The Global Market for Semiconductor Lasers 2025-2035

0

cover

cover

  • Published: November 2024
  • Pages: 350
  • Tables: 57
  • Figures: 40

 

The semiconductor laser industry is emerging as a pivotal force that is shaping the future of diverse sectors, from communication and sensing to industrial applications and medical diagnostics. As the global demand for high-performance, energy-efficient, and versatile laser solutions continues to soar, the semiconductor laser market is poised for significant growth, projected to potentially reach >$9 billion by 2035. 
At the heart of this market lies a highly diversified and fragmented ecosystem, where manufacturers must navigate a complex web of technological advancements, application-specific requirements, and evolving regulatory landscapes. From the development of advanced VCSEL and EEL technologies to the integration of photonic integrated circuits (PICs), the semiconductor laser industry is constantly pushing the boundaries of what is possible, unlocking new opportunities across a wide range of industries.
In optical communication, semiconductor lasers are at the forefront of the shift towards higher-speed data transmission, with VCSELs and EELs progressing from 100G/lane to 200G/lane and beyond. The integration of AI-powered optical communication solutions is further driving the demand for semiconductor laser-based photonic integrated circuits.
Beyond communication, semiconductor lasers are proving to be indispensable in the automotive and mobility sectors, where they are enabling cutting-edge LiDAR technologies for advanced driver assistance systems (ADAS) and autonomous driving. As the competition heats up between EELs, VCSELs, and emerging FMCW LiDAR solutions, manufacturers are striving to deliver higher power, efficiency, and wavelength diversity to meet the stringent performance requirements of the automotive industry.
The medical and industrial sectors have also witnessed a surge in the adoption of semiconductor lasers, with FP and QCL lasers dominating applications ranging from material processing to surgical procedures. These laser technologies are continuously being refined, with the goal of reaching 20W power output by 2026 to drive down system costs and enhance their versatility.
Underpinning the growth of the semiconductor laser market is the critical role played by the substrate industry, which is focused on scaling to larger diameters to meet the increasing demands for both volume and quality. As the push for larger diameters accelerates, the substrate providers for materials such as InP, GaAs, GaN, and GaSb are working tirelessly to adapt and meet the evolving needs of the semiconductor laser ecosystem.
The semiconductor laser industry is poised for a bright future, as it continues to transform key industries and unlock new possibilities. With ongoing advancements in technology, the expansion of applications, and the integration of cutting-edge solutions, the market is set to reach $5.3 billion by 2035, cementing its position as a pivotal driver of innovation across a diverse array of sectors.

The Global Market for Semiconductor Lasers 2025-2035 examines the semiconductor laser industry's evolution and market dynamics through 2035. The report provides granular market forecasts, technology assessments, and strategic insights for stakeholders across the value chain. Primary coverage includes VCSEL, Edge-Emitting Laser, and Quantum Cascade Laser technologies, with detailed analysis of their applications in optical communications, automotive, consumer electronics, industrial, medical, and aerospace/defense sectors.

Report contents include:

