Direct Attach Cable Market Analysis Report By Product Type, By Form Factor, By End Users And Segment Forecasts From 2019 To 2025

Industry Insights

The global direct attach cable market size was accounted for USD 1.18 billion, in 2017. It is projected to ascend with a CAGR of 36.4% from 2018 to 2025. Factors such as growing adoption of data storage, rising spending in several bandwidth applications, increasing requirement for information stockpiling, penetration of the internet, and shifting focus of manufacturers on fast pluggable products are anticipated to fuel the product demand over the forecast years. Further, the growing emphasis of manufacturers on lower power usage and high-density product applications are also predicted to supplement the market growth in the upcoming years.

Datacenter service operators make use of direct attach a cable for storing data owing to cost and energy-saving benefits. Moreover, APCs work as a suitable transmission medium in high-performance computing (HPC) and data centers to enable stability and flexibility in data transmission.

The growing demand for advance pluggable products offering high speed is predicted to accelerate the growth of the market from 2018 to 2025. For example, Molex LLC in 2015, launched Quad Small For-Factor pluggable products such as QSFP56-DD, and QSFP28 for high bandwidth applications as they need a speed of at least 400 Gbps. QSFP56-DD and QSPF28 can be integrated with routers, servers, SAN cards, and switches. These are capable of working in extreme conditions also. These advanced cables are used to assist the super-fast speed needed by the hyper-scale industry.

The heavy installation expense of AOCs is plummeting market growth. A fiber optics undergoes several testing expenses such as electrical testing and optical testing. Optical testing requires over 40-50% of the overall cost of production. The AOC also undergoes an electrical test in a switch system. Optical fibers with their enhanced features are preferred more than copper-cable for network or data transmission.

The heavy cost of installation of optical fibers and costly raw materials utilized in the production of optical fibers like plastic and silica are expected to restrain the market growth from 2018 to 2025. Moreover, the constant R&D initiated by producers to manufacture advanced AOCs and transceivers to cater to the changing demand of data centers is a costly process, which, in turn, is anticipated to plummet the market growth in the coming years.

The shifting preference of using fiber optics in consumer electronic products such as digital signage and 4k televisions is expected to boost the product demand over the estimated period. For example, in HDMI 2.0 in 2018, active optic fibers of Cosemi Technologies Inc. have been recognized by the Imaging Science Foundation (ISF) for their excellent performance. With the aim of enhancing the quality of the electronic imaging, wide-ranging lab and field testing were undertaken by ISF to manufacture visually enhanced color images with more clarity. Furthermore, advantages such as high speed, increased bandwidth, greater reliability, and high security provided by the HDMI AOCs are expected to boost the product demand from 2018 to 2025.

Product Type Insights

Based on the product, the direct attach cable market is segregated into direct approach copper cables and active optical cables.DOC cables are further divided into two categories such as passive and active. AOC held the largest market share in 2017, owing to the growing requirement for HPC centers and the increasing incorporation of data centers. AOCs are also preferred in storage subsystems and large-scale builders, which use 10G or 25G from the switch to subsystems.

Form Factor Insights

Based on the form factor, the market is divided into quad-small form-factor pluggable transceiver (QSFP), CDFP, small form-factor pluggable transceiver (SFP), Cx4, common form-factor pluggable transceiver (CFP), and CXP. The CXP and Cx4 division is anticipated to exhibit considerable growth over the estimated years.

QSFP occupied the major market share in 2o17. This product can function in extreme circumstances, such as surging temperature data centers. Rising investment by companies to launch advance pluggable products is anticipated to accelerate the segment growth in the upcoming years. For example, Molex LLC in 2015, launched products such as QSFP56-DD and QSFP28 for various high-density uses with a speed of at least 400 Gbps.

End-user Insights

Based on the end-user the market is categorized into data storage, telecommunications, high-performing computing centers, networking, and others. The other category, which includes various consumer electronic products such as 4k television, is projected to witness substantial growth in the upcoming years.

AOCs are also widely preferred in digital signage. For example, Cosemi Technologies, Inc. in 2016, launched OptoHD AOCs for several devices at work and home by offering excellent quality. Hitachi Ltd. in 2012, launched Active Optical HDMI cables, which can transmit image signals via fiber optics as used in digital signage and various electronics such as 3D TVs, 4K TVs, and 2K TVs.

The telecommunication division held the largest share in 2017. AOCs were extensively preferred in the telecom industry, offering high-speed data transmission with minimum errors. Currently, there is a rapid growth of the population, resulting in surging demand for fast internet connections. In order to cater to growing demand, enhanced communication tools such as AOCs, are needed.

Regional Insights

On the basis of region, the market is segregated into Europe, North America, Middle East & Africa, Asia Pacific, and South America. North America is projected to lead the market in the coming years, owing to surging demand for high-speed internet in high-performing computing centers along with the steady growth of data centers.

Asia Pacific regional market is predicted to foresee considerable growth from 2018 to 2025, owing to increasing demand for improvements and growing expansion of data centers in nations such as Japan, China, and India. Europe is anticipated to ascend at a steady rate over the estimated period due to the rising need for bandwidth in economies such as Germany and the U.K.

Direct Attach Cable Market Share Insights

The key players of the market are Sumitomo Electric Industries, Ltd; Arista Networks, Inc.; TE Connectivity Ltd.; Shenzhen Gigalight Technology Co., Ltd; Hitachi, Ltd.; Juniper Networks; Methode Electronics; Cisco Systems, Inc.; Panduit; 3M; ProLabs Ltd; Emcore Corporation; Solid Optics; FCI Electronics; Molex, LLC; The Siemon Company; Avago Technologies Ltd; Nexans; Finisar Corporation; and Cleveland Cable Company.

Several manufacturers are launching DAC and AOC cables for their data centers. For example, Nexans in 2018, launched an addition to the cables to its various data center solutions product array. These products were launched to widen their portfolio of data center divisions and were created to offer reliable, cost-effective, and efficient solutions.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global direct attach cable market report based on product type, form factor, end-user, and region:

• Product Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Direct Approach Copper Cables
        • Passive
        • Active
    • Active Optical Cables

• Form Factor Outlook (Revenue, USD Million, 2014 - 2025)
    • QSFP
    • SFP
    • CXP
    • Cx4
    • CFP
    • CDFP

• End-user Outlook (Revenue, USD Million, 2014 - 2025)
    • Networking
    • Telecommunications
    • Data Storage
    • High-Performance Computing (HPC) Centers
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
        • France
    • the Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil
    • Middle East & Africa