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Optical interconnections in integrated circuits relate to any system of transmitting signals that use light between one parts of an integrated circuit to another. Optical interconnect technology has become the preferred option for just about any high-speed wired form of communication encompassing distances beyond 100 m. The preference for optical interconnections over purely electrical, copper-based interconnections increases as the requirements for bandwidth increase. Optical interconnections allow advanced signal processing to track or control errors and reduce distortion in fiber optics. These interconnections have a low frequency-dependent loss, negligible crosstalk and a high bandwidth resulting in wide applications in the semiconductor sector.
The major factor influencing market growth is increasing demand for internet services throughout the domestic, commercial, and industrial sectors. Due to the exponential growth of the IT industry together with the advent of Big Data Analytics and the Internet of Things (IoT), demand for high data transmission and bandwidth connectivity is on the rise, which has led to higher demand for global optical interconnection.
The global optical interconnect market trends are as follows:
The market segment for multimode fiber is estimated to increase in the coming years at a higher CAGR than the single mode fiber segment. This segment’s growth could be attributed to the increasing demand for higher bandwidth for cloud computing applications. 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 growing use of cloud computing has generated the high-efficiency processing requirement in datacenters.
This segment’s growth can be accredited to the growing adoption of cloud services, as well as the rising technological advances in machine learning, artificial intelligence, and deep learning. It, in effect, raises network-wide data traffic, resulting in substantial demand for high data rate transceivers that are used for efficient data communication. Globally, the development of hyperscale datacenters also drives the growth of the market for optical interconnections. In addition, leading providers of cloud services such as Google, Amazon and Microsoft are introducing high data rate optical interconnections in their datacenters. Furthermore, the emergence of driverless cars, wireless networking, smart gaming, etc., is anticipated to accelerate data traffic across networks, resulting in increased demand for optical interconnections.
With cloud technologies enabling effective interaction and the exponential rise of digitalization, there is an increase in the implementation of optical interconnect systems supporting the growth of different information-centered industries.
The global optical interconnect market is segmented on the basis of product category, interconnect level, fiber mode, data rate, distance, application, and region.Â
Based on product category, the market is further bifurcated into cable assemblies, connectors, optical transceivers, free space optics, fiber, and waveguides, silicon photonics, pic-based interconnects, and optical engines. Based on interconnect level, the market is divided into metro and long-haul optical interconnect, board-to-board and rack-level optical interconnect, and chip- and board-level optical interconnect. Based on fiber mode, the optical interconnect market is classified into single mode fiber and multimode fiber. Based on data rate, the report segments the market into Less than 10 Gbps, 10 Gbps to 40 Gbps, 41 Gbps to 100 Gbps, and More than 100 Gbps. Based on distance, the market is further bifurcated into Less than 1 Km, 1 Km to 10 Km, 11 km to 100 Km, and More than 100 Km. Based on application, the report segments the market into data communication, telecommunication. Geographically, the global market is analyzed across North America (Canada, Mexico, U.S.), Europe (France, Germany, UK, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Rest of Asia-Pacific), LAMEA (Africa, Latin America, Middle East).
Key players of the global optical interconnect market analyzed in the report include Lumentum Operations LLC (US); Molex, LLC (US); InnoLight Technology (Suzhou) Ltd. (China); NVIDIA Corporation (US); Fujitsu Ltd. (Japan); Sumitomo Electric Industries, Ltd. (Japan); Broadcom Inc. (US); TE Connectivity (Switzerland); Amphenol Corporation (US); Accelink Technology Co. Ltd. (China).
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Optical Interconnect Market Report Highlights
Aspects | Details |
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By Product Category |
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By Interconnect Level |
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By Region |
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By Fiber Mode |
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By Data Rate |
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By Distance |
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By Application |
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Key Market Players | Lumentum Operations LLC, Broadcom Inc., NVIDIA Corporation, II-VI Incorporated, Amphenol Corporation, Sumitomo Electric Industries, Ltd., InnoLight Technology (Suzhou) Ltd., Molex, LLC, Fujitsu Ltd., TE Connectivity |
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