As the AI market gradually spreads upstream, in addition to the servers and optical modules recognized by the market, some indirectly benefiting materials and equipment on the infrastructure end have gained attention, with electronic ceramic shells being one of them.

Long distance transmission of optical communication requires airtight packaging, and electronic ceramic casing is the preferred material for airtight packaging. It is packaged with multi-layer ceramic insulators and adopts a multi-layer co fired ceramic insulation structure to provide electrical signal transmission channels and optical coupling interfaces for devices, provide mechanical support and airtight protection, and solve the interconnection between chips and external circuits.

According to Markets&Markets statistics, the global electronic ceramic market space is expected to grow to 226.4 billion yuan in 2025, with a CAGR of 5.4% from 2021 to 2025. The overall demand for electronic ceramic components is on the rise and development stage.

Global Electronic Ceramic Market Size (100 million yuan) (Data Source: Markets&Markets)

The optical module can be paired with an AI server in data transmission, which is an essential transmission hardware for current large-scale model training and inference. It directly benefits from the surge in AI demand, and the electronic ceramic shell is an essential component of the optical module. AI computing power needs to open up its incremental space. At present, in the optical module market, the main electronic ceramic products used include ceramic shells and covers, bases and carriers, accounting for about 10% of the optical module market size. It is estimated that by 2026, the global market size of ceramic shells for optical devices will be about 1.45 billion US dollars, with broad market prospects.

The optical communication device shell business can be used to package a full range of optical communication devices such as TOSA, ROSA, ICR, WSS, etc., with transmission rates ranging from 2.5Gbps to 800Gbps, and is applied in scenarios such as fiber backbone networks, metropolitan area networks, broadband access, CATV, Internet of Things, and data centers.

According to Lightcounting statistics, the global optical module market size in 2021 was 7.37 billion US dollars. It is expected that with the rapid development of data communication in the coming years, the optical module market will enter a period of rapid growth. By 2025, the global optical module market size is expected to reach 11.32 billion US dollars, with a CAGR of about 11%.