VCSELs offer reliability, high precision and efficiency in optical sensors based on scattering, transmission, absorption, self-mixing, reflection, interference, and others. For instance, VCSELs are universal in applications using reflective sensors and scattering or imaging techniques to perceive objects or moving objects. Greater precision has increased the adoption of VCSELs in medical applications, such as medical diagnostics and therapeutics, optical nerve stimulation, computed radiography imaging. Multi-element VCSEL arrays offers around 1 W of CW optical power, low facet power density while providing high wallplug efficiency. Owing to this, various applications including LiDAR, aerospace, night vision, illumination, and line-of-sight communication links operating at 3 Gbps and higher have observed increase in demand of VCSELs. Proximity is measured by transmitting light and sensing reflections from nearby objects. Superior power efficiency over LEDs has increase the adoption of VCSELs in proximity sensing applications, which is further fueling the growth of the market.

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VCSELs have broad applications in bar code sensors; POF based home networking, atomic clock technology, and datacomm industry. The growth in these verticals is attributed to unique characteristic of VCSELs, such as high speed and low cost compared to LEDs. With significant lower cost, portability, high speed, power savings, chip scale atomic clocks (CSAC) can be introduced to extensive series of innovative applications. Additionally, VCSELs have been used extensively in the datacomm industry, owing to their high speed supporting capabilities such as 10/40/100 Gbps Ethernet, 16 Gbps FC data infrastructure links, thus boosting the growth of the market. Newer applications including chip-to-chip and board-to-board interfaces where density, data rates, and power limits are major constraints are deploying VCSELs, which is consequently fuelling the demand of VCSEL market. With increasing demand for high speed data network, the demand of VCSELs in-turn is expected to continue during the forecast period. Moreover, with growing demand of 1Gbps POF based home networking market, data

communication industry have witnessed proliferation in demand of low cost VCSELs. As POF based home networking is a consumer product, the usage of lower cost VCSELs is anticipated to increase market penetration and in-turn propel the growth of the VCSELs market during the forecast period. Due to the restriction of escalating the rotational frequency of the polygonal mirror, an array of mirror is a way to make speed improvement. Therefore VCSELs are preferred in laser printers. The market has witnessed the usage of VCSELs in some high end laser printers; however, the exponential growth in usage of VCSELs arrays is expected from laser printers manufacturers, in order to obtain competitive advantage over others.

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Some of the key companies operating in the global VCSELs market include Alight Technologies A/S, Avago Technologies, Finisar Corporation, Phillips Photonics, Litrax Technology Co., Ltd., Sumitomo Electric Industries Ltd., PD-LD, Inc., OECA Optoelectronics Component and Applications GmbH, and Sacher Lasertechnik GmbH.