The global active optical cable market, which achieved a valuation of nearly $1.5 billion in 2019, is poised to experience a remarkable Compound Annual Growth Rate (CAGR) exceeding 25% between 2023 and 2030, according to a comprehensive market analysis. This unprecedented growth is attributed to several key factors reshaping the technology landscape.
Internet Traffic Surge Drives Demand
The International Energy Agency (IEA) reported a staggering 40% increase in worldwide Internet traffic in 2020, driven by the rise in video streaming, video conferencing, online gaming, and social networking. The number of global Internet users has doubled since 2010, with Internet traffic expanding over 30% annually. This surge in digital activity is fueling the expansion of high-speed data centers, where active optical cables play a pivotal role in meeting growing demand.
Key Findings Highlight Market Potential
Key findings from the market analysis include:
- The global active optical cable market exceeded $1.5 billion in revenue in 2019.
- The market is projected to demonstrate more than 25% growth through the end of 2030.
- Rapid deployment of data centers is a significant contributor to market expansion.
- High-speed data transmission requirements are driving increased demand.
- The United States leads the North American market, accounting for nearly 43% of global data centers.
Driving Forces Behind Growth
Several drivers are propelling the expansion of the active optical cable market:
- Spiraling Data Center Deployments: Active optical cables are in high demand due to their low power consumption, easy installation with a short bend radius, and lightweight design. They are utilized in various applications, including high-performance computers, networking, and storage with various protocols.
- Opportunities in Digital Signage: Rugged active optical cables are gaining traction as alternatives to copper and fiber optic cable assemblies. They are being used in data centers and digital signage applications, contributing to market growth.
- Black Boxs Innovation: The introduction of a new line of networking active optical cables by Black Box in June 2020 is expected to drive market expansion. These cables support various protocols and meet the growing demand for cloud services, data storage, and media streaming.
- High-speed Data Transmission: Increasing demand for high-speed data transmission in industries such as retail, BFSI, consumer electronics, IT, and telecommunications is boosting the adoption of active optical cables, which offer reliable and interference-free connectivity.
- High-performance Computing (HPC) Systems: Active optical cables play a crucial role in accelerating data communication for storage, networking, and HPC applications. Industries like aerospace, fintech, genomics, and oil and gas heavily rely on HPC, further fueling market growth.
Challenges and COVID-19 Impact
Challenges facing the market include the expensive production and installation costs of active optical cables, primarily due to the use of costly active components. The COVID-19 pandemic has also had a significant impact, disrupting supply chains and slowing down production. However, the market is expected to recover gradually by the end of 2021.
Despite challenges, growth opportunities abound in the active optical cable market, driven by increased adoption across the consumer electronics industry and rising demand from sectors such as energy, oil and gas, medical, and more.
Key Segments and Regional Outlook
The InfiniBand segment currently dominates the market, thanks to its high throughput and low latency, making it essential for high-performance computing and data connectivity. North America is expected to lead the market, with major tech giants driving demand. Meanwhile, Asia Pacific and Europe reflect high growth potential due to increasing adoption of digital services, cloud technology, and enterprise-grade networks.
Key players in the global active optical cable market include Avago Technologies Ltd, Finisar Corporation, TE Connectivity Ltd, Molex Incorporated, 3M Company, FCI Electronics, The Siemon Company, Shenzhen Gigalight Technology Co., Ltd, EMCORE Corporation, and Sumitomo Electric Industries, Ltd.
The active optical cable market is poised for remarkable growth, driven by the ever-increasing demand for high-speed data transmission and the proliferation of data-intensive applications. As technology continues to evolve, this market is expected to play a crucial role in shaping the digital future.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/active-optical-cable-market
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.