According to previous forecasts by Lightcouting, sales of Ethernet optical transceivers will decline by 5-10% in 2023, but the surge in demand from Google and Nvidia has kept the market at single-digit growth. According to the latest updated report, LC now expects to grow by 40% in 2024, more than 20% in 2025, and double-digit growth in 2026-2027.

We expected sales of Ethernet optical transceivers to decline by 5-10% in 2023, but surging demand from Google and Nvidia kept the market growing, albeit at single digits. We have also sharply increased our forecast for sales of 400G/800G transceivers in the previous edition of this report and we increased it a bit more in this one. We now expect 40% growth in 2024, more than 20% in 2025 and double digit growth in 2026-2027, as illustrated in the figure below.