Active Optical Cable & Extender Market by Product, Protocol (InfiniBand, Ethernet, Serial-Attached SCSI (SAS), DisplayPort, HDMI, Thunderbolt, USB), Form Factor (QSFP, QSFP-DD, SFP, SFP+, PCIE, CXP), Application and Region - Global Forecast to 2028
[244 Pages Report] The active optical cable & extender market size is projected to grow from USD 3.3 billion in 2023 to USD 6.2 billion by 2028, growing at a CAGR of 13.1% from 2023 to 2028.
Reliability of AOCs than traditional copper cables, Large-scale adoption of cloud-based services drives market growth during the forecast period. Factors such as digitalization and 5G network rollouts provide market growth opportunities for the active optical cable & extender market.
Active Optical Cable & Extender Market Forecast to 2028
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Active Optical Cable & Extender Market Dynamics
Driver: Widespread adoption of 4K and 8K video technologies
4K and 8K video technologies have become widespread across industries, such as broadcasting, gaming, medical imaging, and digital signage. This has resulted in a significant increase in demand for high data rates and extended transmission distances. To address these requirements, AOCs & extenders have emerged as critical solutions. These advanced optical interconnects offer seamless and reliable transmission of high-resolution video signals over longer distances, ensuring that the quality and integrity of the video content remain uncompromised.
Traditional copper-based cables may face limitations in data transfer capacity and signal degradation over distance. AOCs overcome these challenges by utilizing optical fiber technology, providing high bandwidth capabilities and immunity to electromagnetic interference. This enables industries to leverage the full potential of ultra-high-definition video technologies, enhancing visual experiences and enabling innovative applications across various sectors.
In addition, integrating 4K and 8K video technologies involves intricate home theater setups with components placed across various locations. AOCs and extenders play a crucial role by facilitating extended reach and flexibility in connecting different devices, screens, and audio systems within these setups. Optical fiber technology’s immunity to electromagnetic interference and signal degradation ensures that the intricate network of devices remains reliably connected, eliminating the risk of pixelation, artifacts, or disruptions that could diminish the cinematic impact of 4K and 8K content.
As consumers increasingly invest in cutting-edge home entertainment systems to elevate their viewing pleasure, AOCs and extenders emerge as indispensable enablers. They ensure the seamless transmission of high-definition content and contribute to the widespread adoption of these advanced video technologies.
Restraint: High power consumption
Power consumption is critical when choosing between active optical cables (AOCs) and direct attach copper cables (DACs). AOC cables tend to have higher power requirements than DAC cables. AOCs typically consume around 1–2 watts of power, while DAC active cables have a lower power consumption of less than 1 watt. Additionally, passive DAC cables have an even lower power consumption, usually below 0.15 watts, due to their efficient thermal design.
AOCs incorporate optoelectronic components, such as laser diodes and photodetectors, within their connectors to convert electrical signals into optical signals for transmission over the optical fiber. These components require power to operate and facilitate the signal conversion process. Power consumption can become a concern in data centers where large numbers of AOCs may be deployed to interconnect network components. Data centers strive to optimize their energy usage to reduce operational costs and minimize their environmental footprint. High power consumption from AOCs could contribute to increased cooling requirements and energy consumption, impacting the overall efficiency of data centers.
Opportunity: Digitalization and 5G network rollouts
Various nations are adopting cutting-edge technologies to improve their data connectivity. The digital revolution is undergoing in emerging countries, such as India, influenced by government initiatives. However, the data rates in these countries are still low than developed economies in Europe, North America, and East Asia. Substantial investment in data centers and other infrastructures is expected to improve the overall data transmission speeds. These factors could provide an opportunity for manufacturers of AOCs as they provide the fastest data exchange rates within data centers.
The rollout of 5G networks requires advanced interconnect solutions to support the higher data rates and lower latency demands. Active optical cables and extenders can enhance the connectivity between 5G base stations and other network elements. As 5G networks expand globally, the demand for AOCs and extenders in this sector is expected to grow.
