VCSEL Sensor Market - Forecast(2021 - 2026)

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Vertical Cavity Surface Emitting Laser (VCSEL) Sensor Overview

The Global Vertical Cavity Surface Emitting Laser (VCSEL) Sensor Market is forecast to reach $3.1 Billion by 2026, growing at CAGR 17.2% during the forecast period 2021-2026. Rising technological advancements across consumer devices especially smartphones features encompass facial recognition, high quality image acquisition, ambient light sensing and so on are analysed to drive the market. Along with this, increasing demands from automotive sector towards VCSEL based LiDAR for ADAS systems is also poised to assist VCSEL sensor market growth from 2021 to 2026. Moreover, deployment of VCSEL technology in medical diagnostic and therapeutic applications as well as the telecommunication sector for achieving high data communication speeds through integration into advanced optical transceivers are also analysed to open new growth avenues for VCSEL sensors market

Report Coverage

The report: “VCSEL Sensor Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the VCSEL Sensor Market.
By Sensing Type: Single mode and Multi-mode
By Type: Proximity Sensors, Gas Sensors, Lidar sensors, Laser sensors, Reflective sensors
By End Users: Automotive, Consumer Electronics, Healthcare, IT and  Telecom, Aerospace and Military, Industrial and Others
By Application: 3D sensing, data transmission, industrial heating, laser printing, infrared illumination and Others
By Geography: North America (U.S, Canada and Mexico), Europe (U.K, Germany, France, Italy, Spain and Rest of Europe), Asia-Pacific (China, Japan, Australia, India, South Korea, South America (Brazil, Argentina and Rest of South America),  and Rest of APAC),RoW (Middle East and Africa)

Key Takeaways

  • Multi-mode segment is expected to have a major contribution during the forecast period 2021-2026 for the VCSEL sensor owing to its higher data transmission feature for telecom applications and better compatibility for space constrained application such as consumer devices.
  • APCA is expected to have a major share during the forecast period in the VCSEL sensor market due to high investments from major end customers especially for smartphones applications using VCSEL technology.

VCSEL Sensor Market Segment Analysis - By Sensing Type 

Based on sensing type, the vertical cavity surface emitting laser (VCSEL) sensor has been segmented under single mode and multi-mode. Multi-mode VCSEL sensor market is anticipated to have a major growth in during the forecast period 2021-2026 at 22.9% due to its adoption across various applications such as proximity sensing, data transmission, IR illumination and others across various industry verticals including medical, consumer electronics, telecom and others. Moreover, multi-mode sensors offer features such as better modulation, higher data transmission speed as well as cost effective as compared to single mode sensors. Features such as cost efficiency, low power consumption capacity, compact size and so on, are analyzed to have a significant impact on its integration in various electronic devices including smartphones, computer mice, AR-VR sets, gaming setups, laptops and among others, making it a better alternative than single mode of operation.

VCSEL Sensor Market Segment Analysis - By Type

The VCSEL sensor market is set to be dominated by laser and reflective sensors for usage in medical applications. The laser sensor market is projected to grow at 21.2% CAGR through 2026. The surging COVID-19 pandemic has caused manufacturers to start developing wearable medical devices such as pulse oximeters, fitness trackers, patient monitoring systems with advanced and cheaper components. As a part of this, a leading Indian medical equipment vendor, Mitocon Biomed had launched an affordable pulse oximeter named Oxysat for monitoring blood oxygen levels of patients with low to mild symptoms of COVID-19, for personal use. Post the pandemic, investments in improving and upgrading healthcare infrastructure in developed and developing economies is set to surge the demand for various medical devices. This is comprehended to fuel the need for VCSEL technology for various medical devices during 2021-2026

VCSEL Sensor Market Segment Analysis - By Geography

Asia-Pacific VCSEL sensor market is estimated to witness a major growth of around CAGR 20.0% during the forecast period 2021-2026. High investments towards research and development activities along with the growth of consumer electronics sector have been fueling the growth for VCSEL sensor market in this region. Moreover, factors such as increasing demand for medium to high range smartphones with new features such as gesture and facial recognition is also set to drive the demand for VCSEL sensors from 2020 to 2025. Presence of some major Chinese mobile companies such as Oppo, Vivo, Xiaomi and others which has been offering advanced proximity sensing features such as facial recognition and gesture control using VCSELs in their smartphones has been assessed as one of the factors to positively affect the market growth during 2021-2026.

VCSEL Sensor Market, By Sensor Type, 2020

VCSEL Sensor Market

VCSEL Sensor Market Drivers

Rising adoption in LiDAR using VCSEL technology

The rising demand towards vertical cavity surface emitting laser (VCSEL) technology in automotive LiDARs systems have been acting as a major driver for the market. Since VCSEL technology provides benefits such as low power consumption as well as low sensitivity towards temperature, they are getting highly used in automotive LiDAR systems including advanced driver assistance systems to improve driving standards and safety. Moreover, usage of VCSEL based LiDAR assists in offering more enlarged illumination range, compact footprint and lightweight structure as compared to LiDAR systems based on edge emitter laser technology. In 2020, a leading automotive LiDAR specialist, Ibeo Automotive Systems signed a contract to provide Great Wall Motor (GWM) Company with VCSEL technology based solid state LiDAR for deployment in level-3 semi-autonomous cars of GWM. The gradual shift towards VCSEL technology for LiDAR applications is estimated to drive the adoption of VCSEL sensors in automotive sector during 2020-2025.

