North America VCSEL for Data Communication Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Type and Material

The VCSEL for data communication market in North America is expected to grow from US$ 62.27 million in 2019 to US$ 223.73 million by 2027; it is estimated to grow at a CAGR of 18.2% from 2020 to 2027.

The VCSEL (vertical cavity surface emitting laser) market players are investing heavily in exploring the commercial viability of this technology across the automotive industry wherein it would serve a similar purpose as that of LiDAR (light detection and ranging) based systems.Thus, the companies are focusing on developing larger and powerful VCSEL arrays to further expand their commercial application scope, such as automotive industries and aerospace industries.

For instance, as per Automotive Electronics Council (AEC), one of the leading providers of VCSEL technology for 3D sensing and industrial applications successfully completed tests for the automotive industry’s temperature ranges requirement.Further, Ibeos (formerly Cubic Aerospace), which is specialized in providing electronics for the aerospace industry, invests heavily in products and technologies for the automotive industry.

The company plans to develop powerful solid-state LiDAR components based on VCSEL array-based products. Thus, applications in the automotive industry and introduction of VCSEL array-based products provide opportunities for the growth of VCSEL for data communication market players.

As the complete impact of COVID-19 is still unknown, the impact across the electronics value chain will probably be beyond reach and strongly affecting parties involved in the semiconductor industry.COVID-19 is showing the possible risks and vulnerability of present electronics and semiconductor value chain models as well as create challenges in the semiconductor industry to consider altering its North America supply chain model.

Further, during the lockdown in several affected countries, VCSEL manufacturers halted their activities due to disrupted supply of raw materials such as gallium arsenide and indium phosphide with mobility restrictions during the lockdown.However, after the relaxation, the market is expected to witness a significant growth considering the investments in data communications industry.

Also, several governments have urged people to work from home as well as practice social distancing.This shift has resulted in a surge in digital communications services across North America.

Online teaching and work from home have increased the need for internet access with people ensuring to remain connected.

The multi-mode segment led the North America VCSEL for data communication market based on type in 2019.Most of the VCSELs in data communications applications are multi-mode lasers.

Effects including mode hopping as well as mode partitioning are moderated by suitable collection optics.The restriction on the encoding bandwidth of the multi-mode VCSEL is a vital issue considered to be fixed by the use of single-mode or few-mode VCSELs.

Multi-mode VCSELs are critical support in data communications. They are preferred as they provide modulation enhancements over a proton VCSELs and consistent improvement over single-mode VCSEL, which is fueling the growth of the North America VCSEL for data communication market.

The overall North America VCSEL for data communication market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.

The process also serves the purpose of obtaining overview and forecast for the North America VCSEL for data communication market with respects to all the segments pertaining to the region.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic.

The participants who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the North America VCSEL for data communication market. Bandwidth10; Broadcom, Inc.; Hamamatsu Photonics K.K.; II-VI Incorporated; Lumentum Holdings Inc.; TRUMPF; Ushio America, Inc.; and VERTILAS GmbH are among a few players operating in the North America VCSEL for data communication market.