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Optical Interconnect Market Trends

Report ID: GMI9055
Published Date: Apr 2024
Report Format: PDF

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Optical Interconnect Market Trends

The growth of Artificial Intelligence (AI) and Machine Learning (ML) is significantly influencing the optical interconnect industry. AI & ML applications require vast amounts of data to be processed and analyzed in real-time, driving the demand for high-speed, low-latency connectivity solutions within data centers and across networks. Optical interconnect technologies offer the bandwidth, speed, and reliability required to meet the demanding communication needs of AI & ML systems. For instance, in February 2023, Nubis Communications, Inc. launched the first optical engine optimized from the ground up for ML/AI networks. The platform’s combination of record-breaking density and ultra-low power enables customers to build the networks needed to harness the full processing power of their ML/AI clusters.

As organizations embrace cloud computing, edge computing, and other data-intensive technologies, the demand for high-bandwidth and dynamic network interconnection solutions is on the rise. This is driven by the need for fast, reliable, and flexible network connectivity to efficiently route traffic between various networks and data centers. For instance, in June 2023, Lumen Technologies announced a new network interconnection ecosystem called ExaSwitch, created in collaboration with Google & Microsoft. This platform empowers organizations with high bandwidth needs to route their traffic dynamically and quickly between networks without third-party intervention.

Authors: Suraj Gujar , Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

Market size for optical interconnect crossed USD 15.5 billion in 2023 and is expected to register over 13.5% CAGR from 2024-2032 owing to the proliferation of data-intensive applications, such as cloud computing, big data analytics, artificial intelligence, and high-performance computing worldwide.

Optical interconnect industry from the single mode fiber segment recorded over 62% share in 2023 due to enabling seamless upgrades to optical infrastructures, facilitating efficient deployment of 5G networks and enhancing network resilience.

Asia Pacific industry is expected to register over 15.5% CAGR from 2024-2032 due to rapid urbanization and population expansion, notably in countries such as China, India, and other Southeast Asian nations in the region.

Coherent Corp., Broadcom Inc., Lumentum Holdings Inc, Sumitomo Electric Industries, Ltd., Synopsys, Inc, NVIDIA Corporation, and Molex Incorporated, are some of the major optical interconnect companies worldwide.