Driven by expanding AI clusters and surging bandwidth, the AI networking market will reach US$269.5B by 2027 (92% CAGR from 2024). Growth is extending from back-end networks to high-speed accelerator interconnects and NICs, with accelerator interconnects growing fastest. The chip platform mix will shape how market value is distributed, while 1.6T optical transceivers, CPO, and novel optical packaging reshape the industry.

Key Highlights

• Market Surge: Rapid cluster expansion and rising bandwidth drive AI networking value to the equivalent of 18% of the nine leading CSPs’ CAPEX in 2027.
• Product Mix: Switches remain largest. NICs/DPUs gain the most share from new chip configurations, while faster pluggable transceivers drive value.
• Interconnects: AI chip scale-up grows fastest, boosting copper cable usage. For scale-out, 1.6T replaces 800G as the 2027 mainstream, alongside surging CPO and OCS adoption.
• Topology Impact: Networking spend per chip varies about eightfold by platform topology, making platform mix key to market size.
• Supply Chain: Global players control key ICs and transceivers; Taiwanese vendors supply systems and components.

Table of Contents

1. TrendForce’s View
   • AI Networking Revenue by Product, 2024-2027F
2. Key Findings and Takeaways
   • AI Networking Relative to CSP CAPEX, 2024-2027F
   • AI Networking Revenue Growth by Product, 2025-2027F
   • AI Networking by Network Domain, 2024-2027F
   • Scale-up Networking by Product, 2026-2027F
   • AI Networking Share by Platform, 2024-2027F
   • Networking Content per Accelerator, 2027F
   • Pluggable Transceiver Revenue by Data Rate, 2024-2027F
   • CPO Switch, Cable, OCS and NIC/DPU, 2024-2027F
   • AI Networking Supply Chain: Scale of Various Segments and Leading Vendors for 2027

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