India, Sept. 24 -- 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 commercialization of silicon photonics as a CMOS-compatible, cost-effective platform for high-speed optical interconnects.

As electrical interconnects hit physical limits on bandwidth and power, photonic chips - which move data as light, ...