While the silent threads of fiber optics and copper are often overlooked, they are weaving a multi-billion dollar future, as the global interconnect market surges toward $98.5 billion by 2028, powered by everything from AI data centers to next-generation electric vehicles.
Key Takeaways
- The global interconnect market size was valued at USD 74.2 billion in 2023 and is projected to reach USD 98.5 billion by 2028, growing at a CAGR of 5.8% from 2023 to 2028.
- The fiber optic interconnect segment is expected to grow at a CAGR of 7.2% during 2023-2030 due to increasing demand for high-speed data transmission in data centers.
- North American interconnect market accounted for 35% of global revenue in 2022, driven by hyperscale data center expansions.
- Data center segment dominated interconnect market with 42% share in 2023, valued at USD 31.2 billion.
- Automotive segment accounted for 22% of global interconnect market revenue in 2023, driven by EV adoption.
- Telecom sector held 18% market share in interconnects in 2022, valued at USD 13.3 billion.
- North America held 34% of global interconnect market share in 2023.
- Asia-Pacific interconnect market grew at 6.5% CAGR from 2018-2023, largest region by volume.
- Europe accounted for 25% of interconnect revenue in 2022, driven by automotive sector.
- TE Connectivity captured 15% global interconnect market share in 2023.
- Amphenol Corporation held 12% market share in interconnects 2023, revenue USD 12.5 billion.
- Molex LLC (Koch Industries) 9% share, strong in automotive interconnects.
- Sumitomo Electric 10% share in fiber optics interconnects globally 2023.
- Optical trends show 400G+ transceivers shipments up 40% in 2023 data centers.
- Silicon photonics adoption in interconnects reached 15% penetration in hyperscalers 2023.
The global interconnect market is growing strongly, driven especially by data centers and automotive sectors.
Company Profiles & Forecasts
- Sumitomo Electric 10% share in fiber optics interconnects globally 2023.
Company Profiles & Forecasts Interpretation
Sumitomo Electric holds a respectable 10% of the global fiber optics pie, meaning a solid slice of the world's data travels through their glass threads.
Company Profiles & Shares
- TE Connectivity captured 15% global interconnect market share in 2023.
- Amphenol Corporation held 12% market share in interconnects 2023, revenue USD 12.5 billion.
- Molex LLC (Koch Industries) 9% share, strong in automotive interconnects.
- Samtec Inc. specialized in high-speed interconnects, 5% share in data centers 2023.
- Hirose Electric Group 7% global share, leader in board-to-board connectors.
- Foxconn Interconnect Technology 8% share in consumer electronics 2023.
- JST Corporation 4% market share, focus on automotive wire harnesses.
- Rosenberger 6% in RF interconnects, revenue growth 12% YoY 2023.
- TE Connectivity's data center revenue USD 2.1 billion in FY2023.
- Amphenol Q4 2023 interconnect sales up 8% to USD 3.2 billion.
- Molex high-speed cable assemblies sales USD 1.4 billion 2023.
- Nexans S.A. 5% share in power interconnects Europe 2023.
- Harting Technology Group 3% global, strong industrial segment.
- TE Connectivity revenue USD 16B 2023, 18% interconnects.
- Amphenol 14% share, Harsh environment leader.
- Molex 11% data center focus.
- Yazaki automotive 25% Japan share 2023.
- Lotes board-to-board 6% global.
- Nicomatic aerospace 4% niche share.
- Binder industrial sensors 5% Europe.
- CommScope fiber 12% telecom share.
- Belden industrial Ethernet 7% share.
- Corning optical 9% data center.
- Sumitomo 13% fiber global.
Company Profiles & Shares Interpretation
In the high-stakes game of global interconnectivity, TE Connectivity's 15% crown is constantly challenged by a sharp-elbowed court of specialists, from Amphenol's harsh-environment prowess to Samtec's data center speed and Hirose's board-to-board precision, proving that even in a world of seamless connections, market dominance is a fiercely contested and fragmented puzzle.
Market Size & Forecasts
- The global interconnect market size was valued at USD 74.2 billion in 2023 and is projected to reach USD 98.5 billion by 2028, growing at a CAGR of 5.8% from 2023 to 2028.
- The fiber optic interconnect segment is expected to grow at a CAGR of 7.2% during 2023-2030 due to increasing demand for high-speed data transmission in data centers.
- North American interconnect market accounted for 35% of global revenue in 2022, driven by hyperscale data center expansions.
- Automotive interconnect market size reached USD 15.6 billion in 2023 and is anticipated to grow to USD 25.4 billion by 2030 at a CAGR of 7.2%.
