of datacentres and increasing demand from gesture recognition and 3D imaging are some of the major driving factors expected to propel the growth of VCSELs, according to the report ‘VCSEL Market by Application for Data Centers, Consumer Electronics, Automotive, Industrial, Healthcare and Others End Users: Global Industry Perspective, Comprehensive Analysis and Forecast, 2015 – 2021’.
Data communication has been the leading application segment with over 57 percent of share in 2015. It is expected to maintain its dominance throughout the forecast period mainly because of the construction of new datacentres. Sensing applications are expected to exhibit high growth in China. Automotive applications are expected to grow at the highest CAGR of 25.11 percent during the forecast period.
North America was the largest market for VCSEL in 2015 and is expected to continue its dominance throughout the forecast period. Europe is expected to show high growth driven by the rising use of VCSEL in consumer electronics. Asia Pacific is considered to be the fastest growing market for VCSEL, due to the surge in datacentres paired with significant growth of the automotive sector in China and India.