  • Market size and growth projections (2024-2035)
  • Technology segmentation and evolution trends
  • Application-specific demand drivers and constraints
  • Regional market dynamics and opportunities
  • Material systems and substrate technologies
  • Supply chain analysis and manufacturing considerations
  • Market Drivers and Opportunities:
    • Data center expansion and 5G infrastructure deployment
    • Automotive LiDAR and autonomous vehicle sensors
    • AR/VR applications in consumer electronics
    • Medical diagnostics and therapeutic applications
    • Industrial processing and manufacturing automation
    • Defense and aerospace systems
  • Technology Focus Areas:
    • VCSEL advancements for 3D sensing and datacoms
    • High-power EEL developments for industrial applications
    • QCL innovations for spectroscopy and sensing
    • Photonic integrated circuit integration
    • Novel substrate materials and manufacturing processes
    • Wavelength expansion and power scaling
  • Strategic Insights:
    • Competitive landscape analysis
    • Investment patterns and M&A activity
    • Supply chain vulnerabilities and mitigation strategies
    • Regional manufacturing capabilities
    • Regulatory environment and standards development
    • Emerging application opportunities
  • The report addresses critical industry challenges including:
    • Substrate scaling and material availability
    • Manufacturing yield improvement
    • Cost reduction strategies
    • Supply chain resilience
    • Technical barriers to market entry
    • Environmental and regulatory compliance
  • Profiles of over 160 companies. Companies profiled include 3SPTechnologies, A.L.S., Accelink, Access Pacific, Adtech Optics, Akela Laser, Alight Tech, Allwave Lasers, Alpes Lasers, Ambition Photonics, Amonics, Ams-OSRAM, Applied Optoelectronics, Arima Lasers, Astrum LT, AXT, Bandwidth10, Bright Solutions, Broadcom, Brolis Semiconductors, BWT, Changelight, Cisco (Acacia), CNI Optoelectronics, Coherent, DenseLight Semiconductors, Deray Optoelectronics, Diode Laser Concepts, DustPhotonics, Eblana Photonics, Egismos Technology, Emcore, Epistar/Jingcheng, Enlightra, EO Technics, Femtum, Fibercom, FITEL-Furukawa, FLIR, Focuslight, Fluence Technology, Fuji Xerox, Global Communication Semiconductor, Gooch & Housego, Halo Industries, Hamamatsu, HC Semitek, Heyiled, HJ Optronics, HLJ, Infinera, Inneos/Zephyr Photonics, Innolume, Innovative Photonic Solutions, InPhenix, Intense Photonics, IPG Photonics, Jenoptik, JX Nippon, Kyocera SLD Laser, LaserComponents, Laserline, Lasermate, LaserMaxDefense, LasersCom, Lasertel, LaSiC, LDX Optronics, Lemon Photonics, Lextar, Lidrotec, Liteon, Lumentum, Lumibird, Lumics, Lumispot, LuxNet, Masimo Semiconductor, Ming Chuang Intelligent, Mitsubishi Electric, MKS Instruments, Modulight, Nanoplus, NcodiN, Necsel, Nichia, NKT Photonics, nLIGHT, Nolatech, Norcada, Norlase, Northrop Grumman, Octlight, Oeca, Optek Technology, OptiGOT, OptiPulse, OPTOENERGY, Optoway Technology, Optowell, OQmented, OSI Laser Diode, Osram, Panasonic Semiconductor, PD-LD, Pegasus Lasersysteme, Photodigm, POET Technology, Praevium Research, Ranovus, QD Laser, Qianmu Laser, Qianzhao Optoelectronics, QPC Lasers, QSI Laser, QUANTier, Quantum Light Instruments, Quantune Technologies, Quside, Raycan, Raysees Technology, Redfern Integrated Optics, Ricoh, Rohm Semiconductor, Sacher Lasertechnik, San'an and more.......

 

 

 

1             EXECUTIVE SUMMARY            14

  • 1.1        Market overview           14
  • 1.2        Market forecasts         18
    • 1.2.1    Laser bare-dies and wafers  18
    • 1.2.2    By market         22
    • 1.2.3    By region           25
    • 1.2.4    By technology                27
    • 1.2.5    By material      29
    • 1.2.6    By wavelength                32

 

2             INTRODUCTION          39

  • 2.1        The Evolution of Semiconductor Lasers      39
  • 2.2        Applications   40
    • 2.2.1    Optical Communication        40
    • 2.2.2    Industrial Processing                41
    • 2.2.3    Medical Diagnostics and Therapeutics         41
    • 2.2.4    Consumer Electronics             42
    • 2.2.5    Automotive and Mobility        42
    • 2.2.6    Aerospace and Defense         43
  • 2.3        Key Trends Shaping the Semiconductor Laser Market        44
    • 2.3.1    Advancements in Laser Technologies           45
    • 2.3.2    Integration of Photonic Integrated Circuits 45
    • 2.3.3    Increasing Demand for Energy-Efficient and Compact Solutions               46
    • 2.3.4    Geopolitical Factors and Supply Chain Challenges             47

 

