
Europe Optical Interconnect Market Size, Share & Trends Analysis Report By Fiber Mode (Single-mode, and Multimode), By Interconnect Level, By Distance, By Application, By Data Rates, By Product Type, By Country and Growth Forecast, 2024 - 2031
Description
The Europe Optical Interconnect Market would witness market growth of 11.7% CAGR during the forecast period (2024-2031).
The Germany market dominated the Europe Optical Interconnect Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $2,001.3 million by 2031. The UK market is exhibiting a CAGR of 10.8% during (2024 - 2031). Additionally, The France market would experience a CAGR of 12.6% during (2024 - 2031).
The expansion of data centers serves as a significant catalyst for the market. With the emergence of cloud computing, peripheral computing, and artificial intelligence-driven applications, multinational corporations and hyperscale cloud providers are making substantial investments to enhance their data center infrastructure. The shift toward hyperscale and colocation data centers has necessitated the deployment of optical transceivers, fiber-optic cables, and photonic integrated circuits (PICs) to support ultra-fast, low-power connectivity solutions. The widespread deployment of 5G networks is another important factor driving the growth of the optical connection industry. As telecom operators transition to fiber-optic networks to support ultra-fast broadband, the demand for optical networking solutions continues to rise, accelerating market growth.
The escalating demand for energy-efficient solutions is propelling the widespread implementation of optical interconnects across various sectors, including data centers, telecommunications, artificial intelligence computation, and smart grid systems. Unlike traditional copper-based interconnects, which consume more power and generate excess heat, optical solutions enable low-power, high-speed data transmission with minimal signal loss. Hyperscale data centers run by Google, AWS, and Microsoft Azure leverage fiber-optic networking to reduce energy consumption while maintaining high-speed connectivity for AI workloads and cloud applications.
Italy is making significant strides in fiber-optic telecommunications, with the government prioritizing broadband expansion and 5G deployment. The Italia 1 Giga Plan, launched by the Ministry of Economic Development (MISE), allocates €3.7 billion to develop gigabit-speed fiber-optic broadband in rural and urban areas. The plan is part of Italy’s National Recovery and Resilience Plan (PNRR), which supports fiber-backed mobile networks, smart city applications, and next-generation broadband connectivity. Major telecom operators, including TIM (Telecom Italia), Fastweb, and Open Fiber, are expanding fiber-to-the-home (FTTH) and fiber-to-the-cabinet (FTTC) networks, improving both residential and enterprise telecommunications services. Italy’s 5G Action Plan, which integrates fiber-optic backhaul for mobile networks, further strengthens the country’s telecommunications landscape. Hence, with continuous advancements in fiber-optic technology, strong government funding, and strategic collaborations between telecom operators and cloud service providers, Europe is cementing its position as a leader in next-generation optical networking solutions.
Based on Fiber Mode, the market is segmented into Single-mode, and Multimode. Based on Interconnect Level, the market is segmented into Metro & Long-haul Optical Interconnect, Board-to-Board & Rack-Level Optical Interconnect, and Chip & Board-Level Optical Interconnect. Based on Distance, the market is segmented into Less than 10 Km, 11-100 Km, and More than 100 Km. Based on Application, the market is segmented into Data Communication, Telecommunications, and Military & Defense. Based on Data Rates, the market is segmented into 50-100 Gbps, 10-50 Gbps, More than 100 Gbps, and Less than 10 Gbps. Based on Product Type, the market is segmented into Optical Transceivers, Connectors, Cable Assemblies, Silicon Photonics, Optical Engines, PIC-based Interconnects, and Other Product Type. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.
List of Key Companies Profiled
By Fiber Mode
The Germany market dominated the Europe Optical Interconnect Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $2,001.3 million by 2031. The UK market is exhibiting a CAGR of 10.8% during (2024 - 2031). Additionally, The France market would experience a CAGR of 12.6% during (2024 - 2031).
The expansion of data centers serves as a significant catalyst for the market. With the emergence of cloud computing, peripheral computing, and artificial intelligence-driven applications, multinational corporations and hyperscale cloud providers are making substantial investments to enhance their data center infrastructure. The shift toward hyperscale and colocation data centers has necessitated the deployment of optical transceivers, fiber-optic cables, and photonic integrated circuits (PICs) to support ultra-fast, low-power connectivity solutions. The widespread deployment of 5G networks is another important factor driving the growth of the optical connection industry. As telecom operators transition to fiber-optic networks to support ultra-fast broadband, the demand for optical networking solutions continues to rise, accelerating market growth.
