TrendForce: VCSEL market demand is projected to reach 650 million units by 2031, with a compound annual growth rate of 38% from 2025 to 2031.

According to the latest "2027 Infrared Sensing and Optical Communication Market Trends" report from TrendForce, as transmission demand for Scale-Up networks within data centers grows rapidly, VCSEL NPO is gaining attention for its advantages including low power consumption, high maintenance flexibility, and a relatively well-established supply chain. Major manufacturers including Lumentum, Furukawa Electric, Coherent, Broadcom (AVGO.US), ams OSRAM, and HiSilicon are all investing in research and development. Starting from 2027-2028, numerous VCSEL NPO solutions will emerge in the market. Combined with demand for short-distance optical transceiver modules, VCSEL market demand is estimated to reach 650 million units by 2031, with a compound annual growth rate of 38% from 2025 to 2031.