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The growing adoption of VCSEL for 3D sensing applications, such as smartphones for gesture control and facial recognition features, contribute to the VCSEL market growth.In addition, the use of VCSEL for data communication and LiDAR system for automotives propels the market growth.

LiDAR is rising to be the emerging component differentiating car models in China. According to Evan Chen, an analyst with DIGITIMES Research, global automotive LiDAR shipment is expected to reach 500,000 units in 2023, with China taking up at least 80% of it.

For the last 30 years, modern society has depended on data center networks. Networking speeds must continue to increase to keep up with the demand caused by emerging technologies such as autonomous vehicles (AVs) and artificial intelligence (AI). Further innovation in high-speed data will enable 800Gbps (800G) and 1.6Tbps (1.6T) network speeds.