Active Optical Cable Market Overview:
Global active optical cable market was valued at $481.3 million in 2015, and is expected to reach $3,480.7 million by 2022, supported by a CAGR of 32.7% during the forecast period 2016 to 2022.
An active optical cable (AOC) is a cabling technology that uses optical fiber between the connectors to improve the cable’s performance. There is a rise in demand for AOC as it serves as an alternative to copper cables, due to its various advantages such as small bend radius for easy installment, low power consumption, and light weight. Applications of these cables have expanded, from high-performance computers to networking and storage with the support of many protocols. In addition, AOCs rely on different protocols, such as InfiniBand, USB, and Ethernet, for data transmission.
The global active optical cable market is primarily driven by a growth in the demand for active optical cables in data centers and an increase in the demand of high bandwidth networks. Cloud based applications; audio and video services, online gaming, and CATV require high-speed data services, which are facilitated by the use of AOCs. However, the high initial investment and the threat of replacement from copper cables and wireless broadband limits the growth of this market. The advancement in the fiber optics technology provides numerous opportunities in this market.
The active optical cable market is concentrated; the top five leading players including Finisar Corporation, Avago technologies, Oclaro, Inc., Viavi Solutions Inc. and Sumitomo Electric Industries, Ltd. occupy around 65% of the overall AOC market. The AOC market is currently dominated by Finisar Corporation. The company has focused on the datacom sector; and a large part of its sales came from this sector in 2015. However, other players such as Avago technologies and Oclaro, Inc. are expected to give a tough competition to Finisar in the future. The primary factors that enable companies to strengthen their market position through strategic moves are product launches, partnerships, agreements, company acquisitions, and geographic expansions.
The active optical cable market is segmented on the basis of protocol, connector, application, and geography. The protocol segment is further categorized into InfiniBand, Ethernet, HDMI, DisplayPort, USB, and others (Thunderbolt and PCI Express). Currently, the InfiniBand segment holds a significant share in the overall market, due to its increased usage in commercial applications such as data centers and high-performance computing. The connector segment is divided into QSFP, CXP, CDFP, CFP, SFP, and others (CX4 and mixed connectors). Among the connector segment, QSFP and CXP accounted for the maximum share in 2015. The application segment includes data center, high-performance computing, personal computer, digital signage, consumer electronics, and others (transport, telecom cable, medical, airport, aircrafts, and ships). In the year 2015, data centers contributed the highest revenue share, accounting for around 50% of the overall market revenue. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA. In addition, the report covers country-wise cross-sectional analysis of the protocol, connector, and application segments.
Global Active Optical Cable Market Share, By Protocol, 2015 & 2022
Active optical cable protocol includes InfiniBand, Ethernet, HDMI, DisplayPort, USB, and others. Amongst these, the InfiniBand segment holds a significant share in the global active optical cable market, due to its increased usage in commercial applications, such as data centers and high performance computing.
Active Optical Cable Value Chain Analysis
The value chain of the active optical cable market includes various stockholders such as component suppliers, equipment manufacturers, network owners, service providers, and end users. A number of companies have been working on equipment manufacture, to introduce new technologies and higher bandwidth signals for minimizing signal interrupts. Each of these stakeholders adds on value to their operation, which contributes to the competitive value of the product.
Global Active Optical Cable Market Scenario
Active optical cables play a crucial part in the telecom industry, facilitating the ability to transmit the information from one place to another with maximum speed and minimized errors. Presently, there is a swift increase in the global population that necessitates more data centers and internet facilities for communication. To meet this increased network demand, effective communication cables, such as active optical cables, are required. Some of the major benefits provided by active optical cables are: low weight for high port count architectures, small bend radius for easy installations, and low power consumption enabling a greener environment.
Active Optical Cable Top Investment Pockets
The impending need of faster data communication, in commercial applications such as data centers and HPCs, has increased the adoption of active optical cables. Presently, digital signage has witnessed a large scale adoption due to the increase in the demand for higher bandwidth. However, data centers contributed the highest revenue share of the overall market revenue in 2015. This segment is expected to maintain its dominant position throughout the forecast period from 2016 to 2022. The increasing requirements for efficient transfer of high-speed data further supplement the use of these cables in applications encompassing personal computers, HPC’s, and consumer electronics.
- Comprehensive analysis of the global active optical cable market is provided.
- The report provides a competitive scenario of the market with current trends, future estimations, structure, driving factors, scope, opportunities, and challenges.
- The report includes a detailed analysis of the market segments to provide insights on the market dynamics.
- Porter’s Five Forces analysis highlights the potential of buyers and suppliers as well as provides insights on the competitive structure of the market to devise effective growth strategies and facilitate better decision-making.
- Value chain analysis provides key inputs on the role of stakeholders involved at various stages.
- SWOT analysis of the key players highlights their strengths and weaknesses along with potential opportunities.
ACTIVE OPTICAL CABLE MARKET SEGMENTATION
The market is segmented on the basis of protocol, connector, application, and geography.
- Others (Thunderbolt and PCI Express)
- Others (CX4 and Mixed Connectors)
- Data Center
- High-Performance Computing
- Personal Computer
- Digital Signage
- Consumer Electronics
- Others (Transport, Telecom Cable, Medical, Airport, Aircrafts, and Ships)
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
- Finisar Corporation
- Avago Technologies
- Viavi Solutions Inc.
- Sumitomo Electric Industries, Ltd.
- IBM Corporation
- Amphenol Corporation
- Oclaro, Inc.