Laser diode market to surge 85% by 2027: reportNews
September 09, 2022
CHICAGO, Illinois. A new report predicts that the laser diode market will grow from $5.9 billion in 2022 to $10.9 billion by 2027 for a compound annual growth rate (CAGR) of 13.1%.
The report from Markets and Markets says the market is dominated by several major suppliers, including II-VI Incorporated, Lumentum Holding Inc., ams-OSRAM AG, ROHM Co., Ushio, and Hamamatsu Photonics K.K. "These suppliers have their manufacturing facilities spread across various countries across Asia Pacific, Europe, North America, South America, and Rest of the World," the report states.
The report predicts that the gallium nitride (GaN) segment of the market will grow the highest over the forecasted period.
"The use of GaN-based laser diodes in LiDAR applications is projected to create growth opportunities in the long term for the players operating in the ecosystem," the report states. "Technological innovation in consumer electronics besides smartphones, such as AR/VR devices, are projected to further increase the demand for GaN-based laser diodes in 3D sensing applications."
The report notes that a big driver in the increasing importance of laser diode technology is a growing demand for communications in space. This has been a focus in the defense industry as well.
"In the coming years, laser diode is expected to gain importance in space applications, especially for transmitting large quantities of data between satellites," the report states. "With increasing bandwidth requirements and a shift to 100G transceivers, the demand for lasers and laser diodes in optical communication is also growing."