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 more and more 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. With the inclusion of numerous protocols, these cables' applications have grown beyond high-performance computers to include networking and storage. According to predictions, the high-performance computing (HPC) business is expected to increase significantly and reach over USD 35 billion in revenue by 2023. Global HPC industry revenues are expected to reach USD 40 billion by 2026.
In addition, the market is expected to be propelled by the growing adoption of cutting-edge technologies such as network-function virtualization (NFV) and software-defined networking (SDN). 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
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 13% |
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Base Year Market Size (2023) |
~ USD 3 Billion |
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Forecast Year Market Size (2036) |
~ USD 16 Billion |
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Regional Scope |
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Form Factor (QSFP, QSFP-DD, SFP, SFP+, PCIE, CXP)
Active optical cable market for PCIE segment is anticipated to hold a share of 34% during the foreseen period. 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. 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 centres, HPC, and consumer electronics and interface with PCIe. EMI interference protection, low weight, high bandwidth, and a robust electrical connector interface are just a few benefits of PCIe active optical cables. It can therefore be applied to avionics applications as well. 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 anticipated 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. Over the course of the anticipated 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, because server-related technology is projected to be invented more frequently in the upcoming years, the InfiniBand segment is predicted to rise gradually during the forecast period. InfiniBand offers customers the best interconnect efficiency, less complexity, dependable & stable connections, and enhanced performance to tackle IT infrastructure issues. Therefore, all these factors are propelling the growth of InfiniBand segment.
Our in-depth analysis of the global active optical cable market includes the following segments:
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Protocol |
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Form Factor |
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Application |
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North American Market Forecast
Active optical cable market in North America is anticipated to hold the largest share of 35% during the forecast period. 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. 'Plain old telephone service' (POTS) is made possible by telecom service providers in the area via active optical connections that connect their nationwide networks. Additionally, 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. These businesses employ secure, dependable high-speed data transmission within their private networks using intra- and inter-building networks.
APAC Market Statistics
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 centres and cloud computing facilities, the active optical cable and extender market in Asia Pacific has experienced significant growth. 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. AOCs and extenders present a strong way to meet these needs. Due to the need for improved bandwidth and steady signal quality, the market has grown as a result of the widespread use of high-definition content, virtual reality (VR), and augmented reality (AR) applications.
Author Credits: Abhishek Verma, Hetal Singh
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