Active Optical Cable Market: Demand for high-speed internet connectivity to boost the market growth

Global Active Optical Cable Market size was valued at USD 4.35 Bn in 2023 and is expected to reach USD 23.21 Bn by 2030, at a CAGR of 27% over the forecast period.
Active Optical Cable Market Overview
An active optical cable has modules at the end of an optical fiber cable, which allows direct communication between devices that are attached permanently to the fiber cable. Active Optical Cables are used for applications with consistent, predictable link distancing. AOC cables accelerate storage, data, and high-performance computing, which is expected to boost the Active Optical Cable Market growth.To know about the Research Methodology :- Request Free Sample Report
Active Optical Cable Market Dynamics
High Speed of data transmission to boost the Active Optical Cable Market growth

Active Optical Cables are used for the fast transmission of data over long distances as of traditional copper cables. Increased demand for high bandwidth applications such as data centers, cloud computing, and 5G networks with fast and efficient data transmission is expected to boost the Active Optical Cable Market growth. As technology is becoming advanced day by day there is a need for high bandwidth to support specific applications. Fiber active technology is used by Active optical cables for the seamless transmission of large volume of data in real time without signal degradation. Active Optical Cable are immune to electromagnetic interference and radio frequency interference making them less susceptible for unauthorized access. Enhanced data security is important in sectors such as finance, healthcare, and government, where data protection is mandatory.

Active optical cables are light in weight and have more flexibility compared to traditional copper cables. Due to more flexibility Active Optical cables are very easy to install, route and manage in tight spaces. The increasing adoption of cloud computing and data center infrastructure is a significant driver for the Active Optical Cable market. Data centers require high-speed and high-capacity connections for data processing and data transmission. Active Optical Cable is energy saver option and also reduced operational costs.

Applications of Active Optical Cable

1. Infiniband QDR, DDR, and SDR interconnects
2. Data aggregation, backplane, and proprietary density applications
3. PCI-Express, SAS/SATA, Fiber Channel compatible interconnect
4. 40GBE and 10GBE interconnects
5. 10G, 40G telecom connections
6. Hubs, switches, routers, servers
7. Ethernet 10G, 40G
8. Data centers
9. High-performance computing clusters

Fragility and installation challenges to limit the Active Optical Cable Market Growth

Active Optical cables being fiber optic cables are generally more fragile and sensitive to bending or twisting compared to copper cables. Proper handling and installation techniques are required to ensure optimal performance and prevent damage. The delicate nature of these cables add complexity to installation processes, especially in environments with limited space or challenging physical conditions. The cables have higher upfront costs due to the advanced technology, components, and manufacturing processes involved in producing Active optical cables, which is expected to restrain the Active Optical Cable industry growth. Cables have compatibility constraints with existing infrastructure and equipment. For example, if a system or device is not designed to support AOCs or lacks the necessary interface or port, additional adapters or converters may be required. This compatibility issue increase deployment complexity and costs, making it less attractive for certain applications or industries.

The market faces competition from alternative technologies and solutions. For example, advancements in wireless communication technologies, such as Wi-Fi 6 and 5G, provide viable alternatives for certain applications. Advancements in copper-based solutions, such as shielded twisted pair (STP) cables and improved connectors, can offer high-speed data transmission at a lower cost. While there are standards for fiber optic cables, there are variations in the specifications and protocols used in AOCs across different manufacturers. This lack of standardization creates interoperability challenges and compatibility issues between different AOC products. This makes it more difficult for customers to compare and select AOC solutions from different vendors.
Cause of Underwater Telecommunication Cable Faults by 2021


Opportunities in Active Optical Cable Market

Data center and cloud infrastructure expansion: The expansion of data centers and cloud infrastructure presents a substantial opportunity for AOCs. As organizations strive to handle large amounts of data and ensure seamless connectivity within their infrastructure, AOCs provide a reliable and scalable solution. Active Optical Cable efficiently connect servers, switches, storage systems, and other network components within data centers, enabling high-speed data transmission and optimal performance.

