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Nov 01, 2024

Active Optical Cable Market is Poised to Grow at Robust CAGR of 18.15% to Reach Staggering Valuation of USD 2,177.68 Million By 2032: Astute Analytica

The active optical cable market is expanding, driven by data center growth, high-speed network demands, and 5G rollouts, yet faces challenges from supply chain volatility and competition from emerging

The active optical cable market is expanding, driven by data center growth, high-speed network demands, and 5G rollouts, yet faces challenges from supply chain volatility and competition from emerging wireless and direct-attach cable technologies.

New Delhi, May 08, 2024 (GLOBE NEWSWIRE) -- The global active optical cable market kicked off 2023 with a valuation of US$ 485.39 million and is forecast to surge past US$ 2,177.68 million by 2032 at an impressive CAGR of 18.15% throughout the forecast period 2024-2032.

Active optical cables (AOCs) are gaining traction due to their ability to transmit data at high speeds over long distances. This is primarily driven by the use of optical fibers which offer superior bandwidth and signal integrity compared to traditional copper cables. The increasing demand for high-bandwidth solutions in various sectors like telecommunication and data centers is a major factor propelling the Active optical cable market growth. The emergence of 5G technology further emphasizes the need for AOCs as they can handle data transmission without compromising performance over longer distances. Additionally, advancements in technologies like software-defined networking (SDN) and network-function virtualization (NFV) are expected to positively impact the global market.

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Data centers are witnessing a significant deployment of AOCs to optimize their infrastructure. AOCs enable high data rates between servers, switches, and storage facilities, leading to improved efficiency. The large-scale adoption of cloud-based services and big data analytics has fueled the demand for fiber optic modules in data centers, and AOCs are a perfect fit due to their high bandwidth capabilities. Cloud computing services, with their inherent need for high bandwidth and processing speed, are another significant driver for AOC adoption.

Beyond data centers, active optical cable market are finding applications in consumer electronics and industrial settings. Their ability to transmit high-quality video and audio signals over long distances makes them ideal for ultra-high-definition displays and virtual reality systems. In industrial environments, AOCs are emerging as a preferred choice due to their high resistance to electromagnetic interference (EMI), making them suitable for harsh conditions.

Future Outlook Looks Promising but Not Without Challenges

The future of the active optical cable market looks promising, with projections estimating a market size to go past US$ 2.23 billion by 2032. Geographically, North America is currently leading the market. However, the Asia-Pacific region is experiencing a surge in demand due to increasing digitalization and focus on better connectivity. Similarly, Europe is witnessing a rise in AOC adoption for industrial applications, contributing to the overall market growth.

Despite the positive outlook, some challenges remain. The high cost of AOCs and a lack of awareness about their benefits can hinder wider adoption. Additionally, the initial investment required for infrastructure upgrades involving AOCs can be substantial. However, considering the advantages offered by AOCs in terms of speed, performance, and reliability, the market is expected to overcome these challenges and experience continued growth in the coming years.

Key Findings in Global Active Optical Cable Market

Market Forecast (2032)

US$ 2,177.68 Million

CAGR

18.15%

Largest Region (2023)

Asia Pacific (35.6%)

By Connector Type

HDMI (34.6%)

By Application

PC (13.8%)

By Distribution Channel

Distributed (83%)

Top Trends

Increasing demand for active optical cable in data centers

Rising adoption of AOC as an alternative to copper cables

Top Drivers

Expansion of active optical cable usage in high-performance computing (HPC)

Growing adoption of cloud computing, virtualization, and 5G technology

Introduction of advanced technologies such as 400G and 800G AOCs

Top Challenges

Supply chain disruptions affecting active optical cable production

Competition from alternative connectivity technologies

Economic uncertainties affecting consumer spending on AOC

HDMI Cable is Unsung Hero of Home Entertainment and Beyond with Over 34.6% Market Share

HDMI cables remain the undisputed champion in the consumer electronics arena across the global active optical cable market. Their dominance is primarily driven by the ever-growing demand for high-definition content consumption. For instance, home entertainment systems have undergone a significant transformation, with smart TVs becoming the centerpiece of living rooms. This expansion, coupled with the popularity of streaming services like Netflix and Amazon Prime (leading to more home theater setups), has significantly boosted HDMI cable sales. The gaming industry has also played a major role, with consoles like PlayStation and Xbox heavily reliant on HDMI connectivity. For instance, more than 46 million units of gaming consols were sold in 2023. Out which, over 22.5 million PS5 were sold. The introduction of the HDMI 2.1 standard further fueled demand, as it supports higher video resolutions (up to 8K) and refresh rates, prompting users to upgrade their cables.

Beyond entertainment, HDMI cables find application in various sectors across global active optical cable market. The rise of 4K and 8K TVs necessitates compatible cables to transmit these high resolutions. The trend of connecting multiple devices like soundbars, gaming consoles, and streaming devices to TVs creates a constant need for HDMI cables. Their presence extends to commercial settings like conference rooms and educational institutions, where presentations and multimedia tools heavily rely on HDMI for connectivity. Affordability is another key factor.

