New York, Sept. 06, 2023 (GLOBE NEWSWIRE) -- The global high-speed interconnects market size is slated to expand at ~ 10 % CAGR between 2023 and 2035. The market is poised to garner a revenue of USD 11 billion by the end of 2035, up from a revenue of ~USD 4 billion in the year 2022. The growth in the market is propelled by the surge in the number of data centers. Currently, there are about 7999 data centers globally. Moreover, there has been a surge in the construction of large-scale and mega-data centers which is also estimated to boost the market demand. These data centers require more sophisticated data management tools as well as the architecture, complexity, and configuration of these massive buildings.
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Furthermore, high-speed connector and cable assembly vendors are constantly creating new technologies to meet the demands of modern data centers. Thus, increasing the demand for greater signal speeds, higher bandwidth, and higher-density interconnections. High-speed interconnects play a vital role in facilitating the rapid exchange of data and signals between components, such as microprocessors, memory modules, storage devices, and networking equipment.
High-Speed Interconnects Market: Key Takeaways
- Market in Asia Pacific to propel highest growth
- The consumer electronics segment to garner the highest growth
- Market in North America to grow at the highest rate
Increasing Frequency of People Working from Home across the Globe to Boost Market Growth
High-speed interconnects include a range of technologies, such as cables, connectors, transmission lines, and protocols, designed to handle high data rates while minimizing signal degradation, interference, and latency. A majority of employees across the world are projected to work from home for about one to three days per week by 2022, while approximately 7% of those questioned desired a full-time remote work schedule. An efficient work-from-home arrangement requires high-speed internet to allow smooth Zoom meetings, quick file transfers, and simple access to company applications.
Therefore, the need for high-speed interconnects is growing. With the growing adoption of IoT, the need to provide efficient and reliable interconnection is on the rise. For the IoT operation system to reach all of its capabilities, an effective connectivity ecosystem has to be established that embraces alternative wireless protocols high-speed 5G technology, and WiFi 6+ networks while taking advantage of their different advantages for certain IoT applications.
High-Speed Interconnects Market: Regional Overview
The global high-speed interconnects market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Expanding passenger automobiles Industry to Drive the Market Growth in Asia Pacific Region
The high-speed interconnects market in the Asia Pacific region is estimated to garner the largest revenue by the end of 2035. In the Asia-Pacific region, including the Middle East, it was projected that about 36 million passenger automobiles would be sold in 2022, with roughly 22 million of those sales taking place in China.
Automotive consists of advanced driver assistance systems and vehicle-to-vehicle communication systems which necessities high-speed interconnect. Hence, with the growing demand for automotive for high-speed interconnects market is also growing in the region. Additionally, as a result of the existence of significant electronic manufacturing companies in the Asia Pacific region, particularly in China and Taiwan is predicted to boost the market growth in the region.
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Growing Data Center Expansion to Propel Growth in the North American Region
The North American high-speed interconnects market is estimated to garner the highest CAGR by the end of 2035. Increasing demand for data centers and cloud services drives the need for high-speed interconnects to handle large volumes of data traffic. The rollout of 5G networks requires enhanced connectivity and high-speed interconnects to support the increased data transfer and low latency demands. The GSMA estimated that by 2025, there would be over 200 million 5G connections in North America, reflecting the rapid adoption of 5G technology. Increasing consumer reliance on high-speed devices, such as smartphones, tablets, and gaming consoles, fuels the demand for efficient interconnect solutions. The automotive industry's transition to electric vehicles (EVs) and autonomous vehicles (AVs) relies on high-speed interconnects for vehicle communication, sensor data, and connectivity. The growth of artificial intelligence (AI), machine learning, and scientific research fuels the demand for high-performance computing solutions, driving the need for high-speed interconnects.
High-Speed Interconnects, Segmentation by Application
- Data Centers
- Telecom
- Consumer Electronics
- Networking & Computing
Amongst these segments, consumer electronics is anticipated to hold the largest share over the forecast period. This growth could be attributed to the growing need to interconnect electronic devices. Various electronic devices such as smartphones, tablets and more perform functions such as transferring data which includes files, videos, and applications that require high-speed interconnects.
Furthermore, there has been a growing trend of smart homes which is influencing the adoption of smart devices. From smart speakers and lighting to doorbells and televisions, these gadgets deliver comfort, security, and convenience. However, an efficient internet connection is required for a flawless experience. Hence, this element is boosting the market expansion.
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High-Speed Interconnects, Segmentation by Type
- Direct Attach Cables
- Active Optical Cable
Amongst these segments, the active optical cable segment is anticipated to hold a significant share over the forecast period. The biggest benefit of implementing AOC cables is their ability to outperform older copper technologies in terms of speed and distance. Additionally, active optical cables are both significantly thinner and lighter than their copper equivalents. Together, these two elements make them easier to manage and store since they don't adhere to the same length limits.
Additionally, they do not experience the drawback that occurs with longer-distance travelers, who inevitably grow heavier and more difficult to control. The rapid growth of data centers and the demand for higher data speeds and lower latency drive the adoption of AOCs for interconnecting servers, storage, and networking equipment. According to a report, by 2021, global data center IP traffic was projected to reach 20.6 zettabytes (ZB) per year, indicating the substantial data traffic that data centers need to manage.
A few of the well-known market leaders in the global high-speed interconnects market that are profiled by Research Nester are Molex, LLC, Nexans, Leoni Group, Samtec Solutions Private Limited, CBO GmbH, Cisco Systems, Inc., and Huawei Technologies Co, Ltd., and other key market players.
Recent Development in the Market
- Two new cables for the industrial data transmission standard Single Pair Ethernet (SPE), which may be used in drag chain and torsion applications, have been created by Leoni Group, a global developer of solutions for power and data management in the automotive and other sectors. As a result, Leoni is the first cable producer to introduce these cables to the market globally.
- To assist its customers in connecting the roughly 40% of the world's population that is still unconnected or underserved, Cisco System, Inc. recently introduced 800G advancements. These innovations continue to alter the economics and sustainability of the Internet for the Future.
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