Global Optical Interconnect Market, Market Size, Trends & Growth Opportunity, Optical Interconnect Market by Product Category (Cable Assemblies, Connectors, Optical Transceivers), Interconnect Level, Fiber Mode, Data Rate, Distance, Application (Data Communication, Telecommunication), Region and forecast till 2027.
Report ID : QR1001399 | Industries : Information and Communication Technology | Published On :January 2022 | Page Count : 242Global Optical Interconnect Market
In integrated circuits optical interconnects refer to any system of transmitting signals from one part of an integrated circuit to another using light. Optical interconnects have been the topic of study due to the high latency and power consumption incurred by conventional metal interconnects in transmitting electrical signals over long distances, such as in interconnects classed as global interconnects. The International Technology Roadmap for Semiconductors (ITRS) has highlighted interconnect scaling as a problem for the semiconductor industry.
In electrical interconnects, nonlinear signals (e.g., digital signals) are transmitted by copper wires conventionally, and these electrical wires all have resistance and capacitance which severely limits the rise time of signals when the dimension of the wires are scaled down. Optical solution are used to transmit signals through long distances to substitute interconnection between dies within the integrated circuit(IC) package.
Drivers: Rise in global deployment of datacenters
Data centre deployment is difficult because it frequently involves managing multiple hardware platforms and technologies. The integration of traditional servers, networking equipment, and storage resources must be meticulously planned, flawlessly executed, and meticulously maintained. The increased deployment of data centres will be a significant growth driver for the market.
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Restraints: Huge Costs Associated with Applications of Optical Interconnect to Hamper Market Growth
Cost has always been a major impediment to the growth of the optical interconnects market around the world. The high costs associated with the application of optical interconnect technologies have hampered the commercialization of this technology. As a result, cost will continue to be a major impediment to market growth.
Impact of COVID-19
Global data traffic has recently increased significantly. The modern Internet is about more than just connectivity. In the age of the COVID-19, the Internet has evolved into a reliable connection with lower latency, faster speed, and greater bandwidth. Consumers are spending more time online than usual in the aftermath of the recent pandemic outbreak. This has had a significant impact on Wi-Fi access points, causing congestion and increasing the burden on interconnecting points. As a result, businesses are rushing to buy optical interconnects in order to mitigate the impact on interconnects. This pandemic has increased demand for optical interconnect, and this trend is expected to continue in the near future. However, due to raw material shortages, production of all fibre optics-related products has dropped by 25% in this pandemic situation.
Segmentation By Product Category:
On the basis of product type, global optical interconnect market can be segmented into optical transceivers, cable assemblies, free space optics, connectors, silicon photonics and PIC based interconnects among others.
Segmentation by Interconnect level:
On the basis of Interconnect level, the market is segmented into Metro and long-haul optical interconnect, Board-to-board and rack-level optical interconnect and Chip- and board-level optical interconnect.
Segmentation By Fiber Mode:
Single and multi-mode fiber forms the different modes based on which global interconnect market is divided. The market for multimode fibre is expected to grow at a faster CAGR than the market for single mode fibre. This segment's expansion can be attributed to rising demand for increased bandwidth for cloud computing applications. Multimode fibre optical interconnects are used in datacenters and high-performance computing applications for short-distance data transmissions. Furthermore, cloud computing provides a plethora of advantages, such as lower infrastructure costs and improved connectivity, resulting in increased global adoption. The growing popularity of cloud computing has necessitated the need for high-efficiency processing in datacenters.
Segmentation By Data Rate:
During the forecast period, the 41 Gbps to 100 Gbps market segment is expected to grow at the fastest CAGR. This expansion can be attributed to increased demand for high data transmission rate 100G, 200G, and 400G transceivers. With the introduction of advanced technologies such as AI and 5G, there is a greater demand for high bandwidth, which is required for datacenters. Thus, optical interconnects are becoming increasingly important for key cloud service providers such as Amazon, Facebook, Google, and Microsoft, resulting in market growth during the forecast period.
