The VCSEL for data communication market in Europe is expected to grow from US$ 84.34 million in 2019 to US$ 331.62 million by 2027; it is estimated to grow at a CAGR of 19.5% 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 as well as powerful VCSEL arrays to further expand their commercial application scope such as automotive and other end-use industries. Thus, the automotive industry and VCSEL arrays-based products are expected to gain significant traction during the coming years due to potential investment by several market players operating in this segment. Thus, the growth of VCSEL technology in automotive industry is among the other factors expected to positively influence the demand for VCSEL for data communication.
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 with the semiconductor industry. COVID-19 is showing the possible risks and vulnerability of present electronics and semiconductor value chain models as well as creating challenges for the semiconductor industry to consider altering its European supply chain model. Further, during the lockdown in several affected countries, VCSEL manufacturers halted their activities owing to disrupted supply of raw materials such as gallium arsenide and indium phosphide with restrictions on mobility 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 Europe. Online teaching, as well as work from home, has increased the need for internet access with people ensuring to remain connected.
In terms of material, the gallium arsenide segment led the Europe VCSEL for data communication market in 2019. Gallium arsenide materials have properties that are conducive to lasing. Further, these materials can be utilized to fabricate high-reflectivity mirrors. Thereby, it is possible to get highly reflective DBR (distributed bragg reflector) using arsenide semiconductors through epitaxial growth techniques. One of the standard approaches of fabricating gallium arsenide-based VCSELs is to utilize aluminium gallium arsenide materials with two different compositions. Changing the composition of aluminium gallium arsenide results in negligible variations in its lattice constant, thus aluminium gallium arsenide DBR pairs can be grown in high numbers, which is needed to attain a reflectance nearly 100%. Additionally, gallium arsenide-based materials offer an ideal means of establishing current paths in VCSELs, as aluminium gallium arsenide DBRs are conductive in p- as well as n-type layers. Therefore, a metallic electrode deposited outside the DBR can offer a path for current injection into active regions situated between p-type and n-type layers. Another benefit of gallium arsenide VCSELs is that a short cavity length can be easily attained by epitaxial growth. These benefits offered by gallium arsenide VCSELs are fueling the growth of the Europe VCSEL for data communication market.
The overall Europe 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 Europe 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 Europe VCSEL for data communication market. Bandwidth10; Broadcom, Inc.; Hamamatsu Photonics K.K.; II-VI Incorporated; Lumentum Holdings Inc.; TRUMPF; VERTILAS GmbH; and VI Systems GmbH are among a few players operating in the Europe VCSEL for data communication market.