Global AI Dedicated Optical Module Market to Hit $26 Billion This Year, Up 57.6% YoY

TrendForce predicts that the global AI dedicated optical module market will reach $26 billion this year, with a 57.6% year-on-year growth. This growth is driven by the AI industry's increasing data center traffic, prompting giants like Microsoft, Google, and Meta to invest more in computing infrastructure.

However, the sector faces capacity bottlenecks: key components such as EML and CW-LD are in short supply, and high-precision processes like optical alignment have limited capacity. Therefore, companies like Nvidia are signing long-term strategic contracts to reduce reliance on the spot market.

In terms of technology routes, AI optical modules are accelerating their shift to low-power LPO and SiPh solutions, reducing dependence on traditional DSP schemes. By 2026, there will be an expansion of 800G and 1.6T ZR/ZR+ coherent optical modules in the market.