Huge data center deployments combined with increasing bandwidth requirement are behind the significant growth forecast for the active optimal cable market.

According to new research from MarketsandMarkets, the sector is expected to reach US$3.43 billion by 2022, at a CAGR of 27.1% between 2016 and 2022.

The data center is expected to lead the end-user segment of the active optical cable market during the forecast period, the research reveals.

Active optical cables play a key role in the data center market. Active optical cables are largely used in the data center to meet the need of increasing bandwidth and low power. The data center market also needs a broad portfolio of fiber optic modules to connect servers, switches, and storage, which is accomplished by active optical cable.

Therefore, increase in the deployment of data centers is a key factor behind the growth of the active optical cable market, the research firm says.

While North America is expected to hold the largest market share during the forecast period, the Asia Pacific region is estimated to grow at the highest rate in the overall market till 2022.

The data center and consumer electronics are major sectors driving the growth of the active optical cable market in the APAC region, the report finds. China is the leading country in the active optical cable market in this region.

“Currently, North America holds the largest share of the active optical cable market. The U.S. invests heavily in the data center sector which is becoming a major hub for the integration of active optical cable. Huge numbers of data center are seen in the U.S., where active optical cables are increasingly being used,” the report says.