Lumentum's data communications business is constrained by production capacity, but the market is expected to maintain rapid growth.

Lumentum's data communications business has been impacted by EML chip production constraints, but this situation is expected to continue until the end of 2025. Management cites industry forecasts that the high-speed transceiver market will maintain a CAGR of over 30% from 2023 to 2028. Lumentum has begun shipping its acquired Cloud Light transceiver products to all three hyperscale customers.