The Global market for Optical Interconnect Market is estimated to reach $16.4 billion by 2025, growing at a CAGR of 11.6% from 2020 to 2025. Optical Interconnects are data transmission in which data signal is transmitted as a modulation of optical carrier wave (light) through an optically transparent media like optical fiber, planar optical waveguide or air. Optical interconnects operate at much higher speed allowing multiplexing of large number of I/O signals. Optical Interconnects carry a large amount of information by providing no-pick up of electrical noise while transmission.
The several advantages of Optical Interconnect like high carrier frequency, less attenuation, less crosstalk, lower power consumption and others are driving the growth of the market.
The report: “Optical Interconnect Market – Forecast (2020-2025)”, by Industry ARC covers an in-depth analysis of the following segments of the Optical Interconnect Market.
By Cable Type– Single-Mode, Multi-Mode
By Interconnect Level– Metro and Long Haul Optical Interconnect, Board-to-Board and Rack-level Optical Interconnect, Chip and Board Level Optical Interconnect
By Data Rate – Less than 10 Gpbs, 10-40 Gpbs, 40-100 Gpbs, more than 100 Gpbs
By Distance- less than 1 Km, 1-10 Km, 10-100 Km, more than 100 Km
By Application – Semiconductors, Telecommunications, Data Communications ,Others
By Geography - North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)
- The rise in fiber optics for fast and accurate data transfer and communication processes are driving the growth of the market..
- Telecommunication sector is dominating the market owing to the wide use of single mode and multi mode fiber optics for data communication purposes.
- In North America, rise in demand of fast internet along with internet penetration by various companies has resulted in deployment of optical interconnect owing to its bandwidth and communications thereby fueling the growth of the market.
By Cable Type- Segment Analysis
By Cable Type the market is segmented into single mode and multi mode. Multi mode is dominating the market owing to rising demand of cloud computing applications. In cloud computing applications multi mode fibers have greater bandwidth. The multi mode fiber allows light to travel through multiple paths and it is used for many short distance applications. The multi mode fiber is best suited for communications within short distances like buildings. Multi mode fiber optics is generally used for reliable connectivity. Furthermore it is becoming a practical solution for many cabling projects nowadays driving the growth of the market.
Applications - Segment Analysis
By applications the market is segmented into semiconductors, Telecommunications, Data Communication and Others. The telecommunications are witnessing a significant growth in the market due to the rise in use of optical interconnect to serve the exploding need for fiber optic data transmission. Owing to the large speed and greater bandwidth it is adopted by most of the telecommunication sectors for faster delivery of data. Due to the cost efficiency optical interconnects are widely used in metro, regional and long haul applications. These factors are boosting the growth of the market.
Geography - Segment Analysis
By Geography the Optical Interconnect Market is dominated by North America by market share of 35.2% in 2019. North America is dominating the market owing to the wide use of cloud based applications and growing technological advancements in the telecommunication sector. . According to the International Trade Administration In 2018, 50% of enterprises with more than 1000 users are anticipated using products provided by Cloud Access Security Broker (CASB) to monitor and manage their use of software as service and forms of public cloud in United States. Furthermore, U.S companies are very well-positioned to continue in leaderships positions within the cloud managed LAN global market. Furthermore, the rising internet penetrations in almost every location are another factor influencing positively the growth of the market.
Drivers- Optical Interconnect Market:
- Surge in adoption of Optical Interconnect:
There is a surge in adoption of optical interconnect owing to the large speed, bandwidth and others. The optical interconnects also consumes very low power along with very low signal attenuation. In telecommunication sector optical interconnects are widely used to merge subscriber services to provide single service for voice, email, web, TV and entertainment. Switching and server systems capable of delivering such services use optical interconnect to eliminate to I/O signal bottleneck.
- Rising use of Internet applications:
The rising use of internet applications have resulted in the adoption of clod based applications along with wide use of LAN networks. This has resulted in the adoption of optical interconnects for transferring data at high speed and less attenuation. The rising penetration of internet has resulted in the large use of optical interconnects. The fiber optic based internet links offer thin, flexible cable, essentially unlimited bandwidths, immunity from electromagnetic interference and significantly higher edge connection density bandwidth. Owing to these factors the optical interconnects are widely adopted and used globally driving the market growth.
Challenges – Optical Interconnect Market:
- Cost of optical interconnects is expensive:
Although optical interconnects provides transmission in wide speed the cost of optical interconnects are very expensive. The small industries are not capable of opting optical interconnects due to its high cost. This is hindering the market growth.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Optical Interconnect Market are given in this report. Optical Interconnect Market is dominated by major companies such as Fujitsu Ltd.., TE Connectivity, Broadcom Inc., Nvidia Corporation, Molex LLC, Innolight Technology Inc., Juniper Networks Inc., Acacia Communications Inc. , Amphenol Corporation among others.
- February 12, 2020- Amada (India) Pvt. Ltd. launched a new LASER technology machine ENSIS. It is a 9kw laser fiber machine. The machine controls beam with beam modulation and can be used to cut thick metals by beam modulation.
- July 10, 2019- Reflex Photonics new optical interconnect product. Light CONEX launched by the company combines multiple I/O interfaces keeping size, weight and power at minimum.