Challenge: Lack of IT expertise
The installation and maintenance of AOCs and extenders require certain technical skills and expertise, as they involve dealing with advanced optical fiber technology and optoelectronic components. AOCs use optical fibers to transmit data, which requires precise handling and alignment during installation. Improper handling or misalignment can lead to signal loss or degradation, impacting the cable performance.
Additionally, AOCs and extenders often need to be integrated into existing network infrastructures, which can be complex and require specialized knowledge of networking protocols and configurations. Ensuring seamless integration and compatibility with other network components is crucial for the smooth functioning of the entire system.
Moreover, troubleshooting and maintaining AOCs and extenders may require specific troubleshooting skills, as identifying and resolving issues related to optical signals can differ from traditional copper-based cables. A shortage of professionals with the necessary expertise to handle AOCs and extenders effectively could slow their adoption in various industries. Organizations may need to invest in training their IT staff or seek external experts, which could increase the overall deployment costs and implementation timelines.
Active Optical Cable & Extender Market Ecosystem
The active optical cable & extender market is fragmented. It is marked by the presence of a few tier-1 companies, such as Coherent Corp.(US), Broadcom (US), Amphenol Communications Solutions (US), Corning Incorporated (US), and TE Connectivity (Switzerland). These companies have created a fragmented ecosystem by investing in research and development activities to launch highly efficient and reliable active optical cable & extender solutions.
Active optical cables segment to witness the highest growth during the forecast period
The requirement of AOC was driven by the need to replace copper technology in data centers and high-performance computing settings. Traditional copper cables faced limitations regarding data rates and reach, particularly as data centers expanded in size.
The rise in data rates, exemplified by the InfiniBand Double Data Rate (DDR) of 20 Gigabits per second (Gbps), made copper cables impractical for larger clusters due to their restricted reach. AOC emerged as a solution, offering longer transmission distances, higher bandwidth, and enhanced reliability. Furthermore, AOC’s resistance to electromagnetic interference (EMI) and radio-frequency interference (RFI) made it an ideal solution for high-density environments.
PCI Express (PCIE) segment to exhibit the highest CAGR between 2023 and 2028.
The PCI Express (PCIe) protocol aids a high-speed serial IO designed to provide connections between peripherals (graphics cards, memory/disk drives, external IO cards) and the central processing unit (CPU). AOCs use PCIe to connect servers, switches, and storage elements.
They can lower overall system costs by reducing or eliminating the number of protocol conversion chips. They interfaced with PCIe and are used in data centers, HPC, and consumer electronics. PCIe active optical cables have several advantages, including high bandwidth, low weight, immunity to EMI interference, and ruggedness of electrical connector interface. Therefore, it can also be used in avionics applications. The most common versions of PCIe are PCIe 1.0, PCIe 2.0, PCIe 3.0, PCIe 4.0, and PCIe 5.0, each offering faster data rates. The version number indicates the data rate per lane, with the latest PCIe 5.0 supporting a data rate of 32 GT/s (Giga transfers per second) per lane.
QSFP segment to dominate the active optical cable & extender market during the forecast period
QSFP modules are high-density transceiver modules used in networking and data communication applications. They provide a compact and efficient solution for transmitting high-speed data, typically over fiber optic cables, in various network environments, including data centers, telecommunications, and high-performance computing. They feature four independent transmit and receive channels, enabling them to reach data rates of 40 Gbps (Gigabits per second). This increased capacity makes QSFP modules particularly valuable for bandwidth-intensive tasks, such as large-scale data transfers, high-definition video streaming, and cloud computing.
Asia Pacific to grow at the fastest CAGR during the forecast period.
Asia Pacific has witnessed high growth in the active optical cable & extender market, driven by the rapid expansion of data centers and cloud computing facilities. This has increased the demand for high-speed, reliable, and efficient connectivity solutions, propelling the adoption of AOCs and extenders. As businesses and consumers increasingly rely on online services, seamless data transmission and reduced latency have become paramount. AOCs and extenders offer a compelling solution to address these demands. The proliferation of high-definition content, virtual reality (VR), and augmented reality (AR) applications have also contributed to the growth of this market, as these technologies require enhanced bandwidth and consistent signal quality.
