Segments - Active Optical Cable Market by Technology (Ethernet, DisplayPort, HDMI, USB, InfiniBand, and Others), Connector Type (SFP, QSFP, CDFP, CXP, and CFP), Application (High-Performance Computing, Data Center, Digital Signage, Personal Computer, and Consumer Electronics), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
The global active optical cable market size was USD 7.10 Bn in 2022 and is likely to reach USD 13.72 Bn by 2031, expanding at a CAGR of 7.6% during 2023–2031. The market growth is characterized by the rising high-speed data consumption by consumers and digital transformation of the industrial processes.
In the digital era, consumers are demanding high-speed data connectivity to access services such as e-commerce, healthcare, and banking on online platforms. Optical communication networks serve as a viable option for telecom service providers to cater to the needs of consumers and create a digitally equitable society. The optical communication network comprises a data originator, optical transmitter, modulator, transmission channel, and receiver. The transmission channels include either coaxial cables or active optical cables.
An optical fiber transmits information coded in the form of light. The data in the form of an electrical signal is converted into an optical signal or light with the help of converters at the transmitting end. This optical signal is then fed to the optical cable and converted back into an electrical signal at the receiving end of the optical transceiver.
The information travels over long distances with low signal loss and high bandwidth. In the active optical cables glass strands, about the size of human hair are used as a refractive surface. These strands are encapsulated inside a plastic jacket. Information coded in the form of light travels down an active optical cable repeatedly bouncing off the walls of the cable.
Rising adoption of digitally enabled systems globally is anticipated to drive the market. Growing number of smartphone users, integration of digital technologies in consumer electronics appliances, the digital transition of industrial processes, and digitally-enabled services in the public sector work on an optical communication network as a backbone. Furthermore, public and private organizations are adopting network function virtualization (NFV) and software-defined networking (SDN) which is anticipated to drive the growth of the optical communication market.
Government initiatives to build robust and high-capacity telecom networks are expected to drive the market. Governments are building high-capacity telecom networks that facilitate public services efficiently. Data transfer rates for public services applications are high. The government relies on optical communication for high data transfer operations. Active optical cables serve as an efficient transmission medium for data transfer.
The high cost of active optical cables and associated costs for the maintenance of the network are likely to restrain the market. Active optical cables are relatively expensive compared to conventional mediums such as coaxial cable and copper. The maintenance cost of active optical cables is high as it requires skilled professionals and instruments such as optic fiber splicers, testers, and cleaner to monitor and maintain the active optical cable network.
The 5G network expansion and supportive infrastructure for high-speed data transfer are likely to create significant opportunities for the market. The active optical cables offer high performance and bandwidth with low power consumption. Moreover, active optical cables do not require an external optical transceiver and are resistant to electromagnetic interference. Telecom service providers are increasingly using active optical cables due to their ruggedness and high adaptability.
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes |
Details |
Report Title |
Active Optical Cable Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2016–2021 |
Forecast Period |
2023–2031 |
Segmentation |
Technology (Ethernet, DisplayPort, HDMI, USB, InfiniBand, and Others), Connector Type (SFP, QSFP, CDFP, CXP, and CFP), and Application (High-Performance Computing, Data Center, Digital Signage, Personal Computer, and Consumer Electronics) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report |
TE Connectivity; NVIDIA Corporation; 3M; Coherent, Inc.; Broadcom; Eaton; Siemon; TC Communications, Inc.; and Proterial Cable America, Inc. |
Based on technology, the active optical cable market is divided into ethernet, displayport, HDMI, USB, InfiniBand, and others. The InfiniBand segment is expected to expand at a significant growth rate during the projection period owing to its efficiency and scalability in telecom networks. The InfiniBand protocol is used in commercial applications such as supercomputers and servers.
On the basis of connector type, the active optical cable market is segmented into SFP, QSFP, CDFP, CXP, and CFP. The QSFP segment is expected to register a robust growth rate during the forecast period due to the high-density signal transmission in high-performance computing applications and data centers. QSFP is designed for low power consumption and extended transmission capacity.
On the basis of application, the active optical cable market is segmented into high-performance computing, data center, digital signage, personal computer, and consumer electronics. The consumer electronics segment is expected to register a robust growth rate during the forecast period owing to the rising miniaturization of consumer electronics appliances. Active optical cables are compact and lightweight and hence are preferred to be integrated into consumer electronic appliances.
In terms of region, the global active optical cable market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period owing to the rising number of data centers, high computing requirements, and digital transformation in the public and private sectors. The region houses the majority of social networking and data-sharing companies. The integration of digital technologies in consumer electronic appliances is also boosting the market in the region.
The active optical cable market has been segmented on the basis of
Key players competing in the global active optical cable market are TE Connectivity; NVIDIA Corporation; 3M; Coherent, Inc.; Broadcom; Eaton; Siemon; TC Communications, Inc.; and Proterial Cable America, Inc.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,