CHICAGO, May 28, 2020 /PRNewswire/ -- According to the new market research report "Optical Interconnect Market by Product Category (Cable Assemblies, Connectors, Optical Transceivers), Interconnect Level, Fiber Mode, Data Rate, Distance, Application (Data Communication, Telecommunication), Region - Global Forecast to 2025", published by MarketsandMarkets™,the Optical Interconnect Marketis projected to grow from USD 9.0 billion in 2020 to USD 17.1 billion by 2025; it is expected to grow at a CAGR of 13.7% from 2020 to 2025. Key factors fueling the growth of this market include the rise in the global deployment of datacenters and the surge in the global adoption of cloud computing, big data analytics, and IoT.
"The single mode fiber segment held a larger share of the optical interconnect market than the multimode fiber segment in 2019."
The single mode fiber segment is projected to account for a larger size of the optical interconnect market from 2020 to 2025 than the multimode fiber segment. The major factor contributing to the growth of this segment of the market is the high adoption of optical interconnects for long-distance data transmission applications. Optical interconnects with single mode fibers offer high data transfer rates for long-distance transmissions with only one type of signal. The optical interconnects have replaced the traditional copper-based electric optical interconnects for inter-datacenter interconnections, and metro and long-haul level interconnections, as they relatively offer high data transfer rate with low attenuation.
"The chip- and board-level optical interconnect segment is projected to grow at the highest CAGR during the forecast period."
The chip- and board-level optical interconnect segment of the market is projected to grow at the highest CAGR during the forecast period. The major factor contributing to the growth of this segment is the increasing requirement of fast processors with low power consumption and high data transmission rates. The increased popularity of parallel computing and the arrival of multicore processors and 3D chips are creating an increased demand for chip- and board-level optical interconnects. They are becoming crucial to cope up with the high-computing speed requirements of various applications.
"The cable assemblies segment held the largest share of the optical interconnect market in 2019."
In 2019, the cable assemblies segment held the largest share of the optical interconnect market. The growth of this segment can be attributed to the increased deployment of fiber optics in datacenters and telecommunication applications across the world. These cable assemblies offer high data rates and low attenuation required by high bandwidth connectivity applications. Moreover, they have lower power consumption than the traditional copper-based electric cable assemblies, which make them suitable for datacenters and high-performance computing applications.
"The data communication application segment led the optical interconnect market in 2019."
Based on application, the optical interconnect market has been segmented into data communication and telecommunication. The data communication is projected to lead the optical interconnect market during the forecast period. The growth of this segment can be attributed to the increased adoption of optical interconnects in datacenters and high-performance computing (HPC) applications owing to their high data transmission rates. The rising number of datacenters across the world is expected to drive the growth of this segment of the market. Optical interconnects offer a wide range of data rates for both intra- and inter-datacenter interconnection purposes. Hence, leading datacenter companies such as Google, Alibaba, Microsoft, Facebook, and Apple use optical interconnects in their datacenters.
"North America held the largest share of the optical interconnect market in 2019."
North America is projected to account for the largest share of the optical interconnect market in 2025. The growth of this segment of the market can be attributed to the initiatives undertaken by telecommunication companies such as AT&T (US) and T-Mobile (Germany) to start 5G services in the US. These companies are focusing on the development of 5G network infrastructures in the US to start the country-wide 5G services by the end of 2020. This, in turn, is expected to drive the market growth in North America during the forecast period. Moreover, the presence of some of the key datacenter companies such as Google (US), Amazon (US), Microsoft (US), and Apple (US) in the region has also contributed significantly to the growth of the optical interconnect market in North America.
Key players in the optical interconnect market include companies operating at different stages of the value chain. II-VI Incorporated (US); 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); Juniper Networks, Inc. (US); Infinera Corporation (US); Acacia Communications, Inc. (US); NeoPhotonics Corporation (US); Optoscribe Ltd. (UK); Smiths Interconnect (UK); Cailabs (France); Fiberplex Technologies, LLC (US); and Cleerline Technology Group (US) are the leading players operating in this market. These companies focus on adopting both organic and inorganic growth strategies, such as new product launches and developments, acquisitions, collaborations, contracts, and expansions, for strengthening their position in the market.
Optical Transceiver Market by Form Factor (SFF, SFP, SFP+, QSFP, QSFP+, QSFP28), Data Rate, Distance, Fiber Type (Single-Mode, Multimode), Connector, Wavelength, Application (Telecom, Data Center, and Enterprise), and Region - Global Forecast to 2025
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