3             SEMICONDUCTOR LASER TECHNOLOGIES             49

  • 3.1        Vertical-Cavity Surface-Emitting Lasers (VCSELs) 50
    • 3.1.1    Principle of Operation and Classification   50
    • 3.1.2    Advancements in VCSEL Technology             51
      • 3.1.2.1 Increasing Power Density through Multijunction Designs 53
      • 3.1.2.2 Extending VCSEL Wavelengths from NIR to SWIR  54
      • 3.1.2.3 Challenges in Developing GaN-based Visible VCSELs       55
    • 3.1.3    VCSEL Applications and Competitive Landscape 56
      • 3.1.3.1 Automotive LiDAR       57
      • 3.1.3.2 Optical Communication (Datacom and Telecom) 58
      • 3.1.3.3 Consumer Electronics             59
      • 3.1.3.4 Industrial Sensing and Illumination 60
  • 3.2        Edge-Emitting Lasers (EELs) 61
    • 3.2.1    Principle of Operation and Classification   62
      • 3.2.1.1 Distributed Feedback (DFB) Lasers 63
      • 3.2.1.2 Distributed Bragg Reflector (DBR) Lasers   64
      • 3.2.1.3 Fabry-Pérot (FP) Lasers           65
    • 3.2.2    EEL Advancements in Optical Communication      66
      • 3.2.2.1 Directly Modulated Lasers (DMLs)  67
      • 3.2.2.2 Externally Modulated Lasers (EMTs)              68
      • 3.2.2.3 Continuous-Wave Distributed Feedback (CW-DFB) Lasers            69
    • 3.2.3    EEL Applications in Industrial, Medical, and Automotive Sectors               70
  • 3.3        Quantum Cascade Lasers (QCLs)   71
    • 3.3.1    Principle of Operation and Wavelength Coverage 72
    • 3.3.2    QCL Applications in Industrial, Medical, and Defense       73

 

4             SEMICONDUCTOR LASER SUBSTRATE INDUSTRY               74

  • 4.1        GaAs Substrates          75
    • 4.1.1    Scaling to Larger Diameters 75
    • 4.1.2    Addressing the Increasing Demand for VCSELs      76
  • 4.2        InP Substrates               77
    • 4.2.1    Challenges and Opportunities in InP Substrate Scaling    77
    • 4.2.2    Impact on Telecommunication and Data Communication Applications                78
  • 4.3        GaSb Substrates          79
    • 4.3.1    Wavelength Coverage and Use Cases           79
    • 4.3.2    Substrate Scaling and Manufacturing Considerations       80
  • 4.4        GaN Substrates            81
    • 4.4.1    GaN-based Laser Diodes for Displays and Lighting             81
    • 4.4.2    Substrate Availability and Technological Advancements  82
  • 4.5        Optical Communication        83
    • 4.5.1    Datacom Applications             84
      • 4.5.1.1 Data Center Interconnects   84
      • 4.5.1.2 Ethernet and Fiber Channel Transceivers   85
      • 4.5.1.3 Emerging 400G and 800G Datacom Trends               86
    • 4.5.2    Telecom Applications               87
      • 4.5.2.1 Wavelength-Division Multiplexing (WDM)   87
      • 4.5.2.2 Fiber-to-the-Home (FTTH) and 5G Backhaul            88
      • 4.5.2.3 Submarine Cable Transmission        89
  • 4.6        Mobile and Consumer Electronics  89
    • 4.6.1    Smartphone Cameras and Proximity Sensors         89
    • 4.6.2    Augmented and Virtual Reality           90
    • 4.6.3    Laser Projectors and Display Technologies               91
  • 4.7        Automotive and Mobility        92
    • 4.7.1    ADAS and Autonomous Driving         92
      • 4.7.1.1 LiDAR Systems             92
      • 4.7.1.2 Laser Radar (LADAR) 93
    • 4.7.2    In-Cabin Sensing and Illumination  94
    • 4.7.3    Laser-based Headlights and Taillights          95
  • 4.8        Industrial Applications            96
    • 4.8.1    Material Processing   97
      • 4.8.1.1 Cutting, Welding, and Drilling             98
      • 4.8.1.2 Additive Manufacturing          99
    • 4.8.2    Laser Marking and Engraving               99
    • 4.8.3    Laser-based Sensing and Monitoring            100
  • 4.9        Medical Applications                101
    • 4.9.1    Therapeutic Lasers    102
      • 4.9.1.1 Surgical Lasers             102
      • 4.9.1.2 Aesthetic and Dermatological Lasers            103
    • 4.9.2    Diagnostic Lasers       104
      • 4.9.2.1 Optical Coherence Tomography (OCT)         105
      • 4.9.2.2 Laser-based Spectroscopy   106
  • 4.10     Aerospace and Defense         107
    • 4.10.1 Laser Rangefinders and Target Designators              108
    • 4.10.2 Laser Communications and Free-Space Optics     109
    • 4.10.3 Directed Energy Weapons     110
  • 4.11     Semiconductor Laser Industry Ecosystem and Supply Chain       111
    • 4.11.1 Manufacturer Strategies and Vertical Integration   112
      • 4.11.1.1            Fully Integrated Manufacturers          112
      • 4.11.1.2            Foundry-based Manufacturers          113
    • 4.11.2 Specialized Chip Suppliers   114
    • 4.11.3 Key Players and their Positioning      115
      • 4.11.3.1            Leading Semiconductor Laser Manufacturers        116
    • 4.11.4 Substrate Suppliers and their Role  119
    • 4.11.5 Substrate Manufacturing Capabilities and Trends 120

