YG PRESS NEWS – Insights into the Q1 2024 activity in stable GaAs and dynamic InP markets

March 27, 2024

Recovery and new consumer products drive rebound in GaAs and InP photonics markets

InP photonics surged to recovery: the market is witnessing an impressive 18% quarter-on-quarter increase, especially in the datacom and telecom sectors.

GaAs Photonics is still dominated by consumer 3D sensing; however, datacom and automotive sectors are shaping the next growth phase.

800G and above optical interconnects are set to drive the growth in the InP and GaAs photonics markets in the next quarters.

GaAs market & technology update

GaAs adoption by Apple propelled 3D sensing to the forefront of GaAs applications, announces Yole Group, in its quarterly Photonics GaA and InP Compound Semiconductor Market Monitor. According to Yole Group’s analysts, the market is poised to reach a $1.9 billion market by 2029.

Therefore, driven predominantly by datacom applications, GaAs photonics experienced a significant transformation with Apple’s adoption of VCSELs for 3D sensing in the iPhone X (Released in 2017) and Vision Pro AR headset in 2024. Manufacturers are leveraging 6-inch GaAs wafers to achieve cost-effective high-volume production.

This transformation is for sure reshaping the supply chain landscape.

As an example, Lumentum forged partnerships with epitaxy houses, while Coherent pursued vertical integration through mergers. Sony’s recent foray into the 3D sensing ecosystem adds further intrigue to the competition, with IQE dominating the epiwafer market.

What will the competitive landscape among these key players entail? For more information about this analysis, please contact us!

InP market & technology update

Yole Group forecasts a $5.2 billion InP market by 2029, with a strong focus on datacom and telecom applications. Behind this figure, InP’s principal market drivers rely on its unique ability to deliver high bandwidth, data rates, and long-range optical transceivers.

Since 2023, AI has emerged as a significant driver, expected to propel InP’s growth with high data rate EELs such as 100G and 200G EMLs and SiPh . However, consumer interest waned after Apple’s 2022 adoption due to cost and supply chain challenges.

Nevertheless, InP’s value in SWIR wavelengths present opportunities for consumer applications like AR/VR or wearables and potentially guiding

InP’s future growth trajectory. InP’s future depends on adeptly navigating these dynamics and capitalizing on emerging opportunities in evolving markets, comments Yole Group’s analysts.

What lies ahead for the InP market, and how will it evolve? Do not hesitate to ask for more information about this analysis: Contact us!

Titre du visuel

june 2021

You have to be registered to download our medias.

Usage restriction: Images may not be used against the interests of Yole Développement (Yole Group) and its entities, Yole Intelligence, or System Plus Consulting (Yole SystemPlus). For more information, please contact the Public Relations team.

INFORMATIONS

Licence : Images can be used online and for printing, without modification

Thematic(s) :