Active Optical Cable Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Protocol, By Form Factor, By End-User Application, By Region & Competition, 2021-2031F

The Global Active Optical Cable Market is projected to expand from USD 3.87 Billion in 2025 to USD 7.15 Billion by 2031, reflecting a CAGR of 10.77%. Active Optical Cables are high-performance interconnects that combine optoelectronic transceivers with fiber optic strands to transform electrical signals into optical data for short-range transmission. The primary catalysts for market growth are the surging demand for bandwidth and low-latency connectivity within hyperscale data centers and high-performance computing sectors. This expansion is further accelerated by the rise of data-intensive workloads, such as artificial intelligence, which require dense and efficient network architectures. According to the Fibre Channel Industry Association, cumulative Fibre Channel port shipments exceeded 160 million in 2024, highlighting the sustained investment in storage networking infrastructures that frequently employ these specialized cabling technologies.

However, a significant obstacle impeding widespread market growth is the considerable cost difference between active optical cables and traditional copper-based Direct Attach Cables. This elevated capital expenditure can discourage adoption in budget-conscious network segments, where shorter transmission distances allow cheaper copper alternatives to perform effectively.

Market Driver

The rapid expansion of cloud infrastructure and hyperscale data centers acts as a primary catalyst for the adoption of active optical cables. As cloud service providers build larger facilities to handle growing data storage and processing demands, the limitations of copper cabling regarding signal degradation and reach become increasingly apparent. AOCs offer necessary reach extension and a reduced cable diameter, which facilitates better airflow and cable management in high-density server racks. This infrastructure boom leads to volume procurement of optical interconnects to link switches and servers. For instance, Amazon Web Services announced an $11 billion commitment in April 2024 to construct a new data center campus in Indiana, illustrating the massive capital flowing into physical network expansion utilizing these interconnects.

Concurrently, the adoption of high-performance computing and artificial intelligence architectures is shifting connectivity requirements. AI training models require immense bandwidth and negligible latency to synchronize operations across thousands of processors, a performance standard where active optical cables outperform traditional solutions. The reliance on high-speed optical fabrics for these workloads is evident in the revenue of major component suppliers; NVIDIA Corporation reported in May 2024 that networking revenue rose 242% annually to $3.2 billion, driven by demand for InfiniBand interconnects. Furthermore, the broader telecommunications sector supports this trend, with Ericsson noting in 2024 that global mobile data traffic reached 151 exabytes per month, reinforcing the systemic need for high-capacity optical transport layers.

Market Challenge

The significant cost disparity between active optical cables and traditional copper-based Direct Attach Cables serves as a major barrier to broader market expansion. Although optical interconnects provide superior reach and bandwidth, the higher capital expenditure required for their deployment limits their adoption to high-end environments where performance justifies the price. In budget-constrained network segments, such as cost-sensitive data centers and standard enterprise server racks, operators often choose copper alternatives that offer adequate connectivity for short distances at a fraction of the investment. This economic gap effectively restricts active optical technology to a niche status within high-performance computing and hyperscale sectors, preventing it from replacing legacy cabling in the general networking market.

The persistent reliance on economical cabling is reflected in global shipment volumes. According to the Ethernet Alliance, the enterprise and campus network markets shipped over one billion Ethernet ports in 2024, the majority of which utilized cost-effective copper-based BASE-T interfaces rather than optical solutions. This overwhelming preference for lower-cost media demonstrates how price sensitivity directly hampers the potential volume growth of the active optical cable sector.

Market Trends

The rise of 1.6T active optical cable technologies marks a critical evolution in network architecture, specifically engineered to resolve bottlenecks in next-generation artificial intelligence clusters. As GPU computing density rises, the industry is moving from 100G-per-lane electrical signaling to 200G-per-lane to achieve total aggregate speeds of 1.6 Terabits per second, effectively doubling interconnect capacity without increasing faceplate volume. This technological advancement relies heavily on the availability of high-speed optical components that can maintain signal integrity at these frequencies. According to Broadcom Inc., the company announced in March 2024 the production release of its 200-Gbps per lane electro-absorption modulated lasers, a foundational technology needed to deploy 1.6T optical interconnects for next-generation GPU fabrics.

Simultaneously, the integration of silicon photonics is becoming essential for addressing the growing energy and thermal challenges within hyperscale data center environments. By utilizing 3D silicon photonics engines, manufacturers can combine hundreds of discrete optical components into a single efficient die, significantly reducing the power consumption required for data transmission. This architectural shift enables data center operators to deploy denser connectivity solutions while meeting strict energy efficiency targets required by green infrastructure initiatives. Highlighting this trend, Marvell Technology, Inc. introduced its 3D Silicon Photonics Engine in March 2024, which delivers 30% lower power per bit compared to similar devices, underscoring the critical role of this technology in future-proofing network sustainability.

Key Market Players

• Finisar Corporation
• TE Connectivity Ltd
• Avago Technologies Ltd
• FCI ELECTRONICS
• FUJITSU LIMITED
• MOLEX INCORPORATED
• 3M COMPANY
• Amphenol Corporation
• Broadcom Inc.
• EMCORE Corporation

Report Scope

In this report, the Global Active Optical Cable Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Active Optical Cable Market, By Protocol

• Display port PCI
• Express (PCIE)

Active Optical Cable Market, By Form Factor

• Cx4
• CFP
• QSFP
• SFP
• CXP
• CDFP
• Others

Active Optical Cable Market, By End-User Application

• Data Center
• Consumer Electronics (CE)

Active Optical Cable Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Active Optical Cable Market.

Available Customizations:

Global Active Optical Cable Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).