To improve the website's functionality, we use cookies, including third-party cookies. Read our Privacy Policy for more information
I AgreeAnalysis of Optical Interconnect market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global optical interconnect market was valued at US$ 10.2 Billion in 2021, and is projected to register a Y-o-Y increase of 13.7% in 2022 to be valued at US$ 11.6 Billion. During the 2022-2032 period of assessment, demand is expected to rise at a 12.5% value CAGR, likely to reach US$ 37.6 Billion by the end of the said forecast period.
Report Attributes | Details |
Anticipated Base Year Value (2021) |
US$ 10.2 Billion |
Expected Market Value (2022) |
US$ 11.6 Billion |
Projected Forecast Value (2032) |
US$ 37.6 Billion |
Global Growth Rate (2022-2032) |
12.5% CAGR |
Growth Rate of the U.S (2022-2032) |
11.9% CAGR |
Expected Market Value of China (2032) |
US$ 1.2Billion |
Growth Rate of U.K (2022-2032) |
11.4% CAGR |
Key Optical interconnect market Players |
|
Overall, the optical interconnect market landscape is poised to yield an absolute dollar opportunity worth US$ 26 Billion until 2032. Sales of optical interconnect systems for data communication will continue to flourish, with a documented CAGR of 13.7% from 2015-2021.
Moreover, multimode fiber will continue to remain the primary fiber mode, likely to register a CAGR worth 12.1% from 2022 to 2032. The U.S will remain at the forefront, generating an opportunity worth US$ 8.6 Billion during the forecast period.
Don't Need a Global Report?
Save 40% on Country & Region specific reports
Increasing Need for Increased Bandwidth Capacity leads to increase in Optical Interconnect Demand
The major factor boosting the optical interconnect market is the increasing demand for advanced bandwidth requirements with the reduced power consumption within data centers networks, bandwidth capacity needs to be enhanced. This has largely increased the demand for efficient interconnects. Growing development of hyper scale datacenters around the globe also escalating the growth of the optical interconnects market.
Microsoft, Amazon Web Services, and Google Inc., all these cloud service providers are executing high data rate optical interconnects in their datacenters. Emerging trend of smart gamming, wireless communication and driverless vehicle expected to increase data traffic across the network leads to increase in demand for optical interconnects.
Rise in deployment of data centres to boost the growth of the market
Worldwide, data centre budget allocations are rising significantly. The growth of the market is anticipated to the increasing deployment of data centre across the globe. Most companies and government rely on data centres to deliver a business value greater than their cost. Cloud computing and data analytics have increased investments on large data centers which would possibly contribute to the increment in adoption of the optical interconnection.
A survey of AFCOM states many companies will invest more in data centres in upcoming years. Also many companies will renovate their data centres, also the space dedicated to data centre will increased significantly from 5,000 to 50,000 square feet. This requirement of data centre for large enterprises interconnect solution increase the demand of the market significantly.
Recent Technological Advancements to Bode Well for Market Growth
Recent years have witnessed major disruptions in the global IT industry. With major emphasis on precision of optic interconnects, governments are augmenting capabilities by incorporating advanced systems such as Big Data Analytics and the Internet of Things (IoT) among others. Innovative progression in optical interconnect to offer high processing speed and storage capabilities is a key factor driving interest in optic interconnect market.
High Costs Associated with Applications of Optical Interconnect to Hamper Market Growth
The growth of the optical interconnect market is affected by high cost. Due this high cost issue associated with optic interconnect technology hampered the commercialisation of the optic interconnect technology. This will be resulting a major impeding factor to the market growth. Installation of application related optic interconnect requires specialized tools with expert technicians this will also increase the cost of the project, this will hamper the growth of the market. Also, a major problem in the implementation of optical interconnects is how to perform the alignment and packaging of such systems this will hinder the growth of the market.
More Insights, Lesser Cost (-50% off)
Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR
According to Fact.MR’s study, the U.S is poised to yield an absolute dollar opportunity worth US$ 8.6 Billion, expanding at a 11.9% value CAGR from 2022 to 2032. By the end of the said forecast period, a market valuation of US$ 12.7 Billion has been projected for the industry across the country.