Technological advancements in consumer devices

Rising technological advancements in consumer devices is also analysed to be one of the major drivers of vertical cavity surface emitting laser (VCSEL) sensors market. With advancements towards high performance and advanced features in smartphones such as face recognition, gesture control, virtual reality in smartphones, there has been high rate of smart phone penetration, thus causing the manufacturers to use VCSEL sensors for improving such features. The VCSEL technology-based sensors can provide enhanced 3d sensing applications within mobile devices which is fuelling its adoption for this application. In 2020, Apple launched its new product, iPad pro incorporated with a LiDAR scanner for improving the 3d sensing standards using VCSEL direct time-of-flight (ToF). This VCSEL technology emits light energy which will be utilized for determining the reflected time as well as offering power saving advantage. Since the consumer device manufacturers generally make use of time-of-flight solutions using indirect ToF cameras, this development is set to have major impact on the growth of VCSEL sensors for consumer applications.

VCSEL Sensor Market Challenges

Designing challenges

The complexities related to designing of vertical cavity surface emitting laser (VCSEL) sensor architecture is analysed to be one of the major challenges impeding the market growth. Since the chip designers need to combine features such as compact size, less weight as well as low power consumption, the process related to product designing, development, and verification stages for the product development takes more time. Improper designing of such sensors can also create optical crosstalk issues contributing to degradation of signal to noise ratio, thereby hampering its adoption for various industrial and consumer applications which are highly sensitive requirements for component selection in these areas.

VCSEL Sensor Market Landscape

Partnerships and acquisitions along with product launches are the key strategies of the players in the VCSEL sensor Market. The major key players in the VCSEL sensor Market include Vixar Inc., Broadcom Inc., Lumentum Operations LLC, ams AG, II-VI Incorporated, IQE, Vishay Intertechnology Inc., Santec Corporation, WIN Semiconductors and TT Electronics.

Partnerships/Product Launches/Acquisition

  • In February 2020, Vixar Inc. (a subsidiary of Osram GmbH) had announced the expansion of its vertical-cavity surface emitting laser chip portfolio by introducing a high power (10W) 940nm wavelength chip. This chip is highly suitable for industrial applications such as mapping, automatic vehicles and mobile robots and offers greater efficiency, aimed at 3D sensing applications.
  • In January 2020, Vishay Intertechnology Inc. had launched two fully integrated proximity sensors equipped with vertical cavity surface emitting laser. These sensors were designed to increase efficiency and performance within consumer and industrial applications. The low power consumption of 66 µA with ranges up to 300 nm helps in providing better industrial applications.

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1. VCSEL Sensor Market Overview
    1.1 Definitions and Scope
2. VCSEL Sensor Market   - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Type
    2.3 Key trends By End Use Industry
    2.4 Key trends segmented by Geography
3. VCSEL Sensor Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price of Industry Solutions)
4. VCSEL Sensor Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies 
    4.4 Customer Analysis
5.  VCSEL Sensor Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6.  VCSEL Sensor Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. VCSEL Sensor Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2  Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. VCSEL Sensor Market – By Type (Market Size -$Million/Billion)
    8.1 Proximity Sensor
    8.2 Gas Sensor
    8.3 LIDAR Sensor
    8.4 Laser Sensors
    8.5 Reflective Sensors
9. VCSEL Sensor Market – By Sensing Type (Market Size -$Million/Billion)
    9.1 Single Mode
    9.2 Multi Mode
10. VCSEL Sensor Market – By Application (Market Size -$Million/Billion)
    10.1 3D Sensing
    10.2 Data transmission
    10.3 Industrial heating
    10.4 Laser printing
    10.5 Infrared illumination
    10.6 Others
11. VCSEL Sensor Market – By End Use Industry (Market Size -$Million/Billion)
    11.1 IT and Telecom
    11.2 Aerospace and Military
    11.3 Automotive 
    11.4 Consumer Electronics
    11.5 Healthcare
    11.6 Industrial
    11.7 Others
12. VCSEL Sensor Market - By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 U.S
        12.1.2 Canada
        12.1.3 Mexico
    12.2 South America
        12.2.1 Brazil
        12.2.2 Argentina
        12.2.3 Chile
        12.2.4 Colombia
        12.2.5 Others
    12.3 Europe
        12.3.1 Germany
        12.3.2 France
        12.3.3 UK
        12.3.4 Italy
        12.3.5 Spain
        12.3.6 Russia
        12.3.7 Netherlands
        12.3.8 Others
    12.4 APAC
        12.4.1 China
        12.4.2 Japan
        12.4.3 South Korea
        12.4.4 India
        12.4.5 Australia
        12.4.6 Indonesia
        12.4.7 Malaysia
        12.4.8 Others
    12.5 RoW
        12.5.1 Middle East
        12.5.2 Africa
13. VCSEL Sensor Market - Market Entropy
    13.1 New product launches
    13.2 M&A's, collaborations, JVs and partnerships
14. VCSEL Sensor Market – Industry Competitive Landscape (Premium)
    14.1 Market Share – Global
    14.2 Market Share by Region
    14.3 Market Share By Industry Vertical
    14.4 Market Share By Type
15. VCSEL Sensor Market – Key Company List by Country Premium (Premium)
16. VCSEL Sensor Market - Company Analysis
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10