The Active Optical Cable Market registered a revenu size of USD 2.5 Billion in 2022 and is estimated to achieve a market size of USD 21.7 Billion by 2032 growing at a CAGR of 24.4% from 2023 to 2032. The growing acceptance of cloud computing and big data analytics, as well as the increasing use of active optical cables in data centers and other networking applications, are driving the active optical cable market growth. Furthermore, the growing popularity of 4K/8K resolution video and virtual reality applications is driving the active optical cable (AOC) market value in the coming years.
Active Optical Cable Market Report Highlights
An Active Optical Cable (AOC) is a type of optical cable that uses active components, such as electrical-optical transceivers, to boost or regenerate the optical signal and extend the transmission distance. AOCs are typically used in high-speed data center and storage area networks to connect servers, switches, and storage devices. They offer a number of advantages over traditional copper cables, including higher bandwidth, longer distances, and improved signal quality. AOCs are also typically more expensive than traditional optical cables.
Active Optical Cable Market Trends
Active Optical Cables Market Report Coverage
|Market||Active Optical Cable Market|
|Active Optical Cable Market Size 2022||USD 2.5 Billion|
|Active Optical Cable Market Forecast 2032||USD 21.7 Billion|
|Active Optical Cable Market CAGR During 2023 - 2032||24.4%|
|Active Optical Cable Market Analysis Period||2018 - 2032|
|Forecast Data||2023 - 2032|
|Segments Covered||By Connector Type, By Technology, By Application, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Fujitsu Limited, 3M Company, The Siemon Company, International Business Machines Corporation, EMCORE Corporation, TE Connectivity, II-VI Incorporated, Lumentum Operations LLC, Sumitomo Electric Industries Ltd., Molex LLC (Koch Industries Inc.), Amphenol Corporation, and Broadcom Inc.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis|
An active optical cable, abbreviated as AOC, is a wiring technology that uses optical fiber between connectors for improving the cable’s performance. AOC uses electrical-to-optical conversion at the end of cables to improve its speed and distance performance without compromising on its compatibility with the standard electrical interfaces. The ability of AOC to substitute or be used as an alternative to copper cables has led to a rise in demand for AOCs. The growth is further attributed to various benefits offered by AOCs such as low power consumption and small bend radius that result in easy installation and lighter weight. With the help of various protocols, applications of AOCs have increased from advanced computers to networking & storage. Additionally, these cables rely on several protocols for data transmission including USB, InfiniBand, and Ethernet.
Increased processor speed and high demand for greater bandwidth are a few key factors driving the growth of the active optical cables market. For cloud-based applications, online gaming, audio & video services, and Community Antenna Television (CATV), high-speed data services are required that are enabled by the use of these cables. Also, the improvements in technology related to fiber optics have propelled market growth. However, the high initial cost of investment for AOCs and the replacement threat from wireless broadband and copper cables are restricting the market growth. The demand for smaller cables and inventive paths by consumers is also bolstering the market demand for AOCs. Compared to copper cables, optical fibers are longer, thinner, stronger, and lighter.
Active Optical Cable Market Segmentation
The global active optical cables market segmentation is based on connector type, technology, application, and geography.
Market By Connector Type
According to an active optical cable industry analysis, the Quad Small Form-factor Pluggable (QSFP) connector type segment is a widely used segment in the global market. QSFP connectors are used in high-speed data communication and networking applications, such as data centers, supercomputers, and telecommunications networks. These connectors have the capability to transmit data at rates of up to 100 Gbps, making them highly desirable for use in high-bandwidth applications. The market for AOCs with QSFP connectors is expected to grow due to the increasing demand for high-speed data transmission and the growing adoption of QSFP connectors in data centers and other applications. This is also driven by the increasing demand for higher data transfer rates in 5G networks, high-performance computing, and AI.
Market By Technology
In terms of technology, the InfiniBand segment is expected to grow significantly in the market over the forecasting years. This growth is due to the increasing demand for high-speed data transfer and the growing adoption of InfiniBand technology in data centers and other high-performance computing environments. Active optical cables offer several benefits over traditional copper cables, including higher bandwidth, longer distances, and improved reliability. As a result, they are becoming increasingly popular for use in data centers and high-performance computing applications. This is expected to drive the growth of the AOC market for InfiniBand technology.
Market By Application
According to the AOC market forecast, data center application is expected to grow significantly in the coming years. This growth is attributed to the increasing demand for higher bandwidth, faster data transfer rates, and longer transmission distances in data centers. Active optical cables (AOCs) are becoming increasingly popular in data centers due to their ability to transmit data over longer distances with lower power consumption and minimal signal loss. Additionally, AOCs are more cost-effective and have a smaller footprint compared to traditional copper cables. As data centers continue to expand and require more bandwidth to support the growing number of connected devices, the demand for AOCs is expected to increase.
The Middle East & Africa
Geographically, the Asia-Pacific region is dominating the active optical cable market due to factors such as the increasing demand for high-speed data transmission in industries such as telecommunications, data centers, and healthcare, as well as the growing adoption of advanced technologies such as 5G and the Internet of Things (IoT). Additionally, the region has a large presence of major technology companies and manufacturers, which drives innovation and growth in the market. Furthermore, the favorable government policies and initiatives in countries such as China, Japan, and South Korea have led to increased investments in the region's telecommunications and IT infrastructure, further driving the growth of the active optical cable market.
Active Optical Cable Market Players
Some of the top active optical cable market companies offered in the professional report include Fujitsu Limited, 3M Company, The Siemon Company, International Business Machines Corporation, EMCORE Corporation, TE Connectivity, II-VI Incorporated, Lumentum Operations LLC, Sumitomo Electric Industries Ltd., Molex LLC (Koch Industries Inc.), Amphenol Corporation, and Broadcom Inc.
The market size of active optical cable was USD 2.5 Billion in 2022.
The CAGR of active optical cable market is 24.4% during the analysis period of 2023 to 2032.
The key players operating in the global active optical cable market are Fujitsu Limited, 3M Company, The Siemon Company, International Business Machines Corporation, EMCORE Corporation, TE Connectivity, II-VI Incorporated, Lumentum Operations LLC, Sumitomo Electric Industries Ltd., Molex LLC (Koch Industries Inc.), Amphenol Corporation, and Broadcom Inc.
Asia-Pacific held the dominating position in active optical cable market during the analysis period of 2023 to 2032.
North America region exhibited fastest growing CAGR for active optical cable market during the analysis period of 2023 to 2032.
The current trends and dynamics in the active optical cable industry include the increasing demand for high-speed data transfer and rising adoption of cloud computing.
The data center application held the maximum share of the active optical cable market.