Countries, such as China, Japan, South Korea, and India, have witnessed robust industrial growth, leading to increased investments in technology infrastructure. As these nations embrace Industry 4.0 initiatives and advanced manufacturing processes, the demand for high-performance connectivity solutions has surged, driving the adoption of AOCs & extenders. Moreover, the emergence of this region as a global hub for electronics manufacturing has fuelled the production and distribution of consumer electronics, boosting the need for efficient data transmission solutions. This trend is expected to continue as Asia Pacific economies invest in developing smart cities and digital infrastructure.
Active Optical Cable & Extender Market by Region
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Key Market Players in
The active optical cable & extender companies is dominated by globally established players such as Coherent Corp.(US), Broadcom (US), Amphenol Communications Solutions (US), Corning Incorporated (US), TE Connectivity (Switzerland), 3M (US), Molex (US), Sumitomo Electric Industries Ltd.(Japan), Dell Inc.(US), Eaton (Ireland), EverPro Technology Co., Ltd. (China), Alysium-Tech GmbH (US), Mobix Labs Inc. (US), Unixtar Technology, Inc. (Taiwan), IOI Technology Corporation (Taiwan), GIGALIGHT (China), Siemon(US), Koincable (China), Black Box (US), ATEN INTERNATIONAL Co., Ltd. (Taiwan), T&S Communication Co, Ltd. (China), ACT(Netherlands), APAC Opto Electronics Inc. (Taiwan), Shenzhen Sopto Technology Co., Ltd., (China), Anfkom Telecom (China), Extron (US), and Roctest (Canada). These players have adopted product launches/developments, contracts, collaborations, agreements, and acquisitions for growth in the market.
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Report Metric |
Details |
| Estimated Market Size | USD 3.3 billion in 2023 |
| Projected Market Size | USD 6.2 billion by 2028 |
| Growth Rate | CAGR of 13.1% |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/Billion) and Volume (Million) |
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Segments Covered |
By Product, By Protocol, By Form Factor, By Application, and By Region |
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Region covered |
North America, Europe, Asia Pacific, and the Rest of the World |
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Companies covered |
The key players in the active optical cable & extender market are Coherent Corp.(US), Broadcom (US), Amphenol Communications Solutions (US), Corning Incorporated (US), TE Connectivity (Switzerland), 3M (US), Molex (US), Sumitomo Electric Industries Ltd.(Japan), Dell Inc.(US), Eaton (Ireland), EverPro Technology Co., Ltd. (China), Alysium-Tech GmbH (US), Mobix Labs Inc. (US), Unixtar Technology, Inc. (Taiwan), IOI Technology Corporation (Taiwan), GIGALIGHT (China), Siemon(US), Koincable (China), Black Box (US), ATEN INTERNATIONAL Co., Ltd. (Taiwan), T&S Communication Co, Ltd. (China), ACT(Netherlands), APAC Opto Electronics Inc. (Taiwan), Shenzhen Sopto Technology Co., Ltd., (China), Anfkom Telecom (China), Extron (US), and Roctest (Canada). |
Active Optical Cable & Extender Market Highlights
The study categorizes the active optical cable & extender market-based product, protocol, form factor, application, and region.
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Segment |
Subsegment |
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By Product |
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By Protocol |
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By Form Factor |
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By Application |
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By Region |
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Recent Developments
- In March 2023, Broadcom (US) unveiled BCM85812, a transceiver optimized for 800G DR8, 2x400G FR4, and 800G AOC module applications. It enables high-performance and efficient active optical cable solutions for hyper-scale data centers.
- In February 2022, II-VI Incorporated (US) launched Pluggable Optical Line Subsystem (POLS) in the QSFP form factor, designed for 400ZR/ZR+ transport in data center interconnects. This compact system supports full-duplex multichannel transmission, reducing power consumption and space usage while remaining compatible with widely available sockets.
- In June 2021, Broadcom (US) introduced 100Gbps Multimode AOCs and pluggable optical transceivers that connect modern servers and support link speeds up to 100-Gb/s per lane.
