Active Optical Cable & Extender Market Size, Share

Updated on : Oct 22, 2024

Active Optical Cable & Extender Market Size & Growth

Reliability of AOCs than traditional copper cables, Large-scale adoption of cloud-based services drives market growth during the forecast period. Factors such as digitalization and 5G network rollouts provide market growth opportunities for the active optical cable & extender industry.

Active Optical Cable & Extender Market Forecast to 2028

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Active Optical Cable & Extender Market Trends

Driver: Widespread adoption of 4K and 8K video technologies

4K and 8K video technologies have become widespread across industries, such as broadcasting, gaming, medical imaging, and digital signage. This has resulted in a significant increase in demand for high data rates and extended transmission distances. To address these requirements, AOCs & extenders have emerged as critical solutions. These advanced optical interconnects offer seamless and reliable transmission of high-resolution video signals over longer distances, ensuring that the quality and integrity of the video content remain uncompromised.

Traditional copper-based cables may face limitations in data transfer capacity and signal degradation over distance. AOCs overcome these challenges by utilizing optical fiber technology, providing high bandwidth capabilities and immunity to electromagnetic interference. This enables industries to leverage the full potential of ultra-high-definition video technologies, enhancing visual experiences and enabling innovative applications across various sectors.

In addition, integrating 4K and 8K video technologies involves intricate home theater setups with components placed across various locations. AOCs and extenders play a crucial role by facilitating extended reach and flexibility in connecting different devices, screens, and audio systems within these setups. Optical fiber technology’s immunity to electromagnetic interference and signal degradation ensures that the intricate network of devices remains reliably connected, eliminating the risk of pixelation, artifacts, or disruptions that could diminish the cinematic impact of 4K and 8K content.

As consumers increasingly invest in cutting-edge home entertainment systems to elevate their viewing pleasure, AOCs and extenders emerge as indispensable enablers. They ensure the seamless transmission of high-definition content and contribute to the widespread adoption of these advanced video technologies.

Restraint: High power consumption

Power consumption is critical when choosing between active optical cables (AOCs) and direct attach copper cables (DACs). AOC cables tend to have higher power requirements than DAC cables. AOCs typically consume around 1–2 watts of power, while DAC active cables have a lower power consumption of less than 1 watt. Additionally, passive DAC cables have an even lower power consumption, usually below 0.15 watts, due to their efficient thermal design.

AOCs incorporate optoelectronic components, such as laser diodes and photodetectors, within their connectors to convert electrical signals into optical signals for transmission over the optical fiber. These components require power to operate and facilitate the signal conversion process. Power consumption can become a concern in data centers where large numbers of AOCs may be deployed to interconnect network components. Data centers strive to optimize their energy usage to reduce operational costs and minimize their environmental footprint. High power consumption from AOCs could contribute to increased cooling requirements and energy consumption, impacting the overall efficiency of data centers.

Opportunity: Digitalization and 5G network rollouts

Various nations are adopting cutting-edge technologies to improve their data connectivity. The digital revolution is undergoing in emerging countries, such as India, influenced by government initiatives. However, the data rates in these countries are still low than developed economies in Europe, North America, and East Asia. Substantial investment in data centers and other infrastructures is expected to improve the overall data transmission speeds. These factors could provide an opportunity for manufacturers of AOCs as they provide the fastest data exchange rates within data centers.

The rollout of 5G networks requires advanced interconnect solutions to support the higher data rates and lower latency demands. Active optical cables and extenders can enhance the connectivity between 5G base stations and other network elements. As 5G networks expand globally, the demand for AOCs and extenders in this sector is expected to grow.

Challenge: Lack of IT expertise

The installation and maintenance of AOCs and extenders require certain technical skills and expertise, as they involve dealing with advanced optical fiber technology and optoelectronic components. AOCs use optical fibers to transmit data, which requires precise handling and alignment during installation. Improper handling or misalignment can lead to signal loss or degradation, impacting the cable performance.

Additionally, AOCs and extenders often need to be integrated into existing network infrastructures, which can be complex and require specialized knowledge of networking protocols and configurations. Ensuring seamless integration and compatibility with other network components is crucial for the smooth functioning of the entire system.

Moreover, troubleshooting and maintaining AOCs and extenders may require specific troubleshooting skills, as identifying and resolving issues related to optical signals can differ from traditional copper-based cables. A shortage of professionals with the necessary expertise to handle AOCs and extenders effectively could slow their adoption in various industries. Organizations may need to invest in training their IT staff or seek external experts, which could increase the overall deployment costs and implementation timelines.

Active Optical Cable & Extender Market Ecosystem

The active optical cable & extender market is fragmented. It is marked by the presence of a few tier-1 companies, such as Coherent Corp.(US), Broadcom (US), Amphenol Communications Solutions (US), Corning Incorporated (US), and TE Connectivity (Switzerland). These companies have created a fragmented ecosystem by investing in research and development activities to launch highly efficient and reliable active optical cable & extender solutions.

Active Optical Cable & Extender Market Share

Active optical cables segment to witness the highest growth during the forecast period

The requirement of AOC was driven by the need to replace copper technology in data centers and high-performance computing settings. Traditional copper cables faced limitations regarding data rates and reach, particularly as data centers expanded in size.

