Global Direct Attach Cable Market Size, Share & Trends Analysis Report By Type, By End Use (Networking, Telecommunications, Data Storage, High Performance Computing Centers (HPCs), and Other End Use), By Form Factor, By Regional Outlook and Forecast, 2024

Global Direct Attach Cable Market Size, Share & Trends Analysis Report By Type, By End Use (Networking, Telecommunications, Data Storage, High Performance Computing Centers (HPCs), and Other End Use), By Form Factor, By Regional Outlook and Forecast, 2024 - 2031

The Global Direct Attach Cable Market size is expected to reach $88.6 billion by 2031, rising at a market growth of 39.0% CAGR during the forecast period.

Direct attach cables are essential in telecommunications to support high bandwidth and low latency connections, which are crucial for the efficient operation of modern communication systems. Therefore, in 2023, the telecommunications segment registered 25% revenue share in the market. This can be attributed to the growing demand for high-speed internet and advanced communication networks. The expansion of 5G networks and the continuous upgrade of telecom infrastructure have further driven the demand for direct attach cables in this segment.

As applications become more latency-sensitive—particularly in gaming and AR/VR experiences—DACs are crucial in reducing latency through their efficient short-range connections, providing a competitive edge in sectors demanding instantaneous data access. Organizations opt for localized data processing with rising concerns about privacy and sovereignty. DACs facilitate quick interconnections within regional data centres, enabling organizations to manage data in compliance with local regulations while maintaining high-speed access. Additionally, 5G is expected to drive the proliferation of Internet of Things (IoT) devices, as it can support many simultaneous connections with minimal latency. The increasing deployment of IoT solutions in various industries (e.g., healthcare, manufacturing, smart cities) necessitates reliable and high-performance connectivity, which DACs can provide. Hence, adopting 5G technology and its infrastructure requirements drives the market's growth.

However, each connector standard has technical specifications, such as bandwidth, transmission distance, and power consumption. Compatibility with legacy systems may require using specific DACs that conform to older standards, limiting users’ ability to upgrade to newer technologies without incurring additional costs. DACs must work seamlessly with various networking equipment, including switches, routers, and servers. Multiple connector standards and variations can lead to a fragmented market, making it challenging for users to select the right DAC for their specific needs. Therefore, dependence on specific connector standards and compatibility issues hamper the market's growth.

Type Outlook

Based on type, the market is divided into direct attach copper cable and active optical cable. In 2023, the direct attach copper cable segment garnered 74% revenue share in the market. This dominance can be attributed to several factors, including cost-effectiveness, ease of installation, and high reliability for short-distance data transmission. Due to their low latency and power efficiency, direct-attach copper cables are widely used in data centres and high-performance computing environments.

Direct-attach Copper Cable Outlook

The direct-attach copper cable segment is further subdivided into passive direct-attach copper cable and active direct-attach copper cable. The passive direct attach copper cable segment held 63% revenue share in the direct-attach cable market. These cables are favoured for their cost-effectiveness and simplicity, as they do not require additional power for signal amplification. They are typically used for short-distance connections within data centres, such as linking servers and switches within the same rack or between adjacent racks.

Form Factor Outlook

On the basis of form factor, the market is segmented into SFP, QSFP, CXP, Cx4, CFP, and CDFP. The QSFP segment recorded 34% revenue share in the direct attach cable market in 2023. This is primarily due to the QSFP's ability to support high data transfer rates and scalability, making it highly suitable for data centres and high-performance computing applications. The QSFP (Quad Small Form-factor Pluggable) form factor is versatile, supporting multiple data rates and various networking applications, which has driven its widespread adoption and dominance in the market.

End Use Outlook

By end use, the market is divided into networking, telecommunications, data storage, high-performance computing centers (HPCs), and others. In 2023, the data storage segment held 15% revenue share in the market. Direct attach cables connect storage devices to servers and networks, ensuring high-speed data transfer and reliability. As organizations expand their data storage capacities to accommodate the growing volume of digital information, the demand for direct attach cables in this segment is expected to remain strong, contributing to its promising revenue share in the market.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 34% revenue share in the market in 2023. This can be attributed to several factors, including a robust telecommunications infrastructure, high data centre investments, and the rapid adoption of cloud computing and advanced networking technologies. The demand for high-speed connectivity and low-latency solutions in various industries, including finance, healthcare, and technology, has further fuelled market growth in this region.

List of Key Companies Profiled

• Cisco Systems, Inc.
• Hitachi, Ltd
• Juniper Networks, Inc.
• Molex, LLC (Koch Industries, Inc.)
• The Siemon Company
• 3M Company
• Broadcom, Inc.
• TE Connectivity Ltd.
• Sumitomo Electric Industries, Ltd.
• Fujitsu Limited

Global Direct Attach Cable Market Report Segmentation

By Type

• Direct Attach Copper Cable
• Passive Direct Attach Copper Cable
• Active Direct Attach Copper Cable
• Active Optical Cable

By End Use

• Networking
• Telecommunications
• Data Storage
• High Performance Computing Centers (HPCs)
• Other End Use

By Form Factor

• QSFP
• SFP
• CXP
• Cx4
• CFP
• CDFP

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA