Active Optical Cable Market Size & Share, by Protocol (InfiniBand, Ethernet, Serial-Attached SCSI (SAS), DisplayPort, HDMI, Thunderbolt, USB); Form Factor (QSFP, QSFP-DD, SFP, SFP+, PCIE, CXP); Application (Data Centre, High-Performance Computing, Personal Computer, Digital Signage, Consumer Electronics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5559
  • Published Date: Jan 23, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

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.


Active Optical Cable Market
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Active Optical Cable Market: Key Insights

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

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Active Optical Cable Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Growing Adoption of 4K and 8K Video Technologies – In a variety of sectors, including digital signs, gaming, broadcasting, and medical imaging, 4K and 8K video technologies are now widely used. As a result, there is now a noticeable need for long transmission lengths and high data speeds. AOC and extenders have become vital options to meet these needs. These cutting-edge optical interconnects ensure that the integrity and quality of the video material are maintained while enabling the smooth and dependable transmission of high-resolution video signals over extended distances. Furthermore, the integration of 8K and 4K video technology necessitates complex home theatre configurations with components spread across multiple sectors. Because optical fibre technology is immune to electromagnetic interference and signal degradation, there is no chance of pixelation, artifacts, or disturbances that could reduce the reliability of the complex network of devices.
  • Surge in the Implementation of Digitalization and 5G Network Rollouts – Modern technologies are being adopted by several countries to increase data connectivity. It is anticipated that significant investments in data centers and other infrastructures would increase total data transmission speeds. The network infrastructure industry is expected to generate USD 197.80 billion in revenue by 2024. Additionally, to handle the greater data speeds and reduced latency requirements of the 5G network rollout, sophisticated interconnect technologies are needed. 5G base stations and other network elements can have better connectivity due to active optical links and extenders. The need for AOCs and extenders in this industry is anticipated to increase as 5G networks spread throughout the world.
  • Cost Effectiveness of Active Optical Cables - Active optical cables are the most economical product in the data center when compared to optical modules. Less optical components can be used in the production process since it fixes the optical fibers inside the module. Rather, the optical modules are typically linked to a fiber optic patch cable, which comes at a hefty price. Furthermore, active optical cables have very dependable optical ports that are not exposed to the elements. As a result, dust and other impurities cannot harm them, saving money on cleaning and maintenance.

Challenges

  • Higher Power Consumption May Hamper the Growth of the Market – AOCs usually have a power usage of one to two watts, whereas DAC active cables have a power consumption of less than one watts. Because of their effective thermal design, passive DAC cables typically have an even lower power usage of less than 0.15 watts. Optoelectronic components, like photodetectors and laser diodes, are included in AOC connections to transform electrical signals into optical signals that may be transmitted across optical fibers. To function and aid in the signal conversion process, these parts need power. When several AOCs are implemented in data centers, power consumption can become an issue. Therefore, this factor may hamper the growth of active optical cables.
  • Lack of Skilled IT Personnel may Hinder the Growth of the Active Optical Cable Market
  • Replacement of AOCs with Copper Cables may Hinder the Growth of the Market.


Active Optical Cable Segmentation

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:

     Protocol

  • InfiniBand
  • Ethernet
  • Serial-Attached SCSI (SAS)
  • DisplayPort
  • HDMI
  • Thunderbolt
  • USB

     Form Factor

  • QSFP
  • QSFP-DD
  • SFP
  • SFP+
  • PCIE
  • CXP

     Application

  • Data Centre
  • High-Performance Computing
  • Personal Computer
  • Digital Signage
  • Consumer Electronics

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Active Optical Cable Industry - Regional Synopsis

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.

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Active Optical Cable Market Size
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Companies Dominating the Active Optical Cable Landscape

top-features-companies
    • MaxLinear, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Jabil Inc.
    • Coherent Corp.
    • L-com Inc.
    • Broadcom

In-the-news

In The News

  • Leading supplier of high-speed interconnect integrated circuits (ICs) for data centre, metro, and wireless transport networks, MaxLinear, Inc. (Nasdaq: MXL) announced today the addition of a new Keystone 5nm PAM4 DSP family member (KeystoneMM – MxL93684). For AOCs and multimode links, the recently released KeystoneMM model offers best-in-class power consumption, excellent performance, and lower costs by monolithically integrating VCSEL drivers with the DSP.
  • The creation of a new Active Optical Cable (AOC) family is the result of Jabil Inc.'s (NYSE: JBL) photonics business unit's expansion of its design, manufacturing, and testing capabilities. Because of this, Jabil is in a unique position to serve the ongoing explosion of artificial intelligence (AI), cloud, high-performance computing (HPC), and machine learning (ML) applications, as well as the quick pace of improvements in optics-enabled network and data center designs. Jabil's cutting-edge photonics solutions will be on display at OFC’23 in San Diego (Booth #3425).

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5559
  • Published Date: Jan 23, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing adoption of 4K and 8K video technologies, surge in the implementation of digitalization and 5g network rollouts, and cost effectiveness of active optical cables are the major factors driving the growth of the active optical cable market.

The market size of active optical cable is anticipated to attain a CAGR of 13% over the forecast period, i.e., 2024-2036.

The major players in the market are MaxLinear, Inc., Jabil Inc., Coherent Corp., L-com Inc., Broadcom, Nitto Denko Corporation, Sumitomo Electric Industries, Ltd., Japan Material Co. Ltd., ED Techno Co., Ltd., NTT Communications and others.

The InfiniBand segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Active Optical Cable Market Report Scope
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