 

5             SEMICONDUCTOR LASER MARKET FORECASTS   122

  • 5.1        Semiconductor Laser Bare-Die Market         123
    • 5.1.1    Revenue Forecast by Application     123
    • 5.1.2    Optical Communication        125
    • 5.1.3    Mobile and Consumer Electronics  128
    • 5.1.4    Automotive and Mobility        131
    • 5.1.5    Industrial          136
    • 5.1.6    Medical              138
    • 5.1.7    Aerospace and Defense         141
  • 5.2        Shipment Forecast by Application   145
  • 5.3        Semiconductor Laser Substrate Market       147
  • 5.4        Semiconductor Laser Market by Technology             157
    • 5.4.1    VCSEL 161
    • 5.4.2    Edge-Emitting Lasers (EELs) 161
    • 5.4.3    Quantum Cascade Lasers (QCLs)   162
    • 5.4.4    Photonic Integrated Circuits (PICs) 163
  • 5.5        Semiconductor Laser Market by Wavelength            164
    • 5.5.1    Near-Infrared (NIR)     169
    • 5.5.2    Short-Wave Infrared (SWIR)  169
    • 5.5.3    Visible 170
  • 5.6        Semiconductor Laser Market by Material System 171
    • 5.6.1    III-V Compounds (GaAs, InP, GaSb) 175
    • 5.6.2    Group IV (Si, Ge)          176
    • 5.6.3    III-Nitrides (GaN)         177

 

6             FUTURE OUTLOOK           178

  • 6.1        Semiconductor Lasers as Enablers of Technological Advancements      179
  • 6.2        Importance of Substrate Scaling and Material Innovations             180
  • 6.3        Emerging Applications Driving Market Growth         181
  • 6.4        Challenges in Achieving Cost Parity and Addressing Regulatory Hurdles              182
  • 6.5        Future Opportunities and Industry Trends  183
    • 6.5.1    Continued Advancements in VCSEL and EEL Technologies            184
    • 6.5.2    Increasing Adoption of Photonic Integrated Circuits           185
    • 6.5.3    Integration of Semiconductor Lasers in Emerging Applications   186
    • 6.5.4    Advancements in Substrate Manufacturing and Material Engineering     187

 

7             COMPANY  PROFILES              188 (162 company profiles)

 

8             APPENDICES  339

  • 8.1        Glossary of Terms       339
  • 8.2        List of Abbreviations  339
  • 8.3        Research Methodology           340

 

9             REFERENCES 341

 

