New functionalities in smartphone and automotive are boosting the VCSEL market.
- In-depth supply chain analysis
- Analysis of epitaxy start-ups and small VCSEL companies
- Smartphone 3D sensing roadmaps, for front side and rear side
- Analysis of next-generation optics associated with VCSELs
- Focus on LiDAR opportunities for VCSELs
Key features of the report
- Market volume and revenue 2018 – 2024
- Industry analysis, from epiwafer to system
- VCSEL manufacturing analysis
- VCSEL specification and cost analysis
- Analysis of 3D sensing’s entry barriers
Objectives of the report
Provide market data for different VCSEL applications:
- Volume and revenue, by application and market segment
- Average selling price (ASP) and expected evolution
- Ranking of the top five VCSEL manufacturers
Offer a deep understanding of the VCSEL business value chain, players, and trends:
- Global list of VCSEL manufacturers
- Supply chain information for mobile applications: who supplies whom
- Supply chain analysis
- Comparison of VCSELs used in mobile applications
Give insights into manufacturing and associated challenges
- What is a VCSEL?
- Analysis of epiwafer players
- Thoughts on critical steps in VCSEL manufacturing
Report available from June 13.
Table of Content
Glossary and definitions 4
Report objectives 5
Report scope 7
Report methodology 8
About the authors 10
What we got right, what we got wrong 12
Executive summary 16
Market forecasts 43
- VCSEL market – Breakdown by application
- 2017 – 2024 market volume in Munits – Split by application
- 2017 – 2024 market revenue in $M – Split by application
- Long-term forecast – Focus on automotive
- Market growth drivers
- VCSEL ASPs
Market trends 60
Market share & supply chain 81
- Epihouse analysis
- Comparison of main players
- VCSEL industry – Overview
- Position on the supply chain, and business model
- VCSEL industry – Trends
- From datacom to 3D sensing
- Apple iPhone X – Supply chain
- VCSELs in iPhones – 2018 vs. 2024
- Android smartphone makers – Supply chain
- Supply chain analysis
- The art of making VCSEL epiwafers
- Positioning of new entrants
- 2018 vs. 2024 supply model
- 2018 market share
- Potential start-ups
Technology trends 144
- VCSEL technology description
- VCSEL manufacturing process
- VCSELs vs. EELs
- What are the difficulties for 150mm wafers?
- Transition to 8’’ or not?
- Analysis of 3D-sensing’s entry barriers
- Challenges for VCSEL IDMs to enter 3D sensing applications
- Next-generation optics associated with VCSELs
- What is wafer-level optics?
- Comparison of the 3D camera module in today’s smartphones
- Mobile 3D camera – VCSEL cost analysis
- Players involved in the 3D sensing supply chain
- VCSEL comparison
- World-facing 3D sensing
- LiDAR – Opportunity for VCSELs
- Lasers for automotive LiDAR
- EELs compared to VCSELs
- Replacement of EEL by VCSEL
- VCSEL ASP
Annex – Description of applications 237
Yole Développement presentation 286
A MARKET FUELLED BY SMARTPHONE APPLICATIONS
In November 2017, Apple released the iPhone X with a new feature called FaceID, which detects and recognizes the smartphone’s owner and unlocks the phone, thanks to three different vertical cavity surface-emitting lasers (VCSELs) working together. With this ground-breaking implementation of VCSEL for front 3D imaging, Apple set the proverbial “cat among the pigeons” in the smartphone world, and consequently in the VCSEL industry.
Following the iPhone X’s release, several smartphone manufacturers announced that their next flagship would embed a similar feature. Front 3D imaging was implemented as a first step, and more recently smartphone manufacturers have released new products with a rear 3D sensing module, using the time of flight (ToF) principle. Mobile and consumer VCSEL applications generated revenue of $553M in 2018, with growth expected to reach to $3,382M in 2024 at a CAGR of 35%.
Other applications are also expected to implement VCSELs in the mid to long-term in different market segments: mobile & consumer, automotive & transportation, and industrial. In LiDAR, VCSELs are expected to compete with Edge Emitting Lasers, especially for middle and short-range LiDAR. However, the use of VCSELs for long-range detection is still challenging due to
VCSEL’s limited-output optical power compared to EELs. Also, cost is still prohibitive. But due to their ability to easily be built in arrays, VCSELs are a good opportunity for reducing LiDAR cost and reaching the targets set by OEMs. In the long-term, the VCSEL market for LiDAR could generate a revenue of around $800M by 2032.
This report presents a comprehensive overview of the main VCSEL applications, including an in-depth analysis of 3D sensing in the consumer and automotive landscapes.
