According to the latest report from Cignal AI, global datacom optical component revenue reached a record US$7.7 billion in the first quarter of 2026, more than doubling year over year. Telecom optical component revenue also reached a record high of US$2.0 billion.

The report highlights that 800GbE optical modules continue to dominate the high-speed datacom market, while 1.6TbE is entering a phase of accelerated deployment. Cignal AI forecasts that 800GbE module shipments will more than double in 2026 compared with 2025, and have already increased by more than three times compared with the same period last year. Meanwhile, 1.6TbE module shipments grew 50% quarter over quarter, with annual shipments expected to exceed 10 million units in 2026. At present, nearly all 1.6TbE optical modules are being shipped in DR (silicon photonics) configurations.

LightCounting's market report, published in March 2026, projects that global sales of optical transceivers and related products will reach US$23.8 billion in 2025, representing 55% year-over-year growth. Revenue from Ethernet optical transceivers alone is expected to approach US$18 billion, an increase of 70% compared with 2024.