YG PRESS NEWS – AI-driven optical transceiver market: towards the Belle Epoque?
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In 2024, the datacom sector is projected to experience an astonishing 45% year-over-year surge in the AI-powered optical transceiver market.
- The optical transceiver market saw a slight revenue decrease from US$11 billion in 2022 to US$10.9 billion in 2023 but is expected to reach US$22.4 billion by 2029.
- Driven by AI, 800G applications, and the transition to 200G/lane ecosystem technologies, the industry is poised for significant impact.
- The low power consumption and scalability of these technologies will facilitate the widespread deployment of high-speed optics.
According to Yole Group, in the Optical Transceivers for Datacom and Telecom 2024 report, at the beginning of 2023, the outlook for the optical modules market was bleak due to reduced demand from data centers and constraints on capital expenditure. However, starting in March 2023, demand for 800G modules surged, driven by hyperscale clients like Google, Amazon, and Nvidia, leading to significant growth in orders and shipments. Later in 2023, Microsoft and Meta also increased their demand for 400G modules, reflecting the growing AI-driven market. Suppliers prepared for this growth by enhancing production capacity and securing raw materials, positioning themselves for substantial revenue increases in the 800G and 400G segments.
The optical transceiver market experienced a slight revenue decline from US$11 billion in 2022 to US$10.9 billion in 2023, but it is projected to reach US$22.4 billion by 2029, driven by high demand for high-data-rate modules above 400G from cloud service operators and national telecom operators. A 27% revenue growth rate is anticipated in 2024 due to large AI infrastructure orders from Nvidia and data center network upgrades to 800G… For more information about this analysis, please contact us!
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