The global active optical cable market is expected to reach US$ 15.21 Bn by the end of 2031
Introduction of novel technologies and innovation across automation, precision, and electronics industry verticals is boosting the development of active optical cable products based on various protocols, such as HDMI AOC cable, USB AOC cable, and AOC Ethernet cable, thus creating significant opportunity for the active optical cable market and active optical cable manufacturers & suppliers. Active optical cables are available in various form factors such as QSFP, QSFP DD, SFP, SFP+, CXP and Others (Mini SAS HD, CFP, etc.) QSFP and QSFP+ cables are 4 channel, small form factor fiber optic transceivers. A QSFP28 cable is a hot-pluggable transceiver that is developed for 100G data rates. These AOC connectors are reliable, cost-effective, and ideal for high density signal transmission. QSFP28 active optical cables are primarily utilized in data centers and high performance computing (HPC) applications that require cable lengths of up to 100 meters.
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According to IEA, global internet traffic surged by over 40% in 2020, driven by increased video streaming, video conferencing, online gaming, and social networking. This growth came on top of the last decade’s already-rising demand for digital services since 2010, the number of internet users worldwide doubled, while global internet traffic increased 15-fold, or ~30% per year. This factor is contributing in the growth of high speed data centers where installation of high speed data transmission cables, such as active optical cables, is increasing considerably.
Demand for high-speed transmission has been growing in various industries such as retail, BFSI, consumer electronics, and IT & telecommunication, for the last few years due to increasing image & sound resolution and fast speed communication. However, conventional copper cables have showcased their limitations in transmission of fast speed and length. Additionally, copper cables have generated excessive EMI interference that affects functioning of medical equipment and machine tools and degrades the cable’s immunity to external noise.
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An active optical cables delivers reliable high-speed data between point-of-sale (POS) systems and peripherals such as printers, scanners display & touch screens, and credit-debit card terminals installed in scattered locations within a commercial space.
Active optical cables also provide super-fast interconnects for transferring ultra HD video files between players, cameras, displays, TVs, projectors, and other peripheral devices for cutting-edge content generation and broadcasting systems for the most demanding home and commercial entertainment installations.
These factors are boosting the demand for active optical cables in retail, IT & telecommunication, media & entertainment industries.
Surge in Demand from High Performance Computing (HPC) Systems and Devices
Active optical cables accelerate data connectivity for storage, networking, and high- performance computing (HPC) applications. The proliferation of high speed data, data-intensive, and AI-enabled applications and use cases has been driving the demand for the computing power of HPC.
The aerospace industry performs complex simulations around wing aerodynamics. All manufacturers run complex simulations to support the testing of new products before they enter large-scale development. Fintech firms and government authorities in finance run highly complex risk analyses and create models to help them spot fraud.
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In genomics, HPC has been used extensively to sequence DNA and run protein analyses. The oil & gas sector depends extensively on high performance computing (HPC) to perform special analyses such as in-situ, ex-situ, and test reservoir models in order to locate resources.
In retail businesses, customer data has presently reached massive levels where HPC is helping retailers maintain data from each individual customer, at every single touchpoint of their buying journey. Large retailers can currently create entire predictive forecast models that would transform their approach to making decisions to announce offers and discounts during season. These factors are expected to contribute to the growth of the active optical cable market.
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