The market for optical interconnect is projected to growth with the growing deployment of data centers across the globe. Data cente7rs play an imperative role, as most companies and governments rely on them to deliver business value much greater than their costs. Increasing investments in data center IT infrastructure, including spending on storage, virtualization, servers, networking, and security have assisted in the rise of out-sourcing data centers across the globe. The investments are mainly driven by sturdy growth in server markets in Western European countries and China. Cloud computing and data analytics are expected to drive further investments on large data centers which would possibly contribute to the adoption of the optical interconnection.

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According to a survey held by AFCOM (Association for Computer Operations Management), companies are prone to invest more in data centers in the next few years. The average number of data centers will increase substantially in the coming years, with many companies renovating their data centers. In addition, the space dedicated to the data centers will increase significantly, which is averaged to be 5,000 to 50,000 square feet as of now. These expansions in data centers will make co-location data centers more attractive in the coming years. Therefore, the expansion of datacenters further require the datacenter interconnect solution for large enterprise thus creates significant demand of optical interconnects products in large enterprise.

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Further, the proliferation of IoT and increasing bandwidth-requirement, high-quality content, has led the service providers increasingly to have a data center of their own. The explosion of data through smartphone, social networking sites, e-commerce companies, and government-initiated projects, have also played an imperative role in the increasing demand for data centers, which offers a huge prospect to the optical encryption providers. Data centers serve a wide range of sectors and industries from the internet, including manufacturing, government, education, traditional media, commerce, energy, transportation and logistics, finance, medical and health services, and others, which is another factor contributing to the increasing demand of optical encryption in data centers for data security.

Moreover, IoT and connected systems further projected to fuel the demand for optical interconnect for intelligent automation which is required to provide security. The data gathered from IoT devices is enormous and it is difficult for an individual or a team to uncover all insight from those data. This results in the demand for optical interconnect technologies as it can scale and facilitate IoT data analysis. Therefore, IoT and machine learning complement each other. The IoT and connected systems are fueling the demand for optical encryption technology which is required to make the secure transfer of the big data produced from the sensors. Therefore growing demand of IoT and connected devices further propels the demand of data interconnect that contributes in the market growth.

Global Optical Interconnect Market Segmentation

By Product Type

• Connectors
• Cable Assemblies
• Optical Transceivers
• Silicon Photonics
• Other (Optical Engines)

By Application

• Data Communication
• Telecommunication

Global Optical Interconnect Market – Segment by Region

North America

• United States
• Canada

Europe

• Germany
• United Kingdom
• France
• Spain
• Italy
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Rest of Asia-Pacific

Rest of the World

Company Profiles

• II-VI Inc.
• Acacia Communications, Inc.
• Accelink Technology Co. Ltd.
• Amphenol Corp
• Broadcom Inc.
• Corning Inc.
• Fujitsu Ltd.
• Furukawa Electric Co., Ltd.
• Huawei Technologies Co., Ltd.
• InnoLight Technology (Suzhou) Ltd.
• Infinera Corp.
• Intel Corp.
• Juniper Networks, Inc.
• Lumentum Operations LLC
• Molex, LLC
• NVIDIA Corp.
• NeoPhotonics Corp.
• Optoscribe Ltd.
• Sumitomo Electric Industries, Ltd.
• TE Connectivity Corp.

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