High-speed Interconnects Market: Introduction
- High-speed interconnects deal with data, high performance computer connectivity, as well as storage information, by combining the adapter, cabling media, and transceiver as one assembly. High-speed interconnects have attributes such as low cost, small cable bend radius, short distance, low power consumption, and high density.
- High-speed interconnect assemblies are used for straight affix point-point applications in a data center. For enterprises and data centers, demand for secure and fast data transmission is driving the need for high-speed interconnects. Traffic between data centers is increasing across public and private networks with the rising development of cloud computing, data centers, and the growing number of mobile internet connections. Cloud-based service vendors are seeking more data efficiency solutions that allow them to remain competitive by enhancing bandwidth, lowering power requirement, and reducing operating costs. This factor is boosting the demand for high-speed interconnects.
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- COVID-19 has impacted various industries and sectors. Supply chains have been disrupted with the industrial units operating at least capabilities with scarcity of raw materials, all due to the pandemic. All business data usage and personal communications have been driven online that focuses on data centers driving the high speed data. Data centers are the pillars supporting collaborative software for business, internet traffic, and maintain data security. The work from home trend has led to demand for high bandwidth consumption for sharing and transferring data, which in turn increases the demand for high-speed interconnects.
Global High-speed Interconnects Market: Dynamics
Global High-speed Interconnects Market: Key Drivers
- Increasing demand for connecting devices in a range of business applications is accomplished by the support of high-speed interconnects technologies such as active optical cable. High-speed interconnect active optical cables are broadly used in high productivity computing systems. The active optimal cable assists various protocols such as InfiniBand, Ethernet, and USB for data transformation. Increasing demand for active optical cable owing to its numerous benefits such as lower power consumption, light weight, and small bend range for easy installment, is driving the demand for high-speed interconnects products.
- Rapid growth of mobile and cloud computing has fueled access to vast and changing amounts of data stored across private and public networks. For network equipment operators and data centers, the demand for data is driving the need for high-speed interconnects across facilities and are now facing the growing pressure to deliver the cost-effective service in a growing competitive marketplace. The collaboration of a design engineering approach and high-speed interconnects products allows data center architects and network equipment makers with an advantage to meet the growing demand for data access and data storage in a changing industry.
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North America to Account for Major Share of the High-speed Interconnects Market
- In terms of region, the global high-speed interconnects market is divided into North America, Asia Pacific, Europe, Middle East & Africa, and South America.
- North America is projected to be the major regional market for high-speed interconnects due to the powerful presence of data centers in the U.S. demanding high-speed interconnects.
- The increasing adoption of new technologies and demand for higher bandwidth in Asia Pacific is anticipated to create significant opportunities in high-speed interconnects market during the forecast period.
Global High-speed Interconnects Market: Competitive Landscape
In March 2024, Cisco Systems, Inc., completed the acquisition of Acacia Communications, Inc., an optical networking telecommunication technology company. Acacia Communications, Inc., manufactures, designs, and sells a broad portfolio of high-speed interconnects technologies addressing a range of applications across regional, metro, undersea networks, and data centers.
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