The escalating demand for energy-efficient solutions is propelling the widespread implementation of optical interconnects across various sectors, including data centers, telecommunications, artificial intelligence computation, and smart grid systems. Unlike traditional copper-based interconnects, which consume more power and generate excess heat, optical solutions enable low-power, high-speed data transmission with minimal signal loss. Hyperscale data centers run by Google, AWS, and Microsoft Azure leverage fiber-optic networking to reduce energy consumption while maintaining high-speed connectivity for AI workloads and cloud applications.
Italy is making significant strides in fiber-optic telecommunications, with the government prioritizing broadband expansion and 5G deployment. The Italia 1 Giga Plan, launched by the Ministry of Economic Development (MISE), allocates €3.7 billion to develop gigabit-speed fiber-optic broadband in rural and urban areas. The plan is part of Italy’s National Recovery and Resilience Plan (PNRR), which supports fiber-backed mobile networks, smart city applications, and next-generation broadband connectivity. Major telecom operators, including TIM (Telecom Italia), Fastweb, and Open Fiber, are expanding fiber-to-the-home (FTTH) and fiber-to-the-cabinet (FTTC) networks, improving both residential and enterprise telecommunications services. Italy’s 5G Action Plan, which integrates fiber-optic backhaul for mobile networks, further strengthens the country’s telecommunications landscape. Hence, with continuous advancements in fiber-optic technology, strong government funding, and strategic collaborations between telecom operators and cloud service providers, Europe is cementing its position as a leader in next-generation optical networking solutions.
Based on Fiber Mode, the market is segmented into Single-mode, and Multimode. Based on Interconnect Level, the market is segmented into Metro & Long-haul Optical Interconnect, Board-to-Board & Rack-Level Optical Interconnect, and Chip & Board-Level Optical Interconnect. Based on Distance, the market is segmented into Less than 10 Km, 11-100 Km, and More than 100 Km. Based on Application, the market is segmented into Data Communication, Telecommunications, and Military & Defense. Based on Data Rates, the market is segmented into 50-100 Gbps, 10-50 Gbps, More than 100 Gbps, and Less than 10 Gbps. Based on Product Type, the market is segmented into Optical Transceivers, Connectors, Cable Assemblies, Silicon Photonics, Optical Engines, PIC-based Interconnects, and Other Product Type. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.
List of Key Companies Profiled
- Broadcom, Inc.
- Coherent Corp.
- Fujitsu Limited
- Corning Incorporated
- Molex, LLC (Koch Industries, Inc.)
- NVIDIA Corporation
- Sumitomo Electric Industries, Ltd.
- Infinera Corporation
- Juniper Networks, Inc.
- TE Connectivity Ltd.
By Fiber Mode
- Single-mode
- Multimode
- Metro & Long-haul Optical Interconnect
- Board-to-Board & Rack-Level Optical Interconnect
- Chip & Board-Level Optical Interconnect
- Less than 10 Km
- 11-100 Km
- More than 100 Km
- Data Communication
- Telecommunications
- Military & Defense
- 50-100 Gbps
- 10-50 Gbps
- More than 100 Gbps
- Less than 10 Gbps
- Optical Transceivers
- Connectors
- Cable Assemblies
- Silicon Photonics
- Optical Engines
- PIC-based Interconnects
- Other Product Type
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
Table of Contents
185 Pages
- Chapter 1. Market Scope & Methodology
- 1.1 Market Definition
- 1.2 Objectives
- 1.3 Market Scope
- 1.4 Segmentation
- 1.4.1 Europe Optical Interconnect Market, by Fiber Mode
- 1.4.2 Europe Optical Interconnect Market, by Interconnect Level
- 1.4.3 Europe Optical Interconnect Market, by Distance
- 1.4.4 Europe Optical Interconnect Market, by Application
- 1.4.5 Europe Optical Interconnect Market, by Data Rates
- 1.4.6 Europe Optical Interconnect Market, by Product Type
- 1.4.7 Europe Optical Interconnect Market, by Country
- 1.5 Methodology for the research
- Chapter 2. Market at a Glance
- 2.1 Key Highlights
- Chapter 3. Market Overview
- 3.1 Introduction
- 3.1.1 Overview
- 3.1.1.1 Market Composition and Scenario
- 3.2 Key Factors Impacting the Market
- 3.2.1 Market Drivers
- 3.2.2 Market Restraints
- 3.2.3 Market Opportunities
- 3.2.4 Market Challenges
- Chapter 4. Competition Analysis – Global
- 4.1 Market Share Analysis, 2023
- 4.2 Strategies Deployed in Optical Interconnect Market
