Active Optical Cable Market

The global active optical cable market that surpassed the valuation of nearly U$1.5 Bn in the year 2019 is slated to display a robust CAGR of over 25% during 2023 - 2030.

Market Analysis in Brief

According to the International Energy Agency (IEA), increased video streaming, video conferencing, online gaming, and social networking have caused a whopping 40% rise in worldwide Internet traffic in 2020. Since 2010, the number of Internet users worldwide has doubled, while global Internet traffic has expanded 15-fold or over 30% per year. This expansion comes from the already-rising demand for digital services over the previous decade. This issue is influencing the development of high-speed data centers, where active optical cables and other types of high-speed data transmission cable installation are becoming increasingly common. This will accelerate the worldwide active optical cable market growth.

Key Report Findings

• Global active optical cable market size exceeded US$1.5 Bn in revenue in 2019
• The active optical cable market valuation poised to demonstrate more than 25% growth through 2030 end
• Accelerating deployment rate of data centers to heavily contribute toward market expansion
• High-speed data transmission requirements to underpin rapid demand growth
• The United States International Trade Commission reports the US accounts for nearly 43% of global data centers; North American market thus leads its way

Growth Drivers

Spiraling Data Center Deployments

Thriving demand for active optical cable, attributed to its low power consumption, short bend radius for simple installation, and light weight, is anticipated to propel the expansion of active optical cable market. High-performance computers are only one area where active optical fiber has been found useful. Other potential key areas include networking, and storage with a variety of protocols. Additionally, the active optical cable uses various protocols for data transmission, including USB, InfiniBand, and Ethernet.

Opportunities Abound in Digital Signage

Additionally, rising demand for rugged active optical cables as an alternative to copper and fiber optic cable assemblies, 40g QSFP+ AOC in data centers, and AOC in the market for digital signage are anticipated to open new growth prospects for active optical cable market. Another important factor driving the growth of the market is the increase in the deployment of data centers around the world.

Black Box’s New Launch

A new line of networking active optical cables was introduced by Black Box in June 2020 as part of their solution to optimize data center and edge network applications. With support for SFP, SFP+, QSFP, and QSFP+, these cables will meet the growing need for cloud services, massive data storage, and media streaming. This is expected to fuel the expansion of active optical cable market.

Soaring Demand for High-speed Data Transmission for Improved Connectivity

For the past several years, there has been an increase in the need for high-speed transmission across various industries, including retail, BFSI, consumer electronics, IT and telecommunication. Conventional copper wires, however, have shown to have significant speed and length constraints.

Additionally, copper cables have produced significant EMI interference that impairs the functionality of machinery and medical devices and reduces the cable's resistance to outside noise. Between point-of-sale (POS) systems and peripherals deployed in various locations across a commercial space, such as printers, scanners, display and touch screens, and credit-debit card terminals, an active optical connection reliably transmits high-speed data.

Moreover, active optical cables offer incredibly quick interconnects for transmitting ultra HD video data between players, cameras, monitors, TVs, projectors, and other peripheral devices for the most demanding home and business entertainment installations. These factors increase the demand for active optical cables in retail, IT and telecommunication, and media and entertainment, in turn fueling the expansion of active optical cable market.

Growing Demand for High-performance Computing (HPC) Systems and Equipment

Data communication for storage, networking, and high-performance computing (HPC) applications are accelerated via active optical cables. The demand for HPC computing capacity has been driven by the growth of high-speed data, data-intensive, and AI-enabled applications and use cases. Wing aerodynamics are the subject of intricate simulations in the aerospace industry. All manufacturers conduct intricate simulations to facilitate the testing of new goods before they enter the large-scale development phase.

To detect fraud, fintech companies, and financial regulators undertake extremely complex risk analyses and develop models. HPC has been widely used in genomics to sequence DNA and performs protein analysis. To discover resources, the oil and gas industry heavily relies on high-performance computing (HPC) to carry out specialized assessments such as in-situ, ex-situ, and test reservoir models.

Growth Challenges

Expensive Production and Installation Costs

High manufacturing and implementation costs of active optical cables are among the biggest challenges facing the market. Growth of active optical cable market is expected to be significantly constrained by high manufacturing, maintenance, and repair costs over the projection period. Additionally, these optical cables manufacturing prices are relatively higher due to the use of pricey active components, which harms the market's expansion.

To provide optimal network connectivity across applications such as high-performance computing, consumer electronics, and others, producers have had to raise the price of these cables, which is eventually inhibiting the growth of the active optical cable industry.

