According to a new market report published by Lucintel, the global Active Optical Cable (AOC) market could reach a value of $2.9 billion by 2023. This represents a CAGR of 22.0% from 2018 to 2023.
Lucintel reckons there are attractive AOC opportunities in the datacentre, telecommunications, high performance computing, consumer electronics and other application sectors. The major growth drivers for this market are increasing Internet traffic throughout the world, growth in high performance computing, and increasing penetration of active optical cables in consumer electronic devices.
In this market, Ethernet, InfiniBand, HDMI, PCIe, Thunderbolt, and other AOCs are used to support high speed communication and efficient data transmission in wide range of applications. Lucintel forecasts that Ethernet AOC will remain the largest protocol type; it is also expected to witness the highest growth due to the increasing usage of AOCs for high performance computing and growth in inter- and intra- rack connectivity within a datacentre.
Within the AOC market, the datacentre will remain the largest application. The datacentre is also expected to witness the highest growth due to increasing demand for high speed connectivity between switch racks and server racks. The increasing migration of networks from 3-tier to 2-tier in datacentre architecture will lead to growing deployment of AOC to support high data traffic rate and fast signal transmission.
Quad Small Form-factor Pluggable (QSFP), C Form-factor Pluggable (CFP), Small Form-factor Pluggable (SFP), 10 Gigabit small Form-factor Pluggable (XFP), and other form factor type AOCs are used for high speed data transmission. The QSFP will remain the largest segment, and is also expected to witness the highest growth because of its ability to support a wide range of data rates up to 400G.
North America is expected to remain the largest market due to the presence of the mega datacentres of technology giants such as Google, Facebook, IBM, and Microsoft. Asia Pacific will experience the highest growth over the forecast period, supported by growth in datacentres, high performance computing, and consumer electronic devices.
Emerging trends, which have a direct impact on the dynamics of the industry, include increasing development of AOCs with ultra-small form factors and increased transmission density, increasing demand for optical modules with reduced dimensions and increased port density, and deployment of AOCs in consumer electronic devices such as mobile phones, notebooks and others. Finisar Corporation, FIT-Foxconn (Avago Technologies), Amphenol ICC, 3M, and Hitachi Cables America are among the major manufactures of AOCs.