Driven by the waves of digitalization and intelligentization, global data traffic is experiencing explosive growth. Optical modules, serving as the core connectivity components within data centers and communication networks, have seen their technological iterations and market dynamics become a key benchmark for measuring the progress of digital infrastructure. Among them, 1.6T (1.6 Terabits per second) optical modules, representing the next generation of high-speed interconnection technology, are transitioning from the laboratory to commercial deployment at scale, poised to unlock a new cycle of growth with significant potential.

I. Market Outlook: From Initial Adoption to High-Speed Growth

Currently, in 2024, the 1.6T optical module market remains in its early commercial stages, with the overall market size still relatively limited. However, its growth trajectory is widely viewed positively by the industry, with expectations for remarkable expansion starting from 2025.

Authoritative institutions forecast that global shipments of 1.6T optical modules will exceed 100,000 units in 2025, with a market size reaching approximately USD 500 million. This year is thus broadly considered the "first year of commercialization at scale" for 1.6T technology. Concurrently, other market analysis suggests the global market size could reach USD 1.69 billion in 2025, with the Chinese market size approaching RMB 70 billion, demonstrating even stronger momentum.

Looking further ahead, as technology matures and costs continue to decline, the market is expected to enter a phase of rapid growth. The Compound Annual Growth Rate from 2025 to 2030 is projected to be as high as 35% to over 50%. By 2030, the global market size for 1.6T optical modules is anticipated to surpass USD 15 billion, potentially reaching even higher levels, highlighting its substantial market potential.

II. Core Drivers: AI and Computing Demand Fueling the Market

The rise of 1.6T optical modules is not occurring in a vacuum; it is powerfully driven by surging underlying demands.

AI Computing Demand: Generative AI, exemplified by models like ChatGPT, and large language model training are placing unprecedented demands on data transmission rates both within and between data centers. For instance, NVIDIA's latest GB200 servers require up to nine 1.6T optical modules per rack for high-speed interconnectivity. The expansion of AI server clusters directly fuels massive demand for 1.6T optical modules.

Procurement by Global Cloud Providers: To support their extensive cloud computing and AI businesses, global tech giants like Google and Meta are actively planning and initiating procurement of 1.6T optical modules, providing the market with early and stable sources of orders.

III. Regional Landscape: North America Leads, Asia-Pacific Accelerates

The global market shows distinct regional concentration:

The North American market (primarily the US), leveraging its leading cloud and AI industry ecosystem, accounts for over 60% of global demand and is currently the undeniable dominant force.

The Asia-Pacific region (especially China, Japan, and South Korea) represents the fastest-growing market. Within this region, China, driven by both policy and domestic demand, is rapidly emerging as a crucial global growth engine.

The European market is gradually becoming a notable new growth point, fueled by the accelerated deployment of 5G-Advanced networks.

IV. Segment Analysis and Supply-Demand Outlook

Application Segments: Demand for 1.6T optical modules primarily comes from three major scenarios. Data center interconnects are the dominant segment, accounting for approximately 60%. Telecommunications transmission applications follow, representing about 30%. The remaining demand is distributed across enterprise networks and specialized fields like military and scientific research.

Supply-Demand Analysis:

Demand Side: Growth is rapid and robust. Global annual demand for 1.6T optical modules is projected to surge from hundreds of thousands of units in 2025 to 20 million units by 2026.

Supply Side: Optical module technology is iterating rapidly. Global demand for optical modules (including various rates like 400G/800G/1.6T) is forecasted to grow from 50 million units in 2025 to 100 million units by 2027. During this period, the share of 1.6T products is expected to increase swiftly, gradually taking the baton from 800G to become the market mainstream.

In summary, 1.6T optical modules stand on the threshold of large-scale commercialization, marking the beginning of a new era defined by AI and computing power. Catalyzed by technology, market forces, and policy, the construction of this "digital highway" is set to accelerate comprehensively, injecting sustained and powerful momentum into the future of the global digital economy.