Segmentation By Distance:
In 2019, the less than 1 km segment accounted for the majority of the optical interconnect market. During the forecast period, this segment is expected to lead the market. The growth of the less than 1 km segment can be attributed to large-scale datacenters shifting toward the use of high data rate components, such as optical interconnects for data communication. Datacenters transmit data over short distances and require a high data transmission rate to transfer large amounts of data. The growing demand for high-speed communication in datacenters is also driving the market for high data rate optical interconnects with distances of less than 1 km, such as 100G and 400G.
Segmentation By Application:
The data communication segment is expected to lead the optical interconnect market. The continued adoption of cloud storage, as well as the increasing technological developments in the fields of machine learning, artificial intelligence, and deep learning, can be attributed to the growth of this segment. As a result, data traffic across networks increases, creating a significant demand for high data rate transceivers used for efficient data communication. The global development of hyperscale datacenters is also propelling the optical interconnect market forward. Furthermore, leading cloud service providers like Google, Amazon, and Microsoft are deploying high data rate optical interconnects in their datacenters. The introduction of driverless vehicles, wireless communication, smart gaming, and other technologies is also expected to increase data usage.
Segmentation by Region
Based on region, the NGS services market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2019, North America accounted for the lion's share of the global optical interconnect market. The presence of leading datacenter companies such as Microsoft, Google, Amazon, Facebook, and Apple in the US can be attributed to the market's growth in North America. These companies have a large number of hyperscale datacenters installed throughout the region, which contributes significantly to the growth of the North American optical interconnect market.
Competitive Landscape:
Major players in the silicon photomultiplier market include II-VI Incorporated (US); Lumentum Operations LLC (US); Molex, LLC (US); InnoLight Technology (Suzhou) Ltd. (China); NVIDIA Corporation (US).
Industrial Development:
In April 2020, NVIDIA Corporation entered the optical interconnect market by acquiring Mellanox Technologies, Ltd., a US-based provider of optical interconnects. Through this acquisition, NVIDIA aims at combining its datacenter and high-performance computing expertise with the high-performance networking technologies of Mellanox.
In March 2020, II-VI Incorporated strengthened its position in the market by adding the first pluggable optical line subsystem (POLS) platform of the industry to its portfolio. This POLS platform uses 400ZR coherent transceivers for the next-generation datacenter interconnections (DCIs).
Market taxonomy
By Product Category
- Cable Assemblies
- Indoor Cable Assemblies
- Outdoor Cable Assemblies
- Active Optical Cables
- Multi-source Agreements
- Connectors
- LC Connectors
- SC Connectors
- ST Connectors
- MPO/MTO Connectors
- Optical Transceiver
- Free Space Optics, Fiber, and Waveguides
- Silicon Photonics
- PIC-based Interconnects
- Optical Engines
By Interconnect Level:
- Metro and Long-haul Optical Interconnect
- Board-to-Board and Rack-level Optical Interconnect
- Chip- and Board-level Optical Interconnect
By Fiber Mode:
- Single Mode Fiber
- Multimode Fiber
By Data Rate :
- Less than 10 Gbps
- 10 Gbps to 40 Gbps
- 41 Gbps to 100 Gbps
- More than 100 Gbps
By Distance:
- Less than 1 km
- 1 km to 10 km
- 11 km to 100 km
- More than 100 km
By Application:
- Data Communication
- Telecommunication
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Global Optical Interconnect Market TOC