COVID-19 Impact

COVID-19 is one of the biggest threats to the global economy since it causes broad concern and financial hardship for consumers, businesses, and communities all around the world. Both society and the global economy are being impacted by the pandemic. The supply chain is being impacted by the pandemic's consequences, which are spreading every day. The supply chain is severely slowing down, the stock market is becoming unreliable, businesses are losing confidence, and the clientele is becoming more anxious. The European countries have suffered a considerable loss of income and business as a result of the closure of manufacturing plants in the area.

Due to the production facilities' stalling and the resulting high demand in the industries, COVID-19 has had a substantial negative influence on the worldwide automotive and industrial sectors. The active optical cable market growth may be hampered by the symptoms, which include a widespread interruption in manufacturing worldwide and a disruption in the export of Chinese parts. The growth rate of market was reduced in 2020 by the introduction of COVID-19, and it is anticipated to develop slowly by the end of 2021. The main cause of this drop in growth pace is the implementation of partial or total lockdown in numerous nations worldwide.

Growth Opportunities

Adoption Spikes Across Consumer Electronics Industry

Demand is fueled by an increase in the usage of active optical cables by various end users, primarily because of features like virtualized connection, and minimized mistakes in the server to switch, switch to switch, and many other high-speed storage applications. The main factors propelling the expansion of active optical cable market is the rising demand for consumer electronics worldwide.

Due to the shrinking of consumer electronics that offer high-quality video resolution displays, there is an increased demand for lightweight, and smaller active optical cables, promoting expansion of active optical cable market. Increasing demand for active optical cables from the energy and electricity, oil and gas, medical, and other sectors is another element anticipated to propel the global market expansion.

Overview of Key Segments

InfiniBand Category Dominates

With rising commercial applications like servers, and supercomputers, the InfiniBand segment currently accounts for the largest market share and will continue to rule the active optical cable market in long term. High-performance computing uses the computer networking communications standard InfiniBand, which boasts extremely high throughput and low latency. It is utilized for data connectivity both within and between computers. High-speed interface bus found in data centers and HPC.

Among other protocols, the InfiniBand protocol is very popular. Among other things, it is highly efficient, supports quality of service (QoS), and is expandable. The use of this protocol's interface in commercial applications like servers and supercomputers is essential to the market expansion.

Growth Opportunities Across Regions

North America Spearheads Both Data Production, and Consumption

It is anticipated that the North American market will account for the largest revenue share. Due to a rise in demand for active optical cables from major data-producing and consuming firms like Facebook, Amazon, Microsoft, and Google, North America is anticipated to account for a significant portion of the active optical cable market during the forecast period. According to the United States International Trade Commission, the United States makes up about 43% of all data centers worldwide.

Due to the development of highly scalable, high-performance CPUs, high-speed, high-capacity memory, storage, and networking, HPC workstations, and supercomputers with parallel data processing capabilities now frequently use active optical cables. In addition, research facilities and businesses rely on HPC for simulation and modeling in various applications, such as autonomous driving, product design and manufacturing, weather forecasting, seismic data analysis, and energy production. The other significant trends include rising urbanization and digitalization, increasing Internet of Things (IoT) penetration, ongoing investments in 4G and 5G communication, advanced factory automation, and rising urbanization.

Asia Pacific, and Europe Reflect High Potential

The adoption of rich media content, digital services like video conferencing and streaming, digital financial services, remote working, cloud technology, big data, AI-driven mechanisms, and enterprise-grade networks are all expected to contribute to rapid expansion of active optical cable market of Asia Pacific, and Europe in the long run. Additionally, the active optical cable provides lightweight fiber, runs with little assistance, and is narrow to allow maximum airflow cooling.

Global Active Optical Cable Market: Competitive Landscape

A few of the players in global active optical cable market players include Avago Technologies Ltd (U.S.) and Finisar Corporation. (U.S.), TE Connectivity Ltd. (Switzerland), Molex Incorporated (U.S.), 3M Company (U.S.), FCI Electronics (Singapore), The Siemon Company (U.S.), Shenzhen Gigalight Technology Co., Ltd (China), EMCORE Corporation (U.S.), and Sumitomo Electric Industries, Ltd. (Japan).

Recent Notable Developments

• In March 2022, the most recent USB type C active optical cable, with a maximum length of 10 meters, was made accessible by Shenzhen City Euroway Technology Co.
  
  
• In August 2020, In the 120G Active Optical Cable (AOC) segment, FS Community recently introduced a new product. The 120GBASE CXP to 3 40G QSFP+ Breakout design of this new AOC fiber cable made it a high performance, low power, long reach connectivity solution that supported 120G Ethernet, Fiber Channel, and PCI-E

Regional Classification of the Global Active Optical Cable Market is Listed Below:

North America

• U.S.
• Canada

Europe

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

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Active Optical Cable Market

• Active Optical Cable Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2019 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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