Global Laser Light Source for HPC Market Size, Forecast, and Trend Highlights Over 2021 - 2031
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Base Year |
2021 |
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Forecast Year |
2022-2031 |
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CAGR |
14.03% |
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Base Year Market Size (2021) |
USD 136.5 Million |
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Forecast Year Market Size (2031) |
USD 501.3 Million |
The global laser light source for HPC market is estimated to garner a revenue of USD 501.3 Million by the end of 2031 by growing at a CAGR of 14.03% over the forecast period, i.e., 2022-2031. Further, the market generated a revenue of USD 136.5 Million in the year 2021. The growth of the market can be attributed to rise in requirement of faster data transfer to enhance the computational and processing capabilities of data centers. An accelerator is a piece of hardware that is used to accelerate software or processes beyond what would be achievable with just CPUs. Examples include graphics processing units (GPUs), field programmable gate arrays (FPGAs), digital signal processors (DSPs), and ASICs (application-specific integrated circuits).
Further, increasing investment of various manufactures in a form of collaboration is expected to boost the market growth for the forecast period. In order to commercialize discoveries made at the UA's James C. Wyant College of Optical Sciences, three laser companies at the University of Arizona were established in 2019. The CW-WDM multi-source agreement (MSA) compliant external laser sources developed by Lumentum and Ayar Labs would power the optical I/O solution offered by Ayar Labs, strengthening the ecosystem and supply chain for AI, data center, HPC, and telecom applications.
Global Laser Light Source for HPC Market: Growth Drivers and Challenges
Growth Drivers
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Growing Demand for HPC Systems- The businesses use high-performance computing (HPC) technologies, the market of which is expected to grow with a notable CAGR during 2021-2029. These tools are especially suited for the task at hand of the business organizations. High-performance computing (HPC) is a tool used by scientists, engineers, and researchers for extremely computationally demanding jobs in physics, quantum mechanics, weather forecasting, and other fields. Hence, the demand for HPC has been increasing in recent years.
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Increase in Government Funding for R&D Initiatives- In 2020, the US government was encouraged to increase funding for HPC at the National Science Foundation by three times over the following five years, to at least USD 500 million yearly, and to increase the Department of Energy's budget by three times, to at least USD 1.5 billion annually.
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Technology Advancement to Improve Performances - The record-breaking data rates of 44 Gbit/s at room temperature and 38 Gbit/s at 85 °C are being achieved by the 980 nm VCSELs operating at ultra-high speeds for future inter- and intra-chip and module-to-module optical communications for more effective laser sources.
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Increasing Deployment of Data Centers Worldwide - Around 2,750 data centers were located in the United States as of January 2022, and approximately 480 more were found in Germany. With about 450, the United Kingdom came in third place after China and the other countries in terms of the number of data centers.
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Increasing Adoption of Automated Manufacturing Technologies in Industries- The global industrial IoT (IIoT) market is expected to grow with a CAGR of 9% over 2019-2026, and further touch a revenue of USD 525 Billion by 2026, up from a revenue of USD 280 Billion in 2018.
Challenges
- Cyber Security Concerns
- Slow Adoption of Laser Technology in HPC
- High Cost of Laser Application in HPC
As more organizations access HPC systems, cyber security issues grow, making data protection the main issue. HPC is vulnerable to a number of different security risks because of its nature. Hence the concern for data security is expected to hamper the growth of the market.
The global laser light source for HPC market is segmented and analyzed for demand and supply by product type into visible laser light sources, infrared laser light sources, and UV laser light sources. Out of these segments, the infrared laser light sources segment is anticipated to garner the largest revenue of USD 273.7 Million by the end of 2031 by growing at a CAGR of 15.4% over the forecast period. Further, in the year 2021, the segment generated revenue of USD 65.9 Million. Increasing demand for quantum computing which promotes research and development of infrared laser light source is expected to boost the market growth. Various organization are coming forward with their advance technology in quantum computing to satisfy demand. For instance, the IBM Quantum Summit 2021, which is held annually to highlight advancements in quantum hardware, software, and the expansion of the quantum ecosystem, saw the introduction of IBM's new 127-quantum bit (qubit) "Eagle" processor. The "Eagle" processor represents an innovation in utilizing the enormous computational power of devices based on quantum physics.
Global Laser Light Source for HPC Market Regional Synopsis
Regionally, the global laser light source for HPC market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these regions, the market in North America is projected to hold the largest market share of USD 201.7 Million by the end of 2031, up from a revenue of USD 54.1 Million in the year 2021. The growth of market in North America region can be attributed to growing working population which in turn is expected to lead a rise in disposable income. According to the U.S. Bureau of Labor Statistics, the total employment is anticipated to rise by 11.9 million jobs, from 153.5 million to 165.4 million, between 2020 and 2030. However, the Asia Pacific region is estimated to grow at a highest CAGR of 15.0% over the forecast period.
Further, the market in the Asia Pacific region is segmented into countries including Australia, Japan, Singapore, South Korea, and others. Out of these countries the market in China is estimated to garner the largest revenue of USD 103.7 Million by the end of 2031 by growing at a highest CAGR of 15.9% over the forecast period.
The study further incorporates Y-O-Y Growth, market opportunities, demand & supply and forecast future opportunity in North America (United States, Canada, Mexico), South America, Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation
Our in-depth analysis of the global laser light source for HPC market includes the following segments:
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By Product Type |
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Key Companies Dominating the Global Laser Light Source for HPC Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global laser light source for HPC market that are included in our report are Ayar Labs, Inc, Lumentum Operations LLC, Rockley Photonics Ltd, Fujitsu, RANOVUS Inc, and POET Technologies.