- 4.3 Porter Five Forces Analysis
- Chapter 5. Europe Optical Interconnect Market by Fiber Mode
- 5.1 Europe Single-mode Market by Country
- 5.2 Europe Multimode Market by Country
- Chapter 6. Europe Optical Interconnect Market by Interconnect Level
- 6.1 Europe Metro & Long-haul Optical Interconnect Market by Country
- 6.2 Europe Board-to-Board & Rack-Level Optical Interconnect Market by Country
- 6.3 Europe Chip & Board-Level Optical Interconnect Market by Country
- Chapter 7. Europe Optical Interconnect Market by Distance
- 7.1 Europe Less than 10 Km Market by Country
- 7.2 Europe 11-100 Km Market by Country
- 7.3 Europe More than 100 Km Market by Country
- Chapter 8. Europe Optical Interconnect Market by Application
- 8.1 Europe Data Communication Market by Country
- 8.2 Europe Telecommunications Market by Country
- 8.3 Europe Military & Defense Market by Country
- Chapter 9. Europe Optical Interconnect Market by Data Rates
- 9.1 Europe 50-100 Gbps Market by Country
- 9.2 Europe 10-50 Gbps Market by Country
- 9.3 Europe More than 100 Gbps Market by Country
- 9.4 Europe Less than 10 Gbps Market by Country
- Chapter 10. Europe Optical Interconnect Market by Product Type
- 10.1 Europe Optical Transceivers Market by Country
- 10.2 Europe Connectors Market by Country
- 10.3 Europe Cable Assemblies Market by Country
- 10.4 Europe Silicon Photonics Market by Country
- 10.5 Europe Optical Engines Market by Country
- 10.6 Europe PIC-based Interconnects Market by Country
- 10.7 Europe Other Product Type Market by Country
- Chapter 11. Europe Optical Interconnect Market by Country
- 11.1 Germany Optical Interconnect Market
- 11.1.1 Germany Optical Interconnect Market by Fiber Mode
- 11.1.2 Germany Optical Interconnect Market by Interconnect Level
- 11.1.3 Germany Optical Interconnect Market by Distance
- 11.1.4 Germany Optical Interconnect Market by Application
- 11.1.5 Germany Optical Interconnect Market by Data Rates
- 11.1.6 Germany Optical Interconnect Market by Product Type
- 11.2 UK Optical Interconnect Market
- 11.2.1 UK Optical Interconnect Market by Fiber Mode
- 11.2.2 UK Optical Interconnect Market by Interconnect Level
- 11.2.3 UK Optical Interconnect Market by Distance
- 11.2.4 UK Optical Interconnect Market by Application
- 11.2.5 UK Optical Interconnect Market by Data Rates
- 11.2.6 UK Optical Interconnect Market by Product Type
- 11.3 France Optical Interconnect Market
- 11.3.1 France Optical Interconnect Market by Fiber Mode
- 11.3.2 France Optical Interconnect Market by Interconnect Level
- 11.3.3 France Optical Interconnect Market by Distance
- 11.3.4 France Optical Interconnect Market by Application
- 11.3.5 France Optical Interconnect Market by Data Rates
- 11.3.6 France Optical Interconnect Market by Product Type
- 11.4 Russia Optical Interconnect Market
- 11.4.1 Russia Optical Interconnect Market by Fiber Mode
- 11.4.2 Russia Optical Interconnect Market by Interconnect Level
- 11.4.3 Russia Optical Interconnect Market by Distance
- 11.4.4 Russia Optical Interconnect Market by Application
- 11.4.5 Russia Optical Interconnect Market by Data Rates
- 11.4.6 Russia Optical Interconnect Market by Product Type
- 11.5 Spain Optical Interconnect Market
- 11.5.1 Spain Optical Interconnect Market by Fiber Mode
- 11.5.2 Spain Optical Interconnect Market by Interconnect Level
- 11.5.3 Spain Optical Interconnect Market by Distance
- 11.5.4 Spain Optical Interconnect Market by Application
- 11.5.5 Spain Optical Interconnect Market by Data Rates
- 11.5.6 Spain Optical Interconnect Market by Product Type
- 11.6 Italy Optical Interconnect Market
- 11.6.1 Italy Optical Interconnect Market by Fiber Mode
- 11.6.2 Italy Optical Interconnect Market by Interconnect Level
- 11.6.3 Italy Optical Interconnect Market by Distance
- 11.6.4 Italy Optical Interconnect Market by Application
- 11.6.5 Italy Optical Interconnect Market by Data Rates
- 11.6.6 Italy Optical Interconnect Market by Product Type
- 11.7 Rest of Europe Optical Interconnect Market
- 11.7.1 Rest of Europe Optical Interconnect Market by Fiber Mode
- 11.7.2 Rest of Europe Optical Interconnect Market by Interconnect Level
- 11.7.3 Rest of Europe Optical Interconnect Market by Distance
- 11.7.4 Rest of Europe Optical Interconnect Market by Application
- 11.7.5 Rest of Europe Optical Interconnect Market by Data Rates
- 11.7.6 Rest of Europe Optical Interconnect Market by Product Type
- Chapter 12. Company Profiles
- 12.1 Broadcom, Inc.
