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: May 02, 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 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.


Active Optical Cable Market
Get more information on this report: Request Free Sample PDF

Active Optical Cable Sector: Growth Drivers and Challenges

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 fiber 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 forecasted that significant investments in data centers and other infrastructures would increase total data transmission speeds. 

    In order 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 foreseen to increase as 5G networks spread throughout the world. Up to 100 times higher speeds than 4G are promised by 5G. This entails smooth video streaming and quick downloads of entire HD movies.
  • 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 active optical cable market growth. The growing countries need more skilled IT professionals to advance the active optical cable industry.
  • Replacement of AOCs with Copper Cables

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)
Get more information on this report: Request Free Sample PDF

Active Optical Cable Segmentation

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

  • 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

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

Active Optical Cable Industry - Regional Synopsis

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.

Research Nester
Active Optical Cable Market Size
Get more information on this report: Request Free Sample PDF

Companies Dominating the Active Optical Cable Landscape

    • 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
    • Nitto Denko Corporation
    • LS Cable & System CO., Ltd.
    • Hanwha Corporation
    • Nexans SA
    • Fujitsu Ltd.

In the News

  • MaxLinear, Inc., a leading supplier of high-speed interconnect integrated circuits (ICs) for data center, metro, and wireless transport networks 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.
  • Jabil Inc.'s creation of a new Active Optical Cable (AOC) family is the result of the 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


  • Report ID: 5559
  • Published Date: May 02, 2024
  • Report Format: PDF, PPT
Active Optical Cable Market Report Scope
logo
  GET A FREE SAMPLE

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

 Request Free Sample Copy

Have questions before ordering this report?

Inquiry Before Buying
Inquiry Before Buying Request Free Sample