Active Optical Cable Market Gains Momentum as Application Base Extends Beyond Tech Industry

The low power consumption, short bend radius for installation, and light weight of the active optical cable (AOC) have significantly surged its demand over the past years. The applications of active cables are growing in various end-use industries such as energy and power, oil and gas, and healthcare. Additionally, the usage of active optical cables in high-performance computers has further extended the horizons of global market. Besides, these cables also play a significant role in data storage and networking. Furthermore, the increase in the deployment of data centers around the world is fuelling the growth for active optical cables market. Against this backdrop the global active optical cable market is projected to flourish throughout the forecast period.

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Accelerated Demand for High-speed Data Transmission to Improve Connection Stimulates Active Optical Cable Market Growth 

Over the last decade, numerous industries including retail, BFSI, consumer electronics, IT & telecommunication have created the need for high-speed transmission. Traditional copper wires produce significant EMI interference which reduces the cable’s resistance to outside noise and impairs the functionality of machinery. Meanwhile, an active optical connection reliably transmits high-speed data between point-of-sale (POS) systems and peripherals deployed in various locations across a commercial space. These cables also offer fast interconnects for transmitting ultra-HD video data between peripheral devices such as TVs and projectors. This, in turn, has propelled its demand for active optical cables in industries such as retail, IT & telecommunication, media & entertainment. Consequently, creating a holistic growth opportunity for the active optical cable market. 

Increased Application of HPC to Aid Active Optical Cable Market Expansion 

Of late, the growth of high-speed data, data-intensive, and AI-enabled applications has fueled the demand for high-performing computers (HPC). Wing aerodynamics deals with intricate simulations in the aerospace industry. Manufacturers in different industries use intricate simulations for testing new goods before it enters the large-scale development phase. Fintech companies and financial regulators perform extremely complex risk analyses and build models to detect fraud. HPC has also been widely used in genomics to sequence DNA and performs protein analysis. Furthermore, the oil & gas industry also heavily relies on HPCs to perform specialised assessments such as in-situ and ex-situ. Such broad-ranging applications of HPCs are poised to boost the global active optical cable market growth in the upcoming years. 

North America Leads Active Optical Cable Market Amidst Presence of Several Data Consuming Firms 

The high demand for active optical cables from major data-producing and consuming firms is enabling North America to gain a competitive advantage in the global active optical cable market. The presence of research facilities and businesses relying on HPCs for simulation and modelling also plays an essential role in facilitating regional market expansion. Other factors driving the growth of the active optical cable market include rising urbanization, and digitalization, increased investment in 4G and 5G communication, growing internet of things (IoT) penetration, and advanced factory automation. 

Major Market Players 

Some of the global players in the active optical cable market include Finisar Corporation. (U.S.), TE Connectivity Ltd. (Switzerland), Avago Technologies Ltd (U.S.) 3M Company (U.S.), Molex Incorporated (U.S.), The Siemon Company (U.S.), FCI Electronics (Singapore), Shenzhen Gigalight Technology Co., Ltd (China), EMCORE Corporation (U.S.), and Sumitomo Electric Industries Ltd. (Japan).

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