en.Wedoany.com Reported - The first quarter of 2026 was the most outstanding quarter for the optical module market. Optical communications market research firm LightCounting released its latest report, stating that sales of optical modules and AOCs in this quarter were approximately $10 billion, a year-over-year increase of 90%. This is the fastest-growing quarter since the firm began collecting data in 2004.
LightCounting's final statistics show that total sales of optical modules and related products in 2025 reached $26.8 billion, a year-over-year increase of 74%. The firm had anticipated a slowdown in growth in 2026, but the market's exponential growth momentum shows no signs of abating. Currently, supply chain tensions are easing, and leading cloud computing companies are continuously increasing their capital expenditures.
In the first quarter of 2026, multiple companies set revenue records. Zhongji Innolight's revenue surged 207% year-over-year, leading the market. Acacia also performed prominently. Cisco CEO Chuck Robbins stated that Acacia's business experienced its strongest quarter ever, securing over $1 billion in orders in the third fiscal quarter (the first calendar quarter). For the 2026 fiscal year ending in July 2026, its year-over-year growth rate is expected to exceed 200%. Acacia holds a leading position in the coherent pluggable optical module market, where business growth is robust.
LightCounting noted that it has never seen 200% growth in the coherent optical module market. Achieving this target would require remarkably strong growth for 800ZR/ZR+ modules in the second quarter of 2026. Among the many factors driving 200% growth for Acacia and Zhongji Innolight, exceptional supply chain management is particularly crucial, as the entire industry is currently grappling with supply shortages. In the previous cycle, Acacia outperformed its competitors due to its supply chain management capabilities.
Ciena and Nokia have also improved their supply chain management. Nokia CEO Justin Hotard stated that the company's growth drivers in 2026 are 800G pluggable optical modules and related line systems and platforms. Ciena CEO Gary Smith pointed out that large cloud service providers have strong demand for 400G and 800G pluggable optical modules, and the company is confident that its pluggable optical module revenue in 2026 will more than double compared to 2025.
LightCounting believes that another potential factor in Acacia's success may come from its silicon photonics engine business. In this field, Acacia competes with Intel, Sicoya, Silith, and Xphor. The firm previously estimated that sales of silicon photonics chips would grow by 110% in 2026.
LightCounting explained that most silicon photonics chips are produced by optical module manufacturers through foundries, but major customers demand more diversified supply sources. Therefore, commercial suppliers of silicon photonics chips may achieve higher business growth, potentially approaching 200%. While there is significant activity in the NPO field, it is difficult to quantify in terms of sales, but it will undoubtedly boost demand for silicon photonics chips.
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