Enjoy complimentary customisation on priority with our Enterprise License!
The active optical cable market size is forecast to increase by USD 9.57 billion, at a CAGR of 34.73% between 2023 and 2028. The expansion of data centers is driven by the surge in global Internet traffic, prompting market players to implement mergers and acquisition (M&A) strategies. As Internet usage grows exponentially, data centers are scaling up to accommodate the heightened demand for digital services and cloud computing capabilities. M&A activities among industry players are strategic responses to consolidate resources, expand geographical presence, and enhance service offerings in the competitive landscape of data center infrastructure. These strategies aim to leverage economies of scale, optimize operational efficiencies, and capitalize on emerging market opportunities driven by the increasing reliance on digital connectivity and data storage solutions worldwide.
For More Highlights About this Report, Request Free Sample
Active Optical Cables (AOCs) are a type of high-speed data transmission solution that uses light to transmit data instead of traditional copper cables. The Active Optical Cable Market is witnessing significant growth due to the digitalization trend and the increasing adoption of cloud-based services, 5G networks, and high-performance computing applications. The market is segmented into QSFP, SFP+, InfiniBand, HDMI, and other segments based on connector type. Data centers, high-performance computing, military, aerospace, and consumer electronics are the major end-users of active optical cables. The market is expected to grow at a rapid pace due to the increasing demand for high-speed data transmission in various applications. Active optical cables offer several advantages over copper cables, including lower power consumption, higher bandwidth, and longer transmission distances. Key players in the active optical cable market include Broadcom, InfiniBand, Ethernet, WLAN networks, Software-defined networking, and Network-function virtualization. The market is expected to witness significant growth in the coming years due to the increasing adoption of these technologies in various industries. The COVID-19 pandemic has led to lockdowns and work-from-home policies, which has accelerated the digital transformation trend and increased the demand for high-speed data transmission solutions.
The expansion of data centers is notably driving market growth. Active Optical Cables (AOCs) have gained significant traction in various industries due to their high-bandwidth and low-latency capabilities. These cables are extensively used in telecommunication networks to support high-speed data transfer and real-time applications. In addition, AOCs find extensive use in professional audio, video applications, medical imaging, aerospace systems, defense industries, avionics, satellite communications, and unmanned aerial vehicles. The increasing adoption of high-resolution displays, such as televisions, monitors, projectors, and gaming consoles, in home theater systems and augmented/virtual reality applications, further boosts the demand for AOCs.
Furthermore, the growth of high-performance computing, personal computing, and the Internet of Things (IoT) necessitates the deployment of distributed antenna systems, remote radio heads, and metro, long-haul networks. In the medical field, AOCs are used in computed tomography, ultrasound devices, magnetic resonance imaging, and other advanced medical imaging systems. In the aerospace sector, AOCs are used in various applications, including FTTH, Quad Small Form-factor Plugable (QSFP) transceivers, DisplayPort, and other high-speed interconnects. Thus, such factors are driving the growth of the market during the forecast period.
The adoption of 5G networks is the key trend in the market. Telecommunication service providers and network device manufacturers are exhibiting growing interest in the deployment of 5G networks, which are anticipated to offer a larger bandwidth compared to previous standards like 2G, 3G, and 4G. The 5G telecommunications standard is expected to deliver ultra-fast Internet connectivity with minimal latency, necessitating a flexible spectrum framework, such as an active optical cable. This technology will be crucial for enterprises as the demand for high-bandwidth applications, including movie and music streaming and downloads, continues to surge.
Furthermore, 5G and active optical cable will serve as the foundation and carrier for emerging technologies and applications, such as digital signage, cloud-based solutions, and high-resolution displays in professional audio, video applications, telecommunications, medical imaging, aerospace systems, defense industries, avionics, satellite communications, unmanned aerial vehicles, and various consumer electronics, including high-performance computing, personal computing, televisions, monitors, projectors, gaming consoles, home theatre systems, augmented reality, and virtual reality devices during the forecast period. Thus, such trends will shape the growth of the market during the forecast period.
Complexities involved in wired communication networks is the major challenge that affects the growth of the market. Active optical cables have gained significant attention in various industries, including telecommunication networks, professional audio and video applications, medical imaging, aerospace systems, and defense industries. The use of active optical cables in aerospace, defense industries, and avionics for satellite communications, unmanned aerial vehicles, and avionics systems is crucial due to their high bandwidth and low power consumption. In medical imaging systems, active optical cables are used in computed tomography, ultrasound devices, and magnetic resonance imaging for high-resolution imaging. However, the global active optical cable market faces challenges, such as the complex fault detection process in already installed fiber optic cables. Fault detection in fiber optic cables can be achieved through time-domain reflectometry (TDR) or frequency-domain fault detection (FD) methods. The FD approaches used by companies require expensive testing equipment like oscillators and pulse generators, leading to increased costs. Additionally, the high costs incurred during the installation, workforce, and replacement of wired communication networks reduce the return on investment (ROI).
