Active Optical Cable Market size is anticipated to reach USD 16 Billion by the end of 2036, growing at a CAGR of 13% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of active optical cable was over USD 3 Billion. AOC cable is becoming increasingly popular as a substitute for copper cables because of its many benefits, including its tiny bend radius for simple installation, low power consumption, and lightweight nature.
The more recent and sophisticated kind of DAC cables are called Active Optical Cables (AOC). In essence, they are fiber optic cables with electrical components inserted to increase signal strength and range. AOC cables, as opposed to DAC cables, may accommodate greater distances—up to 300 meters—without sacrificing speed. The brand Dell Networking is well-known for its AOC cables. With the inclusion of numerous protocols, these cables' applications have grown beyond high-performance computers to include networking and storage.
In addition, the active optical cable market is projected to be propelled by the growing adoption of cutting-edge technologies such as network-function virtualization (NFV) and software-defined networking (SDN). Software-defined networking (SDN) and network function virtualization (NFV) have shown to be two potential technologies for controlling future networks in the direction of achieving such a technological paradigm change.
The use of these technologies is accelerating due to their many advantages, which include lower operating costs, improved resource use, and simpler management requirements. The implementation and maintenance of AOCs are made considerably simpler by SDN and NFV. Additionally, as the need for high-bandwidth networks grows, data centers expect to see a spike in the market for active optical cables.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
13% |
Base Year Market Size (2023) |
USD 3 Billion |
Forecast Year Market Size (2036) |
USD 16 Billion |
Regional Scope |
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Form Factor (QSFP, QSFP-DD, SFP, SFP+, PCIE, CXP)
The active optical cable market for the PCIE segment is set to hold a share of 34% during the foreseen period on account of its increasing use in personal PCs. The central processor unit (CPU) and peripherals (graphics cards, memory/disk drives, and external IO cards) can be connected at fast speeds using the PCI Express (PCIe) interface. PCIe is used by AOCs to connect switches, servers, and storage components. Cloud computing, the Internet of Things (IoT), fifth-generation mobile networks (5G), and artificial intelligence (AI) all gained traction in the industry in 2019.
GarterTM launched the AI-powered productivity revolution in 2022. PCIe 5.0 represents more than 10% of the PCIe 4.0 market. By minimizing or doing away with the quantity of protocol converter chips, they can reduce the total cost of the system. They are utilized in data centers, HPC, and consumer electronics and interface with PCIe. PCIe 1.0, 2.0, 3.0, 4.0, and 5.0 are the most widely used versions of PCIe, and they all offer faster transfer rates. The data rate per lane is indicated by the version number; the most recent PCIe 5.0 supports 32 GT/s (Giga transfers per second) per lane.
Protocol (InfiniBand, Ethernet, Serial-Attached SCSI (SAS) DisplayPort, HDMI, Thunderbolt, USB)
InfiniBand segment in the active optical cable market is poised to hold a share of 30% by the end of 2036. One of the main factors driving the growth of the InfiniBand segment is the increasing acceptance of this cutting-edge product in extremely efficient computing machines. In the upcoming years, the necessity for various organizations to develop data centers has grown, which has created an opportunity for the segment.
Almost all of the major operating systems, including Windows, Linux, Mac OS, AIX, HPUX, VMWare, VxWorks, and BSD, have support for InfiniBand. Furthermore, server-related technology is projected to be invented more frequently in the upcoming years, leading to the InfiniBand segment rising gradually between 2024 and 2036. For instance, when paired with NVIDIA HGX, InfiniBand—which is thought to be essential for achieving the scale and performance required for training LLMs—forms the fundamental architecture of AI supercomputers and data center infrastructures.
Our in-depth analysis of the global active optical cable market includes the following segments:
Protocol |
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Form Factor |
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Application |
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North American Market Statistics
The active optical cable market in North America is projected to hold the largest share of 35% by 2036. The growth can be attributed to the increasing need for active optical cables in data centers. Fibre optics is the broadband technology with the fastest rate of growth in North America. The interconnect is becoming a more vital component of modern data centers as it provides the necessary communications connectivity across several servers, memory, and computational resources.
'Plain old telephone service' (POTS) is made possible by telecom service providers in the area via active optical connections that connect their nationwide networks, and they convey data over vast distances via active optical connections. The region's concentration of large corporations, academic institutions, governmental organizations, and banks encourages the usage of active optic cables.
APAC Market Analysis
Asia Pacific active optical cable market is poised to hold the second-largest share of 27% during the foreseen period. Due to the quick development of data centers and cloud computing facilities, the active optical cable and extender market in Asia Pacific has experienced significant growth. From 1.08 million cabinets in 2015 to 2.39 million cabinets in 2020, China's data center cabinet count has grown significantly. A significant rise in power usage is correlated with the number of data center cabinets. The use of AOCs and extenders has been accelerated by this rise in demand for high-speed, dependable, and efficient connectivity options. The increasing dependence of businesses and customers on online services has made the need for seamless data transmission and low latency critical in the region.
Author Credits: Abhishek Verma
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