TrendForce reports the global AI optical transceiver market is projected to surge from $16.5B in 2025 to $26B in 2026, growing over 57% annually. Demand is driven by AI data center expansion and 800G+ modules for server clusters. Supply faces bottlenecks including shortages of key lasers like EML and CW-LD. To mitigate risks, suppliers led by NVIDIA are adopting long-term contracts and shifting to low-power solutions like LPO and silicon photonics. The market growth is now driven by expansion, tech transitions, and new applications like edge computing.
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