Frequently Asked Questions (FAQ):
Which are the major companies in the active optical cable & extender market? What are their major strategies to strengthen their market presence?
Coherent Corp.(US), Broadcom (US), Amphenol Communications Solutions (US), Corning Incorporated (US), and TE Connectivity (Switzerland) are some of the major companies operating in the active optical cable & extender market. Partnerships were the key strategies these companies adopted to strengthen their active optical cable & extender market presence.
What are the drivers for the active optical cable & extender market?
Drivers for the active optical cable & extender market are:
- Requirement for fiber optic modules in data centers
- Large-scale adoption of cloud-based services
- Reliability of AOCs than traditional copper cables
- Reliance on HPC and AI architectures
- Widespread adoption of 4K and 8K video technologies
What are the challenges in the active optical cable & extender market?
Availability of alternatives, security issues related to fiber optic-based storage systems, and lack of it expertise are among the challenges faced by the active optical cable & extender market.
What are the technological trends in the active optical cable & extender market?
Edge computing, Fan-out active optical cables, and flame-resistant active optical cables are a few of the key technology trends in the active optical cable & extender market
What is the total CAGR expected to be recorded for the active optical cable & extender market from 2023 to 2028?
The CAGR is expected to record a CAGR of 13.1% from 2023-2028.
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The study involved four major activities in estimating the size of the active optical cable & extender market. Exhaustive secondary research has been done to collect information on the market, peer market, and parent market. Validation of these findings, assumptions, and sizing with industry experts across the value chain through primary research has been the next step. Both top-down and bottom-up approaches have been employed to estimate the global market size. After that, market breakdown and data triangulation have been used to estimate the market sizes of segments and subsegments.
Secondary Research
Various secondary sources were referred to in the secondary research process for identifying and collecting information pertinent to this study. Secondary sources included annual reports, press releases, investor presentations, white papers, journals & certified publications, articles by recognized authors, directories, and databases. Secondary research was conducted to obtain key information about the active optical cable & extender supply chain, value chain, the total pool of the key players, market segmentation according to the industry trends (to the bottommost level), geographic markets, and key developments from both market- and technology-oriented perspectives. Secondary sources for this research study include government sources, corporate filings (annual reports, investor presentations, and financial statements), and trade, business, and professional associations. The secondary data has been collected and analyzed to arrive at the overall market size, which has been further validated through primary research.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative information for this report. The primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing directors, technology and innovation directors, and related key executives from the major companies and organizations operating in the active optical cable & extender market.
After the complete market engineering (which includes calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at in this process. Primary research was conducted to identify segmentation types, industry trends, key players, competitive landscape, and key market dynamics, such as drivers, restraints, opportunities, and challenges, along with the key strategies adopted by the players operating in the active optical cable & extender market.
Extensive primary research has been conducted after acquiring knowledge about active optical cable & extender market scenarios through secondary research. Several primary interviews have been conducted with experts from demand (end users) and supply sides (semiconductor, connectivity, and application providers) across four major regions: North America, Europe, Asia Pacific, and RoW. Approximately 60% and 40% of primary interviews have been conducted from the demand and supply sides, respectively. This primary data has been collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the active optical cable & extender market. These methods have also been extensively used to estimate the sizes of various market subsegments. The research methodology used to estimate the market sizes includes the following:
- Identifying verticals that are either using or will use active optical cables & extenders
- Tracking the leading companies and system integrators catering to various applications
- Deriving the size of the active optical cable & extender market through the data sanity method, analyzing revenues of more than 27 key providers through their annual reports and press releases, and summing them up to estimate the overall market size
- Conducting multiple discussions with key opinion leaders to understand the demand for active optical cables & extenders and analyzing the breakup of the scope of work carried out by each major company
- Carrying out the market trend analysis to obtain the CAGR of the active optical cable & extender market by understanding the industry penetration rate and analyzing the demand and supply of active optical cables & extenders in different applications
- Assigning a percentage to the overall revenue or, in a few cases, to segmental revenues of each company to derive their revenues from the sale of active optical cables & extenders. This percentage for each company has been assigned based on their product portfolios.