As a result, network operators are exploring wireless technologies as an alternative, which could potentially impact the demand for active optical cables and hinder the growth of the global active optical cable market during the forecast period. In summary, the active optical cable market is witnessing significant growth due to its applications in various industries, including telecommunication networks, professional audio and video applications, medical imaging, aerospace systems, and defense industries. However, the high costs associated with fault detection and the shift towards wireless technologies could pose challenges to the market's growth during the forecast period. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The data center segment is estimated to witness significant growth during the forecast period. Active optical cables (AOCs) are experiencing significant growth due to the increasing adoption of cloud-based services, digitalization, and the rollout of 5G networks. The QSFP, SFP+, and InfiniBand segments are expected to dominate the market, with applications in data centers, high-performance computing, military, aerospace, and telecom sectors. Broadcom, among others, is a key player in the AOC market. AOCs offer advantages over traditional copper cables, including higher bandwidth, lower power consumption, and longer transmission distances.
Get a glance at the market share of various regions Download the PDF Sample
The data center segment accounted for USD 518.00 million in 2018. In the data center space, AOCs are used for Ethernet, InfiniBand, and other protocols, enabling software-defined networking and network-function virtualization. End users in industries such as digital signage, consumer electronics, automotive, power plants, oil, gas refineries, and WLAN networks also benefit from AOC technology. The technology behind AOCs includes fiber optics, laser diodes, optical fibers, control circuitry, insulating materials, and connectors housed in a durable design. Housing is crucial for protecting sensitive components from environmental factors. The ongoing trend of lockdowns and remote work has further accelerated the demand for high-speed connectivity solutions, making AOCs an essential component in today's digital infrastructure.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Active optical cables (AOCs) have gained significant traction in various industries due to the digitalization trend and the increasing adoption of cloud-based services. The integration of 5G networks and advanced technologies like software-defined networking and network-function virtualization have fueled the demand for high-performance Ethernet protocols, leading to the growth of the AOC market. The QSFP, SFP+, and InfiniBand segments are expected to dominate the market, finding extensive applications in data centers, high-performance computing, and military, aerospace, and telecom sectors.
Moreover, fiber optics technology, comprising laser diodes, optical fibers, control circuitry, insulating materials, and connectors, forms the backbone of AOCs. Key market players, such as Broadcom, are investing heavily in research and development to enhance the capabilities of AOCs and offer solutions that cater to diverse end-user requirements. The HDMI segment of the AOC market is also gaining momentum in consumer electronics and digital signage applications. Furthermore, the automotive sector, power plants, oil, and gas refineries are exploring the benefits of AOCs for their connectivity needs. Despite the challenges posed by lockdowns, the market is anticipated to expand, driven by the increasing demand for faster and more reliable data transmission solutions.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
You may also interested in below market reports:
Active optical cables (AOCs) have emerged as a significant alternative to traditional copper cables in various industries due to their high-speed data transfer capabilities. The market for active optical cables is driven by digitalization and the increasing adoption of cloud-based services, especially in data centers. The proliferation of 5G networks is also expected to fuel the demand for AOCs in the coming years. The AOC market can be segmented into QSFP, SFP+, InfiniBand, HDMI, and other segments based on connector type. The QSFP segment is expected to dominate the market due to its high bandwidth and low power consumption. The InfiniBand segment is also expected to witness significant growth due to its popularity in high-performance computing applications.
Further, end users of active optical cables include data centers, military and aerospace, consumer electronics, personal computer, digital signage, automotive sector, power plants, oil and gas refineries, telecom sector, and others. The technology behind AOCs comprises fiber optics technology, laser diodes, optical fibers, control circuitry, insulating materials, and connectors. The market for active optical cables is expected to grow significantly in the coming years due to the increasing demand for high-speed data transfer in various industries. The COVID-19 lockdowns have also accelerated the digital transformation in various sectors, leading to an increased demand for AOCs. Companies such as Broadcom are at the forefront of this market, offering innovative solutions based on the latest fiber optics technology.
Market Scope |
|
Report Coverage |
Details |
Page number |
145 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 34.73% |
Market growth 2024-2028 |
USD 9.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
25.9 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 52% |
Key countries |
China, US, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Amphenol Corp., Broadcom Inc., Emcore Corp., Fujikura Co. Ltd., Fujitsu Ltd., GIGALIGHT, Hitachi Ltd., International Business Machines Corp., II VI Inc., Koch Industries Inc., Leoni AG, Lumentum Holdings Inc., Optomind Inc., SANWA DENKI KOGYO Co.Ltd., Sopto Technology Co. Ltd., Sumitomo Electric Industries Ltd., TE Connectivity Ltd., The Siemon Co., and Yangtze Optical Fibre and Cable Joint Stock Ltd. Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.