Active Optical Cable Market to Cross USD 8.50 Billion by 2030 on Account of Growing Embrace of 5G Technology and Data Center Expansion | Research by SNS Insider

According to SNS Insider’s research, the active optical cable market is poised for continued growth, driven by the relentless demand for higher bandwidth and reliable data transmission solutions across diverse industries

Pune, Dec. 14, 2023 (GLOBE NEWSWIRE) — The Active Optical Cable Market, as per the SNS Insider report, attained a valuation of USD 3.2 billion in 2022, with projections indicating a growth to USD 8.50 billion by 2030. Anticipated to exhibit a CAGR of 13% during the forecast period from 2023 to 2030.

Market Overview

Active Optical Cables represent a fusion of optical fiber technology and electrical components to facilitate high-speed data transmission over extended distances. Unlike traditional copper cables, AOCs utilize optical fibers for data transfer, enhancing bandwidth capabilities while maintaining signal integrity. The key components of an AOC include optical fibers, transceivers, and control electronics.

Market Analysis

As data-intensive applications become more prevalent, the demand for higher bandwidth solutions has surged. AOCs address this need by providing a scalable and efficient means of transmitting large volumes of data. With the proliferation of cloud computing and the expansion of data centers, there is a heightened need for reliable and high-speed connectivity. AOCs offer a compelling solution for interconnecting servers and storage systems within these facilities. AOCs are finding applications in consumer electronics, such as ultra-high-definition displays and virtual reality systems. The need for high-speed data transmission in these devices is propelling the active optical cable market forward. The advent of 5G technology has catalyzed the demand for AOCs in telecommunications infrastructure. These cables play a crucial role in supporting the high-speed, low-latency requirements of 5G networks.

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Major Players Listed in the Report are:

3M, Amphenol Communications Solutions, Coherent Corp., Broadcom, Corning Incorporated, TE Connectivity, Eaton, Molex, Sumitomo Electric Industries Ltd., Dell Inc., and other players are listed in a final report.

Active Optical Cable Market Report Scope:

Report Attributes Details
Market Size in 2022 USD 3.2 billion
Market Size by 2030 USD 8.50 billion
CAGR CAGR of 13% by 2023-2030
Market Drivers
  • Increasing Data Center Industry Demand
  • The widespread use of 4K and 8K video technology
Market Challenges
  • High implementation cost of AOC cable
  • Lack of IT expertise
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Key Takeaway from Active Optical Cable Market Study

  • Active Optical Cables (AOCs) have emerged as a dominant force in the rapidly evolving field of data connectivity, with a particular focus on the flourishing Data Centers segment. As the demand for high-speed, reliable data transmission continues to soar, AOCs have proven to be instrumental in meeting these requirements.
  • In the context of Data Centers, AOCs have become indispensable components due to their ability to transmit data over longer distances without compromising on performance. The seamless integration of optical technology into these cables ensures minimal signal loss, making them ideal for the intricate and demanding networking environments within Data Centers.

Recent Developments

  • Pure Fi, a leading player in the audio-visual technology domain, has recently unveiled its cutting-edge Pro HDMI 2.1 Active Optical Cable at the prestigious CEDIA 2023 event. With HDMI 2.1 capabilities, this cable supports higher resolutions, refresh rates, and bandwidth, making it an ideal choice for the latest and most demanding audio-visual setups.
  • Marvell, a prominent name in the semiconductor industry, has made significant strides by entering the active electrical cable chips space. This move marks a strategic expansion of Marvell’s multimode fiber (MMF) device portfolio, showcasing the company’s adaptability and vision in addressing the dynamic demands of the market.

Market Segmentation:

By Product

  • Active Optical cables
  • Extenders

By Protocol

  • InfiniBand
  • Ethernet
  • Serial Attached SCSI (SAS)
  • DisplayPort
  • PCI Express (PCle)
  • HDMI
  • Thunderbolt
  • USB
  • MIPI
  • Fiber Channel
  • Other Protocols

By Form Factor

  • QSFP
  • QSFP-DD
  • OSPF/CFP8/COBO
  • SFP
  • SFP+
  • PCIE
  • CXP
  • Cx4
  • CFP
  • CDFP.
  • Other Form Factors

By Application

  • Data Centers
  • High-performance Computing (HPC)
  • Consumer Electronics
  • Telecommunications
  • Industrial
  • Energy
  • Oil & Gas
  • Medical
  • Military/Aerospace
  • Other Applications

Market Dynamics Analysis

The active optical cable market has witnessed significant dynamics driven by a confluence of factors that shape its trajectory. One of the primary drivers propelling the growth of the AOC market is the increasing demand for high-speed data transmission in various industries. The burgeoning need for faster and more reliable connectivity solutions, especially in data centers, telecommunications, and enterprise networks, has fueled the adoption of AOCs. These cables offer superior performance over traditional copper cables, delivering higher data transfer rates, lower latency, and increased bandwidth, thus addressing the escalating data traffic demands of modern applications. However, amidst the growth, the market is not devoid of challenges and restraints. One notable challenge is the complexity and cost associated with the manufacturing of active optical cables. The integration of advanced technologies, such as optoelectronics and signal processing components, makes AOCs more intricate to produce than their passive counterparts.

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Key Regional Developments

North America stands out as a frontrunner in the active optical cable market, attributed to its robust technological infrastructure and early adoption of advanced communication technologies. The region is witnessing a surge in demand for high-speed connectivity solutions in data centers, telecommunications, and consumer electronics. Europe is emerging as a key player in the AOC market, driven by the increasing deployment of AOC solutions in industrial applications. The region’s focus on Industry 4.0 and the growing reliance on automation and robotics fuel the demand for high-speed data transmission within manufacturing facilities. The Asia-Pacific region is experiencing an unprecedented surge in digitalization and connectivity, driving the demand for AOC solutions. Countries like China, Japan, and South Korea are at the forefront of this transformation, with a substantial increase in data center construction, smart city projects, and the expansion of 5G networks.

Impact of Recession

The recession has exerted considerable pressure on the active optical cable market, impacting both demand and supply dynamics. As businesses and consumers tighten their budgets, the demand for AOCs in certain sectors, such as consumer electronics and non-essential telecommunications projects, may experience a temporary decline. However, the same economic constraints can also drive the demand for cost-effective, high-performance solutions like AOCs, as companies seek to optimize their operations and infrastructure.

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