TrendForce said in its latest 2027 Infrared Sensing and Optical Communications Market Trends report that rising internal data‑center Scale‑Up (vertical expansion) network traffic is boosting demand for VCSEL NPOs, which vendors favour for low power, maintenance flexibility and a relatively mature supply chain. Major suppliers are investing in R&D and multiple VCSEL NPO solutions are expected to appear in 2027–28. Combined with stronger short‑reach optical transceiver demand, TrendForce forecasts

TrendForce said in its latest 2027 Infrared Sensing and Optical Communications Market Trends report that rising internal data‑center Scale‑Up (vertical expansion) network traffic is boosting demand for VCSEL NPOs, which vendors favour for low power, maintenance flexibility and a relatively mature supply chain. Major suppliers are investing in R&D and multiple VCSEL NPO solutions are expected to appear in 2027–28. Combined with stronger short‑reach optical transceiver demand, TrendForce forecasts VCSEL market demand could reach 650 million units by 2031, a 38% CAGR from 2025–2031.