US held the largest share of the overall optical interconnect market. The rapid penetration of the internet is expected to raise the growth of the market in this US. Also, the growth of the market can be attributed to the presence of some leading datacenter companies such as Microsoft, Google, Amazon, Facebook, and Apple in the US. As all these companies have a large number of hyperscale datacenters installed in US region, the growth of the optical interconnect market in US is high.
Also the initiatives taken by telecommunication companies to start 5G services in US is expected to drive the market growth in during the forecast period. For instance, in November 2020, North America was expected upgrade about 4% of its mobile subscriptions to 5G. this will create the scope for optic interconnect market as a powerful interconnect is required to enable cell towers and other applications to handle 5G transmissions.
The optical interconnect market in China is projected to grow at the second highest CAGR during the forecast period. The growth of the market can be attributed to the increased adoption of advanced technologies such as big data, AI and IoT in China. Moreover, the increment in deployment of datacentres in China will lead to increase in growth of the market.
Major Datacentre companies of China have established their centres in the region, this will also boost the growth of optical interconnect market in China. Also the growth of the market is attributed to increased demand for high bandwidth networks for broadband and mobile connectivity in China. For instance, Alibaba Cloud has been significantly investing in SiPh technology in recent years. Alibaba Cloud partnered with Hisense Broadband and Elenion Technologies for technological development.
Consequently, deployment of advanced optical interconnect market is rising significantly across the East Asian giant. As per Fact.MR’s estimates, the Chinese market is poised to register a CAGR of 11.7% from 2022 to 2032, reaching US$ 1.7 Billion and yielding a dollar opportunity worth US$ 1.2 Billion
Country-wise Forecast CAGRs for the Optical Interconnect Market
U.S |
11.9% |
U.K |
11.4% |
China |
11.7% |
Japan |
11.0% |
South Korea |
10.1% |
Data Communication to hold major sway during the forecast period
As per Fact.MR, the data communication segment is projected to lead the optical interconnect market from 2022 to 2032, flourishing at a CAGR of 12.2%. Growing adoption of cloud services, as well as the rising technological advances in machine learning, artificial intelligence, and deep learning affect the growth of the optical interconnect marker.
Increasing technological advances in machine learning also growing adoption of cloud services, artificial intelligence and deep learning will positively affect the growth of the optical interconnect market. Increasing data traffic also show rise in demand of optic interconnect market. Also the increasing use of driverless cars, wireless networking, smart gaming accelerates the growth of the demand for optic interconnect market.
Multimode fiber segment to grow at the highest CAGR
Based on fiber mode, the multimode fiber segment of the market is projected to grow at a higher CAGR of 12.1% from 2022 to 2032. Multimode fiber optical interconnects have been used in data centers and high-performance computing applications for short-distance data transmissions.
In addition, cloud computing offers a wide range of advantages, such as lower infrastructure cost and better connectivity, contributing to its higher adoption rate worldwide. The increase in use of cloud computing has generated the high-efficiency processing requirement in datacentres.
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
Prominent manufacturers of optical Interconnect market are eyeing technological innovations in order to provide the most accurate and precise system arrangements to their customers. As the threat of technology looms large over the world, companies are forging collaborative agreements with government entities to enhance their presence across major geographies. In addition, the vendors are likely to leverage upgradation and product differentiation to gain an edge over other competitors in the market.
- Premium Report Details -
- Let's Connect -
- Quick Contact -
- Get Started -
Get insights that lead to new growth opportunities
Buy NowGet A Special pricing for start-ups and universities
Enquiry Before Buying- Humble, Yet Honored -
- Related Reports -
As of 2021, Fact.MR estimated the optical interconnect market to have reached US$ 10.2 Billion
By 2022, Fact.MR expected demand for optical interconnect market to reach US$ 11.6 Billion
From 2015-2021, the optical interconnect market grew at a 13.8% value CAGR
From 2022-2032, optical interconnect market demand is likely to surge at a 12.5% CAGR
By 2032, the market for optical interconnect market is likely to be valued at US$ 37.6 Billion
By 2032, Fact.MR expects the U.S market for optical interconnect market to reach US$ 12.7 Billion
China is expected to register a 11.7% CAGR with regard to the optical interconnect market
U.K is expected to document a CAGR worth 11.4% in the optical interconnect market
Multimode fiber will account for maximum applications, expanding at a 12.1% CAGR
Data communication will remain most sought after, expanding at CAGR of 12.2% until 2032