The Global Direct Attach Cable Market size was valued at US$ 1.18 Bn in 2017 and is expected to reach US$ 14.4 Bn by 2026 to exhibit a CAGR of 36.71% during the forecast period.
The demand of the direct attach cable market is increasing due to rising investments by manufacturers in global direct attach cable market. The manufacturers invest in this market to achieve advancing requirements of high bandwidth applications, high-density applications and lower power consumption are expected to manage demand for active optical cables (AOCs) and direct attach copper (DAC) cables. The adoption of direct attach cable markets are increasing for data storage is probably to improve market growth.
Data center operators utilize direct attach cable market assemblies for data storage on account of the cost-saving and energy-saving benefits they offer. Further, AOCs act as the main transmission medium in data centers and high-performance computing (HPC) centers to ensure the flexibility and stability of data transmission.
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DAC cables can be used to connect switches to routers and/or servers. They are becoming growingly popular in the network industry because the price difference is so large compared with regular optics and RJ-45 10G is not widely acquired.
The rising demand for next-generation high-speed pluggable-products is raising the growth of the market over the forecast period. The pluggable products can perform in utmost conditions such as high-temperature data centers. These next generation cables are used to support the ultra-fast speed required by the hyper-scale industry. The growing use of active optical cables in consumer electronics such as 4K televisions and digital signage is expected to prompt market growth over the forecast period.
However, the high costs related with the set-up of optical cable networks, as well as the costly raw materials used in the manufacture of optical cables and the high cost of optical fiber hamper the growth of the market. Also, the continuous R&D activities managed by the manufacturers in order to assemble next-generation AOCs and transceivers to meet the developing requirements of data centers is an expensive process, which delays the market growth over the forecast period.
In 2017, the AOC segment accounted for the huge market share also it is expected to dominate in forecast period owing to the increasing need for bandwidth requirements of high-performance computing centers and surge in the establishment of data centers. AOCs are also used in hyper-scale builders and storage subsystems, which run 10G or 25G from a Top-of-Rack switch to subsystems.
The Cx4 and CXP segments are anticipated to grow at a steady rate over the forecast period. In 2017, QSFP accounted for the largest market share. The pluggable products can operate even in extreme conditions, such as high-temperature data centers.
The others segment, which includes consumer electronics such as 4K TV, is anticipated to grow considerably over the forecast period.
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North America is expected to dominate the global market over the forecast period, mainly due to soaring demand for higher bandwidth speeds in high-performance computing centers as well as a consistent increase in data centers.
Key players operating in the market include Arista Networks, Inc.; Cisco Systems, Inc.; Cleveland Cable Company; Hitachi, Ltd.; Juniper Networks; Methode Electronics; Molex, LLC; Nexans; Panduit; ProLabs Ltd; Solid Optics; The Siemon Company; 3M; Avago Technologies Ltd; Emcore Corporation; FCI Electronics; Finisar Corporation; Shenzhen Gigalight Technology Co., Ltd; Sumitomo Electric Industries, Ltd; and TE Connectivity Ltd.
Various manufacturers are launching AOCs and DAC cables for data centers. For example, in January 2018, Nexans introduced the addition of these cables to its data center solutions product portfolio. The products were announced to expand the offerings of the data center segment and were designed to offer cost-effective, high-performance, and reliable solutions.
Scope of the Global Direct Attach Cable Market
Global Direct Attach Cable Market, by Product Type
Direct Attach Copper Cables
Active Optical Cables
Global Direct Attach Cable Market, by Form Factor
Global Direct Attach Cable Market, by End-user
High-Performance Computing (HPC) Centers
Global Direct Attach Cable Market, by Region
Middle East & Africa
Key Players operating in the Global Direct Attach Cable Market
Arista Networks, Inc.
Cisco Systems, Inc.
Cleveland Cable Company
The Siemon Company
Avago Technologies Ltd
Shenzhen Gigalight Technology Co., Ltd
Sumitomo Electric Industries, Ltd
TE Connectivity Ltd