Press Release

Optical Interconnects Market Revenues to Top $3.5 Billion by 2015

May 14th, 2010

Global Information, Inc. would like to present a new market research report, "Revenue Opportunities for Optical Interconnects: Market and Technology Forecast - 2013-2020. Vol. I Board-to-Board and Rack-Rack" by Communications Industry Researchers (CIR).

CIR, an industry analyst firm based in Virginia, predicts that "revenues optical interconnect products will exceed $3.5 billion ($US) revenues by the year 2015." Optical interconnection has not been considered a practical business venture up until very recently. In the past, optical interconnection projects sought after initial revenues from the limited opportunities in high-end telecom equipment or in supercomputers. As Moores Law continued to drive VLSI (very-large-scale integration) forward, the addressable market for optical interconnects evolved from a handful of niches to the "giant market" embodied by large routers and corporate servers. According to this report, "many believe that within a few years processor speeds will reach a point where optical interconnects will be required in most standard business computers." Recent developments by Intel called LightPeak technology have brought optical interconnection into the spotlight.

Optical interconnection faces daunting challenges

Optical interconnection is on its way to becoming a potential, near-term revenue generator. However, the industry does face several challenges, which primarily involves providing cost-effective optical technology in markets that are used to paying only minimal amounts for metal connectivity. Another issue is matching optical interconnect technologies to the various needs of the chip-to-chip, board-to-board and on-rack interconnection. "CIR expects proprietary solutions to these problems to create sustainable market advantages for firms in the emerging optical interconnection space."

Optical interconnection expected to be a key enabling technology for computer and telecom/datacom equipment firms.

Computer and telecom/datacom equipment firms will increasingly realize that the speed of internal interconnection is limiting their success in deploying the latest processors, which will be a driver for optical interconnection as a key enabling technology. There are also several new business opportunities emerging for suppliers of optical interconnect technology, including firms with roots in the diode laser, active optical cabling, transceiver, and semiconductor industry.

Global Information Inc.(GII) - specializing in market research provision for the vertical industries, GII offers expert independent recommendations of publications from hundreds of the globe's leading market research firms.

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