Active Optical Cable Market

Global Active Optical Cable Market Size (2023 to 2028)

The global active optical cable market is expected to be worth 4.55 billion USD in 2023. It is expected to grow at a CAGR of 29.35% during the forecast period and reach a value of 16.49 billion USD by 2028.

The rise of bandwidth-hungry applications like 4K/8K/10K video, as well as augmented and virtual reality, is driving the demand for more reliable, quicker data transmission between sources and displays. Copper cables, at lengths of 5 m and beyond, are simply unable to keep up with the insatiable bandwidth demand at the needed rates. The solution is fiber optics.

Active Optical Cables (AOCs) convert electrical signals into optical signals for video and data transmission between sources and displays over short or long distances. AOCs have a number of advantages over direct attached copper cable for video and data transmission, including smaller weight, quicker speeds, reduced power consumption, lower connectivity loss, and greater flexibility. AOCs are easier to run through walls than copper cables since they are thin and flexible.

Global Active Optical Cable Drivers:

The market demand for Ethernet-based optical cables is being fuelled by an increase in the adoption of active optical cables based on Ethernet protocols by various end users, owing to features such as virtualized connectivity and minimized errors within switch-to-switch, server-to-switch and many other high-speed storage applications with cost-efficiency. Furthermore, these optical cables have a high EMI and resistivity, making them an excellent solution for a variety of end-use applications in severe industrial environments.

Because these optical cables are ruggedized, they are finding widespread use in high-speed control and data systems, aircraft system ground stations, avionics system controllers, and other applications. The active optical cable market is growing due to factors such as rising bandwidth requirements, massive data center deployments, and increased adoption of virtualization and cloud-based services.

Over the next few years, the market is likely to be driven by the increasing usage of innovative technologies such as network-function virtualization (NFV) and software-defined networking (SDN). Active optical cables are also required in data centers that predict a surge in the market in the coming years due to an increase in the need for high-bandwidth networks.

Global Active Optical Cable Restraints:

There are a number of constraints and problems that could stymie market expansion. Market limitations are likely to include threats of replacement from copper cables and wireless broadband, as well as higher initial investment.

REPORT COVERAGE:

This research report on the global active optical cable market has been segmented and sub-segmented into the following categories.

Active Optical Cable Market - By Protocol:

• InfiniBand.
• Ethernet.
• Serial-Attached SCSI.

InfiniBand is expected to have a prominent share in the Global Active Optical Cable Market during the Forecast Period. InfiniBand is a channel-based fabric that allows coupled nodes to communicate at high speeds. Processor nodes, such as PCs, servers, storage appliances, and peripheral devices, make up an InfiniBand network. Network switches, routers, cables, and connectors are also included. A host channel adapter is installed on each processing node, while a target channel adapter is installed on each peripheral device. The channel paradigm employed by InfiniBand is similar to that utilized by many mainframe computers. A channel adaptor is used to start and stop all transmissions.

Ethernet is expected to have the next prominent share in the Global Active Optical Cable Market during the Forecast Period. Ethernet has since been improved to handle faster bit rates, a larger number of nodes, and longer network distances while maintaining a high level of backward compatibility. A stream of data is divided into smaller chunks called frames by systems communicating over Ethernet. Each frame comprises source and destination addresses as well as error-checking data in order to detect and reject damaged frames; in most cases, higher-layer protocols initiate retransmission of lost frames. Ethernet delivers services up to and including the data connection layer, according to the OSI model. Ethernet is widely used in homes and businesses, and it seamlessly integrates with wireless Wi-Fi technology. Because the Internet Protocol is often sent through Ethernet, it is considered one of the Internet's core technologies.

Active Optical Cable Market - By Form Factor:

• QSFP.
• CXP.

QSFP is expected to have a prominent share in the Global Active Optical Cable Market during the Forecast Period. Pluggable Quad Small Form-factor (QSFP). The QSFP28 variation was published, providing speeds up to 100 Gbit/s, and the closely related QSFP56 was standardized, doubling the top speeds to 200 Gbit/s, with products already on the market from key vendors. SFP transceivers can be installed in a QSFP port with the help of affordable adapters.

CXP is expected to have prominent CAGR growth in the Global Active Optical Cable Market during the Forecast Period. The InfiniBand Trade Association specifies CXP as a copper connector system. It has twelve 10 Gigabit Ethernet channels, three 40 Gigabit Ethernet channels, or twelve 10 Gigabit Ethernet channels, or a single InfiniBand 12 QDR link.

Active Optical Cable Market - By End User:

• Data Centre.
• Consumer Electronics.

The Data Centre segment is expected to have a prominent share in the Global Active Optical Cable Market during the Forecast Period. The copper wire connects two fixed transceiver modules on either end of DACs in both active and passive versions. AOCs, on the other hand, connect permanently attached transceivers with multimode fiber. Both can be used instead of buying individual modules and wires separately.

Active Optical Cable Market- By Region:

• North America
•   Europe
•  Asia Pacific
•   Latin America 
•  Middle East & Africa

North America is expected to have the dominant share in the Global Active Optical Cable Market during the Forecast Period. Because of the presence of mega data centers of technology giants such as Google, Facebook, IBM, and Microsoft, North America will hold the largest share of the industry.

Asia-Pacific is expected to have a prominent CAGR growth in the Global Active Optical Cable Market during the Forecast Period. The demand and growth in China and other countries are responsible for the market's expansion in APAC. The APAC market is still in its infancy, but the region's rapid growth makes it a lucrative and high-potential industry.

KEY MARKET PLAYERS:

Finisar Corporation, TE Connectivity Ltd., Avago Technologies Ltd., FCI Electronics, Molex Incorporated, 3M Company, Emcore Corporation, Shenzhen Giga Light Technology Co., Ltd., The Simeon Company, Sumitomo Electric Industries, Ltd.

RECENT HAPPENINGS IN THE MARKET:

• Extron has announced the release of 8K USB-C video optical cables. Extron has released the USBC Pro 8K series of active, hybrid optical-copper USB-C cables that can simultaneously transfer 8K/30 Display Port AV, USB 2.0 data, and power signals up to 9.1 meters.
• Advanced Interconnect Technologies (AIT), a St. Cloud, Minnesota-based manufacturer and product development firm serving the military, defense, and commercial air and space industries, has signed a definitive agreement to acquire Mobix Labs Inc., a global connectivity solutions provider for wireless mm-Wave 5G and wired high bandwidth cable networks. The terms of the agreement were not disclosed.
• The DVI Gear 4K HDMI Optic Extender is now available. The DVI-7365 is a new high-performance 4K Multiport Optical Extender from DVI Gear, a prominent developer of digital connectivity equipment. They're designed to handle a wide range of signal types and can handle ultra-high resolutions up to 4K (UHD) at 60Hz (4:4:4). They're also designed for applications that demand signal extension over long distances.