1 Introduction
1.1 Objective of the Study
1.2 Market definition
1.3 Market Scope
2 Research Methodology
2.1 Data Mining
2.2 Validation
2.3 Primary Interviews
2.4 List of Data Sources
3 Executive Summary
4 Global Optical Interconnect Market Outlook
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
5 Global Optical Interconnect Market, By Product Category
5.1 Y-o-Y Growth Comparison, By Product Category
5.2Global Optical Interconnect Market Share Analysis, By Product Category
5.3 Global Optical Interconnect Market Size and Forecast, By Product Category
5.3.1 Cable Assemblies
5.3.1 INDOOR CABLE ASSEMBLIES
5.3.2 OUTDOOR CABLE ASSEMBLIES
5.3.3 ACTIVE OPTICAL CABLES
5.3.4 MULTI-SOURCE AGREEMENTS
5.3.4.1 QSFP
5.3.4.2 CXP
5.3.4.3 CFP
5.3.4.4 CDFP
5.3.2 Connectors
5.3.2.1 LC Connectors
5.3.2.2 SC Connectors
5.3.2.3 ST Connectors
5.3.2.4 MPO/MTP Connectors
5.3.3 Optical Transceivers
5.3.4 Free Space Optics, Fiber, And Waveguides
5.3.5 Silicon Photonics
5.3.6 Pic-based interconnects
5.3.5 Optical Engines
6 Global Optical Interconnect Market, By Interconnect Level
6.1 Y-o-Y Growth Comparison, By Interconnect Level
6.2 Global Optical Interconnect Market Share Analysis, By Interconnect Level
6.3 Global Optical Interconnect Market Size and Forecast, By Interconnect Level
6.3.1 Metro and long-haul optical interconnect
6.3.2 Board-to-board and rack-level optical interconnect
6.3.3 Chip- and board-level optical interconnect
7 Global Optical Interconnect Market, By Fiber mode
7.1 Y-o-Y Growth Comparison, By Fiber mode
7.2 Global Optical Interconnect Market Share Analysis, By Fiber mode
7.3 Global Optical Interconnect Market Size and Forecast, By Fiber mode
7.3.1 Single Mode Fiber
7.3.2 Multi Mode Fiber
7.3.2.1 Step-index multimode fiber
7.3.2.2 Graded-index multimode fiber
8 Global Optical Interconnect Market, By Data Rate
8.1 Y-o-Y Growth Comparison, By Data Rate
8.2 Global Optical Interconnect MarketShare Analysis, By Data Rate
8.3 Global Optical Interconnect Market Size and Forecast, By Data Rate
8.3.1 Less than 10 gbps
8.3.2 10 GBPS TO 40 GBPS
8.3.3 41 GBPS TO 100 GBPS
8.3.4 MORE THAN 100 GBPS
9 Global Optical Interconnect Market, By Distance
9.1 Y-o-Y Growth Comparison, By Distance
9.2 Global Optical Interconnect MarketShare Analysis, By Distance
9.3 Global Optical Interconnect Market Size and Forecast, By Distance
9.3.1 LESS THAN 1 KM
9.3.2 1 KM TO 10 KM
9.3.3 11 KM TO 100 KM
9.3.4 MORE THAN 100 KM
10 Global Optical Interconnect Market, By Application
10.1 Y-o-Y Growth Comparison, By application
10.2 Global Optical Interconnect MarketShare Analysis, By application
10.3 Global Optical Interconnect Market Size and Forecast, By application
10.3.1 Data communication
10.3.1.1 Data Centers
10.3.1.2 High-performance computing (hpc)
10.3.2 Telecommunication
10 Global Optical Interconnect Market, By Region
10.1 Global Optical Interconnect Market Share Analysis, By Region
10.2 Global Optical Interconnect Market Size and Forecast, By Region
11 North America Global Optical Interconnect Market Analysis and Forecast (2021-2027)
11.1 Introduction
11.2 North America Global Optical Interconnect MarketShare Analysis, By Product Category
11.3 North America Global Optical Interconnect Market Size and forecast, By Interconnect Level
11.4 North America Global Optical Interconnect Market Size and forecast, By Fiber mode
11.5 North America Global Optical Interconnect Market Size and forecast, By Data Rate
11.6 North America Global Optical Interconnect Market Size and forecast, By Distance
11.7 North America Global Optical Interconnect Market Size and forecast, By Application
11.8 North America Global Optical Interconnect Market Size and Forecast, By Country
11.8.1 U.S.
11.8.2 Canada
11.8.3 Mexico
12 Europe Global Optical Interconnect Market Analysis and Forecast (2021-2027)
12.1 Introduction
12.2 Europe Global Optical Interconnect Market Share Analysis, By Product Category
