PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401784
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401784
Direct Attach Cable Market size was valued at USD 7,110 Million in 2022, expanding at a CAGR of 35.5% from 2023 to 2030.
The need for DAC cables has increased due to the growth of cloud computing services since these cables are essential for creating flexible and scalable network infrastructures that can accommodate cloud storage and Forms. Apart from their economic advantages, DAC cables also support environmental sustainability in data centers by lowering power consumption and boosting energy efficiency. The DAC market is well-positioned for future growth and innovation because to these characteristics and the growing demand for fast data transfer. Presently, there is a swift increase in the global population, a factor that necessitates the establishment of more data centers and superior internet capabilities for communication.
Direct Attach Cable Market- Market Dynamics
Increased demand for high-speed data transmission
Direct Attached Copper Cable is the type of copper cable that is most frequently used in data centers to connect storage area networks and computers. Its seamless style of connection between the optical module and optical cable lowers costs and guarantees that the optical port is shielded from dust and other impurities. DAC cables are less expensive than conventional networking equipment while yet offering high-speed data transfer capabilities. DAC cables offer a compelling solution to this demand, as they provide high-speed data transmission capabilities at a lower cost compared to traditional networking equipment. Data center operators and enterprises are increasingly adopting DAC cables to bridge the gap between servers, switches, and storage devices.
Direct Attach Cable Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 35.5% over the forecast period (2023-2030)
Based on product type segmentation, the Direct Attach Copper Cables is expected to dominate the market over the forecast period
Based on end-user segmentation, the telecommunications segment is expected to capture a largest chunk of the market over the projected period
On the basis of region, North America is expected to dominate the market over the forecast period
The Global Direct Attach Cable Market is segmented on the basis of Product Type, Form Factor, End-User, and Region.
Based on the product type, the global market is bifurcated into Direct Attach Copper Cables and Active Optical Cables. The Direct Attach Copper Cables is expected to dominate the market over the forecast period. Direct Attach Copper Cables are widely used for connecting networking equipment within data centers. They offer a cost-efficient solution for interconnecting servers, switches, and other devices in close proximity. Moreover, it supports high data transfer rates, contributing to the overall performance of data center networks. They offer low latency, which is crucial for applications requiring quick data transmission.
Based on the end-user, the market is segmented into Networking, Telecommunications, Data Storage, High-Performance Computing (HPC) Centers and Others. The telecommunications segment is expected to capture a largest chunk of the market over the projected period. Telecommunications companies often operate large data centers to support their network infrastructure. Direct Attach Cables, both copper and active optical variants, are commonly used for short-distance connections within data centers to ensure high-speed and low-latency communication between networking equipment. Thereby, driving the segment expansion.
Direct Attach Cable Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. North America is expected to dominate the market over the forecast period. Large-scale data centers, especially those run by well-known IT businesses, are common throughout North America. These data centers make extensive use of Direct Attach Cables to offer fast connectivity between switches, servers, and storage devices. The requirement for effective intra-data center connectivity is what is driving the demand for DACs.
The key players operating in the market are Molex, LLC, TE Connectivity Ltd., Cleveland Cable Company, Hitachi, Ltd., Juniper Networks, Methode Electronics, Arista Networks, Inc., Nexans, ProLabs Ltd, Solid Optics, Avago Technologies Ltd, 3M, The Siemon Company, Emcore Corporation, FCI Electronics, Finisar Corporation, Shenzhen Gigalight Technology Co., Ltd, Sumitomo Electric Industries, Ltd and Cisco Systems, Inc. among others. These players adopted various strategies to capture largest market share in the industry. The strategies include product launches, collaboration, acquisition, expansion and others.
In October 2022, the PCIe Cable Connection System for Open Compute Project Servers was introduced by Molex. The NearStack PCIe Connector System and Cable Assemblies leverage new direct-attached cable technology to improve signal integrity, reduce insertion loss, and decrease signal latency.
The scope of this report covers the market by its major segments, which include as follows: