(MENAFN- GlobeNewsWire - Nasdaq) The high-speed interconnects market is witnessing robust expansion, propelled by the increasing need for low-latency, high-bandwidth connectivity across data centers, AI, IoT, and 5G ecosystems, with North America and Asia-Pacific leading adoption through strong digital infrastructure and technological innovation.

Austin, Nov. 10, 2025 (GLOBE NEWSWIRE) -- The High-speed Interconnects Market size was valued at USD 40.2 billion in 2024 and is expected to reach USD 87.6 billion by 2032, growing at a CAGR of 10.25% during 2025-2032.

The growing need for cloud services, data centers, and high-performance computing is driving the expansion of the high-speed interconnects market. Another factor driving market expansion is the growing use of AI, IoT, and 5G technologies. increasing need for data-intensive applications, such as cloud computing, AI, machine learning, and streaming 4K and 8K video. The efficiency needed for ultra-fast data transfer with low latency, which is required in data centers and enterprise networks, cannot be achieved by traditional interconnects.

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The U.S. high-speed interconnects market size in 2024 is estimated to be around USD 11.81 billion and is projected to reach USD 25.5 billion by 2032, growing at a strong CAGR of 10.1% during the period between 2024 to 2032.

The increasing use of optical interconnects, the development of standards, such as Compute Express Link and Universal Chiplet Interconnect Express, and the acceleration of artificial intelligence and internet of things technologies are the factors propelling this market's expansion.

Segmentation Analysis:

By Type

The direct attach cables segment dominated the market and accounted for 71% of the high-speed interconnects market share in 2024 as it is more cost-effective than other alternatives, and can be deployed more easily in short-distance data center applications. The active optical cables segment is expected to register the fastest CAGR during the forecast period due to the rising demand for data centers and telecom networks which requires high-bandwidth, long-distance interconnects.

By Application

The data centers segment dominated the high-speed interconnects market and accounted for 42% of revenue share in 2023 due to the increased growth of hyperscale facilities and demand for low-latency, high-bandwidth connections. The telecom segment is anticipated to have fastest CAGR during the forecast period, induced by 5G deployment, edge computing and IoT explosion. The increasing need for high speed data transfer in mobile networks and low latency is driving the adoption of high-speed interconnect in mobile networks, especially in developing regions.

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Regional Insights:

North America dominated the high-speed interconnects market in 2024 and accounted for 37% of revenue share, driven by a mature IT infrastructure, high levels of large-scale data center implementation, and higher speed of AI and cloud technology adoption.

Asia Pacific region is anticipated to register the fastest CAGR, due to modernization, a rise in the data center across China, India, and Singapore, and government initiatives for prompt infrastructure development.

High-speed interconnects are being demanded in Europe due to the growing need for data localization, green data centers, and the development of AI and quantum computing. Digital adoption is expected to be accelerated by increased regulatory support and investments in digital infrastructure, while the overall growth of the major economies is expected to remain stable until 2032.

Key Players:

• Broadcom
• Intel
• Cisco Systems
• NVIDIA (Mellanox)
• Amphenol
• TE Connectivity
• Molex
• Samtec
• Huawei Technologies
• Leoni AG

High-speed Interconnects Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 40.2 Billion
Market Size by 2032	USD 87.6 Billion
CAGR	CAGR of 10.25 % From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	. By Type (Direct Attach Cables (DAC), Active Optical Cables (AOC)) . By Application (Data Center, Telecom, Consumer Electronics, Networking & Computing)
Customization Scope	Available upon request
Pricing	Available upon request

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Recent Developments:

• In March 2025, at OFC 2025, Broadcom showcased advancements in co-packaged optics (CPO), 200G/lane DSP and SerDes, and PCIe Gen6 over optics, highlighting a roadmap toward 200T optical interconnect solutions for AI infrastructure.
• In April 2025, Broadcom introduced the Sian3 and Sian2M AI networking chips, utilizing 3nm process technology to enhance performance and power efficiency, crucial for scaling AI and machine learning clusters.
• In April 2025, Researchers have developed neuromorphic optical signal processors enabling 1.6 Tbit/s data center interconnects over 5 km without using DSPs. These OSPs cut latency by 10,000× and energy use by 1,000×, making them ideal for next-gen AI infrastructure.

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