BOSTON (July 28, 2025) – Cignal AI has sharply increased its forecast for 800ZR and 800ZR+ pluggable coherent modules to over 200,000 shipments in 2026. The latest Active Insight update, 800ZR/ZR+ Forecast Update (2Q25), outlines forecast updates reflecting new input gathered from the market.
The greater than anticipated demand is a result of the evolving architecture of AI infrastructure, which is increasingly spanning multiple sites due to power and space constraints. Hyperscalers, led by Meta, are adopting 800ZR+ modules to interconnect geographically distributed data centers using IP-over-DWDM. The price, power, and performance of Gen120C optics enables 400G and 800G coherent transmission over extended distances, rivaling that of embedded interfaces in optical hardware.
“The new forecast reflects an accelerating shift in how hyperscalers are deploying high-performance optics,” said Scott Wilkinson, Lead Analyst at Cignal AI. “The need for rapid, long-reach connectivity between AI clusters is firing up demand for 800ZR+, and this growth, while primarily additive, will come at some expense to other interface types as pluggable 800G performance rivals embedded solutions.”
Additional Details from the 800ZR/ZR+ Forecast Update:
- Pluggable coherent optics are central to the transition to IP-over-DWDM network designs, in which routers and switches directly host DWDM optics. This architecture already created a $2B market in 2025, and it is projected to grow to nearly $5B by 2029.
- Cloud operators will account for over 80% of these deployments as the shift away from traditional optical hardware continues.
- Meta will be the earliest customer for 800ZR+, though other hyperscalers are expected to deploy the technology in subsequent quarters.
- Microsoft and others are evaluating 400G-ULH coherent optics based on 800ZR+ technology for long-reach 400G links.
- The forecast for embedded 800G and 1.2T+ optics was revised downward for 2029 due to slower adoption and application overlap with 800ZR+ modules.
About the Report
Cignal AI updates its shipment and forecast databases in real time as companies announce and market conditions change, not according to a static schedule. Clients can download updated shipment and forecast Excel numbers for the following topics on the report pages:
- 800ZR/ZR+ and other coherent module forecasts (Optical Component Report)
- New IPoDWDM forecast (Transport Hardware Report)
800ZR/ZR+ Forecast Update (2Q25) is part of Cignal AI’s Active Insight research service and draws from its quarterly Optical Components and Transport Hardware market reports. The report outlines changes to forecasts for 800G pluggables and other coherent module types.
Active Insight reports provide real-time reporting on important developments in the optical market, including detailed analysis of key product trends, show reports, summaries of quarterly earnings calls, and vendor reports. This information service is provided free of charge with subscriptions to Cignal AI’s Transport Hardware Report and Optical Component Report and is also available for purchase separately. You may view the archive of reports and can enquire about purchasing Active Insight by contacting [email protected].
About Cignal AI
Cignal AI provides active and insightful market research for the networking component and equipment market and the market’s end customers. Our work blends expertise from a variety of disciplines to create a uniquely informed perspective on the evolution of networking communications.
Contact Us/Purchase Report
Sales: [email protected]
Web: Contact us