A BOOMING MARKET, THANKS TO NEW TECHNOLOGIES AND LOWER COSTS
Since 2017, an increasing number of smartphones are implementing VCSELs. After Apple, Xiaomi and Oppo released their flagship phones with a 3D sensing feature, and even more recently the two market leaders, Huawei and Samsung, began implementing VCSELs. On the technology side, structured light, which was used for facial recognition for the first time on high-end smartphones, implies the use of two different VCSELs: one flood illuminator and one dot projector. Therefore, using these two light sources adds a tangible cost to the 3D sensing module. Meanwhile, a face recognition module using the ToF principle was implemented by LG in early 2019. This leads to using only one VCSEL (a flood illuminator), and therefore a reduced cost of the 3D sensing module compared to modules using the structured light principle.
In 2017, the total VCSEL cost per smartphone was estimated at $4 – $5. In 2018, this dropped to $2 – $3, evidence of a strong price decrease. There are several explanations for this: higher volumes leading to a lower cost; more VCSEL manufacturers qualified by smartphone manufacturers (leading to lower margins); and higher manufacturing yields leading to increased “good” VCSELs per wafer. In the future, a smartphone should embed VCSELs for proximity sensing and front and rear 3D sensing, with a total VCSEL cost around $2.
This report presents the main specifications for VCSELs, with a detailed analysis of the VCSEL manufacturing process and a cost comparison split by VCSEL type. This report also shows the impact of smartphone applications on VCSEL design.
HIGH INVESTMENTS FOR AN ALWAYS-INCREASING DEMAND
The supply chain of VCSEL manufacturers for consumer applications relies greatly on epiwafer manufacturers. Among these is IQE, which since 2016 has invested significant sums into a mega-foundry, targeted to hold 100 MOCVD tools. This will give IQE the ability to supply epiwafers for applications requiring a high volume of VCSELs, such as consumer applications and automotive applications (i.e. drivermonitoring and LiDAR). The observed manufacturing cost decrease is the result of several improvements, along with the transition from 4″ wafer manufacturing to 6″ wafer manufacturing processes, which resulted in a VCSEL cost decrease of 20%. Some players like IQE are already investigating 8″ manufacturing based on silicon wafers to reduce costs even further, but this will take time since the industry has just moved to 6″ and many challenges (for example, uniformity and wafer breakage) must be overcome. Moreover, this transition must be driven by an application requiring high volumes and/or large dies. LiDAR could be one of these drivers, but not in the short-term.
With an increasing number of new applications using VCSELs, VCSEL manufacturers are expected to move strategically. Some could target datacom, since 5G applications could boost this market at shortterm. Others could invest in automotive applications linked with autonomous vehicle development, where driver monitoring systems should be mandatory and LiDAR should be implemented in the majority of such vehicles. With this in mind, some acquisitions might occur in the coming years, but these should be dedicated to one topic, with highly-specialized companies or start-ups being targeted.
This report furnishes an in-depth analysis of the VCSEL industry, highlighting supply chain trends and key players. Also provided is an overview of new players and their positioning versus established players.
Aixtron, Alight, ams, Anadigics, Apple, Asus, Audi, Avago, AWSC, Blackmore, Bosch, Broadcom, Canon, Changelight, Continental, Emcore, Epistar, Epiworks, Excelitas, Finetech, Finisar, Foxconn, Fuji Xerox, Fujitsu, Global Communication Semiconductor, Google, Hamamatsu, Heptagon, Himax, HLJ, Honeywell, Honor, Huawei, Ibeo, II-VI, Infineon, Infinera, Inneos, Innoluce, Intel, IntelliEpi, IQE, JDSU, Kaiam, Landmark Opto, Lasermate, Lasertel, Laytec, LeddarTech, Lenovo, LG, Lumentum, Luminar, Luxnet, Mantis Vision, Masimo, Namuga, Oclaro, Oculus, Omnivision, Oppo, Optovue, Optowell, Orbbec, Osram, Oxford Instruments, Philips Photonics, pmd, POET Technologies, Primesense, Princeton Optronics, Realsense, Riber, Ricoh, Robosense, Samsung, Sanan, Santec Corporation, SCAT, Seiko Epson, Seminex, SensL, Shiraz University, Sick, SinoSemic, SoftKinetic, Sony Corporation, Stanley, STMicroelectronics, Sumitomo Chemicals, Thorlabs, Trilumina, Truelight Corporation, US Lasers Inc., Veeco, Velodyne, Vertilas, Vertilite, Viavi, Vivo, Vixar, VPEC, Win Semiconductor, Xiaomi, ZF, and more.
VCSEL in Smartphone – Comparison 2019 – by System Plus Consulting
Physical analysis and cost comparison of ten leading flagship smartphone VCSEL dies (dot projector, flood illuminator, and proximity sensor) from Apple, Huawei, Xiaomi, Oppo, Lenovo, and Intel.
Bundle offer possible for the VCSELs – Market and Technology Trends 2019 Report by Yole Développpement, contact us for more information.
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