Growing demand for data centers is anticipated to boost the Active Optical Cable market during the forecast period 2020-2025 - Global Active Optical Cable Market is forecast to reach $2624.27 million by 2025, growing at a CAGR of 18.47% during the forecast period 2020-2025.

The Active Optical Cable market is growing at a significant rate due to growing need for enhanced data speed of the video content and adoption across high performance computing applications. With the growth of data traffic due to technological advancements such as cloud services, IoT and others, there are high requirements for efficient data transfer without delays, thus causing major dominance of active optical cables. Moreover, rising penetration of the internet services and increasing adoption from data centers towards improving high-speed data connectivity have been acting as major drivers in the global active optical cable market.

Rising demand from data centers has been acting as a major driver towards causing a significant growth in the active optical cable market. Since data centers have been playing a major role for rising industrial growth, advancements such as edge computing, cloud, IoT and many others have been causing increase in data traffic rates. Due to this, data centers have been shifting their focus towards incorporating cables which are capable of offering high-speed connectivity with improved data efficiency standards, thus causing high popularity for the active optical cable market. With concerns regarding high-speed with reliability in data centers, there is high need for low latency cabling solutions which can offer higher bandwidth and longer reach compared to copper based cables, thus causing a positive impact for the growth of active optical cables within data centers. Moreover, growing advancements in the field of 5G, IoT and many others had been creating demand for high-speed internet connectivity while uploading or downloading data files, thus causing need for active optical cables. In 2019, L-Com had announced of launching a new series of active optical cables for addressing the need of high-speed data center and enterprise networking applications. These optical cables extend support for high-speed Ethernet, InfiniBand as well as Fiber Channel connectivity, along with replacing standard fiber optic transceivers due to ease of deployment and low costs. Such factors are further set to boost the market growth of active optical cables across data centers in the long run.

Asia-Pacific had held a major share in the global active optical cable market during 2019 and is anticipated to have a significant growth during the forecast period 2020-2025. Consumer electronics is considered one of the major industries across countries including China, South Korea, Japan and many others will create high demands for active optical cables due to its high data transmission and compact size. Investments towards research and development activities along with growth of telecom industry can equally contribute for a significant share in the active optical cable market within this region. In 2019, the Indian Government had announced of investing $100 million for its National Broadband Mission initiative, thus offering universal broadband access across all the rural or remote villages by the end of 2022. As a part of the initiative, the government had helped in constructing a 30 lakh route km of optical fiber cables, as a step towards facilitating equitable access towards broadband services. Such measures will significantly increase the demand towards the active optical cables in the long run.

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Active Optical Cable Market Growth Drivers:
Governmental initiatives towards improving connectivity standards
Rising rate of government initiatives for improving connectivity standards across various developing countries can be considered as one of the major factors driving the growth for active optical cables. Initiatives such as expanding the telecom sector by constructing towers to enhance mobile services help in improving the demanding applications for education, entertainment and many others more effectively. As a part of this, in 2020, the Indian government had announced of implementing an optical fiber based telecom connectivity initiative worth 1,224 crores to facilitate ease of living as well as boost tourism between Chennai and Andaman & Nicobar Islands. This helped in expanding the undersea optic fiber cable links across the islands with launch of 4G services by a leading telecom company, Airtel. Such initiatives by the government are anticipated to create more demands for active optical cables owing to its large bandwidth and cost efficiency features.

Technological advancements
Rising technological advancements to combine benefits of copper cabling solutions with optimizing speed, EMI protection as well as design flexibility is also a major driving factor boosting the growth of active optical cables. Such advancements play a vital role while encouraging the adoption of active optical cables within rugged and harsh industrial environmental conditions. As a part of this, AirBorn had announced the launch of a next generation interconnect solution, named space rated active optical cable which combines the advantages of fiber optical signal transmission with ease of installation of copper cables in 2019. This development had helped the engineers towards eliminating the need for specialized transceivers along with reducing the time used for polishing as well as terminating fibers, making it ideal choice for space flight applications. Moreover, this cabling technology was built using high-speed Micro-D interconnect platform of the company, creating its availability with both ruggedized and non ruggedized versions. Such factors are expected to mark high demands for such active optical cables during the forecast period.

R&D Investment:
In September 2019, Eurotech Technologies had announced the launch of BestNet HDMI active optical cables which will help in transmission of ultra-high bandwidth video and audio. These plug & play HDMI optical cables are designed to offer bandwidth of about 18 Gbps along with availability in different lengths ranging from 50 to 100 and 150 meters.
In February 2020, Google had announced of investing about $10 billion for its data centers and offices across countries including California, Georgia, New York, Massachusetts, Texas, Colorado and many others. Such investments are accompanied by utilizing and improving fiber optic networks deploying optical fiber technology, thus causing higher adoption for active optical cables.

The Major Players in this Market Include
The major companies in the active optical cable market include Finisar/II-VI Inc., Gigalight, Mellanox Technologies, Broadcom Inc., 3M, Amphenol Corporation, Molex LLC, Cisco Systems Inc., Hisense and Samtec. In April 2020, Gigalight had announced the launch of active optical cables named 100G QSFP28 SR4/AOC in order to provide high performance computing and high frequency trading applications. These cables are capable of supporting 25G/28G per channel and make use of OM4 fiber for achieving zero BER transmission around 100 meters of range.

The continuous developments regarding higher bandwidth requirements, low power consumption, cost efficiency is regarded as the major factors causing a positive impact in the active optical cable market. Moreover, infrastructural growth of data centers along with advancements such as using optical fiber networks across telecom sectors are eventually set to drive the active optical cable market during 2020-2025. 

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