EDGE EMITTING LASER - MARKET UPDATE

Edge Emitting Lasers (EEL): Yole’s analysts point out the emergence of potential killer applications

Extracted from:
Edge Emitting Laser Market & Technology Trends report, Yole Développement, 2019

OUTLINES:

  • EEL market is still driven by traditional applications but some potential killer applications are emerging.
  • No single industrial player can target all EEL applications: too many different specifications.
  • Each application requires its own eel technology. EEL industry is showing a huge variety of possible designs.

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LYON, France – May 21, 2019: Last year, EELs represented a US$2.5B market, announces Yole Développement (Yole) in its latest technology & market analysis, EEL market and technology trends published last month.
“This figure should reach more than US$5B by 2024 with a 13% CAGR between 2018 and 2024”, comments Martin Vallo, PhD., Technology & Market Analyst at Yole. “Indeed the growth is still driven by the optical communication market segment with optical systems for datacom and telecom. It is today the largest EELs segment with 56% of the total revenue in 2018.” However, some killer applications emerge in parallel...
The market research and strategy consulting company Yole pursues its investigations towards the SSL world. Analysts combine their expertise from materials to devices including equipment to get a deep understanding of this industry and the status of the technologies. They perform valuable photonic technology and market reports to identify technical breakthroughs and business opportunities. VCSEL , GaAs and EEL are part of the collection of reports proposed by Yole today.
The new EEL market & technology report aims to give a comprehensive account of the forces driving the EEL industry in the short, middle and long term. The analysts propose an overview of the global landscape of EELs in terms of laser systems for different applications. They also provide a detailed description of the technology and different types of EELs. This report reviews selected applications of EELs with insights into the basic principles, typical lasers used and their characteristics, in addition to market forecasts for EEL sources between 2017 and 2024.
Without doubts, fast growing new applications are driving the EEL industry. Yole’s analysts invite you to discover the global EEL landscape and its latest market and technical challenges.

Since the development of lasers in the 1960s, they have been increasingly used in a large number of applications. This has propelled the laser market to a trillion dollar business since the 1990s. Nowadays, laser technologies are ubiquitous in plenty of traditional, as well as emerging, applications. These span material processing, optical communications, automotive front lighting, medical surgery and 3D sensing. The laser landscape is highly fragmented, with a wide variety of laser types, including diode lasers, fiber lasers, DPSSLs , CO2 lasers and excimer lasers. Traditional applications cover industrial, scientific, consumer markets, but there are also many peculiar applications including military and biomedical markets with spectroscopic analysis.

“EELs are showing different functionalities: they can be used a “direct” lasers or coupled with optical fibers or crystals to make fibre-lasers or DPSSLs”, details Martin Vallo from Yole. “As a consequence number of applications is impressive. Optical communication, material processing, medical, sensing, printing, display, optical storage and lighting… all market segments have been deeply analyzed in this new EEL report”.
Further the impressive optical communication market segment, material processing and display applications are also substantial, making up 16% and 14% of the market respectively in 2018. However, their market shares will decline in the future as 3D sensing in LiDAR, and face/gesture recognition, medical and lighting applications emerge in the next five years. Those might represent potential killer applications for EELs in the middle/long term…

The EEL business has clearly a bright future. But it also represents a challenging market for the industry.
“There is a large variety of applications and system and device specifications, as well as a strong competitive landscape at the technology level, between direct diodes, fiber lasers, CO2 laser, DPSSLs and excimer lasers”, comments Pars Mukish, Business Unit Manager at Yole.
Consequently, the EEL industry is highly fragmented and diversified. Each application addresses a specific supply/value chain, and different positions have to be developed by industrials to access different markets:
   •  Leading players in the material processing domain are vertically integrated from EEL device to laser system, for example making laser dicers. Therefore, customers require turnkey solutions for their specific manufacturing process.
   •  For sensing or lighting applications, the trend is for companies to be much more specialized, as in pure EEL device manufacturers. This strategy is due to the numerous challenges at device level with increasing performance, beam shaping, and decreasing cost.
   •  Another good example is the datacom industry, which highlights a diversity of positioning along the supply chain…

Yole’s SSL team are developing a significant collection of photonic technology & market reports. Detailed description of each report is available on i-micronews.com, SSL reports section.

Acronyms:
CAGR: Compound Annual Growth Rate
SSL: Solid-State Lighting
VCSEL: Vertical Cavity Surface-Emitting Laser
GaAs: Gallium Arsenide
DPSSL: Diode-Pumped Solid State Lasers




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