- 12.1.1 Company Overview
- 12.1.2 Financial Analysis
- 12.1.3 Segmental and Regional Analysis
- 12.1.4 Research & Development Expense
- 12.1.5 Recent strategies and developments:
- 12.1.5.1 Product Launches and Product Expansions:
- 12.1.6 SWOT Analysis
- 12.2 Coherent Corp.
- 12.2.1 Company Overview
- 12.2.2 Financial Analysis
- 12.2.3 Segmental and Regional Analysis
- 12.2.4 Research & Development Expenses
- 12.2.5 Recent strategies and developments:
- 12.2.5.1 Product Launches and Product Expansions:
- 12.2.6 SWOT Analysis
- 12.3 Fujitsu Limited
- 12.3.1 Company Overview
- 12.3.2 Financial Analysis
- 12.3.3 Segmental and Regional Analysis
- 12.3.4 Research & Development Expenses
- 12.3.5 Recent strategies and developments:
- 12.3.5.1 Partnerships, Collaborations, and Agreements:
- 12.3.6 SWOT Analysis
- 12.4 Corning Incorporated
- 12.4.1 Company Overview
- 12.4.2 Financial Analysis
- 12.4.3 Segmental and Regional Analysis
- 12.4.4 Research & Development Expenses
- 12.4.5 Recent strategies and developments:
- 12.4.5.1 Partnerships, Collaborations, and Agreements:
- 12.4.6 SWOT Analysis
- 12.5 Molex, LLC (Koch Industries, Inc.)
- 12.5.1 Company Overview
- 12.5.2 Recent strategies and developments:
- 12.5.2.1 Product Launches and Product Expansions:
- 12.5.3 SWOT Analysis
- 12.6 NVIDIA Corporation
- 12.6.1 Company Overview
- 12.6.2 Financial Analysis
- 12.6.3 Segmental and Regional Analysis
- 12.6.4 Research & Development Expenses
- 12.6.5 Recent strategies and developments:
- 12.6.5.1 Partnerships, Collaborations, and Agreements:
- 12.6.6 SWOT Analysis
- 12.7 Sumitomo Electric Industries, Ltd.
- 12.7.1 Company Overview
- 12.7.2 Financial Analysis
- 12.7.3 Segmental and Regional Analysis
- 12.7.4 Research & Development Expenses
- 12.7.5 SWOT Analysis
- 12.8 Infinera Corporation
- 12.8.1 Company Overview
- 12.8.2 Financial Analysis
- 12.8.3 Regional Analysis
- 12.8.4 Research & Development Expenses
- 12.8.5 SWOT Analysis
- 12.9 Juniper Networks, Inc.
- 12.9.1 Company Overview
- 12.9.2 Financial Analysis
- 12.9.3 Regional Analysis
- 12.9.4 Research & Development Expenses
- 12.9.5 SWOT Analysis
- 12.10. TE Connectivity Ltd.
- 12.10.1 Company Overview
- 12.10.2 Financial Analysis
- 12.10.3 Segmental and Regional Analysis
- 12.10.4 Research & Development Expense
- 12.10.5 SWOT Analysis
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