The ubiquity of HDMI cables is further bolstered by the growth of e-commerce platforms, offering convenient purchasing options. The future looks bright for HDMI cables, with the expanding television market (projected to reach USD 230.64 billion by 2028) and the increasing number of smartphone users (over 6 units billion globally) creating a potential for even wider adoption. Even the computer monitor market, expected to reach 130 million units shipped in 2023, often includes HDMI as a standard interface. With the automotive infotainment market projected to reach USD 20.05 billion by 2026, and many of these systems featuring HDMI, HDMI cables ensure a continued strong presence in the home and beyond.

Hybrid Work Models and Digital Infrastructure Fuel PC Demand, Potentially Benefiting Active optical cable market, Contribute Over 13.8% Revenue

While the overall PC market experienced a decline in 2023, with traditional PC shipments expected to fall by 8.2% to around 321.2 million units according to Astute Analytica, there's an interesting contrast within the active optical cable market. Here, PCs remain a dominant player driving AOC adoption. The cautious outlook for the PC market in 2023, influenced by economic factors and potential market normalization, doesn't necessarily translate to a decline in AOC demand within the PC segment. Certain areas, particularly gaming PCs and high-performance workstations, are expected to show resilience. This is significant for the market, as these high-performance machines are prime candidates for utilizing AOCs.

Several trends support the continued dominance of PCs in the Active optical cable market. The continuation of remote and hybrid work models necessitates powerful machines, often requiring the high-speed data transmission capabilities that AOCs offer. Similarly, ongoing investments in digital infrastructure for the educational sector could translate to a demand for PCs equipped with AOCs for enhanced performance. Additionally, technology refresh cycles undertaken by enterprises might include upgrades to AOC-compatible PCs for improved data transfer speeds within their networks.

Companies like Dell and HP report continued strong demand for PCs from businesses adapting to hybrid work models. This aligns perfectly with the potential growth of AOCs in the PC space, as these upgraded business machines often require the high bandwidth and low latency that AOCs provide. Moreover, the gaming PC market remains a bright spot, with the release of new GPUs from NVIDIA and AMD stimulating PC upgrades among enthusiasts. These high-performance machines are prime users of AOCs for their superior data transfer speeds when handling demanding graphics and processing tasks.

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APAC Leads Active optical cable market Charge with Over 35% Revenue Contribution: Data Centers, Cloud, and Consumer Electronics Drive Growth

The active optical cable market is expected to see significant growth in the coming years, with the Asia Pacific (APAC) region leading the charge. Data center investments across APAC countries like China, India, Japan, and South Korea are on a sharp rise. A CBRE report forecasts a staggering 150% increase in data center capacity by 2025 compared to 2020 levels. This data center boom necessitates high-speed data transmission solutions, making AOCs a perfect fit. Additionally, the rapid adoption of cloud computing and Internet of Things (IoT) technologies in the region further strengthens the Active optical cable market. These technologies rely heavily on efficient data transfer, a task that AOCs excel at.

Beyond data centers, APAC boasts a robust electronics manufacturing sector. In 2023, China alone accounted for 30% of the global market share. This strong manufacturing base fuels a high demand for AOCs within the electronics production chain. The consumer electronics market in APAC is another significant driver, valued at a staggering $270 billion in 2022 and projected for an 8.5% annual growth rate. This growth is fueled by the high smartphone penetration in the region. Over 2.8 billion unique mobile subscribers were reported in 2023 (GSMA), representing nearly 65% of the region's population. By 2025, this number is expected to reach 3.8 billion, further amplifying the need for high-speed data transfer solutions like AOCs.

High TV ownership in APAC also contributes to the Active optical cable market's growth. The region holds a dominant 40% share of the global television market. Countries like China and India boast massive TV ownership (over 442 million and 197 million households respectively in 2022), creating a substantial need for high-quality, high-speed connectivity solutions that AOCs provide. The gaming market in APAC is another powerhouse, holding a staggering 49% share of the global market in 2022, with China, Japan, and South Korea leading the way in gaming revenue. This flourishing gaming scene translates to a high demand for high-speed data transfer solutions like AOCs, crucial for handling demanding graphics and processing tasks.

Following APAC, North America holds the second-largest share (over 29%) due to its tech-savvy population and early adoption of advanced technologies like 5G, IoT, and AI. The data center boom in North America, driven by the cloud service surge, further strengthens the Active optical cable market in the region.

Market Key Players:

3M

Amphenol

AVAGOTECHNOLOGIES LIMITED (BROADCOMINC.)

EMCORE (formerly Intel ICC)

FUJITSU

Hitachi Cable, Ltd.

II-VI Incorporated

Koincable

Mellanox

Molex

Siemon Company

Smiths Interconnect

Sumitomo Electric Industries, Ltd.

T&S Communication Co, Ltd.

Zarlink Semiconductor

Other Prominent Players

Market Segmentation:

By Connecter Type

HDMI

DisplayPort

USB

QSFP

SFP

By Application

High-Definition Tv (HDTV)

Personal Computers

Medical Imaging Equipment

Airplane Video Entertainment Systems

Digital Signage

Led Signboards in Pedestrian & Stadium Environments

Home Theaters

Security Systems

Projectors

Game Consoles

Virtual Reality

Videoconferencing Systems

Blu-Ray

Others

By Distribution Channel

Direct

Distributed

By Region

North America

Europe

Asia Pacific

Middle East & Africa (MEA)

South America

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About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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CONTACT: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: [email protected] Website: https://www.astuteanalytica.com/