AI networking market to hit $279.8 billion by 2027, TrendForce says

Market research firm TrendForce predicts the global AI networking and interconnect market could reach $279.8 billion by 2027, with a compound annual growth rate of 95% from 2024 to 2027 — nearly doubling every year.

By product type, switches remain the biggest revenue source, expected to contribute 38% (about $105 billion) next year. Pluggable optical modules could reach $84.1 billion, while NICs and DPUs (network interface cards and data processors) will double revenue to $57.4 billion by 2027. These three together account for 88% of the market.

For connection types, high-speed chip-to-chip links (Scale-up) will grow the fastest, making up 24% of AI networking value. Scale-out links, which connect to server back-end networks, will grow as bandwidth upgrades to 1.6T. The firm notes that AI networking solutions are becoming more diverse, and supply chain value distribution will keep adjusting as platforms and optical architectures evolve.