Active Optical Cable Market Size & Share, by Protocol (InfiniBand, Ethernet, Serial-Attached SCSI (SAS), DisplayPort, HDMI, Thunderbolt, USB); Form Factor (QSFP, QSFP-DD, SFP, SFP+, PCIE, CXP); Application (Data Centre, High-Performance Computing, Personal Computer, Digital Signage, Consumer Electronics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Growing adoption of 4K and 8K video technologies - In a variety of sectors, including digital signs, gaming, broadcasting, and medical imaging, 4K and 8K video technologies are now widely used. As a result, there is now a noticeable need for long transmission lengths and high data speeds. AOC and extenders have become vital options to meet these needs.
  
  These cutting-edge optical interconnects ensure that the integrity and quality of the video material are maintained while enabling the smooth and dependable transmission of high-resolution video signals over extended distances. Furthermore, the integration of 8K and 4K video technology necessitates complex home theatre configurations with components spread across multiple sectors. Because optical fiber technology is immune to electromagnetic interference and signal degradation, there is no chance of pixelation, artifacts, or disturbances that could reduce the reliability of the complex network of devices.
• Surge in the implementation of digitalization and 5g network rollouts - Modern technologies are being adopted by several countries to increase data connectivity. It is forecasted that significant investments in data centers and other infrastructures would increase total data transmission speeds. 
  
  In order to handle the greater data speeds and reduced latency requirements of the 5G network rollout, sophisticated interconnect technologies are needed. 5G base stations and other network elements can have better connectivity due to active optical links and extenders. The need for AOCs and extenders in this industry is foreseen to increase as 5G networks spread throughout the world. Up to 100 times higher speeds than 4G are promised by 5G. This entails smooth video streaming and quick downloads of entire HD movies.
• Cost-effectiveness of active optical cables - Active optical cables are the most economical product in the data center when compared to optical modules. Less optical components can be used in the production process since it fixes the optical fibers inside the module.
  
  Rather, the optical modules are typically linked to a fiber optic patch cable, which comes at a hefty price. Furthermore, active optical cables have very dependable optical ports that are not exposed to the elements. As a result, dust and other impurities cannot harm them, saving money on cleaning and maintenance.

Challenges

• Higher power consumption may hamper the growth of the market - AOCs usually have a power usage of one to two watts, whereas DAC active cables have a power consumption of less than one watts. Because of their effective thermal design, passive DAC cables typically have an even lower power usage of less than 0.15 watts.
  
  Optoelectronic components, like photodetectors and laser diodes, are included in AOC connections to transform electrical signals into optical signals that may be transmitted across optical fibers.
  
  To function and aid in the signal conversion process, these parts need power. When several AOCs are implemented in data centers, power consumption can become an issue. Therefore, this factor may hamper the growth of active optical cables.
• Lack of skilled IT personnel may hinder the active optical cable market growth. The growing countries need more skilled IT professionals to advance the active optical cable industry.
• Replacement of AOCs with Copper Cables