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Photonic chip market to hit $9.3bn

Aug. 26, 2026 –

The global photonic chip market is projected to grow from approximately $4 billion in 2025 to $9.3 billion by 2032, according to a new report from MarketsandMarkets.

The market is expected to expand at a compound annual growth rate of 12.9% between 2026 and 2032, driven by increasing bandwidth requirements in AI data centres, the adoption of co-packaged optics (CPO) and continued commercialisation of silicon photonics.

Optical interconnects are identified as the largest application segment, reflecting growing demand for higher-bandwidth and more energy-efficient connections across AI and cloud infrastructure.

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