Active Optical Cable Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

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

• Global active optical cable market revenue is expected to increase by USD 21.7 Billion by 2032, with a 24.4% CAGR from 2023 to 2032
• Asia-Pacific region led with more than 44% of active optical cables market share in 2022
• According to research, approximately 5,67,941 km of Optical Fibre Cable (OFC) will be installed in India by 2021
• By technology, the InfiniBand segment has accounted market share of over 34% in 2022
• By application, the water-based Active Optical Cable segment captured the majority of the market
• Emergence of 5G technology, drives the growth of active optical cables

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

Market Drivers

• Increasing demand for high-speed data transfer
• Rising adoption of cloud computing
• Growing adoption in the healthcare and automotive sectors
• Increasing investments in data centers

Market Restraints

• High cost of the cables
• Lack of awareness about the benefits of AOCs

Market Opportunities

• Emergence of 5G technology
• Increasing adoption of IoT

Active Optical Cables Market Report Coverage

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

• QSFP
• SFP
• CXP
• CFP
• CDFP
• Others

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

• InfiniBand
• Ethernet
• USB
• HDMI
• DisplayPort
• Others

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

• Consumer Electronics
• Data Center
• Digital Signage
• Personal Computing
• High-Performance Computing
• Others

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.

Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)