Photonic chip market to reach USD 9.30 billion by 2032, growing at 12.9% CAGR

The global photonic chip market was valued at approximately USD 4.00 billion in 2025 and is projected to reach USD 9.30 billion by 2032, expanding at a compound annual growth rate (CAGR) of 12.9% during the forecast period 2026–2032, %, according to a new report by MarketsandMarkets. Growth is anchored in three converging forces: the bandwidth demands of hyperscale AI data centers, the industry-wide shift toward co-packaged optics (CPO) in AI accelerator infrastructure, and the rapid commerciali