List of Tables

  • Table 1. Global market forecast for laser bare-dies and wafers 2024-2035, revenues (US$).   18
  • Table 2. Global market forecast for laser bare-dies and wafers 2024-2035, Units.         20
  • Table 3. Global market forecast by market segment 2024-2035, revenues (US$).           22
  • Table 4.Global market forecast by market segment 2024-2035, Units.  24
  • Table 5. Global market forecast by region 2024-2035, revenues (US$).  25
  • Table 6.Global market forecast by region 2024-2035, Units.         26
  • Table 7. Global market forecast by technology 2024-2035, revenues (US$).       27
  • Table 8.Global market forecast by technology 2024-2035, Units.              28
  • Table 9. Global market forecast by material 2024-2035, revenues (US$).             29
  • Table 10.Global market forecast by material 2024-2035, Units.  31
  • Table 11. Global market forecast by wavelength 2024-2035, revenues (US$).   32
  • Table 12.Global market forecast by wavelength 2024-2035, Units.           33
  • Table 13. The Evolution of Semiconductor Lasers.               39
  • Table 14. Semiconductor Laser Technology Comparison.              49
  • Table 15. VCSEL Technology Advancements.           51
  • Table 16. Challenges in Scaling Up Semiconductor Laser Production.   52
  • Table 17. Challenges in Scaffolding for Semiconductor Lasers.  53
  • Table 18. EEL Technology Advancements.  66
  • Table 19. Semiconductor Laser Technologies for Optical Communication.        67
  • Table 20. Semiconductor Laser Technologies: Tunable Lasers.   69
  • Table 21. Quantum Cascade Laser (QCL) Applications.   74
  • Table 22. Datacom Applications of Semiconductor Lasers.           83
  • Table 23. Telecom Applications of Semiconductor Lasers.             87
  • Table 24. Automotive and Mobility Applications of Semiconductor Lasers.         92
  • Table 25. Industrial Applications of Semiconductor Lasers.          96
  • Table 26. Medical Applications of Semiconductor Lasers .             101
  • Table 27. Aerospace and Defense Applications of Semiconductor Lasers.          107
  • Table 28. Semiconductor Laser Packaging Types. 119
  • Table 29. Key Substrate Manufacturers.      120
  • Table 30. Semiconductor Laser Market Revenue Forecast ($M), 2024-2035.     123
  • Table 31. Laser Bare-Die Revenue Forecast for Telecom & Infrastructure, by Application ($M).             125
  • Table 32. Laser Bare-Die Shipment Forecast for Telecom & Infrastructure, by Application (Munits).  127
  • Table 33. Laser Bare-Die Revenue Forecast for Mobile & Consumer, by Application ($M).        129
  • Table 34. Laser Bare-Die Shipment Forecast for Mobile & Consumer, by Application (Munits).             130
  • Table 35. Laser Bare-Die Revenue Forecast for Automotive & Mobility, by Application ($M).   131
  • Table 36. Laser Bare-Die Shipment Forecast for Automotive & Mobility, by Application (Munits).        133
  • Table 37. Laser Bare-Die Revenue Forecast for Industrial, by Application ($M).               136
  • Table 38. Laser Bare-Die Shipment Forecast for Industrial, by Application (Munits).    137
  • Table 39. Laser Bare-Die Revenue Forecast for Medical, by Application ($M).   138
  • Table 40. Laser Bare-Die Shipment Forecast for Medical, by Application (Munits).        140
  • Table 41. Laser Bare-Die Revenue Forecast for Aerospace & Defense, by Application ($M).    141
  • Table 42. Laser Bare-Die Shipment Forecast for Aerospace & Defense, by Application (Munits).         142
  • Table 43. Pump Source Laser Bare-Die Revenue Forecast for Industrial Market ($M).  144
  • Table 44. Semiconductor Laser Shipment Forecast (Munits), 2024-2035.           146
  • Table 45. Laser Substrate ASP by Material ($).         147
  • Table 46. Semiconductor Laser Substrate Market Revenue Forecast ($M), 2024-2035.              150
  • Table 47. Laser Substrate Revenue Forecast by Material ($M).     152
  • Table 48. Semiconductor Laser Substrate Shipment Forecast (Kunits), 2024-2035.     154
  • Table 49. Laser Substrate Shipment Forecast by Material (Kunits) 2024-2035. 156
  • Table 50. Laser Bare-Die Revenue Forecast by Technology ($M). 157
  • Table 51. Laser Bare-Die Shipment Forecast by Technology (Munits).    159
  • Table 52. Laser Bare-Die Revenue Forecast by Wavelength ($M) 2024-2035.    165
  • Table 53. Laser Bare-Die Shipment Forecast by Wavelength (Munits) 2024-2035.         167
  • Table 54. Laser Bare-Die Revenue Forecast by Material ($M).       171
  • Table 55. Laser Bare-Die Shipment Forecast by Material (Munits).            173
  • Table 56. Challenges Facing the Semiconductor Laser Industry. 182
  • Table 57. Future Opportunities and Industry Trends.           183
  •  

