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Laser Light Source for HPC Market size was valued at USD 162.5 million in 2023 and is expected to reach USD 902.75 million by 2036, expanding at around 14.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of laser light source for HPC is evaluated at USD 180.83 million. The growth of the market can be attributed to rise in requirement of faster data transfer to enhance the computational and processing capabilities of data centers. An accelerator is a piece of hardware that is used to accelerate software or processes beyond what would be achievable with just CPUs. Examples include graphics processing units (GPUs), field programmable gate arrays (FPGAs), digital signal processors (DSPs), and ASICs (application-specific integrated circuits).
Further, increasing investment of various manufactures in a form of collaboration is expected to boost the market growth for the forecast period. In order to commercialize discoveries made at the UA's James C. Wyant College of Optical Sciences, three laser companies at the University of Arizona were established in 2019. The CW-WDM multi-source agreement (MSA) compliant external laser sources developed by Lumentum and Ayar Labs would power the optical I/O solution offered by Ayar Labs, strengthening the ecosystem and supply chain for AI, data center, HPC, and telecom applications.
Growth Drivers
Growing Demand for HPC Systems- The businesses use high-performance computing (HPC) technologies, the market of which is expected to grow with a notable CAGR during 2021-2029. These tools are especially suited for the task at hand of the business organizations. High-performance computing (HPC) is a tool used by scientists, engineers, and researchers for extremely computationally demanding jobs in physics, quantum mechanics, weather forecasting, and other fields. Hence, the demand for HPC has been increasing in recent years.
Increase in Government Funding for R&D Initiatives- In 2020, the US government was encouraged to increase funding for HPC at the National Science Foundation by three times over the following five years, to at least USD 500 million yearly, and to increase the Department of Energy's budget by three times, to at least USD 1.5 billion annually.
Technology Advancement to Improve Performances - The record-breaking data rates of 44 Gbit/s at room temperature and 38 Gbit/s at 85 °C are being achieved by the 980 nm VCSELs operating at ultra-high speeds for future inter- and intra-chip and module-to-module optical communications for more effective laser sources.
Increasing Deployment of Data Centers Worldwide - Around 2,750 data centers were located in the United States as of January 2022, and approximately 480 more were found in Germany. With about 450, the United Kingdom came in third place after China and the other countries in terms of the number of data centers.
Increasing Adoption of Automated Manufacturing Technologies in Industries- The global industrial IoT (IIoT) market is expected to grow with a CAGR of 9% over 2019-2026, and further touch a revenue of USD 525 Billion by 2026, up from a revenue of USD 280 Billion in 2018.
Challenges
|
Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
14.1% |
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Base Year Market Size (2023) |
USD 162.5 million |
|
Forecast Year Market Size (2036) |
USD 902.75 million |
|
Regional Scope |
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The global laser light source for HPC market is segmented and analyzed for demand and supply by product type into visible laser light sources, infrared laser light sources, and UV laser light sources. Out of these segments, Infrared laser light sources segment is expected to account for light source for HPC market share of more than 30.31% by the end of 2036 by growing at a CAGR of 15.4% over the forecast period.
Our in-depth analysis of the global laser light source for HPC market includes the following segments:
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By Product Type |
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Regionally, the global laser light source for HPC market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. North America industry is expected to dominate 40% revenue share by 2036, attributed to growing working population which in turn is expected to lead a rise in disposable income. According to the U.S. Bureau of Labor Statistics, the total employment is anticipated to rise by 11.9 million jobs, from 153.5 million to 165.4 million, between 2020 and 2030. However, the Asia Pacific region is estimated to grow at a highest CAGR of 15.0% over the forecast period.
Ayar Labs Inc., a pioneer in chip-to-chip optical connectivity, and Lumentum Holdings Inc., a market-leading designer and manufacturer of cutting-edge optical and photonic products, announced that they have collaborated strategically to deliver CW-WDM MSA compliant external laser sources in large quantities.
Ranovus Inc, develops the first GF Fotonix-based monolithic 100G optical I/O cores for next-generation data centers.
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
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