Direct attach cable (DAC) is a Twinax cable that connects directly to transceivers and comes in a variety of lengths for short distances of up to 15 meters. These cables are made up of fixed lengths of shielded copper coaxial or fiber optic wire with pluggable transceivers with gauges ranging from 24 to 30 AWG on each end. DAC may link up to 15 meters using twin axial copper wire and up to 100 meters using active optical cable at 10 Gbps, 40 Gbps, or even 400 Gbps.
The market for direct attach cable is growing due to various factors such as well-developed telecommunications infrastructure, the deployment of high-speed internet, high internet penetration, smartphone penetration, a growing number of data centers, and others. Due to this, according to OMR Research, the market is anticipated to grow at a CAGR of 18.4% during the forecast period (2023–2029). The market was valued at $4.5 billion in 2021 and is estimated to reach $14.5 billion in 2028.
Segments of the Market
The global direct attach cable market is segmented on the basis of product type, form factor, and end-user. On the basis of product type, the market is sub-segmented into direct-attach copper cables and active optics cables. Based on form factor, it is sub-segmented into QSFP, SFP, CXP, Cx4, CFP, and CDFP. Further, based on end-user, the market is sub-segmented into networking, telecommunications, data storage, HPC centers, and others.
Recent Developments
Among the market's leading companies are Arista Networks, Inc., The Siemon Company, Cisco Systems, Inc., 3M Company, TE Connectivity, Eaton Corporation, and Hitachi, Ltd., among others. To increase their global market share, market participants have used various methods such as mergers and acquisitions, product launches, regional expansion, partnerships, and collaborations. Some of the recent developments in the market include:
• In March 2022, PeopleLink introduced a UHD AOC cable designed specifically for next-generation high-speed applications. AOC employs electrical-to-optical conversion at the cable ends to improve the cable's speed and range performance while maintaining compatibility with regular electrical connections.
• In March 2022, AOC maker SmartAVLink (Shenzhen City Euroway Technology Co., Ltd.) unveiled their next-generation USB type C AOC with a maximum length of 10 meters (33 feet). Since both ends have built-in active electronics, the cable does not require external power. The product produces up to 60 watts of power while supporting next-generation AOCs with different voltage profiles up to 20 volts at 3 amps, allowing it to charge a variety of devices.
• In April 2022, Nortech Systems announced the release of Active Optical Xtreme, their newest active optical technology platform (AOX). AOX is a compact form-factor hybrid solution that offers the power, control, and data transfer necessary for machine vision systems, industrial automation, robotics, and intelligent sensing devices across extended distances.
• In October 2022, Equinix, Inc. announced plans for a $74.0 million International Business Exchange (IBX) data center in Jakarta as part of its expansion into Indonesia. When completed, the facility will have more than 1,600 cabinets and 5,300 square meters of colocation space. It is slated to open in the second half of 2024.
• In September 2020, L-com introduced a new series of direct-attached copper (DAC) cables for data centers and business networking applications. Furthermore, L-com's DAC cables are developed in accordance with industry standards and are a cost-effective, dependable, and adaptable approach to establishing high-speed network connectivity for both present and future networking needs.
Conclusion
Network cabling has seen massive changes over the years, owing to the desire for higher-speed fiber connections. Breakthroughs in both existing and new technologies, such as the rise of 5G technology, the Internet of Things, and big data, will drive significant data traffic growth and contribute to rising demand for data center capacity, resulting in increased demand for high-speed cables such as direct-attach copper cables and active optics cables. The transfer of data center cables from 100 Gbps high-speed data cables to the new generation of 400/800 Gbps cables is propelling future industry growth. Furthermore, the growing popularity of cloud-based services, due to their flexibility and low cost, is increasing demand for data center colocation, resulting in rapid market growth for direct attach cables. For instance, Google spent $9.5 billion in April 2022 to expand 23 offices and 14 data centers in Virginia, Oklahoma, Iowa, Georgia, Texas, Tennessee, Nebraska, Massachusetts, Nevada, Colorado, New York, Pennsylvania, California, Oregon, and Washington.