NEW YORK, July 26, 2024 /PRNewswire/ -- The
global optical interconnect market size is estimated to
grow by USD 16.80 billion from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of 20.62% during the forecast period. Adoption of cloud
database is driving market growth, with a trend towards demand for
millimeter wave connectivity. However, high cost of
optical interconnectors poses a challenge. Key market players
include 3M Co., Amphenol Corp., Cisco
Systems Inc., Corning Inc., FIBERONE LLC, Fischer Connectors
Holding SA, Fujikura Ltd., Fujitsu Ltd., Furukawa Electric Co.
Ltd., II VI Inc., InnoLight Technology Ltd., Japan Aviation
Electronics Industry Ltd., Lumentum Holdings Inc., Molex LLC,
NINGBO LONGXING TELECOMMUNICATIONS
EQUIPMENT MANUFACTURING CO. LT, NVIDIA Corp., Radiall SA, Sterlite
Technologies Ltd., Sumitomo Electric Industries Ltd., and TE
Connectivity Ltd..
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Optical Interconnect
Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
20.62%
|
Market growth
2024-2028
|
USD 16804.9
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
16.56
|
Regional
analysis
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Performing market
contribution
|
APAC at 62%
|
Key
countries
|
China, US, South Korea,
Japan, and Canada
|
Key companies
profiled
|
3M Co., Amphenol Corp.,
Cisco Systems Inc., Corning Inc., FIBERONE LLC, Fischer Connectors
Holding SA, Fujikura Ltd., Fujitsu Ltd., Furukawa Electric Co.
Ltd., II VI Inc., InnoLight Technology Ltd., Japan Aviation
Electronics Industry Ltd., Lumentum Holdings Inc., Molex LLC,
NINGBO LONGXING TELECOMMUNICATIONS EQUIPMENT MANUFACTURING CO. LT,
NVIDIA Corp., Radiall SA, Sterlite Technologies Ltd., Sumitomo
Electric Industries Ltd., and TE Connectivity Ltd.
|
Market Driver
The global optical interconnect market is anticipated to
experience growth due to the increasing demand for high bandwidth
applications in 5G networks. ISPs face the challenge of managing 5G
wireless backhaul traffic effectively. Two typical network
architectures for wireless backhaul traffic are small cell and
millimeter wave. The demand for optical interconnect components
will rise as they are used to connect millimeter wave connectivity,
which is economical and energy-efficient for deploying future 5G
networks. The data transmission requirement is expanding rapidly
and is expected to continue growing during the forecast period.
Millimeter wave connectivity is extensively used in small cell
backhaul networks, making it a significant growth opportunity for
the optical interconnect market.
The optical interconnect market is experiencing significant
growth due to the increasing demand for efficient data
communication solutions. Trends like machine learning and real-time
data processing are driving the need for high-bandwidth,
low-latency networks. Optical engines and ML/AI networks are at the
heart of this transformation. Edge computing and data-intensive
technologies require network interconnection solutions that can
handle large data traffic. Both single mode fiber and multimode
fiber segments are in focus, with single mode fiber leading the way
for long-distance data transmissions and high-performance computing
applications. 5G networks and the data communication segment are
key drivers, particularly in the areas of cloud services,
large-scale datacenters, and data storage. Semiconductor companies
and infrastructure software solutions are investing heavily in this
space. IoT, driverless vehicles, and wireless communication are
also contributing to the increased bandwidth requirements. Overall,
the optical interconnect market is poised for continued growth in
the coming years.
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Market Challenges
- The optical interconnect market offers a range of
interconnectors with varying average selling prices (ASP). The
price can fluctuate based on factors such as applications, package
weight, bandwidth, split ratios, custom wavelength, coupling ratio,
sample rate, and channels. Interconnectors with high bandwidths up
to ±200 nm and center wavelengths up to 2,000 nm have a higher ASP.
These interconnectors are capable of analyzing signals from
standard cables like USB, coaxial, and Ethernet, with several
automatic measurements. However, the high cost of these
interconnectors represents a significant capital expenditure for
industries, which could potentially hinder the growth of the global
optical interconnect market during the forecast period.
- The Optical Interconnect Market is experiencing significant
growth due to increasing data traffic in cloud storage, deep
learning, and hyperscale datacenters. Efficient data communication
is crucial for next-generation applications like 5G services,
driverless vehicles, smart gaming, and the Internet of Things.
Optical interconnect technologies, such as fiber mode, offer higher
bandwidth requirements and lower latency compared to copper-based
interconnects. However, challenges remain. Alignment and packaging,
compatibility, and interoperability are key concerns for datacenter
companies. The commercialization of 5G services and
high-performance computing demands for big data analytics,
artificial intelligence, and high-bandwidth data centers networks.
Telecommunications networks and data communication infrastructure
require optical interconnect solutions to meet the needs of cloud
computing, big data, and fiber optics. To address these challenges,
optical interconnect manufacturers must focus on developing
innovative solutions that cater to the unique requirements of
various industries while ensuring seamless integration with
existing infrastructure. Optical interconnect solutions must be
designed to meet the evolving needs of next-generation applications
and services.
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Segment Overview
This optical interconnect market report extensively covers
market segmentation by
- Fiber Type
- 1.1 Single-mode fiber
- 1.2 Multimode fiber
- Connectivity
- 2.1 Rack level
- 2.2 Long-haul level
- 2.3 Chip and board level
- Product Type
- 3.1 Optical transceivers
- 3.2 Connectors
- 3.3 Cable assemblies
- 3.4 Others
- Geography
- 4.1 APAC
- 4.2 North America
- 4.3 Europe
- 4.4 South America
- 4.5 Middle East and
Africa
1.1 Single-mode fiber- Single-mode optical fibers
are the most common type of fibers used for long-distance
communication in fiber optics. These fibers allow light to travel
directly through the core without bouncing at the edges, resulting
in less signal deformation and lower attenuation. Single-mode
fibers have a small core diameter of 8-9 microns and a larger
cladding diameter of 125 microns, reducing reflections and enabling
longer transmission distances. Major vendors in this market include
Sterlite Technologies Ltd., The 3M
Co., and Molex, LLC. Applications of single-mode fibers span across
telecommunications, education, CATV companies, military, ships,
aerospace, data centers, medical cases, and telemetry. The
advantages of single-mode fibers include faster transmission over
long distances, lower integrity loss, and cost-effectiveness. The
market for single-mode fibers is expanding due to these advantages
and the increasing demand for long-distance communication in
various industries.
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analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
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The global photonics market is experiencing robust growth,
driven by advancements in technology and increased demand for
high-speed communication and imaging systems. Key sectors include
telecommunications, healthcare, and manufacturing, with significant
investments in research and development. Major players such as
Intel, Bosch, and Nikon are leading innovations in laser
technology, optical components, and imaging systems, fueling market
expansion and enhancing applications across various industries.
Research Analysis
The optical interconnect market is experiencing significant
growth due to the increasing demand for high-speed data
transmission in various industries. Cloud computing, big data
analytics, artificial intelligence, and high-performance computing
are driving the need for advanced optical interconnect
technologies. Data centers, telecommunications networks, and IoT
are key areas where optical interconnects are finding extensive
applications. The market is segmented into multimode fiber and
single mode fiber segments based on the type of fiber used. Optical
interconnects offer increased bandwidth, making them ideal for
short-distance data transmissions in data centers and hyper-scale
datacenters. The commercialization of 5G services and the rise of
high-efficiency processing in high-performance computing
applications are further boosting the market. Alignment and
packaging are critical factors influencing the performance and cost
of optical interconnects. The market is expected to grow
significantly in the coming years due to the increasing demand for
high-speed data transmission in various applications, including
data center networks, driverless vehicles, and data analytics.
Market Research Overview
The optical interconnect market is experiencing significant
growth due to the increasing demand for high-speed data
communication in various industries, including cloud computing, big
data analytics, artificial intelligence, high-performance
computing, and telecommunications networks. Optical interconnect
technologies, such as single mode fiber and multi-mode fiber, are
becoming essential for next-generation applications and services
that require increased bandwidth and real-time data processing.
Optical interconnect solutions offer compatibility and
interoperability, making them ideal for network interconnection in
data centers, hyperscale datacenters, and large-scale cloud service
providers. The market is also driven by the commercialization of 5G
networks, IoT, and edge computing, which require high-bandwidth,
efficient data communication. Optical engines, ML/AI networks, and
infrastructure software solutions are key components of optical
interconnects, enabling machine learning, real-time data
processing, and high-efficiency processing. Copper-based
interconnects are being replaced by optical interconnects due to
their higher performance and bandwidth capabilities. The data
communication segment and data communication applications are the
primary drivers of the optical interconnect market. The market is
expected to grow significantly in the coming years due to the
increasing demand for data-intensive technologies and the need for
high-performance networking in various industries.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Fiber Type
-
- Single-mode Fiber
- Multimode Fiber
- Connectivity
-
- Rack Level
- Long-haul Level
- Chip And Board Level
- Product Type
-
- Optical Transceivers
- Connectors
- Cable Assemblies
- Others
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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