Crozet, Virginia: Communications Industry Researchers (CIR) has just issued a new report stating that active optical cable revenues will reach approximately $4.2 billion by 2027. This reflects an expected surge in 400G AOC deployments, soon to be followed by rapid growth 800G AOCs deployment. On the supply side, use of 400/800G AOCs will be spurred by the latest switching technology.
According to Lawrence Gasman, author of this new study, “Active Optical Cables Market Forecasts: 2022-2031”, and President of CIR, “AI, ML, VR and AR will both eat up bandwidth in the data center, and demand low latency to a degree that we have never seen before. AOCs that support 400G have started to become mainstream in large data centers and 800G AOCs seem likely to be with us in a few years.”
Details about the report are available at https://cir-inc.com/reports/active-optical-cables-markets-forecasts-2022-to-2031/
About the report:
This report provides CIR’s latest assessment of worldwide active optical cable revenues potential. While it follows CIR’s long-established forecasting methodology, CIR’s 2022 AOC report includes new coverage including forecast of DAC products, breakout by type of data center (hyperscale, enterprise, edge and service provider), and cost per GB for each AOC data rate. As with previous CIR AOC projections, this one includes breakout by data rate, MSA, data center segment (intermachine/interbuilding, rack), type of fiber and country/region where the end user is located The analysis in this report is shipped with a spreadsheet containing CIR’s ten-year forecasts in volume and value terms.
The report also contains separately a forecast of video AOCs, which CIR increasingly sees as marginal to the Ethernet/IB-dominated AOC market. In addition, the report surveys the activities of such leading AOC suppliers as NVIDIA, Cisco, Intel, Coherent, Molex, etc., along with the role of third-party suppliers.
From the report:
· For many years, the AOC market has been dominated by Chinese manufacturers. But Current geopolitical events seem certain to disrupt this situation. AOC firms will move AOC manufacturing to low labor cost nations such as India and Vietnam. Some high-end AOC products (e.g. 800G AOC) might even be re-shored to the US.
· On the demand side, the factors driving the 400/800G AOC market are the need (1) the need for data center managers to reduce the cost per bit and (2) the need to provide sufficient bandwidth and latency to support new kinds of traffic that growing rapidly in the data center: AI, Machine Learning, Augmented Reality and Virtual Reality/Metaverse traffic. The value of 400/800G AOCs will total $3.5 billion by 2027
· The story has yet to be written as to how the latest co-packaged optics (CPO) can be blended into an AOC. CIR anticipates that there is an opportunity here for optical networking firms to produce high-value added products that combine the advantages of both AOCs and CPO (or at least CPO-derived) technology. We think that by the end of the forecast period CPO-derived AOCs will generate well over $650 million in revenues
CIR has published hype-free industry analysis for the optical networking and photonics for more than 35 years. Our reports provide informed and reasoned market forecasts and industry analysis to a global roster of clients. In addition, to market analysis reports, CIR provides data sets of optical components with breakouts by types of data center and end user.
Visit http://www.cir-inc.com for a full listing of CIR’s reports and other services.