The VCSELs industry has captured $1.5 billion revenue in 2021, and it is predicted to grow at the rate of 18.6% from 2021 to 2030, to generate $6.96 billion revenue in 2030.

It is ascribed to the growing adoption of 3D sensing features in smartphones. The proximity sensor, dot projector, and flood illuminator are utilized in 3D camera sensors based on laser components.

Moreover, the benefits of surface-emitting lasers such as low power consumption, high modulation rates, optical efficiency, and wavelength stability boost the product demand globally.

The surface-emitting semiconductor light sources emit perpendicular beams to the top surface, and hence they are known as vertical-cavity surface-emitting lasers. The high-speed data transmission through local area networks, short-distance links, and interconnects have made the usage of this device possible.

Array-based vertical-cavity surface-emitting lasers provide these devices with higher inherent reliability compared to electron energy loss spectroscopy. Such light sources are ideal for radio-over-fiber transmission of microwaves, and radiofrequency waves.

Besides 3D sensing, vertical-cavity surface-emitting lasers are used in thermal heating and curing, atomic clocks, optical encoders, optical touchpads, oxygen sensors, ADAS, and laser printers.

Moreover, this device is utilized for mapping the facial characteristics of an individual, and store the faceprint data. The expanding application of biometric systems in governments and corporations, led by increasing number of security breaches fuels the use of such devices. It is also ascribed to the integration of high-quality cameras in portable electronics, that has enabled identification and authentication through face recognition.

Under the type segment, the single-mode category holds the larger industry share. It is ascribed to the rising popularity of mobile applications, and the ability of single-mode variants to expand the lifespan of lithium-ion batteries, improve user experience, and reduce power consumption.

Single-mode VLSELs are employed in cordless devices, due to their high output efficiency, and low power consumption, including laser mice and mobile phones. The single-mode lasers reduce attenuation, which allows longer travel of the signal. In addition, they are expensive, compare to multi-mode lasers, led by the high density of laser diodes.

In addition, single-mode lasers have decreased attenuation, which facilitates the longer distance travel of signal.

The better coupling with optical fiber, without any need for low price, high power efficiency, beam-shaping devices and capacity for long-reach optical interconnects, and strong laser output with polarization locking encourages the adoption of technology in various sectors.

Multi-mode VCSELs are projected to rise at a substantial rate, of 20.3%, in the near future. The vertical-cavity surface-emitting lasers can capture high power densities with improved rise time. It results in their usage in various applications, such as time-of-flight, LiDAR, industrial illumination, and others.

Under the material segment, gallium arsenide (GaAs) holds largest industry, of 64% in 2021. It is ascribed to the massive application in proximity sensors for surging adoption of GaAs-based vertical-cavity surface-emitting lasers. Moreover, proximity sensors are massively integrated into smartphones and other consumer devices.

North America holds the largest industry share, at 22%, and it is expected to experience faster growth in the near future. It is led by the presence of key players, and rising expansion of the consumer electronics industry in the region.

Therefore, the rising penetration of smartphones fuels the demand for VSCELs.