PUBLISHER: Grand View Research | PRODUCT CODE: 1772510
PUBLISHER: Grand View Research | PRODUCT CODE: 1772510
Optical Interconnect Market Summary
The global optical interconnect market size was estimated at USD 16.06 billion in 2024 and is projected to reach USD 34.54 billion by 2030, growing at a CAGR of 14.1% from 2025 to 2030. The surge in data traffic drives this growth due to increased internet usage, cloud computing, and data centers, necessitating high-speed data transfer capabilities.
Advancements in optical technology, such as silicon photonics and advanced fiber optics, are enhancing performance and efficiency, attracting various industries. The rollout of 5G networks also demands advanced optical interconnect solutions for higher bandwidth and lower latency. Additionally, data centers are increasingly adopting optical interconnects to support edge computing and faster data processing. These innovations are driving the development of next-generation communication infrastructure, enabling seamless integration with AI, IoT, and cloud technologies. Moreover, the growing need for energy-efficient and scalable connectivity solutions is pushing investments in high-speed optical components and photonic integration across diverse sectors.
Optical interconnects are more energy-efficient than traditional electrical interconnects, making them useful for data centers and high-performance computing environments focused on reducing energy consumption. The trend towards smaller electronic devices demands advanced interconnect solutions capable of supporting higher data transfer rates in limited spaces, with optical interconnects providing a viable solution. Additionally, the increasing demand for High-Performance Computing (HPC) systems in applications such as scientific research and financial modeling necessitates extremely high data transfer rates, driving market growth. Advancements in manufacturing techniques have also reduced costs and increased the reliability of optical interconnects, making them accessible to a broader range of applications.
Government and institutional investments in advanced communication infrastructure, including fiber optic networks, further boost the demand for optical interconnect solutions. The adoption of artificial intelligence and machine learning technologies, which require rapid data transfer, supports the growth of the optical interconnect market. The growing media and entertainment industry, driven by high-definition video streaming and Virtual Reality (VR) and Augmented Reality (AR) applications, increases the need for high-speed data transfer. Additionally, the continuous expansion and upgrading of telecommunication infrastructure, especially in developing regions, creates a significant demand for optical interconnect solutions to support higher bandwidth requirements.
Global Optical Interconnect Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global optical interconnect market report based on product, interconnect level, fiber mode, data rate, application, distance, and region: