Optical interconnect technology acts as an interface between fibre and optical equipment. This technology helps in taking signals from perform signal processing and network equipment for conversion of digital signals to optical signals for transmission in the fibre network. Advanced signal processing is incorporated by optical interconnect technologies for monitoring and managing errors for reduction of distortion in fibre optic cables. Advanced optical interconnect technologies helps in enhancing capacity of optical equipment further reducing the operation costs. Global optical interconnect market can be segmented on the basis of product type, mode, interconnect level and applications. 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. Single and multi-mode fiber forms the different modes based on which global interconnect market is divided. Other than these segmentations, global optical interconnect market can be further segmented on the basis of interconnect level into chip & board level, board-to-board level, metro and long haul optical interconnect and rack level optical interconnect. Military and aerospace, consumer electronics, automotive, telecommunication and chemicals among others.
On the basis of geography, optical interconnect market globally can be segmented into North America, Asia Pacific, Europe, Latin America, Middle East and Africa.
Rising demand for advanced bandwidth requirements has contributed in being a major driver for the growth of global optical interconnect market. Bandwidth capacity needs to be increased along with reduced power consumption within data center networks which has increased the demand for efficient interconnects. These functions are not available with traditional interconnects which are copper based thus further enhancing the utility and in turn the demand for optical interconnect market globally. Other than this, there has been a rise in network traffic which has resulted in higher demand for optical interconnect devices for sustaining in future along with other web applications in cloud computing pushing the growth of global optical interconnect market. In addition to this, currently it is seen that data center networks require high power for managing its services which is where fibre optics are used thereby increasing the application of optical interconnect technologies as well as positively driving the demand for optical interconnect market. Network connections in long distance traffic has been a major restraint for the global optical interconnect market. Loss at high frequencies in electrical lines and fibre optic cables is quite high which has to some extent reduced the growth of optical interconnect devices and technology. Cost is another important determinant having a major effect in the global optical interconnect market. High costs are generally associated with application of optical interconnect technologies which has negatively affected commercialization of this technology and all these factors have acted as major restraints for this market. Optical interconnect technologies has growing applications in automation sector for handling network tasks previously done manually which has huge growth opportunities in future helping the global optical interconnect market to grow.
Geographically, it is North America which holds the major market share in the global optical interconnect market. Huge internet penetration resulting in higher usage of data center networks has formed a major reason for the growth of optical interconnect market which are extensively used for managing networks. In addition to this, presence of huge internet based business like Facebook and Google among others have been a major growth driver for optical internet market in North America. Asia Pacific has been the fastest growing market for the optical interconnect market. Growing internet penetration along with rising technological advancement has been the major factors driving the growth of optical interconnect market in Asia Pacific with China, Japan, South Korea and India being the major growing countries.
Some of the major players operating in the Optical Interconnect market include Furukawa OFS (Japan), 3M Company (U.S.), Acacia Communication (U.S.), Finisar (U.S.), Oclaro Inc. (U.S.), Dow Corning (U.S.), Huawei (China), Intel (US), Infineon Technologies (US) and Mellanox (U.S.) among others which are present in the market globally.