September 17, 2013
Growth of Active Optical Cables Triggered by Large-Scale Demand
By Mini Swamy
The global active optical cable (AOC) market, which has weathered many a storm, is currently in a state of forward momentum. This is confirmed by market research firm, Global Industry Analysts (GIA), which noted that the AOC market was projected to surpass $one billion by 2018.
According to the AOC report titled "Active Optical Cables: A Global Strategic Business Report" the United States will assume leadership position in the market. However, with the adoption of new technologies and rapid economic growth, Asia-Pacific will emerge as the fastest growing regional market with a CAGR of 63 percent during the next five years.
The projected growth is triggered by many factors.
As early as 2010, new designs and advanced cabling technology surfaced and AOC was catapulted into the global market. It sought to overcome the inherent limitations of high-speed copper cables in high performance applications. Also, it was seen to be more efficient than in terms of reach, weight and flexibility. As a result, demand for AOC grew in many end-use markets.
Data Centers represents the largest end-use application in the global active optical cable market. The growing demand for higher bandwidth speeds, projected to touch 100 Gbps by 2018, rise in processor speeds and advanced fiber optics technology were catalysts that assisted in the growth of AOC. Also, the introduction of big data applications will have a direct effect on the demand for AOC in data centers.
Another point that the market research report highlights is the heavy dependence of AOC on InfiniBand protocol. The InfiniBand segment moved from the traditional 10G QSFP+ format to 14G FDR QSFP+ fiber optic cables, a point greatly in favor of the growth of AOC.
In addition, the recent vendor affinity for HDM1, thunderbolt and USB protocols In the consumer and video segment and the likely traction of other protocols, is expected to impact the AOC market positively.
Many major players are covered in this report, which provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide.
Edited by Ryan Sartor
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