According to a new report, published by KBV research, The Global Optical Interconnect Market size is expected to reach $28.24 billion by 2031, rising at a market growth of 12.0% CAGR during the forecast period.
The Single-mode segment is dominating the Global Optical Interconnect Market by Fiber Mode in 2023; thereby, achieving a market value of $18.73 Billion by 2031. The increasing demand for long-distance, high-speed data transmission is the primary driver for the single-mode fiber segment. Its ability to support low-latency, high-bandwidth communication with minimal signal loss makes it essential for metro and long-haul optical networks, 5G infrastructure, and submarine cable systems. The rapid expansion of fiber-to-the-home (FTTH) projects, hyperscale data centers, and government-led broadband initiatives further fuel its adoption.
The Board-to-Board & Rack-Level Optical Interconnect segment captured a CAGR of 12.4% during (2024 - 2031). The key factor driving this segment is the increasing adoption of hyperscale data centers, high-performance computing (HPC), and AI-driven workloads. As server architectures advance to accommodate machine learning, big data analytics, and cloud computing, there is an increasing demand for high-speed, low-power optical interconnects at both the rack and board levels. Optical interconnects at this level provide superior bandwidth density, energy efficiency, and scalability compared to copper-based interconnects, making them essential for next-generation data center infrastructure and AI accelerators.
The Less than 10 Km segment is generating the highest revenue in the Global Optical Interconnect Market by Distance in 2023; thereby, achieving a market value of $10,136.2 million by 2031, growing at a CAGR of 11.3 % during the forecast period. The increasing demand for high-speed, low-latency connectivity within data centers, enterprise networks, and AI-driven computing infrastructures is the primary driver for this segment. Hyperscale data centers require efficient optical interconnect solutions to manage massive data transfers between servers, storage, and processing units.
The Telecommunications segment is exhibiting a CAGR of 12.3% during (2024 - 2031). The global rollout of 5G networks, fiber-optic broadband expansion, and metro optical transport deployments drive the telecom sector's demand for optical interconnect solutions. The need for high-bandwidth, low-latency connectivity to support mobile networks, fiber-to-the-home (FTTH), and wavelength-division multiplexing (WDM) infrastructure is fueling market growth. Additionally, increasing investments in optical transport networks (OTNs), submarine fiber-optic cables, and long-haul communication networks further boost the adoption of optical interconnect solutions in telecommunications.
The 50-100 Gbps segment is leading the Global Optical Interconnect Market by Data Rates in 2023; thereby, achieving a market value of $7.98 billion by 2031. The growing need for high-speed, low-latency data transmission in hyperscale data centers, AI-driven computing, and cloud infrastructure is the primary driver for this segment. As data-intensive applications like machine learning, big data analytics, and real-time processing expand, the demand for 50-100 Gbps optical interconnect solutions has surged. Additionally, the rise of 5G backhaul, high-speed metro networks, and fiber-optic broadband expansion is fueling the adoption of this data rate range.
The Cable Assemblies segment is experiencing a CAGR of 12.4% during (2024 - 2031). The expansion of fiber-optic networks and high-speed communication infrastructure drives the demand for optical cable assemblies. The shift toward fiber-to-the-home (FTTH), 5G backhaul, and metro fiber networks has significantly increased the use of pre-terminated fiber cables for seamless and low-latency connectivity. Additionally, the increasing data center investments and the need for reliable high-bandwidth interconnects further contribute to the segment’s growth.
Full Report: https://www.kbvresearch.com/optical-interconnect-market/
The North America region dominated the Global Optical Interconnect Market by Region in 2023; thereby, achieving a market value of $10.01 billion by 2031. The Europe region is expected to witness a CAGR of 11.7% during (2024 - 2031). Additionally, The Asia Pacific region would register a CAGR of 12.6% during (2024 - 2031).
By Fiber Mode
By Interconnect Level
By Distance
By Application
By Data Rates
By Product Type
Unique Offerings 
