The global high-speed interconnects market is expected to reach a market value of USD 39.14 million by the end of the year 2023, growing at a CAGR of 9% over the forecast period. It is anticipated that by the end of the assessment period, a valuation of USD 93 million is expected to reach by 2033.
Due to the growing demand for higher bandwidths, bigger data centers, and better internet connections, high-speed interconnects are becoming a top priority for the market in recent years.
The market growth is supported by:
High-speed interconnects refer to technology that enables a continuous and fast transfer of data between parts of a computer system or between systems within the same computer system. Due to the increasing demand for faster and more powerful computers, these technologies have become increasingly influential in the market.
The data center network offers a significant opportunity for high-speed interconnects. Increasing data center complexity and ever-growing data volumes necessitate fast and reliable interconnections between servers, computers, and storage devices. As hardware and software advances expand, new technologies, such as Silicon Photonics, are expected to deliver higher speeds and lower latency compared to current data center interconnects, including InfiniBand, Ethernet, and Fibre Channel.
AI and machine learning (ML) are other areas where high-speed interconnects play an important role in computing. To process large datasets efficiently, these technologies depend heavily on powerful computing systems. By utilizing high-speed interconnects, the system can efficiently transfer and process data, thereby increasing the speed and accuracy of AI and machine-learning algorithms.
Data centers in North America make the region a great market for high-speed interconnects. The USA contributes the most to high-speed interconnect market growth. A substantial amount of technology is being developed and deployed in both the North American and Asian Pacific regions. Thus, in these regions, many companies and organizations are offering high-speed interconnectivity.
Growing demand for fast and reliable connections in developing regions such as China and India has grown demand for high-speed interconnects. A rise in disposable income and the growth of small and large-scale IT businesses in these regions are further contributing to the market's growth.
As a way to gain greater market share, key companies are improving secure internet connections, data transfers, and high-speed internet connections. Some of these companies include Molex Incorporated, Nexans, Leoni AG, Samtec, CBO GmbH, Cisco Systems, Inc., Huawei Technologies Co., Ltd., Intel, The Siemon Company, Broadcom, FS.COM LIMITED, and NVIDIA Corporation.
For instance, MaxLinear, Inc., a leading supplier of high-speed interconnect ICs, and ColorChip, a leading provider of optical transceivers, digital-to-analog converters, and active cables, has announced a comprehensive range of interconnection solutions for data centers using MaxLinear's 5nm Keystone family of DSPs. In addition to offering customers a full line of 400GHz, 800GHz, and 1.6GHz solutions with best-in-class power consumption, ColorChip believes it can access the high-performance, high-density, and high-density features of the Keystone 5nm IP.
| Data Points | Key Statistics |
|---|---|
| Estimated Base Year Value (2022) | USD 37 million |
| Expected Market Value (2023) | USD 39.14 million |
| Anticipated Forecast Value (2033) | USD 93 million |
| Projected Growth Rate (2023 to 2033) | 9% CAGR |
High-speed interconnects address data, high-performance computing connectivity, and storage data by combining the connector, transceiver, and cabling media as one assembly. High-speed interconnects have features such as low cost, small cable bend radius, high density, short distance, and low power consumption.
High-speed interconnects assemblies are used for direct attach point-to-point applications in the data center. For data center operators and enterprises, the demand for more secure and fast data transmission is driving the need for high-speed interconnects.
With the increasing development of cloud computing, data centers, and the rising number of mobile internet, the traffic between data centers is surging across private and public networks. Cloud-based service providers are looking for more data efficiency solutions that enable them to remain competitive by improving bandwidth, reducing operating costs, and lowering power requirements. This factor is fueling the demand for high-speed interconnects.
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Increasing Demand for High-speed Interconnect Active Optical Cable
The rising demand of connecting devices in a wide range of industry applications, is achieved by the help of high-speed interconnect technologies such as active optical cable and other optical cables. High-speed interconnect active optical cables are widely used in a high productivity computing system.
The active optical cable support many different protocols such as USB, Ethernet, and InfiniBand for data transformation. The rising demand for active optical cable due to its several advantages such as lightweight, small bend range for easy installment, and low power consumption, is increasing the demand for high-speed interconnects products.
Increasing in demand for High Bandwidth Interconnects
With the rapid evolution of high-speed interconnects technology, the size of cables becomes smaller, and the input/output data size becomes higher, comparing to the packages type of pins in the cables. The high-speed interconnects provide very high bandwidth at the level of 10Gbps.
The high-speed interconnects continue to meet rising demands for higher data bandwidth at lower power and smaller packages. The collaboration of design engineering approach and high-speed interconnects products provides network equipment makers and data centers architects with a competitive advantage in meeting growing demands for data storage and data access in a rapidly changing industry.
Some of the prominent players in High-speed Interconnects market are
Based on the region, the high-speed interconnects market has been segmented into North America, Latin America, East Asia, Europe, South Asia & Pacific, and MEA. North America holds the largest market share due to the high presence of data centers in the US demanding high-speed interconnects.
The growing adoption of new technologies and demand for higher bandwidth in the countries such as East Asia and South Asia & Pacific is expected to grow at the highest growth rate, during the forecast period.
The high-speed interconnects market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with high-speed interconnects market attractiveness as per segment. The high-speed interconnects market report also maps the qualitative impact of various market factors on high-speed interconnects market segments and geographies.
The high-speed interconnects market has been segmented on the basis of Type, Application and Region.
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High-speed Interconnects Market
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