TrendForce: AI network and interconnect output value to reach US$279.8 billion in 2027, CAGR 95%
TrendForce forecasts that AI network and interconnect output value will reach US$279.8 billion in 2027, with a compound annual growth rate of 95% from 2024 to 2027. Switches remain the largest source of output value, contributing 38% (US$105 billion) next year; pluggable optical modules will reach US$84.1 billion; NIC and DPU revenue will double to US$57.4 billion by 2027; the three categories combined will account for 88%. Scale-up high-speed interconnects between AI chips are growing fastest and will account for 24% of AI network output value.
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TrendForce: AI Network and Interconnect Revenue Continues Near-Doubling Growth, Projected at US$279.8 Billion in 2027
2026-11-03 20:00 IT Home - Su Bo (Intern)
IT Home, November 3: TrendForce released a forecast yesterday that AI network and interconnect revenue is expected to reach US$279.8 billion in 2027 (IT Home note: approximately RMB 1.86 trillion at current exchange rates). This means the compound annual growth rate (CAGR) for this sector during 2024–2027 will reach 95%, sustaining near-doubling growth.
▲ Image source: TrendForce
From the perspective of product structure, switches remain the largest source of revenue in this segment, expected to contribute 38% (US$105 billion) next year; pluggable optical modules can reach US$84.1 billion; NICs (network interface cards) and DPUs (data processing units) will double their revenue by 2027, reaching US$57.4 billion. The above three categories together account for 88%.
From the perspective of interconnect types, high-speed interconnect between AI chips for scale-up will see the fastest growth, expected to account for 24% of AI network revenue; scale-out connecting to server back-end networks will see growth under the trend of bandwidth upgrades to 1.6T.
Reference
TrendForce Consulting: AI network and interconnect revenue estimated to reach US$279.8 billion in 2027, with scale-up share rising to 24%
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