Allied Market Research

2024

Optical Interconnect Market

Optical Interconnect Market Size, Share, Competitive Landscape and Trend Analysis Report by Product Category, by Interconnect Level, by Fiber Mode, by Data Rate, by Distance and by Application : Global Opportunity Analysis and Industry Forecast, 2023-2032

SE : Semiconductors

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Author's: | Sonia Mutreja
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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:

Multimode fiber segment to grow at the highest CAGR 

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.

Data communication application segment to hold a major share market during the forecast period

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. 

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).

COVID-19 scenario Analysis: 

  • COVID-19 outbreak has caused a temporary delay in production, increased cost and revenue losses in the optical interconnect market.
  • Lumentum Holdings Inc. is implementing a sales reduction of $15 million to $20 million at the midpoint due to the expected effects of coronavirus outbreak.
  • Fujitsu Optical Components Ltd.’s factories and suppliers have resumed their operations especially in China and Malaysia of the Asia Pacific region but there will delivery schedule changes due to each country/area government's instruction.
  • Broadcom Inc. did not see any material impact on our businesses due to COVID-19 in its first quarter. However, visibility is lacking in its global markets and uncertainty of demand is intensifying. The supply chain of Broadcom is so far unscathed by the virus. Covid-19’s failure comes as Broadcom, and other chipmakers have already suffered from a trade dispute between China and the U.S. The company has been a major supplier to Huawei Technologies Co. but the Trump administration has banned U.S. firms from selling to the Chinese firm. Around one-third of Broadcom’s goods go into systems that are either purchased in China or shipped from all over the world.

Key benefits of the report:

  • This study presents the analytical depiction of the global optical interconnect industry along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global optical interconnect market share.
  • The current market is quantitatively analyzed to highlight the global optical interconnect market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
  • The report provides a detailed global optical interconnect market size analysis based on competitive intensity and how the competition will take shape in coming years. 

Questions answered in the optical interconnect market research report:

  • Which are the leading market players active in the optical interconnect market?
  • What would be the detailed impact of COVID-19 on the market?
  • What current trends would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the optical interconnect market?
  • What are the projections for the future that would help in taking further strategic steps?

Optical Interconnect Market Report Highlights

Aspects Details
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By Product Category
  • Cable Assemblies
  • Connectors
  • Optical Transceivers
  • Free Space Optics, Fiber, and Waveguides
  • Silicon Photonics
  • PIC-based Interconnects
  • Optical Engines
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By Interconnect Level
  • Metro and Long-haul Optical Interconnect
  • Board-to-Board and Rack-level Optical Interconnect
  • Chip- and Board-level Optical Interconnect
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By Region
  • North America  (U.S., Canada)
  • Europe  (France, Germany, Italy, Spain, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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By Fiber Mode
  • Single Mode Fiber
  • Multimode Fiber
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By Data Rate
  • Less than 10 Gbps
  • 10 Gbps to 40 Gbps
  • 41 Gbps to 100 Gbps
  • More than 100 Gbps
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By Distance
  • Less than 1 km
  • 1 km to 10 km
  • 11 km to 100 km
  • More than 100 km
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By Application
  • Data Communication
  • Telecommunication
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Key Market Players

NVIDIA Corporation, II-VI Incorporated, InnoLight Technology (Suzhou) Ltd., TE Connectivity, Amphenol Corporation, Sumitomo Electric Industries, Ltd., Broadcom Inc., Molex, LLC, Lumentum Operations LLC, Fujitsu Ltd.

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Optical Interconnect Market

Global Opportunity Analysis and Industry Forecast, 2023-2032