European Optical Interconnect Market to Grow at 10.9% CAGR Driven by Regulatory Mandates

European optical interconnect market was valued at $3,072.4 million in 2025 and is projected to reach $8,562.3 million by 2035, growing at a CAGR of 10.9% during the forecast period (2026–2035). Europe’s strong focus on energy efficiency and sustainability is emerging as a key growth driver for the optical interconnect market. Along with the changes in the regulatory framework, the demand for the optical interconnect market is also surging. EU countries are required to ensure an additional 11.7% reduction in energy consumption by 2030 and are required to do mandatory reporting for the same. As digitalization accelerates, data centers are a vital part and can also have a substantial environmental and climate impact. That’s why Europe is focusing on data centers sustainability, which can be achieved by them through optical interconnect solutions, particularly silicon photonics,  which enable high-bandwidth data transmission with significantly lower power usage and also reduce the cooling requirements as compared to traditional electrical interconnects. Lower electricity and cooling requirements directly result in reduced greenhouse gas emissions.

Browse the full report description of “European Optical Interconnect Market Size, Share & Trends Analysis Report by Product Type (Connectors, Cable Assemblies, Optical Transceivers, Silicon Photonics, and Others), By Application (Data Communication and Telecommunication), Forecast Period (2026-2035)” of https://www.omrglobal.com/industry-reports/european-optical-interconnect-market

Several major players, including AWS, Google, Equinix and regional players, also signed the “Climate Neutral Data Centre Pact”, and for this transition from copper to high-efficiency optical interconnects is a must.

By this, data centers can comply with the compliance rule and will also be able to contribute to the EU’s environmental goals.

Furthermore, the EU-funded INSPIRE project is focused on CPO. Particularly, their focus is on integrating III-V optoelectronic components (Indium Phosphide) directly onto Silicon Nitride (SiN) platforms, to reduce assembly complexity and power loss.

Key Product Launches in the Optical Interconnect Market

• March 2025: Ayar Labs launched Universal Chiplet Interconnect Express (UCIe) optical chiplet, which is delivering 8 Tbps bandwidth along with low power consumption.

• October 2025: Broadcom Inc. launched the Tomahawk 6 – Davisson, which is a third-generation Co-Packaged Optics (CPO) Ethernet switch which can achieve 70% lower power consumption compared to traditional pluggable solutions.

Market Coverage

• The market number available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
• Product Type
• Application

• Competitive Landscape-  Adva Optical Networking SE, Huber+Suhner AG, LEMO S.A., Prysmian S.p.A., and Radiall SA.

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

 European Optical Interconnect Market Report Segment

By Product Type

• Connectors
• Cable Assemblies
• Optical Transceivers
• Silicon Photonics
• Other (Optical Engines)

By Application

• Data Communication
• Telecommunication

European Optical Interconnect Market Report Segment by Region

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

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