The rise in data rates, exemplified by the InfiniBand Double Data Rate (DDR) of 20 Gigabits per second (Gbps), made copper cables impractical for larger clusters due to their restricted reach. AOC emerged as a solution, offering longer transmission distances, higher bandwidth, and enhanced reliability. Furthermore, AOC’s resistance to electromagnetic interference (EMI) and radio-frequency interference (RFI) made it an ideal solution for high-density environments.

PCI Express (PCIE) segment to exhibit the highest CAGR between 2023 and 2028.

The PCI Express (PCIe) protocol aids a high-speed serial IO designed to provide connections between peripherals (graphics cards, memory/disk drives, external IO cards) and the central processing unit (CPU). AOCs use PCIe to connect servers, switches, and storage elements.

They can lower overall system costs by reducing or eliminating the number of protocol conversion chips. They interfaced with PCIe and are used in data centers, HPC, and consumer electronics. PCIe active optical cables have several advantages, including high bandwidth, low weight, immunity to EMI interference, and ruggedness of electrical connector interface. Therefore, it can also be used in avionics applications. The most common versions of PCIe are PCIe 1.0, PCIe 2.0, PCIe 3.0, PCIe 4.0, and PCIe 5.0, each offering faster data rates. The version number indicates the data rate per lane, with the latest PCIe 5.0 supporting a data rate of 32 GT/s (Giga transfers per second) per lane.

QSFP segment to dominate the active optical cable & extender market during the forecast period

QSFP modules are high-density transceiver modules used in networking and data communication applications. They provide a compact and efficient solution for transmitting high-speed data, typically over fiber optic cables, in various network environments, including data centers, telecommunications, and high-performance computing. They feature four independent transmit and receive channels, enabling them to reach data rates of 40 Gbps (Gigabits per second). This increased capacity makes QSFP modules particularly valuable for bandwidth-intensive tasks, such as large-scale data transfers, high-definition video streaming, and cloud computing.

Active Optical Cable & Extender Market Regional Analysis

Asia Pacific to grow at the fastest CAGR during the forecast period.

Asia Pacific has witnessed high growth in the active optical cable & extender market, driven by the rapid expansion of data centers and cloud computing facilities. This has increased the demand for high-speed, reliable, and efficient connectivity solutions, propelling the adoption of AOCs and extenders. As businesses and consumers increasingly rely on online services, seamless data transmission and reduced latency have become paramount. AOCs and extenders offer a compelling solution to address these demands. The proliferation of high-definition content, virtual reality (VR), and augmented reality (AR) applications have also contributed to the growth of this market, as these technologies require enhanced bandwidth and consistent signal quality.

Countries, such as China, Japan, South Korea, and India, have witnessed robust industrial growth, leading to increased investments in technology infrastructure. As these nations embrace Industry 4.0 initiatives and advanced manufacturing processes, the demand for high-performance connectivity solutions has surged, driving the adoption of AOCs & extenders. Moreover, the emergence of this region as a global hub for electronics manufacturing has fuelled the production and distribution of consumer electronics, boosting the need for efficient data transmission solutions. This trend is expected to continue as Asia Pacific economies invest in developing smart cities and digital infrastructure.

Active Optical Cable & Extender Market by Region

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Top Active Optical & Extender Companies - Key Market Players

The active optical cable & extender companies is dominated by globally established players such as

• Coherent Corp.(US),
• Broadcom (US),
• Amphenol Communications Solutions (US),
• Corning Incorporated (US),
• TE Connectivity (Switzerland),
• 3M (US),
• Molex (US),
• Sumitomo Electric Industries Ltd.(Japan),
• Dell Inc.(US),
• Eaton (Ireland),
• EverPro Technology Co., Ltd. (China),
• Alysium-Tech GmbH (US),
• Mobix Labs Inc. (US),
• Unixtar Technology, Inc. (Taiwan),
• IOI Technology Corporation (Taiwan),
• GIGALIGHT (China), Siemon(US), Koincable (China), Black Box (US), ATEN INTERNATIONAL Co., Ltd. (Taiwan), T&S Communication Co, Ltd. (China), ACT(Netherlands), APAC Opto Electronics Inc. (Taiwan), Shenzhen Sopto Technology Co., Ltd., (China), Anfkom Telecom (China), Extron (US), and Roctest (Canada). These players have adopted product launches/developments, contracts, collaborations, agreements, and acquisitions for growth in the market.

Scope Active Optical & Extender Market Report Scope

Active Optical Cable & Extender Market Highlights

The study categorizes the active optical cable & extender market-based product, protocol, form factor, application, and region.

Recent Developments in Active Optical Cable & Extender Industry

• In March 2023, Broadcom (US) unveiled BCM85812, a transceiver optimized for 800G DR8, 2x400G FR4, and 800G AOC module applications. It enables high-performance and efficient active optical cable solutions for hyper-scale data centers.
• In February 2022, II-VI Incorporated (US)  launched Pluggable Optical Line Subsystem (POLS) in the QSFP form factor, designed for 400ZR/ZR+ transport in data center interconnects. This compact system supports full-duplex multichannel transmission, reducing power consumption and space usage while remaining compatible with widely available sockets.
• In June 2021, Broadcom (US)  introduced 100Gbps Multimode AOCs and pluggable optical transceivers that connect modern servers and support link speeds up to 100-Gb/s per lane.

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