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Active Optical Cable Market- Increase in demand for high speed data transmission for superior connectivity drive growth with valuation US$ 15.21 Bn by the end of 2031

10-31-2022 05:46 AM CET | IT, New Media & Software

Press release from: Transparency Market Research

Active Optical Cable Market- Increase in demand for high speed

An active optical cable (AOC) & its assemblies are used in diverse applications in IT & telecommunication, aerospace & defense, automotive, consumer electronics, BFSI, retail, media & entertainment industries as it is an alternative to conventional high-bandwidth optical solutions. Emphasis on high port density and configurability, longer reach than passive copper cables in the data centers, and easy installation and replacement boost the popularity of active optical cables. Technology trends such 5G network, artificial intelligence, cloud computing, big data analytics, IoT, and cyber security are contributing to the development of active optical cables due to high-speed data consumption. Macroeconomic factors such as competitive broadband market, cybersecurity risk management and multi-access edge computing, and private cellular networks offer significant opportunity for the active optical cable market. Thus, a rise in the demand for faster data transmission with low latency is estimated to fuel the growth rate of the active optical cables & transceivers market during the forecast period.

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Active Optical Cable Market

Global Active Optical Cable Market Introduction
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.

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.

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Increase in demand for high speed data transmission for superior connectivity
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.

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.

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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Regional Outlook of Global Active Optical Cable Market

In terms of region, the global active optical cable market can be divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to hold a prominent share of the active optical cable market during the forecast period due to an increased demand for active optical cables from leading data producing and data consuming companies such as Facebook, Amazon, Microsoft, and Google.

According to United States International Trade Commission, the U.S. accounts for approximately 43% of total data centers global. The advent of highly scalable, high-performance processors, and high-speed, high-capacity memory, storage, and networking has meant that an active optical cable is widely utilized in HPC workstations and supercomputers with parallel data processing capabilities with.

Furthermore, rising urbanization & digitalization; increasing penetration of the internet of things (IoT); running investment in 4G & 5G communication & advanced factory automation; and research labs and businesses dependencies on HPC (High Performance Computing) for simulation and modeling in diverse applications, including autonomous driving, product design and manufacturing, weather forecasting, seismic data analysis, and energy production, are some of the other major factors boosting the active optical cable market in North America.

The active optical cable market in Asia Pacific and Europe is expected to expand at a significant rate during the forecast period due to a rise in high speed data consumption for online education, remote working, loud technology, big data, artificial intelligence-drive mechanisms, and enterprise-grade networks to support the digital transformation revolution, adoption of rich media content, digital services such as video conferencing and streaming, digital financial services, and e-commerce in order to meet consumers' evolving digital lifestyles.

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Analysis of Key Players in Active Optical Cable Market

Taking the electronics and semiconductor industry into consideration, the market for the active optical cable is fragmented, as few number of players are catering to the global demand. Key players operating in the global active optical cable market include Amphenol Corporation, 3M Company, Molex, LLC, FS.COM Inc., Sumitomo Electric Industries, Ltd (Sumitomo Electric Group), and Hitachi Cable, Ltd.

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About Transparency Market Research

Transparency Market Research is a global market research reports company providing business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyze information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

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