The global optical cable market size would cross USD 15.9 billion by 2032. It would expand at a CAGR of 19.5% from 2022 to 2032. Overall active optical cable demand reached a valuation of USD 2.7 billion in 2022.
Glass fiber strands are the main component of fiber optic cables. These are housed in an insulated casing. They are made for telecommunications and long-distance, high-performance data networking.
Fiber optic cables have a higher capacity and can carry data over greater distances, as compared to conventional wires. The world wide web, cable & satellite, and telephone services are all supported by fiber optic lines.
Bandwidth demand is anticipated to continue to remain high, in part due to demand for ground-breaking applications. These include improved quality media, virtual reality, and other technologies.
The demand will keep driving up the price of fiber-based optical spectrum. They might eventually be inadequate for meeting the needs of future networks. Fiber standards such as G.652 and G.657 are crucial for network architects in setting the minimum performance parameters.
The Foundation of the internet is made up of submarine cables, according to the submarine cable map from TeleGeography. A total of 350 undersea cables connect 100 nations over 1.2 million kilometers.
The world of submarine cables is changing quickly, according to SubmarineNetworks.com. Investments totaling USD 8 billion were planned between 2019 and 2021.
Optical fibers have also been shrinking as a result of deployment issues that diverse applications have brought up. Cable makers are spending on research and development. They aim to produce small-sized cables since telecom operators are striving for high fiber count cables with low dimensions.
A vital part of the network infrastructure is optical fiber cable. For the past ten years, fiber optics, especially those employed by telecommunications companies, have been able to meet increasing bandwidth needs. They are currently regarded as the preferred transmission mechanism.
| Attributes | Key Insights |
|---|---|
| Active Optical Cable Market Estimated Size (2022E) | USD 2.7 billion |
| Projected Market Valuation (2032F) | USD 15.9 billion |
| Value-based CAGR (2022 to 2032) | 19.5% |
| USA Value-based CAGR (2022 to 2032) | 18.2% |
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As per a report by Future Market Insights, active optical cable demand surged at a CAGR of 23.4% during the historical period. It would exhibit a CAGR of 19.5% from 2022 to 2032.
By utilizing optical fiber in connections, an active optical cable increases the efficiency of cables. Due to their durable construction, these are frequently employed in high-speed monitoring and data technologies.
These also find usage in avionics ground stations and avionics system integrators. Expanding bandwidth requirements, extensive data center construction, and rising use of digitization are likely to aid demand. Expansion of cloud-based services is also driving the active optical cable market.
Ethernet technology has been at the forefront of incorporating active optical cables in recent years. Demand for Ethernet technology has increased due to rising Ethernet users across the globe.
North America is considered to hold the most significant active optical cable market share throughout the projection period. Growing need for active optical cables in data centers has led to expansion of the market in North America.
The predicted CAGR of North America is about 39.8% from 2022 to 2032. Presence of renowned companies such as EMCORE Corporation across North America would drive sales.
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Sales of HDMI Active Optical Cables to Expand in the USA amid Presence of Leading Players
The USA active optical cable market is expected to be worth USD 4.9 billion by 2032. It would create an absolute dollar opportunity of USD 4.0 billion in the same year. The USA market grew at a CAGR of 21.7% from 2017 to 2021. It is anticipated to flourish at a CAGR of 18.2% from 2022 to 2032.
In July 2022, Broadcom Inc. delivered the world’s first 50G Automotive Ethernet Switch. It is a designer, developer, and global supplier of a wide range of infrastructure software products. Presence of such leading companies in the USA would spur demand.
Development of Sustainable Active Optical Fibers in the United Kingdom to Aid Sales
The United Kingdom active optical cable market is expected to be worth USD 788.3 million by 2032. It would create an absolute dollar opportunity of USD 644.7 million in the next ten years.
The United Kingdom market witnessed growth at a CAGR of 22.0% from 2017 to 2021. It is expected to broaden at a CAGR of 18.6% from 2022 to 2032.
In November 2022, Tratos Group of the United Kingdom first made use of biorenewable in the energy industry. This step will help to reduce the overall carbon footprint. Similar sustainable initiatives by renowned companies in the United Kingdom would drive demand.
Need for Long-term Reliability to Propel Development of Active Optical HDMI Cables in China
China active optical cable sector would be worth USD 1.4 billion by 2032. It would expand at an absolute dollar opportunity of USD 1.2 billion in the estimated time frame.
The China market witnessed considerable growth at a CAGR of 25.1% from 2017 to 2021. It is expected to elevate at a CAGR of 20.6% from 2022 to 2032.
In November 2022, Gigalight Technologies of Shenzhen introduced a line of 400G Long-Reach 8-lane transceivers. Within 40 kilometers, these will be able to offer DCI and metro telecom.
The metro telecom transport network will gain long-term dependability thanks to this new family of devices. A metro DCI network will also employ it due to its great efficiency and low lag.
Japan-Based Active Optical Network Providers to Expand their Distribution Channels
Japan active optical cable industry is set to be worth USD 1.2 billion by 2032. It would elevate at an absolute dollar growth of USD 1.0 billion by 2032.
The Japan active optical cable industry witnessed a CAGR of 22.5% from 2017 to 2021. It is expected to surge at a CAGR of 18.9% between 2022 to 2032.
In October 2022, Sumitomo Corporation, headquartered in Japan, launched a telecommunications service in Ethiopia. Expansion of distribution networks to other countries by Japan-based companies would propel demand.
Active Optical Cable Companies in South Korea Aim to Obtain Popular Certificates
South Korea active optical cable market is likely to be worth USD 649.3 million by 2032. It would create an incremental opportunity of USD 543.9 million in the assessment period.
The South Korea active optical cable market showcased growth at a CAGR of 24.2% from 2017 to 2021. It is set to broaden at a CAGR of 19.9% from 2022 to 2032.
In December 2022, Taihan, a South Korea-based manufacturer, completed the development of a 500kV LCC XLPE HVDC land cable and obtained a certificate. Bagging of similar reputed certifications by renowned players in South Korea would bolster sales.
Demand for Ethernet AOC Cables to Expand by 2032 as Sales of Automated Solutions Burgeons
Ethernet technology is projected to witness the most significant growth rate. It has several applications in the telecommunication sector worldwide.
CAGR of the Ethernet technology segment was around 23.0% from 2017 to 2021. It would expand at around 19.4% CAGR between 2022 to 2032.
Ethernet networks would exhibit high demand with significant efforts made by governments to improve communication and electricity connectivity. Automated solutions are being used in a variety of business verticals.
Price, sophistication, and length of wiring harnesses have increased as a result of ongoing technical developments in the automobile sector. Industrial Ethernet enables the automotive industry to embrace new products quickly.
It also offers one network for linking all systems through a single switch. It hence brings down the price of vehicle parts.
Data Centers Worldwide to Extensively Use Optical Communication Solutions
Data center is set to be the leading application of active optical cables by 2032. The segment exhibited a CAGR of 22.6% from 2017 to 2021.
Expansion of telecommunication and data center industries can be connected to the increasing need for active optical cables. CAGR of the data center application will be around 19.3% by the end of 2032.
Active optical cables connect servers, switches, and storage in data centers. It is what the market for fiber optic modules needs. As the market for data centers expands, quad small form-factor pluggable (QSFP) form factors are increasingly used in active optical cables.
QSFP active optical cables are made to be highly effective, power-efficient, and long-reaching. For high-density signal transmission in data centers and other applications, these cables are perfect.
These are used in applications requiring high-performance computing. A new form factor called 400 form-factor pluggable (CDFP) has emerged.
It can carry large amounts of data quickly and efficiently. It meets the needs of the industry. It does so by improving technology and offering products that are interchangeable on both a mechanical and electrical level.
Businesses in the industry compete based on the product quality they offer. Leading companies in the market put a lot of effort into building out their production facilities. They are also investing in research & development, broadening their infrastructure, and utilizing integration opportunities throughout the value chain.
Active optical cable companies can meet rising demand with the help of these tactics. They can also assure competitive effectiveness, create cutting-edge products & technologies, cut production costs, and increase their clientele.
A few of the recent developments in the active optical cable market are:
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 2.7 billion |
| Projected Market Valuation (2032) | USD 15.9 billion |
| Value-based CAGR (2022 to 2032) | 19.5% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | Value (USD billion) and Volume (Meters) |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East and Africa |
| Key Countries Covered | USA, United Kingdom, Germany, France, Spain, Italy, Japan, China, Singapore, Malaysia, Sri Lanka, Kingdom of Saudi Arabia, United Arab Emirates, South Korea, Finland, Hungary, Rest of the World |
| Key Segments Covered | Connector Type, Technology, Application, Region |
| Key Companies Profiled | 3M Company; Amphenol Corporation; Broadcom; EMCORE Corporation; Fujitsu Limited; II-VI Incorporated; International Business Machines Corporation; Lumentum Operations LLC; Molex LLC; Sumitomo Electric Industries Ltd.; TE Connectivity; The Siemon Company |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market was valued at USD 2.7 billion in 2022.
The market is expected to exhibit a CAGR of 19.5%.
The market expanded at a 23.4% CAGR from 2017 to 2021.
By 2032, the market is estimated to reach USD 15.9 billion.
The United Kingdom is expected to accumulate a CAGR of 7.9% until 2032.
| Expected Market Value (2023) | USD 5.41 billion |
|---|---|
| Anticipated Forecast Value (2033) | USD 22 billion |
| Projected CAGR (2023 to 2033) | 15% |
| Market Estimated Size (2022E) | USD 2.1 billion |
|---|---|
| Projected Market Valuation (2032F) | USD 3.3 billion |
| Value-based CAGR (2022 to 2032) | 4.7% |
| Expected Market Value (2023) | USD 39.14 million |
|---|---|
| Anticipated Forecast Value (2033) | USD 93 million |
| Projected Growth Rate (2023 to 2033) | 9% CAGR |
| Estimated Market Value (2022) | USD 1,804.5 Billion |
|---|---|
| Projected Market Value (2032) | USD 3,303.3 Billion |
| CAGR (2022 to 2032) | 6.2% |
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Active Optical Cable Market
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