Global active optical cable (AOC) market was valued at USD 638 million in 2016, and is expected to reach USD 3480.7 million by 2022, at a CAGR of
32.7 percent, predicts Allied Market Research. An active optical cable is a cabling technology that uses optical fiber between the connectors to improve the cable's performance. There is a rise in demand for AOC as it serves as an alternative to copper cables, due to its various advantages such as small bend radius for easy installment, low power consumption, and light weight. Applications of these cables have expanded, from high-performance computers to networking and storage with the support of many protocols. In addition, AOCs rely on different protocols, such as InfiniBand, USB, and Ethernet, for data transmission.

The global active optical cable market is primarily driven by growth in the demand for active optical cables in data centers and increase in the demand of high bandwidth networks. Cloud-based applications, audio and video services, online gaming, and CATV require high-speed data services, which are facilitated by the use of AOCs. However, the high initial investment and the threat of replacement from copper cables and wireless broadband limits the growth of this market. The advancement in the fiber optics technology provides numerous opportunities in this market.

The active optical cable market is concentrated – the top five leading players including Finisar Corporation, Avago Technologies, Oclaro, Inc., Viavi Solutions Inc., and Sumitomo Electric Industries Ltd. occupy around
65 percent of the overall AOC market. The AOC market is currently dominated by Finisar Corporation. The company has focused on the datacom sector, and a large part of its sales came from this sector in 2016. However, other players such as Avago Technologies and Oclaro, Inc. are expected to give a tough competition to Finisar in the future. The primary factors that enable companies to strengthen their market position through strategic moves are product launches, partnerships, agreements, company acquisitions, and geographic expansions.


 

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