- Verifying and crosschecking estimates at every level through discussions with key opinion leaders, including CXOs, directors, and operation managers, and with domain experts at MarketsandMarkets
- Studying various paid and unpaid information sources, such as annual reports, press releases, white papers, and databases
- Tracking the ongoing and identifying the upcoming projects related to active optical cables & extenders by companies and forecasting the market size based on these developments and other critical parameters
Market Size Estimation Methodology-Bottom-up Approach
Market Size Estimation Methodology-Top-Down Approach
Data Triangulation
After arriving at the overall size of the active optical cable & extender market from the market size estimation processes explained above, the total market has been split into several segments and subsegments. The market breakdown and data triangulation procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data has been triangulated by studying various factors and trends, and the market size has been validated using top-down and bottom-up approaches.
The main objectives of this study are as follows:
- To define, describe, and forecast the size of the active optical cable & extender market based on product, protocol, form factor, application, and region, in terms of value
- To define, describe, segment, and forecast the size of the active optical cable & extender market based on a product in terms of volume
- To provide market statistics with detailed classifications along with the respective market sizes for some of the segments
- To strategically analyze micro-markets1 with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze the opportunities for stakeholders and detail the competitive landscape of market leaders
- To forecast the market segments with respect to four main regions: North America, Europe, Asia Pacific, and RoW
- To strategically profile the key players and comprehensively analyze their market shares and core competencies2
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To provide a detailed Porter’s analysis along with the technology trends for the active optical cable & extender market
- To analyze the competitive developments, such as acquisitions, partnerships, and product launches, in the active optical cable & extender market
Market Definition
An active optical cable (AOC) technology uses optical fiber between the connectors. AOC is ideal for data centers, storage networks, and high-performance computing applications. This cable overcomes many drawbacks of copper wires. It relies on electrical-to-optical conversion and is used to improve the speed and distance performance of the network. It is lightweight, small, EMI resistant, and has higher speed data communication than the copper cable. An extension optical cable, also known as an optical fiber extension cable, is an active and passive cable used to extend the reach of an optical fiber connection between two devices or locations. It is designed to transmit data, signals, or information using light pulses through optical fibers.
Stakeholders
- Active optical cable and extender suppliers
- Fiber optic cable manufacturers and system integrators
- End users, which include data centers, high-performance computing (HPC), consumer electronics, telecommunications, industrial, energy, oil & gas, medical, military/aerospace, and others (test & measurement equipment, simulation systems, security & surveillance systems
- Governments
- Investors (private equity, venture capital, and others)
- Distributors and resellers: Companies that handle the distribution and resale of active optical cables and extenders, ensuring wider market availability
- Technology developers: Companies that design, develop, and produce active optical cables & extenders and invest in research, engineering, and production to create reliable and high-performance products
Research Objectives
- To define, describe, and forecast the active optical cable & extender market size, product, protocol, form factor, application, and region in terms of value
- To forecast the market size, in terms of value, for various segments with respect to four main regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To strategically analyze the micro markets with respect to individual growth trends, prospects, and contributions to the overall market
- To identify the drivers, restraints, opportunities, and challenges impacting the growth of the market and submarkets
- To analyze the active optical cable & extender supply chain and identify opportunities for the supply chain participants
- To provide key technology trends and patent analysis related to the active optical cable & extender market
- To provide information regarding trade data related to the active optical cable & extender market
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the active optical cable & extender ecosystem
- To strategically profile the key players in the active optical cable & extender market and comprehensively analyze their market shares and core competencies in each segment
- To benchmark the market players using the proprietary company evaluation matrix framework, which analyzes the market players on various parameters within the broad categories of market ranking/share and product portfolio
- To analyze competitive developments such as product launches, alliances and partnerships, joint ventures, and mergers and acquisitions in the active optical cable & extender market
Available Customizations:
MarketsandMarkets offers the following customizations for this market report:
- Further breakdown of the market in different regions at the country-level
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Active Optical Cable & Extender Market
What are the emerging applications of optical cables? I would like to understand latent opportunities in the market.