Global Optical Interconnect Market Size to worth USD 40.11 Billion by 2033: Forecast Analysis Report

Global Optical Interconnect Market Size to worth USD 40.11 Billion by 2033

According to a research report published by Spherical Insights & Consulting, the Global Optical Interconnect Market Size is Expected to Grow from USD 14.25 Billion in 2023 to USD 40.11 Billion by 2033, at a CAGR of 10.9% during the forecast period 2023-2033.  

Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Optical Interconnect Market Size, Share, and COVID-19 Impact Analysis, By Product (Cable Assemblies, Connectors, Optical Transceivers, Free Space Optics, Fiber, & Waveguides, Silicon Photonics, PIC-Based Interconnects, and Optical Engines), By Interconnect Level (Metro & Long-Haul Optical Interconnect, Board-To-Board & Rack-Level Optical Interconnect, and Chip & Board-Level Optical Interconnect), By Fiber Mode (Single Fiber Mode and Multifiber Mode), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.           

Optical interconnect refers to the system that transmits signals from one part of an integrated circuit to another using light. They are an essential part of compute infrastructure, both within and between data centers as well as enabling connectivity over transcontinental distances and to users. The increasing focus on technological innovations for providing the most accurate and precise system arrangements to their customers by prominent manufacturers is providing market growth opportunities for optical interconnect. The growing demand for increased bandwidth requirements with the reduced power consumption within data center networks is driving the market for optical interconnect. Further, the development of hyper-scale datacenters and execution of high-rate optical interconnects by cloud service providers such as Amazon Web Services, Microsoft, and Google Inc., are responsible for driving the market demand. On the contrary, the slow commercialization and striking balance between performance, cost, and efficiency are challenging the optical interconnect market. 

The optical transceivers segment dominated the market with the largest revenue share in 2023.

Based on the product, the global optical interconnect market is divided into cable assemblies, connectors, optical transceivers, free space optics, fiber, & waveguides, silicon photonics, PIC-based interconnects, and optical engines. Among these, the optical transceivers segment dominated the market with the largest revenue share in 2023. Optical transceivers transmit as well as receive data. The growing data traffic from cloud computing, big data, and IoT that drives the demand for high-speed data transmission solutions is driving the market.

The metro & long-haul optical interconnect segment is expected to dominate the market with the largest share during the forecast period.

Based on the interconnect level, the global optical interconnect market is divided into metro & long-haul optical interconnect, board-to-board & rack-level optical interconnect, and chip & board-level optical interconnect. Among these, the metro & long-haul optical interconnect segment is expected to dominate the market with the largest share during the forecast period. The realization of the Internet of Everything concept is largely dependent on long-haul and metro optical transport networks, which provide reliable, fast data transfer that is necessary for both individuals and enterprises. The rise in data traffic from internet usage, video streaming, cloud services, and IoT is responsible for propelling the market in the metro & long-haul segment.

The single fiber mode segment dominated the market with the largest market share in 2023.

Based on the fiber mode, the global optical interconnect market is divided into single fiber mode and multifiber mode. Among these, the single fiber mode segment dominated the market with the largest market share in 2023. Single fiber mode are designed to carry a single mode of light. The ability of single fiber mode optical interconnect to support extremely high bandwidth and data rates over long distances for data centers, telecommunications, and high-performance computing is responsible for driving the market in the single fiber mode segment.

North America is projected to hold the largest share of the global optical interconnect market over the forecast period.

North America is projected to hold the largest share of the global optical interconnect market over the forecast period. The growing shift towards cloud computing or cloud-based environments is responsible for driving the regional market. The well-developed telecommunications infrastructure and 5G network deployment in the North America region are also responsible for driving the market demand.

Asia Pacific is predicted to grow at the fastest CAGR in the optical interconnect market over the forecast period. The rapid urbanization and population expansion, notably in countries such as China, India, and other Southeast Asian nations are majorly contributing to drive the market in the region. Government programs that encourage digital transformation and increase investment in 5G, data centers, and artificial intelligence include China's "New Infrastructure" policy and India's "Digital India" program is escalating the market growth.

Competitive Analysis

Major key players in the optical interconnect market include Amphenol Communications Solutions, Broadcom, Coherent Corp., Fujitsu Limited, InnoLight, Lumentum Operations LLC, Molex LLC, NVIDIA Corporation, Sumitomo Electric Industries, Ltd., TE Connectivity, 3M Company, Huawei Technologies Co. Ltd., and Others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In June 2024, Intel Corporation achieved a new milestone in integrated photonics technology for high-speed data transmission. At the Optical Fiber Communication Conference (OFC) 2024, Intel’s Integrated Photonics Solutions (IPS) Group demonstrated the industry’s most advanced and first-ever fully integrated optical compute interconnect (OCI) chiplet co-packaged with an Intel CPU and running live data.

• In March 2024, Marvell Technology, Inc., a company that designs and makes semiconductors that power the movement, storage, processing, and security of the world’s data, announced Spica Gen2-T, the 5nm 800 Gbps transmit-only PAM4 optical DSP. Designed for transmit retimed optical modules (TRO modules), Spica Gen2-T can reduce the power consumption of 800 Gbps optical modules by more than 40% while maintaining interoperability with conventional optical modules and IEEE 802.3 compliant host devices.

• In March 2024, StarIC announced a strategic collaboration with GlobalFoundries (GF) aimed at advancing silicon photonics innovation. This partnership brings forth a breakthrough library of high-speed silicon photonics foundational blocks, specifically tailored for the GF Fotonix 45SPCLO process.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the global optical interconnect market based on the below-mentioned segments:

Global Optical Interconnect Market, By Product

• Cable Assemblies
• Connectors
• Optical Transceivers
• Free Space Optics
• Fiber, & Waveguides
• Silicon Photonics
• PIC-Based Interconnects
• Optical Engines

Global Optical Interconnect Market, By Interconnect Level

• Metro & Long-Haul Optical Interconnect
• Board-To-Board & Rack-Level Optical Interconnect
• Chip & Board-Level Optical Interconnect

Global Optical Interconnect Market, By Fiber Mode

• Single Fiber Mode
• Multifiber Mode

Global Optical Interconnect Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa