Title: High-Speed Cable Market to Hit $25B by 2031

• Global high-speed cable market to hit $24.99B by 2031, driven by data center growth, 5G rollout, and enterprise IT infrastructure upgrades.

The global high-speed cable market is experiencing rapid expansion, projected to reach $24.99 billion by 2031. This significant growth is primarily driven by the escalating deployment of data centers and substantial investments in enterprise IT infrastructure. These cables are critical for meeting the surging demand for high-performance, cost-effective data interconnects, especially with the unprecedented rise of cloud services.

Driving Forces Behind Market Growth

The high-speed cable market is expanding at an impressive CAGR of 10.2% from 2025 to 2031, fueled by several key factors. Cloud services are growing at an unprecedented rate, necessitating a proportional increase in demand for high-performance and reasonably priced data center interconnects. High-speed cables like Direct Attach Copper (DAC) and Active Optical Cables (AOC) provide direct physical layer connections, ensuring signal integrity across predetermined lengths without relying on active optical components for signal conversion.

This efficiency makes them increasingly popular. Furthermore, the continuous innovation in the electronics, automotive, communication, and networking industries, aimed at supporting high-speed data transfer, propels this market forward. For instance, modern vehicles are incorporating more electronic and infotainment systems, boosting the need for high-connectivity solutions.

Enterprise IT and 5G: Catalysts for Demand

Rising enterprise IT infrastructure investments are directly increasing the demand for high-speed interconnects such as Active Electrical Cables (AECs), AOCs, and DACs. Businesses are rapidly updating their data centers and implementing cutting-edge technologies like edge computing, hybrid cloud, and AI/ML workloads, which demand quicker, more reliable, and more efficient data transfer across servers, switches, and storage systems. As companies transition to 25G, 100G, and 400G Ethernet infrastructures, these high-speed cables become indispensable, delivering the low-latency and high-throughput connectivity essential for today’s enterprise applications. For example, over 40% of larger enterprises are expected to adopt edge computing by 2025, enabling real-time analytics for smart cities, autonomous vehicles, and industrial IoT.

Developments in 5G network services further amplify the need for high-speed cables. Passive DACs, essentially premium copper wires without embedded electronics, are significantly more cost-effective than other cable types. These are frequently used in 5G networks for short-range connections within the same area, such as O-RAN cell sites and edge data centers. They support high-speed data transport with low latency and minimal power consumption. For example, passive QSFP28 DACs are suitable for in-cabinet direct connections, supporting 100 Gb/s, while SFP28 DACs handle 25 Gb/s.

The dense cells and high traffic of 5G networks require backhaul connections capable of hundreds of gigabits, necessitating faster Ethernet connections like 400G or more. DACs are vital for facilitating these high-speed Ethernet connections over short distances, ensuring effective data transfer between network devices. Moreover, passive DACs offer the lowest power consumption per port, using between 91% and 97% less power than fiber cabling with independent transceivers. This efficiency significantly reduces the power demands for short-reach server network access connections.

Market Segmentation and Future Outlook

In 2024, North America dominated the high-speed cable market, capturing a substantial revenue share, with Europe and Asia-Pacific following. However, Asia Pacific is projected to achieve the highest CAGR during the forecast period, indicating a burgeoning market in the region.

The market is segmented by type into DAC, PCLe, SAS, AEC, ACC, AOC, and others, with the RF AOC segment holding the largest market share in 2024. By application, the market includes switch-to-switch interconnect, switch-to-server interconnect, server-to-server interconnect, and server-to-storage interconnect. The switch-to-switch interconnect segment held the largest market share in 2024, highlighting its critical role in data center operations. Key players in this market include Amphenol Corporation, Axon Cable SAS, Molex LLC, and NVIDIA CORPORATION, among others, who are actively involved in strategic developments and collaborations to meet the evolving market demands.

The Unsung Heroes of Data Centers

High-speed cables are indispensable in modern data centers, serving as the backbone for both intra-rack and inter-rack connections. Their ability to provide rapid connectivity with minimal power usage (less than 0.1W) and heat generation is a significant advantage. This efficiency notably reduces the cooling demands on data center air conditioning systems, contributing to lower operational costs and a smaller environmental footprint. Furthermore, a crucial benefit of these cables is their remarkable longevity and durability. Unlike more fragile alternatives, high-speed cables are less susceptible to bending or other physical stressors, which is vital in high-density environments where equipment failures can lead to costly downtime. Their robust construction ensures reliable performance, making them a preferred choice for critical infrastructure. As data traffic continues its exponential growth, these cables will remain central to maintaining the speed and integrity of global data networks.