Vertical Cavity Surface Emitting Lasers Market Size

Vertical Cavity Surface Emitting Lasers (VCSEL) Market size was valued at USD 2.11 billion in 2024 and is expected to reach USD 20.47 billion by 2037, expanding at around 19.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of vertical cavity surface emitting lasers is assessed at USD 2.8 billion.

The primary factor projected to boost the market demand is the growing number of data centers. Around the globe, there are about 7,999 data centers. Of those, approximately 32% of the data centers are situated in the US. In data centers, multimode fiber (MMF)-based optical communications are primarily powered by vertical-cavity surface-emitting lasers (VCSELs).

Moreover, VCSELs are utilized in optical communication technologies, similar to other lasers. They are perfect for optical communication owing to their features, which include a circular beam form, a wide free spectral range, and massive and continuous tuning. Additionally, a range of VCSEL applications, including high bandwidth, would be seen in this field since communication technologies have a promising future and must develop.