2 billion of optical components in 2024, up by 22% compared to the preceding year, marking the region's dependence on high-performance co-packaged optics for supporting skyrocketing bandwidth needs. Co-packaged optics is a game-changing innovation where optical components like lasers, signal modulators, and light detectors get built right into the same package as processing chips like CPUs, GPUs, or specialized networking processors. The market remains competitive with low concentration levels indicated by the Herfindahl-Hirschman Index (HHI). According to LightCounting, sales of lasers and photonic integrated circuits for optical transceivers are expected to grow from $2. 9B by 2029, fueled largely by AI data centers.
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