Green energy and smart grid applications: Active Optical Cable are employed with renewable energy installations and smart grid infrastructure. They can enable efficient and reliable communication between solar farms, wind turbines, energy storage systems, and monitoring/control centers. AOCs can contribute to the development of a robust and interconnected smart grid infrastructure, facilitating better energy management and integration of renewable energy sources.
Active Optical Cable Market Regional Insight
Rapidly expanding data center infrastructure to boost the Asia Pacific Active Optical Cable Market growth

The Asia Pacific region dominate the market in 2023 and is expected to hold the largest Active Optical Cable Market share over the forecast period. The data center construction and expansion is significantly growing in the region day by day. China, India, and Singapore are major countries to heavily invest in building data centers to support cloud services, digital transformation, and data-intensive applications. Asia Pacific region has large population with need for high-speed internet services. The demand for high-speed broadband and 5G networks is increasing and is expected to boost the Asia Pacific Active Cable Market growth.

Many large commerce companies and digital service providers need active optical cables. Digital service provides requires robust and scalable network infrastructure for streaming services, and content delivery. Strong manufacturing capabilities and expertise in countries such as China, South Korea, and Japan helps to boost the regional Active Optical Cable Market Share. The government in the region is taking the initiative to promote digital infrastructure development with huge investment in high-speed broadband networks. Asia Pacific region is having a huge population with tech-savvy consumers, with increased demand for high-resolution displays, and home entertainment systems, which is expected to boost the Active Optical Cable industry growth.

For instance, the Indian government has announced a US$100 million investment in 2019 as part of the National Connectivity Mission, to provide universal broadband to rural and isolated areas by 2023. By laying down an additional 3 million route kilometers of optical fiber cables and increasing tower density, this investment aided in allowing equal access to internet services. These factors are expected to uplift the active optical cable market growth during the forecast period.

Advanced data center infrastructure in North America with major technology companies and cloud service providers is expected to boost regional market growth. These cables are widely used in companies for data transmission between servers and network components. The North America is having large demand for high-speed connectivity solutions in various industries. The technology companies in the region drive the adoption and development of advanced connectivity solutions bet fast data transmission.
Active Optical Cable Market Segment Analysis
Based on technology, the market is segmented into InfiniBand, Ethernet, HDMI, Display Port, USB, and Others. Ethernet segment dominated the market in 2023 and is expected to hold the largest Active Optical Cable Market share over the forecast period. The growing adoption of active optical cables based on Ethernet protocols by various end-users, as it provides virtualized connectivity and minimized errors within the switch to switch, server to switch, and many other high-speed storage applications with cost-efficiency, fuels the active optical market growth across the globe.

The optical cables have a high EMI and resistivity, making them an excellent solution for a variety of end-use applications in severe industrial environments. These optical cables are ruggedized, they are widely used in high-speed control and data systems, aircraft system ground stations, avionics system controllers, and other applications. These factors are driving the active optical cable market growth for this segment.
Active Optical Cable Market Share, by Technology 2023
Based on Connector type, the market is segmented into QSFP, CXP, CD, FP, CFP, SFP, and Others. QSFP i.e. Quad Small Form-Factor Pluggable segment is expected to dominate the market over the forecast period. QSFP connectors and AOCs are extensively used in data centers for high-speed interconnectivity. Data centers are a significant market for QSFP AOCs, they are also used in other industries where high-speed data transmission is essential. These industries include telecommunications, enterprise networks, high-performance computing, and research institutions. QSFP AOCs provide a reliable and efficient solution for high-speed connectivity in these applications, which is expected to boost the Active Optical Cable market penetration.

Based on the Application, the Active Optical Cable Market is segmented into Data Center, High-Performance Computing, Personal Computing, Digital Signage, Consumer Electronics, and Others. The Data Center segment held the largest market share, accounting for 34.17% in 2020. The active optical cable connects servers, switches, and storage in the data center, which requires a diverse portfolio of fiber optic modules. The growing deployment of the data center is primarily driving the optic cable demand for this segment.