12.3 Europe Global Optical Interconnect Market Size and Forecast, By Interconnect Level
12.4 Europe Global Optical Interconnect Market Size and forecast., By Fiber mode
12.5 North America Global Optical Interconnect Market Size and forecast, By Data Rate
12.6 North America Global Optical Interconnect Market Size and forecast, By Distance
12.7 North America Global Optical Interconnect Market Size and forecast, By Application
12.8 Europe Global Optical Interconnect Market Size and Forecast, By Country
12.8.1 Germany
12.8.2 France
12.8.3 UK
12.8.4 Rest of Europe
13 Asia Pacific Global Optical Interconnect Market Analysis and Forecast (2021-2027)
13.1 Introduction
13.2 Asia Pacific Global Optical Interconnect Market Share Analysis, By Product Category
13.3 Asia Pacific Global Optical Interconnect Market Size and Forecast, by Interconnect Level
13.4 Asia Pacific Global Optical Interconnect Market size and forecast, By Fiber mode
13.5 North America Global Optical Interconnect Market Size and forecast, By Data Rate
13.6 North America Global Optical Interconnect Market Size and forecast, By Distance
13.7 North America Global Optical Interconnect Market Size and forecast, By Application
13.8 Asia Pacific Global Optical Interconnect Market Size and Forecast, By Country
13.8.1 China
13.8.2 Japan
13.8.3 India
13.8.4 Rest of Asia Pacific
14 Latin America Global Optical Interconnect Market Analysis and Forecast (2021-2027)
14.1 Introduction
14.2 Latin America Global Optical Interconnect MarketShare Analysis, By Product Category
14.3 Latin America Global Optical Interconnect Market Size and Forecast, By Interconnect Level
14.4 Latin America Global Optical Interconnect Market size and forecast, By Data Rate
14.5 Latin America Global Optical Interconnect Market Size and Forecast, By Fiber mode
14.6 North America Global Optical Interconnect Market Size and forecast, By Distance
14.7 North America Global Optical Interconnect Market Size and forecast, By Application
14.8 Latin America Global Optical Interconnect Market Size and Forecast, Country
14.8.1. Brazil
14.8.2. Rest of Latin America
15 Middle East Global Optical Interconnect Market Analysis and Forecast (2021-2027)
15.1 Introduction
15.2 Middle East Global Optical Interconnect Market Share Analysis, By Product Category
15.3 Middle East Global Optical Interconnect Market Size and forecast, by Interconnect Level
15.4 Middle East Global Optical Interconnect Market Size and Forecast, by Fiber mode
15.5 Middle East Global Optical Interconnect Market Size and forecast, by Data Rate
15.6 North America Global Optical Interconnect Market Size and forecast, By Distance
15.7 North America Global Optical Interconnect Market Size and forecast, By Application
15.8 Middle East Global Optical Interconnect Market Size and Forecast, By Country
15.8.1. Saudi Arabia
15.8.2. UAE
15.8.3. Egypt
15.8.4 Kuwait
15.8.5. South Africa
16 Competitive Analysis
16.1 Competition Dashboard
16.2 Market share Analysis of Top Vendors
16.3 Key Development Strategies
17 Company Profiles
17.1 II-VI INCORPORATED
17.1.1 Overview
17.1.2 Product Categorys
17.1.3 Key Financials
17.1.4 Business Segment & Geographic Overview
17.1.5 Key Market Developments
17.1.6 Key Strategies
17.2 LUMENTUM OPERATIONS LLC
17.2.1 Overview
17.2.2 Product Categorys
17.2.3 Key Financials
17.2.4 Business Segment & Geographic Overview
17.2.5 Key Market Developments
17.2.6 Key Strategies
17.3 MOLEX, LLC
17.3.1 Overview
17.3.2 Product Categories
17.3.3 Key Financials
17.3.4 Business Segment & Geographic Overview
17.3.5 Key Market Developments
17.3.6 Key Strategies
17.4 INNOLIGHT TECHNOLOGY (SUZHOU) LTD.
17.4.1 Overview
17.4.2 Product Categorys
17.4.3 Key Financials
17.4.4 Business Segment & Geographic Overview
17.4.5 Key Market Developments
17.4.6 Key Strategies
17.5 NVIDIA CORPORATION
17.5.1 Overview
17.5.2 Product Categorys
17.5.3 Key Financials
17.5.4 Business Segment & Geographic Overview
17.5.5 Key Market Developments
17.5.6 Key Strategies