According to LightCounting’s Q1 2026 Market Update Report, the global optical transceiver and related product market reached $23.8 billion in 2025, representing a 55% year-on-year increase compared with 2024. The market is expected to maintain a strong growth momentum in 2026, with an estimated ~60% growth rate, and is projected to reach approximately $60 billion by 2031, implying a CAGR of over 20% from 2025 to 2031.

The report notes that the overall market was relatively weak in Q1 2025, but demand surged significantly in the following three quarters. In particular, Q4 2025 exceeded market expectations, with optical transceiver vendors reporting stronger-than-expected revenue performance.

Among key segments, Ethernet optical transceivers reached nearly $18 billion in 2025, representing a 70% year-on-year growth, while the AOC (Active Optical Cable) market is expected to exceed $1.1 billion in 2025, doubling compared to 2024.

Looking ahead, 800G and 1.6T optical modules are expected to enter a rapid ramp-up phase in 2026. By around 2030, the total market size of 800G and 1.6T Ethernet optical modules is projected to exceed $22 billion.

According to a March report from global investment bank Goldman Sachs, global demand for 800G and above optical modules is expected to grow at 101%, 53%, and 18% year-on-year from 2026 to 2028, reaching approximately 52 million, 80 million, and 94 million units, respectively.

The global AI-specific optical module market is entering a high-growth phase. TrendForce estimates that the AI optical module market will reach $26 billion in 2026, representing a 57% year-on-year increase.

Currently, optical modules are mainly deployed in scale-out networks (inter-node connections within clusters), while scale-up networks focus on intra-node connectivity. LightCounting estimates that by 2030, the share of optical modules used in scale-up networks will reach 21%, while the overall share used in AI-related applications will rise to 65%.