---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000803020.md"
description: "Goldman Sachs: Innolight & Optical ModulesMarket Trends and Technology Migration> Speed Evolution: The industry is aggressively migrating toward higher-speed optical modules. 1.6T modules are moving toward volume production as the next mainstream standard, while 3.2T optical modules are expected to begin volume ramp-up in 2027.> Silicon Photonics (SiPh) Dominance: Silicon photonics is increasingly displacing traditional EML-based solutions due to lower power consumption, superior performance, and simplified packaging.> Penetration Rates: By 2026, SiPh penetration is projected to reach 60% for 800G, 80% for 1.6T, and 100% for 3.2T products.> Revenue Share: Silicon photonics' share of total optical module revenue is expected to surge from 28% in 2025 to 62% by 2028.Innolight Shipment and Market Share Highlights> Leadership: Innolight is the leading supplier of 1.6T pluggable modules. It is projected to hold a 50–60% market share of 1.6T modules in 2026. Other industry reports indicate Innolight's market share for 1.6T modules may reach as high as 50–70%.1.6T and 3.2T Outlook:> 1.6T: Expected to become the "absolute mainstream" by 2027, with 45.72 million units projected to be shipped that year.> 3.2T: Following the ramp-up of 1.6T, 3.2T shipments are expected to double in 2028 compared to their initial volume ramp year in 2027.> Manufacturing & Capacity: To support this demand, Innolight planned a 155% year-on-year increase in capital expenditure for 2026 to expand production capacity.Market Dynamics: Volume, Revenue, and ASP> Speed Migration (Volume Mix): The market is shifting rapidly from legacy "Below 400G" speeds toward high-speed AI-focused modules. While "Below 400G" accounted for 89% of shipment volume in 2025, that share is projected to decline to 77% by 2028E. Conversely, high-speed modules are capturing significant volume: 1.6T modules are projected to grow from 1% of volume in 2025 to 10% by 2028E, and 3.2T modules are expected to reach 5% of total shipment volume by 2028E.> Average Selling Price (ASP) Trends: The report explicitly notes an assumed year-over-year (YoY) ASP decline for "like-for-like" products. For example, the ASP for 1.6T modules is expected to drop from $840 in 2025 to $435 by 2028E. The 3.2T module, which enters the market in 2027, has a high starting ASP of $1,023 in 2027E, which is then projected to decline to $768 by 2028E.Technological Shift: SiPh vs. EML> Silicon Photonics (SiPh) Adoption: The market is undergoing a significant transition from traditional EML-based materials to Silicon Photonics.SiPh revenue penetration is expected to increase from 28% in 2025 to 62% by 2028E.Correspondingly, the SiPh penetration rate (by volume) is projected to climb from 6% in 2025 to 18% by 2028E.Market Opportunity (TAM)> Total Addressable Market (TAM): The global optical module TAM is expected to grow from $34.2 billion in 2025 to a peak of $72.6 billion in 2027E, before moderating slightly to $69.1 billion in 2028E.> High-Speed Revenue Growth: The 1.6T and 3.2T segments represent the primary growth engines, with combined revenue for these categories projected to grow from $3.9 billion in 2025 to $44.9 billion in 2028E."
datetime: "2026-07-17T22:22:11.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000803020.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000803020.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000803020.md)
author: "[Equity research](https://longbridge.com/en/profiles/2071818324550963200.md)"
generator: "portal-rs"
---

# Goldman Sachs: Innolight & Optical ModulesMark…


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**