List of Figures

  • Figure 1. Semiconductor laser supply chain.           16
  • Figure 2. Global market forecast for laser bare-dies and wafers 2024-2035, revenues (US$). 19
  • Figure 3. Global market forecast for laser bare-dies and wafers 2024-2035, Units.       21
  • Figure 4. Global market forecast by market segment 2024-2035, revenues (US$).         23
  • Figure 5. Global market forecast by market segment 2024-2035, Units. 24
  • Figure 6. Global market forecast by region 2024-2035, revenues (US$). 25
  • Figure 7. Global market forecast by region 2024-2035, Units.      26
  • Figure 8. Global market forecast by technology 2024-2035, revenues (US$).     27
  • Figure 9. Global market forecast by technology 2024-2035, Units.           29
  • Figure 10. Global market forecast by material 2024-2035, revenues (US$).        30
  • Figure 11. Global market forecast by material 2024-2035, Units.               31
  • Figure 12. Global market forecast by wavelength 2024-2035, revenues (US$). 33
  • Figure 13. Global market forecast by wavelength 2024-2035, Units.       34
  • Figure 14. Semiconductor Laser Industry Ecosystem and Supply Chain.             111
  • Figure 15. Semiconductor Laser Market Revenue Forecast ($M), 2024-2035.   124
  • Figure 16. Laser Bare-Die Revenue Forecast for Telecom & Infrastructure, by Application ($M).           126
  • Figure 17. Laser Bare-Die Shipment Forecast for Telecom & Infrastructure, by Application (Munits). 128
  • Figure 18. Laser Bare-Die Revenue Forecast for Mobile & Consumer, by Application ($M).      130
  • Figure 19. Laser Bare-Die Shipment Forecast for Mobile & Consumer, by Application (Munits).           130
  • Figure 20. Laser Bare-Die Revenue Forecast for Automotive & Mobility, by Application ($M).  132
  • Figure 21. Laser Bare-Die Shipment Forecast for Automotive & Mobility, by Application (Munits).       134
  • Figure 22. Laser Bare-Die Revenue Forecast for Industrial, by Application ($M).             136
  • Figure 23. Laser Bare-Die Shipment Forecast for Industrial, by Application (Munits).  137
  • Figure 24. Laser Bare-Die Revenue Forecast for Medical, by Application ($M). 139
  • Figure 25. Laser Bare-Die Shipment Forecast for Medical, by Application (Munits).      141
  • Figure 26. Laser Bare-Die Revenue Forecast for Aerospace & Defense, by Application ($M).  142
  • Figure 27. Laser Bare-Die Shipment Forecast for Aerospace & Defense, by Application (Munits).       143
  • Figure 28. Pump Source Laser Bare-Die Revenue Forecast for Industrial Market ($M). 145
  • Figure 29. Semiconductor Laser Shipment Forecast (Munits), 2024-2035.         147
  • Figure 30. Laser Substrate ASP by Material ($).       148
  • Figure 31. Semiconductor Laser Substrate Market Revenue Forecast ($M), 2024-2035.            151
  • Figure 32. Laser Substrate Revenue Forecast by Material ($M).   153
  • Figure 33. Semiconductor Laser Substrate Shipment Forecast (Kunits), 2024-2035.   155
  • Figure 34. Laser Substrate Shipment Forecast by Material (Kunits) 2024-2035. 157
  • Figure 35. Laser Bare-Die Revenue Forecast by Technology ($M).              158
  • Figure 36. Laser Bare-Die Shipment Forecast by Technology (Munits).   160
  • Figure 37. Laser Bare-Die Revenue Forecast by Wavelength ($M) 2024-2035.   166
  • Figure 38. Laser Bare-Die Shipment Forecast by Wavelength (Munits) 2024-2035.        168
  • Figure 39. Laser Bare-Die Revenue Forecast by Material ($M).     172
  • Figure 40. Laser Bare-Die Shipment Forecast by Material (Munits).          174

 

 

 

The Global Market for Semiconductor Lasers 2025-2035
The Global Market for Semiconductor Lasers 2025-2035
PDF download.

The Global Market for Semiconductor Lasers 2025-2035
The Global Market for Semiconductor Lasers 2025-2035
PDF and Print Edition (including tracked delivery).

Payment methods: Visa, Mastercard, American Express, Paypal, Bank Transfer. To order by Bank Transfer (Invoice) select this option from the payment methods menu after adding to cart, or contact info@futuremarketsinc.com