Global Direct Attach Cable Market by End Users (Telecommunications, Data Storage, Networking) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

Global direct attach cable market was worth USD 1.18 billion in 2017. It is projected to grow at a 36.4% CAGR between 2018 and 2025. This is due to increasing data storage product adoption. Manufacturers are investing more to meet the evolving needs of high-bandwidth applications and high density applications. This will drive demand for active optic cables (AOCs), and direct attach copper cables (DAC).

Direct attach cable assemblies are used by datacenter operators for data storage because of their cost-savings and energy-saving benefits. AOCs also serve as the primary transmission medium in data center and high performance computing (HPC), centers to ensure data transmission flexibility and stability.

Over the forecast period, the market is expected to grow due to the increasing demand for next-generation pluggable products. Molex, LLC, for high-density applications, introduced Quad Small Form Factor pluggable plus products like QSFP28 and QSFP56 DD interconnect Form factors. The QSPF28-DD and QSFP56–DD can be combined together with servers, switches and routers as well as SAN cards. These pluggable products are able to perform in extreme environments such as high-temperature data centres. These next-generation cables will support the hyper-scale industry's ultra-fast speed.

AOCs' high installation costs are limiting market growth. A variety of testing costs are required for active optical cables, including optical testing and electrical testing. The manufacturing cost for an active optical cable is almost 40-50%. As an electrical test, the AOC can also be tested in a switch. The advancements in optical cables have made it possible to use optical cables for data and network transmission.

The market is being held back by high costs for setting up optical cable networks and expensive raw materials, such as plastic and silica, which can also hinder growth. The market's growth is impeded by the ongoing R&D efforts of manufacturers to produce next-generation AOCs, transceivers, and other devices to meet changing requirements of data centers.

Market growth is expected to be accelerated by the increasing use of active optic cables in consumer electronics, such as 4K TVs and digital signage. In April 2018, Cosemi Technologies Inc.'s HDMI 2.0 active optical cables were certified by Imaging Science Foundation for 18 GB/s performance. ISF conducted extensive lab and field testing to ensure visually stunning, color-rich images. HMDI AOCs offer additional benefits, such as increased bandwidth, speed up to 18Gb/s and greater reliability, which is driving the market's growth over the forecast period.

Insights on Product Types

The market is segmented by product type into active optical cables and direct attach copper cables. There are two types of DAC cables: active and passive. AOC accounted for the largest market share in 2017, mainly due to increased bandwidth requirements for high-performance computing centers, and the increase in data center deployments. AOCs can also be used in hyperscale builders and storage subsystems. These subsystems run 10G to 25G from Top-of-Rack switches to subsystems.

Insights on Form Factors

The market for direct attach cables has been divided on the basis of form factor into four segments: small form-factor, pluggable, transceiver with pluggable transmitter (SFP), QSFP), common-form-factor pluggable transmitter (CFP), CXP (Cx4), and CDFP. Cx4 and CXP will grow at a steady pace over the forecast period.

QSFP held the largest market share in 2017, These pluggable products are able to operate in harsh conditions such as high-temperature data centres. Segment growth is being boosted by increased investments made by manufacturers in next-generation pluggable product development. Molex, LLC, for example, introduced QSFP28 and QSFP56 DD interconnect form factor products for high-density applications at speeds up to 400 Gbps.

End-user insights

The market can be divided by end-user into networking, telecommunications and data storage. The market for other segments, such as consumer electronics like 4K TV, will grow significantly over the forecast period.

Digital signage also uses AOCs. For instance, in 2016, Cosemi Technologies, Inc. introduced OptoHD AOCs for various devices at home and work by providing ultra-high-definition quality. Hitachi Ltd introduced Active Optical HDMI cables in 2012. These transmit image signals via optical fibers and are used in digital signage and electronics like Full HD TVs and 4K TVs.

2017 was the year of the telecommunications sector. The telecom industry plays a vital role in AOCs, which facilitate the transfer of information between points with minimal errors and maximum speed. The world is experiencing a rapid increase in population. This makes it necessary to establish more data centers and provide better internet connectivity. Effective communication cables such as AOCs are necessary to meet the growing network demand.

Regional Insights

The market is segmented based on its region into North America and Europe, Asia Pacific and South America. The dominant market for the global market is expected to be North America over the forecast period. This is mainly due to the rising demand for faster bandwidth speeds in high performance computing centers and a steady increase in data centers.

Due to rising demand for data center expansions and the establishment of data centers in China, India, and Japan, the Asia Pacific market will experience substantial growth. Europe will grow steadily over the next few years due to increased bandwidth needs in countries like Germany and U.K.

Direct Attach Cable Market Share insights

The market is dominated by Cisco Systems, Inc., Arista Networks, Inc., 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., Ltd.

AOCs, DAC cables and other products are being introduced by various manufacturers for data center infrastructure. Nexans, for example, announced in January 2018 that it would be adding these cables to its data centre solutions product line. These cables were created to increase the number of data center solutions available and to provide reliable, cost-effective and high-performance solutions.

The Report Covers Certain Segments

This report predicts revenue growth at the global, regional and country level. It also provides analysis of industry trends and potential opportunities in each sub-segment from 2014 through 2025. Grand View Research has divided the global direct attach cable market report by product type, form factor and end-user.

• Product Type Outlook (Revenue USD Million, 2014-2025)

  • Copper Cables for Direct Attachment

  • 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 Centers (HPC)

  • Other

• Regional Outlook (Revenue USD Million, 2014-2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East and Africa

Up Market Research published a new report titled “Direct Attach Cable Market research report which is segmented by End Users (Telecommunications, Data Storage, Networking), By Players/Companies Arista Networks, 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, Inc; Cleveland Cable Company; Hitachi, Inc; Cisco Systems, Ltd; Juniper Networks; Methode Electronics; Molex, Ltd; and TE Connectivity Ltd”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Direct Attach Cable Market Report Segments:

The market is segmented by End Users (Telecommunications, Data Storage, Networking).

Direct Attach Cable Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Direct Attach Cable Market

Overview of the regional outlook of the Direct Attach Cable Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Direct Attach Cable Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Direct Attach Cable Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Telecommunications

                2. Data Storage

                3. Networking

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Direct Attach Cable Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
• Market Entry Strategies
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Reasons to Purchase the Direct Attach Cable Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.