Global Active Optical Cables (AOCs) Market Size Likely to Grow at a CAGR of 14.2% By 2033

As per the current market research conducted by the CMI Team, the global Active Optical Cables (AOCs) Market size is expected to record a CAGR of 14.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 8,288.8 Million. By 2033, the valuation is anticipated to reach USD 27,383.2 Million.

Active Optical Cables (AOCs) Market: Growth Factors and Dynamics

• Rising Demand for High-speed Data Transmission: The increasing need for high-speed data transmission in data centers, telecommunications, and cloud computing environments is a significant driver for the AOCs market. AOCs offer faster data transfer rates compared to traditional copper cables, meeting the growing bandwidth requirements of modern applications and driving market growth.

• Advancements in Networking Technologies: Continuous advancements in networking technologies, such as Ethernet, InfiniBand, and Fiber Channel, are fueling the demand for AOCs. These cables support higher data rates, lower latency, and longer reach compared to copper cables, enabling the deployment of high-performance networking solutions in various industries.

• Data Center Expansion and Cloud Computing Adoption: The expansion of data centers and the widespread adoption of cloud computing services drive the demand for AOCs. As data centers scale to accommodate increasing volumes of data and workloads, AOCs provide scalable and flexible connectivity solutions, facilitating high-speed data transfer between servers, switches, and storage devices.

• Demand for High-performance Computing (HPC) Systems: The growth of HPC systems in research, scientific simulations, and artificial intelligence (AI) applications drives the adoption of AOCs. AOCs enable fast and reliable data transmission between compute nodes, accelerators, and storage systems in HPC clusters, supporting the high-bandwidth and low-latency requirements of compute-intensive workloads.

• Advantages over Copper Cables: AOCs offer several advantages over traditional copper cables, including higher data transfer rates, lower power consumption, reduced electromagnetic interference (EMI), and lighter weight. These advantages make AOCs ideal for applications requiring long-distance, high-speed data transmission in data centers, telecommunications, and consumer electronics.

• Growing Adoption in Consumer Electronics: The increasing adoption of high-definition video streaming, virtual reality (VR), and gaming applications in consumer electronics drives the demand for AOCs. AOCs based on HDMI and DisplayPort protocols enable high-speed, high-resolution video and audio transmission over longer distances, enhancing the user experience in home entertainment systems and digital signage applications.

Active Optical Cables (AOCs) Market: Partnership and Acquisitions

• In 2022, II-VI Incorporated introduced the Pluggable Optical Line Subsystem (POLS) in QSFP form factor, tailored for 400ZR/ZR+ transport in data center interconnects. This compact system supports full-duplex multichannel transmission, reducing power consumption and space usage, while ensuring compatibility with widely available sockets.

• In 2021, Broadcom unveiled 100Gbps Multimode AOCs and pluggable optical transceivers enabling high-speed connectivity for modern servers, supporting link speeds up to 100-Gb/s per lane. These innovations address the growing demand for fast and efficient data transmission in server environments.

Report Scope

Active Optical Cables (AOCs) Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Active Optical Cables (AOCs) Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: The COVID-19 pandemic disrupted global supply chains, leading to shortages of critical components and materials required for AOC manufacturing. Delays in production and logistics hindered the availability of AOCs, impacting the market’s growth.

• Reduced IT Spending: Economic uncertainties caused by the pandemic led to reduced IT spending by businesses and enterprises, affecting investments in data center infrastructure and network upgrades. This resulted in a slowdown in AOC procurement and deployment, particularly in industries heavily impacted by the pandemic.

• Resilience in Data Center Expansion: As businesses adapt to remote work and digital transformation initiatives, the demand for data center infrastructure rebounds. Increased investments in cloud computing, online services, and remote collaboration tools drive the deployment of AOCs for high-speed data transmission within data centers.

• Acceleration of 5G Rollout: The rollout of 5G networks accelerates post-pandemic, driving demand for AOCs in telecommunications infrastructure. AOCs support high-speed data transmission between 5G base stations, routers, and core networks, enabling the delivery of low-latency, high-bandwidth services to consumers and businesses.

• Recovery in High-performance Computing (HPC): Recovery in HPC applications, such as scientific research, AI, and simulations, drives demand for AOCs in data-intensive computing environments. AOCs facilitate fast and reliable data transmission between compute nodes, accelerators, and storage systems, supporting the performance requirements of HPC workloads.

• Return of Consumer Electronics Demand: The recovery of consumer electronics demand post-pandemic boosts the adoption of AOCs in applications like high-definition video streaming, gaming, and virtual reality. AOCs based on HDMI and DisplayPort protocols enable high-speed, high-resolution video and audio transmission, enhancing the user experience in home entertainment systems and digital displays.

• Investments in Semiconductor Manufacturing: Investments in semiconductor manufacturing capacity and technology advancements support the production of AOC components, reducing supply chain constraints. Enhanced manufacturing capabilities improve the availability and affordability of AOCs, enabling market recovery and meeting the growing demand for high-speed connectivity solutions.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Active Optical Cables (AOCs) Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Active Optical Cables (AOCs) Market:

• Finisar Corporation
• Molex LLC
• TE Connectivity Ltd.
• Broadcom Inc.
• Mellanox Technologies (now part of NVIDIA Corporation)
• Sumitomo Electric Industries Ltd.
• Siemon Company
• 3M Company
• Amphenol Corporation
• EMCORE Corporation
• FCI USA LLC (a subsidiary of Amphenol Corporation)
• HUBER+SUHNER AG
• Accelink Technologies Co. Ltd.
• Reflex Photonics Inc.
• Timbercon Inc.
• Others

The Active Optical Cables (AOCs) Market is segmented as follows:

By Data Rate

• 10 Gbps
• 25 Gbps
• 40 Gbps
• 100 Gbps
• Others

By Application

• Data Centers
• Consumer Electronics
• High-Performance Computing (HPC)
• Telecommunications
• Automotive
• Others

By Protocol

• Ethernet
• InfiniBand
• Fiber Channel
• HDMI/DisplayPort
• USB
• Others

By Length

• Short Range (up to 100 meters)
• Medium Range (100 meters to 300 meters)
• Long Range (above 300 meters)

By Connector Type

• SFP (Small Form-factor Pluggable)
• QSFP (Quad Small Form-factor Pluggable)
• CXP (InfiniBand CXP)
• CFP (C Form-factor Pluggable)
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

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

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America