The optical interconnect market is anticipated to register a CAGR of about 15% during the forecast period. Optical interconnect will play an increasing role in the future of intelligent networks. The transport of information over distances as small as centimeters benefits from the multi-terabit capacity of optical fibers when data rates exceed 10 Gb s−1. Presently, directly modulated VCSEL arrays, parallel fiber ribbons, along with detector arrays, are highly being applied to optical backplane capacity issues. In the future, additional higher functionality is highly expected as an emerging trend for optical interconnects, which includes features such as cross-connect switches and data packet routing in the optical domain.

– The increasing demand for communication bandwidth is expected to drive the market. Due to the emergence of a large number of new services in different types of communications and their value-added entities, the demand for bandwidth has gone up more than ever before. Optical interconnect drive it possible in providing more bandwidth and bring great advantage to computing performance, compared to electrical interconnects.
– With optics, over the next decade, it is believed that the energy-requiring for cross-chip communication would approach less than 0.5 pJ b−1 and to 0.1 pJ b−1 for communication, such as off-chip communication technology. By utilizing the ability to move data affordably, both the power consumption and the total cost for such future multicore processor systems are expected to be reduced with improving bandwidth.

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Key Market Trends

Data Center to Account for High Market Share

– Current data center networks, which are based on electronic packet switches, experiences an exponential increase in network traffic due to cloud computing development. Optical interconnects emerged as a promising alternative that offers high throughput, low latency, and reduced power consumption.
– According to the IEEE Communications, all-optical networks could provide up to 75% energy savings in the data centers. Especially in large data centers used in enterprises, the use of power efficient, high bandwidth, and low latency interconnects is of paramount importance, and there is significant interest in the deployment of optical interconnects in these data centers.
– Currently, optical technology is utilized in data centers is only for point-to-point links, which is in the same way as point-to-point optical links that were used in older telecommunication networks (opaque networks). However, optically switched interconnects are still in the research phase.
– Further, the bandwidth capacity needs to increase 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 need for an optical interconnect market.

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