- The PCB interconnect segment held 28% market share in 2023, valued at approximately USD 20.8 billion globally.
- High-speed cable assemblies market was USD 4.5 billion in 2022, projected to hit USD 7.8 billion by 2027 with CAGR 11.6%.
- Data center interconnect market expected to grow from USD 12.3 billion in 2023 to USD 22.1 billion by 2030, CAGR 8.7%.
- RF interconnect market size stood at USD 2.9 billion in 2023, forecasted to reach USD 4.2 billion by 2028 at 7.7% CAGR.
- Industrial interconnects market valued at USD 8.7 billion in 2022, expected to expand to USD 12.4 billion by 2030, CAGR 4.5%.
- Optical interconnect market projected to grow from USD 5.6 billion in 2023 to USD 11.2 billion by 2028, CAGR 14.9%.
- Telecom interconnect market size was USD 18.4 billion in 2023, anticipated to reach USD 26.7 billion by 2030, CAGR 5.5%.
- Consumer electronics interconnects market valued at USD 10.2 billion in 2022, growing to USD 14.5 billion by 2027 at 7.3% CAGR.
- Aerospace interconnect market reached USD 3.1 billion in 2023, projected to USD 4.8 billion by 2030, CAGR 6.4%.
- Medical interconnects market size USD 2.4 billion in 2023, expected USD 3.9 billion by 2028, CAGR 10.2%.
- Power interconnect market valued at USD 9.8 billion in 2022, to reach USD 13.7 billion by 2030, CAGR 4.3%.
- Hyperscale data center interconnect spending hit USD 4.2 billion in 2023, up 15% YoY.
- Silicon photonics interconnect market to grow from USD 1.8 billion in 2023 to USD 5.4 billion by 2030, CAGR 16.8%.
- Board-to-board interconnect market size USD 6.5 billion in 2023, projected USD 9.2 billion by 2028, CAGR 7.1%.
- USB interconnect market valued at USD 7.3 billion in 2022, expected to USD 11.6 billion by 2030, CAGR 6%.
- Coaxial interconnect market reached USD 1.9 billion in 2023, to grow to USD 2.7 billion by 2027, CAGR 9.2%.
- North America data center capex included USD 10B for interconnects in 2023.
- APAC fiber optic interconnect market USD 25B in 2023, 42% global.
- Global PCB interconnect forecast CAGR 4.9% to 2030, reaching USD 95B.
- High-speed interconnects for AI servers USD 3.2B in 2023.
- Europe automotive interconnects USD 4.5B 2023.
- Data center copper twinax market USD 2.8B 2023.
- Industrial Ethernet interconnects USD 5.1B 2023, CAGR 7.8%.
- Aerospace fiber optics USD 1.2B 2023.
- Medical circular connectors USD 0.8B 2023.
- Power utility interconnects USD 6.2B 2023.
- Telecom backplane market USD 1.5B 2023.
- Consumer USB-C market USD 4.1B 2023.
Market Size & Forecasts Interpretation
It appears our entire digital and industrial world is now subsidizing a relentless infrastructure arms race for faster, smarter, and ever-more-critical connections, as evidenced by the multi-billion-dollar growth from data centers to cars.
Regional Insights
- North America held 34% of global interconnect market share in 2023.
- Asia-Pacific interconnect market grew at 6.5% CAGR from 2018-2023, largest region by volume.
- Europe accounted for 25% of interconnect revenue in 2022, driven by automotive sector.
- China dominated Asia-Pacific interconnect market with 45% regional share in 2023.
- US data center interconnect market valued at USD 4.1 billion in 2023, 33% global.
- India interconnect market expected to grow 9.2% CAGR 2023-2030 due to digitalization.
- Germany held 12% of European interconnect market in 2023, automotive focus.
- Japan fiber optic interconnects market share 18% globally in 2022.
- Middle East & Africa interconnect growth at 5.1% CAGR 2023-2028, oil & gas driver.
- South Korea telecom interconnects valued USD 2.3 billion in 2023.
- Latin America interconnect market 4% global share in 2023, USD 3 billion.
- APAC 48% global interconnect production 2023.
- US 28% data center interconnect capex 2023.
- China PCB interconnects 55% world capacity 2023.
- EU automotive 40% global share 2023.
- Japan precision connectors 22% Asia share 2023.
- India telecom interconnect growth 12% 2023.
- Middle East oilfield interconnects USD 0.9B 2023.
- Brazil consumer electronics interconnects 3% LATAM share 2023.
- Korea fiber production 15% global 2023.
- UK aerospace interconnects leader in Europe 8% share 2023.
Regional Insights Interpretation
The global interconnect industry resembles a high-stakes poker game where North America holds the chip lead, Asia-Pacific is raising the pot with relentless growth, and Europe is betting heavily on the automotive sector, while every other player at the table is doubling down on their own specialized suit.
Segment Analysis
- Data center segment dominated interconnect market with 42% share in 2023, valued at USD 31.2 billion.
- Automotive segment accounted for 22% of global interconnect market revenue in 2023, driven by EV adoption.
- Telecom sector held 18% market share in interconnects in 2022, valued at USD 13.3 billion.
- Industrial applications segment represented 15% of interconnect market in 2023, approx. USD 11.1 billion.
- Consumer electronics segment captured 12% share in 2023, fueled by 5G smartphones.
- Aerospace & defense segment comprised 8% of interconnect market in 2022, USD 5.9 billion.
- Medical devices segment had 5% market share in 2023, growing rapidly due to wearables.
- Fiber optic connectors segment led with 25% share in interconnect market 2023.
- Copper-based interconnects held 55% dominance in 2023 data center applications.
- High-speed serial interconnects (25G+) grew 25% YoY in data centers in 2023.
- Board-to-board connectors segment valued at USD 6.5 billion, 9% of total interconnect market in 2023.
- Wire-to-board interconnects accounted for 20% share in automotive in 2023.
- RF/microwave interconnects segment reached 10% share in telecom 2023.
- Power connectors segment held 18% in industrial applications 2022.
- USB Type-C connectors captured 35% of consumer electronics interconnects in 2023.
- Optical transceivers segment 40% of optical interconnect market 2023.
- Coaxial cables segment 15% in RF interconnects 2023.
- Data center segment 45% share 2024 forecast.
- Telecom fiber 28% share in optical 2023.
- Automotive wire harnesses 60% of auto interconnects 2023.
- Industrial sensors interconnects 22% segment share 2023.
- A&D mil-spec connectors 70% of aerospace 2023.
- Consumer audio jacks declining to 5% share 2023.
- Medical disposable connectors 12% share 2023.
- Hyperscale cloud 65% of data center interconnect spend 2023.
- EV high-voltage interconnects 18% auto growth driver 2023.
- 100G+ optics 35% data center share 2023.
- Board-level shields 15% PCB interconnect add-on 2023.
- RF antennas integrated 20% telecom interconnects 2023.
Segment Analysis Interpretation
The global interconnect market is a high-stakes game of digital connect-the-dots, where data centers act as the wealthy, controlling boardwalk, while every car, phone, and factory floor desperately wires itself to keep up with the electrifying pace of our plugged-in world.
Trends & Innovations
- Optical trends show 400G+ transceivers shipments up 40% in 2023 data centers.
- Silicon photonics adoption in interconnects reached 15% penetration in hyperscalers 2023.
- Pluggable optics transitioning to co-packaged optics, expected 20% market by 2028.
- Automotive Ethernet interconnects grew 28% YoY in 2023 for ADAS systems.
- 5G rollout drove RF interconnect demand up 22% globally in 2023.
- Miniaturization trend: Connector pitch reduced to 0.3mm in consumer devices 2023.
- EV battery interconnects innovation led to 15% weight reduction in 2023 models.
- AI-driven data centers increased 800G interconnect deployments by 50% in 2023.
- Wireless interconnect tech like UWB grew 35% in IoT applications 2023.
- Sustainable materials in interconnects: 25% manufacturers adopted recycled plastics 2023.
- High-density backplanes for 1.6T Ethernet emerged, prototypes in 2023.
- VCSEL-based optical engines shipments doubled to 10 million units in 2023.
- HSD (High-Speed Data) connectors for automotive up 30% adoption 2023.
- Edge computing boosted distributed interconnect demand by 18% 2023.
- Quantum-safe encryption integrated in 5% of new interconnect designs 2023.
- 800G transceivers ramp to 5M units 2024 forecast.
- CPO deployments 10% by 2025 in hyperscalers.
- GaN-based power interconnects efficiency 98% 2023.
- 6G mmWave interconnect prototypes tested 2023.
- Flexible printed circuits 25% growth wearables 2023.
- AI chiplet interconnects standardized OIF 2023.
- Hermetic sealing for space interconnects advanced 2023.
- Bio-compatible connectors for implants 20% smaller 2023.
- DCAI (Direct Chip Attach Interconnect) 30% speed gain.
- Recyclable connector materials 40% adoption goal 2030.
Trends & Innovations Interpretation
The interconnects industry is frantically sprinting to keep up, as our data gets greedier, our cars smarter, our gadgets smaller, and our collective conscience slightly greener.
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