Active Optical Cable Market Size, Share, Trends, Growth 2032

Active Optical Cable Industry Prospective:

The global active optical cable market size was worth around USD 3.82 billion in 2023 and is predicted to grow to around USD 10.65 billion by 2032, with a compound annual growth rate (CAGR) of roughly 13.80% between 2024 and 2032.

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Active Optical Cable Market: Overview

An active optical cable (AOC) is a next-generation cabling technology. It accepts electrical inputs mimicking the performance of traditionally used copper cables, however, the main difference in AOC is the use of optical fiber between the connectors. Active optical cables deliver improved speed and overall distance performance using the electrical-to-optical conversion at the end of the cable.

Furthermore, AOCs are compatible with conventional or standard electrical interfaces allowing greater adoption of the technology across major industries. According to industry analysis, AOCs offer significant advantages over existing alternate solutions.

For instance, if the networking equipment is properly installed, a common electrical port can be established that accepts active or passive copper cable, thus allowing the final user to select the most appropriate technology, depending on the cost and business requirements.

Some of the key features of AOCs include lower power consumption, lightweight & higher flexibility, and reduced signal interference. During the forecast period, the demand for active optical cable is expected to receive higher growth momentum due to increased demand in the end-user verticals. For instance, active optical cables are in high demand across data centers due to the functional benefits of using AOCs over standard optical fiber cables or direct attach cables.

Key Insights:

• As per the analysis shared by our research analyst, the global active optical cable market is estimated to grow annually at a CAGR of around 13.80% over the forecast period (2024-2032)
• In terms of revenue, the global active optical cable market size was valued at around USD 3.82 billion in 2023 and is projected to reach USD 10.65 billion by 2032.
• The active optical cable market is projected to grow at a significant rate due to the growing investments in the development of large-scale data centers.
• Based on the form factor, the QSFP segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the protocol, the InfiniBand segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Active Optical Cable Market: Growth Drivers

Growing investments in the development of large-scale data centers to drive market demand rate

The global active optical cable market is expected to be driven by rising investments in the development of new data centers worldwide. Extensive market studies indicate that active optical cables are widely preferred among data center developers for creating a robust connection between different technological components of the facility.

For instance, AOCs are used for connecting network switches, servers, and storage devices facilitating high-speed communication which is of prime importance in data center facilities. In the modern digital world registering an extensive growth rate in terms of business digitalization, the demand for high-performance data centers has grown at an unprecedented level.

Furthermore, the introduction of sophisticated engineering solutions such as Artificial Intelligence (AI) and Machine Learning (ML) has further prompted urgent requirements for larger data center facilities that can house business applications and data.

According to recent reports published in January 2025, India-based Reliance Industries is expected to invest in developing the world’s largest data center in the Jamnagar area. Some of the major events that may have influenced the decision by Reliance include a strategic partnership between an India-based company and Nvidia to develop AI supercomputers in India and also invest in the creation of large language models (LLMs).

Growing investments in high-speed internet connectivity to generate market expansion possibilities

The global active optical cable market is projected to generate more revenue in the coming years due to rising investments in the development of high-speed internet connectivity infrastructure. 5G-based investments worldwide have registered significant growth in the last few years.

In January 2025, around 24 European countries witnessed the launch of 5G Fixed Wireless Access (FWA) services thus promoting novel expansion solutions for broadband providers.

Furthermore, official regional statistics indicate that the region can expect more than 540 million licensed cellucor Internet-of-Things (IoT) connections by 2030. Similarly, other countries such as the US, India, China, and Japan are leading the investment rate in 5G and 6G infrastructure which could further create demand for AOCs.

Active Optical Cable Market: Restraints

Costs related to initial investments may limit the industry’s growth rate

The global active optical cable industry is expected to be restricted due to the high cost of initial investment associated with the industry. As compared to traditionally used copper cables, AOCs are more expensive due to the use of advanced systems for enabling technology performance.

In addition, the growing inflation rate worldwide, along with economic uncertainties, can discourage smaller companies from entering the market. The raw material supply chain for producing active optical cables may be impacted due to social and political tensions worldwide further diluting the final revenue in the industry.

Active Optical Cable Market: Opportunities

Increasing introduction of new solutions in the market to deliver exceptional growth opportunities

The global active optical cable market is expected to generate growth opportunities due to the increasing introduction of new solutions in the market. Industry players are focusing on key parameters that can further fuel the market’s growth rate. For instance, the primary focus is being directed toward deploying increased bandwidths as well as faster speeds since the end-user demand continues to evolve.

