VCSEL Market Expected to Reach $4,749 Million by 2023

Global VCSEL market was valued at $1,602 million in 2016, and is projected to reach at $4,749 million by 2023, growing at a CAGR of 15.7%

WILMINGTON, DE, UNITED STATES, November 28, 2025 /EINPresswire.com/ -- North America is expected to lead the global VCSEL market throughout the forecast period, followed by Europe. Asia-Pacific is expected to grow at a highest rate during the forecast period. Furthermore, Rest of Europe excluding UK, Germany, France, Spain, and Italy dominates the VCSEL market in Europe, similarly, the U.S. dominates the VCSEL market in North America and China leads the VCSEL market in Asia-Pacific; Latin America is expected to lead the global VCSEL market in LAMEA.

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A Vertical cavity Surface Emitting Laser (VCSEL) is a semiconductor-based laser diode that emits high power optical laser beam vertically from its top surface. Such devices replace edge emitting lasers (EEL) offering a wide range of applications especially in networks. A VSCEL device operates within a wavelength of 850 nm to 1310 nm and at transmission rate of 2.125-150 Gbps.

North America dominates this market presently, followed by Europe. In 2016, the U.S. dominated the market in North America; similarly, the rest of Europe excluding UK, Germany, France, Spain, and Italy led the overall market in the European region. China is dominating the market in Asia-Pacific presently.

Asia-Pacific witnesses the highest growth rate during forecast period due to lucrative opportunities offered by countries such as China, India, Singapore, South Korea, Japan, and other countries. These countries have adopted VCSEL solutions owing to the growth in penetration of mobility and cloud deployment by small and mid-sized companies

Surge in demand of VCSEL in data communication is expected to boost the market. Further, rise in usage of VCSELs in infrared illumination owing to technological advancements is also anticipated to fuel the market growth. However, high cost and limitations in data range of VCSELs hinders the market. Furthermore, demand for VCSELs in consumer electronics is expected to boost the VCSEL market in the upcoming years.

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The VCSEL market size is segmented based on type, application, and region. By type, the market is divided into single mode and multimode VCSEL. By application, the VCSEL market is classified into data communications, infrared illumination, sensing, pumping, GPS, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

In 2016, the multi-mode VCSEL segment dominates the global VCSEL in type segment, in terms of revenue. However, based on application, data communication leads the global market followed, by infrared illumination in year 2016. However, sensing application is anticipated to depict highest CAGR throughout the forecast period.

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Key Findings of the VCSEL Market:

Multi-mode VCSEL generated the highest revenue of the global VCSEL market, in 2016.
During the forecast period, sensing application is expected to register a highest CAGR rate.
Asia-Pacific is anticipated to exhibit a highest CAGR during the forecast period.
In 2016, the data communication application segment contributed the highest market shares in the VCSEL market.

The key players profiled in the report include Finisar Corporation, Avago Technologies, JDS Uniphase Corporation, Royal Philips Electronics N.V., II-VI Incorporated, IQE PLC, Vertilas GmbH, Princeton Optronics, Vixar Inc., and Ultra Communications Inc. These key players have adopted product launch strategy to strengthen their VCSEL market share. For instance, in June 2017, VIAVI Solutions launched CPRIAdvisor, a remote RF spectrum monitoring system that addresses a wide range of antenna deployment options in heterogeneous networks. This strategic move was done cut down the cost and manufacturing time. In June 2017, Vixar Inc.

extended its product line of 940 nm VCSELs used for various applications such as IR illumination, spectroscopic sensing, structured illumination, and time-of-flight (TOF) sensors for 3D sensing and imaging & gesture recognition. Moreover, In March 2016, Broadcom launched its latest portfolio of optical component solutions for multimode fiber (MMF) and single-mode fiber (SMF) transceivers. This product launch helped the company to strengthen its optical component product portfolio.

David Correa
Allied Market Research
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