Data center switching drove 72% of optical module demand in 2023. Telecom long-haul networks consumed $3. Optical module demand is being pulled in two directions at once, faster bandwidth for dense networks and tighter constraints on power, security, and lead times. With global R&D projected to. In July 2025, LightCounting released its Cloud Data Center Optics Report, revealing that cloud companies' increasing investments in data center and network infrastructure have created a highly dynamic new segment within this market. See how the latest market size figures, pricing pressure, and shipment shifts line up to explain why winners are. According to the latest June 2025 Quarterly Market Update by renowned research firm LightCounting, the global optical transceiver market is set to rebound in Q2 2025 with a projected 10% quarter-over-quarter growth. The key growth driver is the rising demand for 800G Ethernet optical modules. •AI infrastructure race fueled a Capex surge in 2024 to approximately $200bn •2025 Capex Projection to near $350bn and 2030 Capex projection to near $545bn •Capex funding facilities expansion, xPU acquisition •Expectations of continued growth through 2030 with generative AI adoption both at the. The global market for Optical Modules was valued at US$ million in the year 2024 and is projected to reach a revised size of US$ million by 2031, growing at a CAGR of %during the forecast period.