Furthermore, reliable connectivity is another factor that will play a crucial role in shaping the industry’s future growth trends. In March 2023, Jabil Inc., a US-based leading industry player, announced the launch of new products in the company’s AOC portfolio in the form of 800G technology.

With the new launch, the company has positioned itself to address the dynamic needs of modern data centers while also supporting ongoing innovations in cloud infrastructure and AI solutions. The 800G AOCs offered by Jabil provide low latency, reduced power consumption, higher affordability, and enhanced bandwidth. In January 2025, OWC announced the launch of a new active optical cable providing up to 40Gb/s of stable bandwidth along with video resolution of up to 8K and 240W of power delivery.

Active Optical Cable Market: Challenges

Competition from alternate technologies and high maintenance of cables challenge market expansion

The global active optical cable industry is expected to be challenged by the high competition the industry faces from alternate technologies such as direct attach cables. The substitute solutions are more cost-friendly and currently available in large volumes. Furthermore, the robust existing supply chain for traditional optical cables further helps create demand for competing solutions. The complexities of maintaining AOCs will also dilute market revenue in the coming years.

Active Optical Cable Market: Report Scope

Active Optical Cable Market: Segmentation

The global active optical cable market is segmented based on form factors, application, protocol, and region.

Based on the form factor, the global market segments are CDFP, CFP, CX4, PCIE, SFP, QSFP, QSFP-DD OSPF/CFP8/COBO, and others. In 2023, the highest growth was listed in the QSFP segment. It dominated nearly 26% of the final revenue in 2023 influenced by several factors. The Quad Small Form-factor Pluggable (QSPF) delivers scalability and improved bandwidth making it highly popular among AOC users. Furthermore, it also delivers compatibility with commonly used protocols such as Fiber Channel and Ethernet. During the forecast period, the segment will continue to dominate the industry.

Based on application, the global active optical cable idustry is divided into oil & gas, data centers, telecommunications, consumer electronics, military/aerospace, medical, industrial, and others.

Based on the protocol, the global market divisions are HDMI, InfiniBand, Fiber Channel, Thunderbolt, Serial Attached SCSI (SAS), PCI Express (PCle), Ethernet, and others. In 2023, the highest revenue was generated by the InfiniBand segment due to characteristics such as low latency and higher performance.

According to industry analysis, InfiniBand can support data transfer speeds of nearly 10 Gbps and above. Furthermore, the protocol technology is highly scalable allowing for deployments in large-scale settings. During the projection duration, the HDMI segment may also generate significant revenue according to market studies.

Active Optical Cable Market: Regional Analysis

North America to continue delivering exceptional revenue during the forecast period

The global active optical cable market is projected to be led by North America during the forecast period. In 2023, it accounted for nearly 37.4% of the global revenue with the US taking the lead. One of the leading reasons for higher regional revenue is the large-scale acceptance and deployment of cloud infrastructure across the US and Canada regions.

Furthermore, the presence of some of the major information technology (IT) companies emerging from the US has further facilitated higher demand for AOCs. In January 2025, the US President announced an investment of USD 500 billion in the private sector to encourage the development of key infrastructure required for AI-based projects.

Furthermore, Amazon Web Services announced that the company is developing a new data center component that is specially designed to support AI innovations in the backdrop of changing consumer needs.

In addition, the growing use of AOCs in the thriving networking and telecommunications industry in the region will also attract more revenue for active optical cables. In February 2024, the US government announced a funding of USD 42 million for the development of the 5G Open Radio Access Network (O-RAN) standard.

Active Optical Cable Market: Competitive Analysis

The global active optical cable market is led by players like:

• Shenzhen Sopto Technology Co. Ltd.
• Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC)
• Coherent Corp. (US)
• Linkreal Co. Ltd.
• Jiangsu NUSENS Optic-Electric Technology Co. Ltd.
• Hengtong Group Co. Ltd.
• Broadcom Inc. (US)
• Amphenol Corporation
• T&S Communication Co. Ltd.
• Corning Incorporated
• Molex LLC
• Finisar Corporation
• Sumitomo Electric Industries Ltd.
• Luxtera Inc.
• JPC Connectivity

The global active optical cable market is segmented as follows:

By Form Factor

• CDFP
• CFP
• CX4
• PCIE
• SFP
• QSFP
• QSFP-DD OSPF/CFP8/COBO
• Others

By Application

• Oil & Gas
• Data Centers
• Telecommunications
• Consumer Electronics
• Military/Aerospace
• Medical
• Industrial
• Others

By Protocol

• HDMI
• InfiniBand
• Fiber Channel
• Thunderbolt
• Serial Attached SCSI (SAS)
• PCI Express (PCle)
• Ethernet
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa