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 Comm
Description
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.
Global 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.
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
o Indoor Cable Assemblies
o Outdoor Cable Assemblies
o Active Optical Cables
o Multi-source Agreements
Connectors
o LC Connectors
o SC Connectors
o ST Connectors
o 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
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.
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
o Indoor Cable Assemblies
o Outdoor Cable Assemblies
o Active Optical Cables
o Multi-source Agreements
Connectors
o LC Connectors
o SC Connectors
o ST Connectors
o 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
Table of Contents
- 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
Pricing
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