Global InP and GaAs Photonics for AI Market Report, 2027-2037 | AI Interconnect Growth Drives Laser Demand, Capacity Investment, and M&A Opportunities
Dublin, Oct. 26, 2026 (GLOBE NEWSWIRE) -- "InP and GaAs Photonics for AI: Global Market 2027-2037" has been added to ResearchAndMarkets.com's offering.
InP and GaAs Photonics Market Outlook for AI Data-Centre Optics
Rapid growth in artificial intelligence infrastructure is increasing demand for the compound-semiconductor technologies required to power high-speed optical interconnects. Because silicon cannot emit light efficiently, optical links in AI clusters rely on InP and GaAs components, including lasers, photodiodes, modulators and related photonic devices.
The report provides a detailed analysis of the InP and GaAs photonics supply chain, covering substrates, epiwafers, bare die and device manufacturing. It examines how rising bandwidth requirements, higher accelerator density and evolving AI network architectures are influencing capacity, investment, technology development and competitive positioning across the global data-centre optics market.
Market forecasts span 2021-2037 and assess device technologies, semiconductor materials, network architectures, value-chain levels and regions of manufacture. The analysis also addresses supply constraints, investment and M&A activity, strategic partnerships, China, critical minerals, export controls and the changing competitive landscape. A technology roadmap and profiles of 65 companies support strategic planning and market evaluation.
Key areas covered in the report include:
The report identifies the commercial and technical factors shaping AI data-centre optics through 2037. It evaluates how transitions toward higher lane rates, greater optical integration and advanced network architectures may affect demand for compound-semiconductor lasers and photodetectors. Attention is also given to manufacturing concentration, raw material exposure, export controls and the capacity investments required to support expanding AI interconnect deployments.
Designed for semiconductor manufacturers, photonics suppliers, data-centre technology companies, investors and corporate strategy teams, the report offers a structured view of market opportunities across InP and GaAs devices. Its combination of technology benchmarking, supply-chain assessment, company profiles and long-term forecasts provides actionable intelligence for organizations evaluating the future of AI optical interconnects, silicon photonics integration and compound-semiconductor manufacturing.
Key Topics Covered:
1 EXECUTIVE SUMMARY
1.1 Key Findings at a Glance
1.2 Market Size and Growth, 2027-2037
1.3 Where the Value Goes: Devices and Architectures
1.4 Supply Constraints in Brief
1.5 Recent Developments, 2025-2026
1.6 Scenario Summary
1.7 Strategic Imperatives
2 INTRODUCTION, SCOPE AND METHODOLOGY
2.1 Report Scope
2.2 Methodology
2.3 Comparison With Other Future Markets Forecasts
2.4 Why Compound Semiconductors?
2.5 Device Technologies Covered
3 AI INFRASTRUCTURE DEMAND DRIVERS
3.1 Bandwidth per Accelerator and the Interconnect Wall
3.2 Network Tiers: Scale-Up, Scale-Out and Scale-Across
3.3 Reach Decides the Technology
3.4 Lane-Rate Roadmap
3.5 Laser Content per Link: Pluggables, LPO, CPO and Optical I/O
3.6 Drivers and Restraints
4 INP DEVICE TECHNOLOGIES
4.1 The InP Photonics Platform
4.2 Electro-Absorption Modulated Lasers (EML)
4.3 Directly Modulated Lasers (DML)
4.4 CW-DFB Lasers for Silicon Photonics
4.5 High-Power and Ultra-High-Power CW Lasers for NPO and CPO
4.6 DWDM Laser Arrays and Multi-Wavelength Sources for Optical I/O
4.7 Coherent Components: Tunable Lasers, IQ Modulators and Receivers
4.8 Semiconductor Optical Amplifiers
4.9 InP Photodiodes
4.10 Monolithic InP PICs
4.11 InP Device Benchmark
5 GAAS DEVICE TECHNOLOGIES
5.1 The GaAs Photonics Platform
5.2 850 nm VCSELs for Short-Reach AI Links
5.3 VCSEL Arrays for Slow-and-Wide Scale-Up and NPO
5.4 GaAs Photodiodes
5.5 Quantum-Dot Lasers on GaAs
5.6 GaAs vs InP vs Silicon Photonics for Short Reach
6 INTEGRATION WITH SILICON PHOTONICS AND COMPETING PLATFORMS
6.1 Why Integration Matters for InP Demand
6.2 Hybrid Flip-Chip Integration
6.3 Heterogeneous III-V-on-Silicon
6.4 Micro-Transfer Printing and Monolithic Growth
6.5 Competing Modulator Platforms
7 SUBSTRATE, WAFER AND EPITAXY TECHNOLOGY
7.1 InP Crystal Growth: VGF, VB and LEC
7.2 Wafer Diameter Roadmap
7.3 Epitaxy: MOCVD and MBE
7.4 Device Fab and Test Bottlenecks
8 MARKET FORECASTS 2021-2037
8.1 Forecast Assumptions
8.2 Total Bare-Die Market by Device Technology
8.3 Bare-Die Volumes
8.4 Average Selling Prices
8.5 Market by Network Architecture
8.6 InP vs GaAs
8.7 Epiwafer Market
8.8 Substrate Market
8.9 Total Value Chain
8.10 Market by Region of Manufacture
8.11 Scenario Analysis
9 SUPPLY CHAIN AND CAPACITY
9.1 InP Laser Supply Chain
9.2 GaAs Laser Supply Chain
9.3 Substrate Suppliers
9.4 Epiwafer Suppliers
9.5 Device Makers and Foundries
9.6 Capacity vs Demand: InP Substrates
9.7 Capacity vs Demand: InP Laser Die
9.8 Lead Times and Pricing Indicators
9.9 Geographic Footprint
10 INVESTMENT, M&A AND STRATEGIC PARTNERSHIPS
10.1 NVIDIA and Hyperscaler Investments in Laser Supply
10.2 Fab and Capacity Investments
10.3 Venture Funding for Photonics Start-ups
10.4 Government Support Programmes
10.5 Mergers and Acquisitions
11 CHINA, CRITICAL MINERALS AND EXPORT CONTROLS
11.1 Indium and Gallium Supply
11.2 Export Control Timeline
11.3 Impact on the Substrate Market
11.4 China's Domestic Photonics Chip Industry
11.5 Geopolitical Scenarios
12 COMPETITIVE LANDSCAPE
12.1 Bare-Die Market Shares
12.2 InP Substrate Market Shares
12.3 Strategic Positioning
13 TECHNOLOGY ROADMAP AND OUTLOOK
13.1 Technology Roadmap 2025-2037
13.2 Opportunity Assessment
13.3 Outlook and Conclusions
14 COMPANY PROFILES (65 company profiles)
15 APPENDIX
15.1 Annual Forecast Data, 2021-2037
15.2 Glossary
15.3 Principal Public Sources
LIST OF TABLES [53]
LIST OF FIGURES [35]
A selection of companies mentioned in this report includes, but is not limited to:
For more information about this report visit https://www.researchandmarkets.com/r/pjafcl
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