The Consumer Electronics segment is expected to witness significant growth at a CAGR of 18.23% during the forecast period. With the increased need for high-end AV applications, the consumer industry vertical is seeing a major increase in the requirement for efficient cabling solutions, which provide high-quality video resolution displays. Active optical cables are becoming more popular in the consumer electronics business as they produce high dynamic range videos with a wide contrast ratio, as well as color accuracy and content protection.
Active Optical Cable Market Competitive Landscape
The leading Active Optical Cable companies are expending their product offerings by developing advanced cables with higher data transfer rates, improved power efficiency, increased cable lengths, and compatibility with emerging Active Optical Cable industry. The Active Optical cable key players are designing customized products to cater to the specific requirement of data centers, telecommunications, and consumer electronics industry. Growing strategic partnerships and collaborations between companies and industry stakeholders to develop integrated solutions and create synergies to boost the sales are contributing to the Active Optical Cable market growth.

In March 2023, Jabil announced the expansion of photonics and introduce new family of Active Optical Cable. This helps the company to move the to rapid pace of advancements in optics enabled network and data center architecture with ongoing surge of high performance computing and machine learning application.
Active Optical Cable Market Scope : Inquire Before Buying



Global Active Optical Cable Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 4.35 Bn.


Forecast Period 2024 to 2030 CAGR:
27%
Market Size in 2030:
US $ 23.21 Bn.


 Segments Covered:
by Technology
InfiniBand
Ethernet
HDMI
Display Port
USB
Others


by Connector Type
QSFP
CXP
CD
FP
CFP
SFP
Others


by Data Rate
10 Gbps and below
10-40 Gbps
10-40 Gbps
Above 100 Gbps


by Application
Data Centers
Telecommunications
Consumer Electronics
Automotive
Healthcare
Military and Defense


by End User
IT and Telecommunications
Consumer Electronics
Healthcare
Automotive
Aerospace and Defense
Banking, Financial Services, and Insurance (BFSI)
Government and Public Sector
Energy and Utilities
Others



Active Optical Cable Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Active Optical Cable Market, Key Players are
1. Amphenol Communications Solutions
2. Broadcom
3. T&S Communication Co, Ltd.
4. SHANGHAI TARLUZ TELECOM TECH. CO., LTD
5. Approved Networks
6. AirBorn, Inc.
7. ACT. Connectivity
8. EDGE Technologies
9. NITTO DENKO CORPORATION.
10. Eaton
11. TE Connectivity
12. Mouser Electronics, Inc.
13. Molex
14. Fibertronics, Inc.
15. Corning Incorporated
16. Guilin GLsun Science and Tech Group Co., LTD.
17. Nvidia
18. Radiall
19. Fosco Connect
20. Jabil Inc

Frequently Asked Questions:

1] What is the growth rate of the Global Active Optical Cable Market?
Ans. The Global Active Optical Cable Market is growing at a significant rate of 27% over the forecast period.

2] Which region is expected to dominate the Global Active Optical Cable Market?
Ans. Asia Pacific region is expected to dominate the Active Optical Cable Market over the forecast period.

3] What is the expected Global Active Optical Cable Market size by 2030?
Ans. The market size of the Active Optical Cable Market is expected to reach USD 23.21 Bn by 2030.

4] Who are the top players in the Global Active Optical Cable Industry?
Ans. The major key players in the Global Active Optical Cable Market are Amphenol Communications Solutions, Broadcom, T&S Communication Co, Ltd., and SHANGHAI TARLUZ TELECOM TECH. CO., LTD

5] Which factors are expected to drive the Global Active Optical Cable Market growth by 2030?
Ans. High Speed of data transmission is expected to drive the Active Optical Cable Market growth over the forecast period (2024-2030).