Active Optical Cable and Extender Market Size - By Protocol (Ethernet, DisplayPort, HDMI, Thunderbolt, USB), By Application (Data Centers, Consumer Electronics, Telecommunications, Industrial, Energy, Medical), Form Factor & Forecast, 2024 – 2032

Active Optical Cable & Extender Market Size

Active Optical Cable & Extender Market was valued at over USD 4 billion in 2023 and is predicted to showcase around 15% CAGR from 2024 to 2032. The increasing trend toward higher data transfer rates and expanded bandwidth is propelling the need for advanced connectivity solutions. This surge is particularly evident in data centers and cloud computing services where Active Optical Cables (AOCs) play a crucial role in facilitating high-speed communication among servers and networking equipment. The surge in demand for 4K displays in gaming, entertainment, and professional fields is also boosting the adoption of AOCs and extenders.
 

These solutions transmit high-quality video over long distances without compromising signal integrity, meeting the needs of IoT device connectivity. Telecom and networking expansion, especially with 5G, is a key growth driver of this market. The gaming industry's reliance on rapid data transmission and the growing use of virtual reality further propel the AOC market growth. Industries requiring lightweight cabling, such as aerospace and military, favor AOCs for their compact size. As manufacturing costs drop and economies of scale come into play, AOCs become cost-effective, widening their application across various industries.
 

The challenge of power consumption in some AOCs, necessitating electric power for signal conversion or amplification, poses significant concerns, particularly in scenarios where power efficiency is important. This issue is particularly relevant in energy-sensitive environments such as data centers, portable electronic devices, and battery-powered applications. In these applications, increased power requirements result in higher operational costs and potential heat generation while conflicting with sustainability goals and green computing initiatives.
 

Active Optical Cable & Extender Market Trends

The active optical cable & extender industry is rapidly evolving due to the surge in data from cloud computing, big data analytics, and streaming services. AOCs and extenders, exceeding 400 Gbps and reaching beyond 800 Gbps, efficiently handle massive data volumes within data centers and HPC. With ongoing technological advancements, such as PAM-4 modulation and silicon photonics, the reduced costs and sizes of AOCs contribute to their adoption across diverse sectors including telecommunications, medical imaging, and industrial automation. This expansion, fueled by government investments in advanced data center infrastructure, presents opportunities and challenges including high initial costs, installation complexity, and security concerns, necessitating continuous innovations.
 

Sustainability is a prime concern in the active optical cable industry with a focus on reduced power consumption to address environmental considerations in the manufacturing process. The adoption of sustainable practices, responsible sourcing, and robust recycling initiatives emerges as imperative for ensuring long-term market success. Collaborative efforts and standardization initiatives within the industry become pivotal, aiming to establish standardized platforms and expedite extensive adoption.
 

Active Optical Cable & Extender Market Analysis

Based on protocol, the market is segmented into InfiniBand, Ethernet, Serial Attached SCSI (SAS), DisplayPort, PCI Express (PCIe), HDMI, Thunderbolt, USB, MIPI, fiber channel, and others. The PCI Express (PCIe) segment held approximately 12% share of the market in 2023.
 

• This protocol type caters to the specific requirements of industries such as data centers, telecommunications, entertainment, and mobile technologies. The offerings of each protocol contribute to the overall flexibility, speed, and reliability of data transmission, catering to the diverse needs of applications and sectors.
   
• PCIe addresses high-performance requirements in applications such as data centers and HPC. It offers unmatched performance, scalability through multi-lane configurations, and flexibility in cabling, particularly crucial for managing increasing data workloads in dynamic environments. The adoption of PCIe 5.0, with its higher bandwidth, further strengthens the position of the PCIe segment, making AOCs and extenders supporting this protocol ideal for demanding applications.
   

Based on application, the active optical cable & extender market is divided into data centers, High-Performance Computing (HPC), consumer electronics, telecommunications, industrial, energy, oil & gas, medical, military/aerospace, and others. The data centers segment is anticipated to register a CAGR of over 16% from 2024 to 2032.
 

 

• The surge in cloud computing, big data analytics, streaming services, and the Internet of Things (IoT) has triggered an unprecedented data explosion. At the core of this digital transformation, data centers play a pivotal role by seamlessly storing, processing, and delivering massive volumes of data. The relentless growth in data demands necessitates robust & scalable data center infrastructures to sustain the evolving digital landscape.
   
• Technological advancements in Artificial Intelligence (AI), Machine Learning (ML), and Virtual Reality (VR) are driving the need for substantial computational power & expanded data storage. The relentless push toward 5G services and the extensive adoption of edge computing further amplify the demand for sophisticated data centers.

Asia Pacific region dominated about 30% share of the active optical cable & extender market in 2023, driven by substantial investments and construction activities. Government initiatives promoting digital infrastructure, coupled with a growing enterprise presence and technological advancements in optical components, further fuel the demand for high-performance connectivity solutions. Competitive pricing, local manufacturing, and a skilled workforce enhance the accessibility & deployment efficiency of AOCs and extenders, solidifying Asia Pacific's position in the market. Additionally, the region's early adoption of emerging technologies is amplifying the need for such connectivity solutions, contributing to sustained market dominance.
 

Active Optical Cable & Extender Market Share

Major participants are focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product developments & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. The market players also heavily invest in research & development to introduce innovative and technologically advanced solutions in the market.
 

Active Optical Cable & Extender Market Companies

Some of the major players operating in the active optical cable & extender industry are:

• Amphenol Communications Solutions
• Broadcom Inc.
• Coherent Corp.
• Corning Incorporated
• Eaton Corporation Plc
• Molex LLC
• T&S Communication Co., Ltd.
   

Active Optical Cable & Extender Industry News

• In October 2023, TE Connectivity and Sumitomo Electric Industries joined forces to develop extended-reach AOCs capable of transmitting data over distances exceeding 100 meters. This collaboration opened possibilities for larger data center layouts and more flexible cabling configurations.
   
• In October 2023, Coherent launched a New Low-Power AOC Series to cater to the rising concern of energy consumption. These energy-efficient solutions consume significantly less power compared to traditional models, contributing to cost savings and reduced environmental impact for data centers.
   

This active optical cable & extender market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Protocol

• InfiniBand
• Ethernet
• Serial Attached SCSI (SAS)
• DisplayPort
• PCI Express (PCIe)
• HDMI
• Thunderbolt
• USB
• MIPI
• Fiber Channel
• Others

Market, By Form Factor

• QSFP
• QSFP-DD
• OSPF/CFP8/COBO
• SFP
• SFP+
• PCIE
• CXP
• CX4
• CFP
• CDFP
• Others

Market, By Application

• Data Centers
• High-performance Computing (HPC)
• Consumer Electronics
• Telecommunications
• Industrial
• Energy
• Oil & Gas
• Medical
• Military/Aerospace
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA