Active Optical Cable Market Forecasts to 2028 - Global Analysis By Protocol, By Form Factor (Quad Small Form Factor Pluggable, Small Form-factor Pluggable and Other Form Factors), By Bit Rate, By Application, By End User and By Geography

According to Stratistics MRC, the Global Active Optical Cable Market is accounted for $2644.4 million in 2022 and is expected to reach $8507.3 million by 2028 growing at a CAGR of 21.5% during the forecast period. In order to receive and enhance signals using fibre optic cables, active optical cables are transceiver products that have active electrical and optical components. These cables are made up of modules, transceivers, control chips, and multimode optical fibre. They transform electrical impulses into optical signals so that data and video communications can be sent between sources and displays across both long and short distances. Personal computers, data centres, digital billboards, consumer electronics, and high-performance computing all make extensive use of active optical cables.

According to the Economic Affairs Division (EAD), China has invested $11.24 million to establish a cross-border optic fiber cable for high-speed international connection.

Market Dynamics:

Driver:

Rise in the adoption of active optical cables

The market demand for Ethernet-based optical cables is being fueled by the rise in the adoption of active optical cables based on Ethernet protocols by various end users, primarily due to features like offering virtualized connectivity and minimising errors within switch to switch, server to switch, and many other high-speed storage applications. These optical cables can also provide strong EMI resistivity, which makes them an ideal solution for a variety of end-use applications in demanding industrial environments. These optical cables are becoming increasingly popular in a variety of applications, including high-speed control and data systems, aircraft system ground stations, avionics system controllers, and others.

Restraint:

High manufacturing and implementation costs

Active optical cables' high manufacture and implementation costs are some of the main issues the sector is experiencing. Active optical cables' market growth 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 expensive active components, which has a negative effect on the market's expansion. In order to provide optimal network connectivity across applications such as high-performance computing, consumer electronics, and others, manufacturers had to raise the price of these cables, which is eventually limiting the growth of the active optical cable industry.

Opportunity:

Increasing demand from data center industry

One of the factors propelling the growth of the active optical cable market is the increase in data centre deployments across the globe. The global market for active optical cables is expanding as they are increasingly used in data centres, high-performance computing, and other applications. Active optical cables are used in data centres with a concentration on high-speed transmission, including InfiniBand, 40 Gbps, and 100 Gbps. Active optical cable connects switches, servers, and storage in the data centre, which is required for a broad range of fibre optic modules.

Threat:

High initial cost

The substantial initial investment required is limiting the expansion of the active optical cable market. In order to transport data across optical cables with less interruptions, embedded solutions including small form factors, ambient light sensors, and optical transceivers are very useful. As a result, the rising cost of these solutions influences the cost of AOC installation. Compared to copper lines, optical cables are more expensive.

COVID-19 Impact:

Concern over the stock market, a major slowdown in the supply chain, a decline in company confidence, and an increase in panic among client segments are results of the COVID-19 crisis. The overall effects of the pandemic have an impact on various industries, like semiconductors and electronics that manufacture their products. Demand and supply are being further hampered by trade barriers. The overall production process has suffered as a result of the government's declarations of total lockdown and temporary suspension of industries in various countries.

The infiniband segment is expected to be the largest during the forecast period

Due to InfiniBand's ability to support peripheral devices including servers, network switches, and hubs at high speeds and without latency, it is anticipated that this segment is expected to hold the largest share during the projection period. Bidirectional serial buses called InfiniBands may send and receive data simultaneously. AOCs regularly employ InfiniBand protocols.

The data center segment is expected to have the highest CAGR during the forecast period

The category of data centres is estimated to experience the highest CAGR over the forecast period due to the growing demand for high-speed connectivity between switch racks and server racks. Moreover, active optical cable will be increasingly deployed to accommodate high data traffic rates and rapid signal transmission as networks in data centre architecture migrate from 3-tier to 2-tier configurations. However, InfiniBand and Ethernet have witnessed tremendous growth in their use in data centres.

Region with largest share:

Due to the increasing penetration of various multimedia and audio/video devices, North America accounted for the largest share of the active optical cable market over the estimated period. The United States has the highest adoption of AOC. Additionally, the AOC sector is expected to grow as a result of developments in display technology. Moreover, the use of laptops, display systems like display screens, LED displays, and others, as well as the use of AOC cables for output, has increased significantly in North America.

Region with highest CAGR:

Because of growing connection demands and increased use of 3G, 4G, and 5G services in countries like China and Japan, the Asia-Pacific region is anticipated to expand at the highest rate over the projected period. Furthermore, demand is increasing from countries like China and Japan as a result of the increased use of 4G and 5G services and the need for a better connection. As a result of market competition, a number of suppliers have developed innovative technologies and new product designs.

Key players in the market

Some of the key players in Active Optical Cable market include: 3M company, Molex Incorporated, Finisar Corporation, EMCORE Corporation, The Siemon Company, TE Connectivity Ltd, Shenzhen Gigalight Technology Co.,Ltd, Sumitomo Electric Industries, Ltd, FCI Electronics and Avago Technologies.

Key Developments:

In April 2021, Finisar (II-VI Incorporated) opened its new R&D center in Shanghai. The center will include various talents, including senior scientists and engineers. The R&D will be involved in the design and development of subassemblies and systems.

In August 2020, Avago Technologies Ltd (Broadcom Inc) signed an agreement to acquire Newport Communication Inc., a California-based semiconductor company. Broadcom will provide the next-gen 1-Gb Ethernet network communication technology and help expand its wide range of WAN infrastructure products through the agreement.

Protocols Covered:

• Infiniband
• Ethernet
• Displayport
• Serial Attached SCSI
• PCI Express
• High-Definition Multimedia Interface (HDMI)
• Thunderbolt
• Universal Serial Bus (USB)
• Other Protocols

Form Factors Covered:

• Quad Small Form Factor Pluggable (QSFP)
• Small Form-factor Pluggable (SFP)
• Content Experience Platforms (CXP)
• Certified Financial Planner
• Certified Divorce Financial Practitioner (CDFP)
• Other Form Factors

Bit Rates Covered:

• 2 Gbps-25 Gbps
• 26 Gbps-50 Gbps
• 51 Gbps-100 Gbps
• Above 100 Gbps

Applications Covered:

• Broadcasting
• Enterprise Storage
• Aerospace & Defense
• Automotive & Transportation
• Media & Entertainment
• Banking, Financial Services and Insurance (BFSI)
• Retail
• Other Applications

End Users Covered:

• Data Center
• High Performance Computing
• IT & Telecommunication
• Consumer Electronics
• Personal Computing
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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