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Global Optical Interconnect Market to Reach US$ 19.7 Billion by 2027, Introduction of Big Data Analytics & IoT Bolstering Growth

Published on Sep 09, 2019

As per the latest report by IMARC Group, titled “Optical Interconnect Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027”, the global optical interconnect market reached a value of US$ 9.4 Billion in 2021. Optical interconnects are short optical links utilized for interconnecting different computer systems. They transmit signals from one part of an integrated circuit to another through light. Optical interconnects assist in receiving digital signals from network equipment and converting them into optical signals, which are transmitted over the fiber network. They range from short connections on motherboards to kilometer-long links employed in a vast network area. As they have a low frequency-dependent loss, negligible crosstalk and high bandwidth, they are considered a potential solution for sufficing the performance requirements of the present generation of data processors.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Global Optical Interconnect Market Trends:

Rapid development in the information technology (IT) sector, in confluence with the introduction of big data analytics and Internet of Things (IoT), is impelling the demand for high data transmission and bandwidth communication. This, in turn, is strengthening the growth of the optical interconnect market. The rising demand for increased bandwidth capacity and reducing power consumption in data center networks is also catalyzing the market growth. Apart from this, the increasing network traffic, from both private and government sectors, has led to a rise in the demand for optical interconnect devices to utilize resources and handle cloud computing systems efficiently. Presently, there is an increase in the adoption of optical interconnect devices, which favor the growth of several information-centric industries, on account of the rising trend of digitalization and cloud applications facilitating rapid communication. Looking forward, the market value is projected to reach US$ 19.7 Billion by 2027, exhibit a CAGR of 13.28% during 2022-2027.

Market Summary:

  • Based on the product type, the market has been segmented into cable assemblies (indoor cable assemblies, outdoor cable assemblies, active optical cables and multi-source agreement); connectors (LC, SC, ST and MPO/MTP); optical transceivers, free space optics, fiber and waveguides, silicon photonics, PIC-based interconnects, and optical engines.
  • On the basis of the interconnect level, the market has been segregated into chip- and board-level; board-to-board and rack-level optical; and metro and long haul optical interconnect.
  • The market has been bifurcated on the basis of the fiber mode into multi- and single-mode fiber.
  • Based on the application, the market has been divided into data communication (data center and high-performance computing) and telecommunication.
  • On the basis of the end use industry, the market has been segregated into military and aerospace, consumer electronics, automotive, chemicals, and others.
  • Region-wise, the market has been classified into North America, Asia Pacific, Europe, Middle East and Africa, and Latin America.
  • The competitive landscape of the market has been examined with some of the key players being Finisar Corporation, Mellanox Technologies, Molex, LLC, Oclaro Inc., Sumitomo Electric Industries Ltd., Broadcom Inc., TE Connectivity, Amphenol Corporation, Juniper Networks, Inc., Fujitsu Limited, Infinera Corporation, Lumentum Holdings Inc. OFS Fitel, LLC (FURUKAWA ELECTRIC CO., LTD), 3M Company, Acacia Communications, Inc., Dow Corning Ltd., Huawei Technologies Co. Ltd., Intel Corporation and Infineon Technologies AG.

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