WELLESLEY, Mass, Aug. 13, 2018 (GLOBE NEWSWIRE) -- Growing popularity across end-user markets, expanding use of gesture recognition, and greater precision and efficiency in a compact form are all helping to boost the vertical-cavity surface-emitting lasers market, according to a new report by BCC Research .

The industry expects to see a compound annual growth rate (CAGR) of 17.6% through 2022, when it is expected to top more than $3.6 billion, according to the report Vertical-cavity Surface-emitting Lasers (VCSELs): Technologies and Global Markets .

Major players in the market include Coherent, Finisar, IQE, Lumentum, Logitech International, Newport, Panasonic, Philips Photonics, Princeton Optronics, Schneider Electric, Thorlabs, Trilumina and Vixar.

Research Highlights

  • By application, the market will be led in growth by smartphones, which anticipate a CAGR though the period of 21.3%, followed by absorption spectroscopy, analog broadband signal transmission and chip scale atomic clocks, and computer mice.
  • The optical fiber data transmission segment of the global VCSELs market is expected to grow from $391.5 million in 2017 to $808.3 million in 2022 at a CAGR of 15.6%.
  • In the Asia-Pacific region, smartphones anticipate a CAGR of 23.8% and an estimated value of $263.7 million. Analog broadband signal transmission will see a CAGR of 19.9%, followed by optical fiber data transmission, with a CAGR of 17.4%.

“Another factor that makes VCSELs superior to their competitors is in their production process,” said report author Sinha G. Gaurav. “While edge emitters cannot be tested until the end of the production process, VCSELs can be tested at any time in the production process. This saves time for manufacturers and leads to a higher-quality product in the end.”

Market Restraints Include Low Quality Packaging and Sustaining Demand for Quick Data

Because VCSELs are manufactured from GaAs substrates, they suffer from dark-line defects, the report notes, and the presence of high concentrations of minority carriers in semiconductor lasers allows the defects to develop. Reliable VCSELs require very high-quality starting material and care. Meanwhile, although data rates in excess of 50 Gbps have been demonstrated in laboratory settings, such products are a long way from commercial availability. With growing demand for high-speed data communications, a network would need more parallel optical channels—a factor which would increase network costs.

About BCC Research BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com . Follow BCC Research on Twitter at @BCCResearch .

Editors/reporters requesting analyst interviews should contact Eric Surber at press@bccresearch.com.