According to the Market Statsville Group (MSG), the Global direct attach cable Market was valued at USD 6900 million in 2023 and is expected to grow from USD 9439 million in 2024 to USD 1,53,800 million by 2033, by exhibiting a CAGR of 36.8% during the forecast period (2024-2033)

The direct attach cable (DAC) industry is a subsector of the data center and networking industry because it provides high-speed connectivity. DACs can be used for connecting network devices, including servers, switches, and storage systems, directly in data centers or a networking context. Increased adaptation of cloud services and solutions, including big data platforms and IoT also increases data center consumption, thus boosting conjunction system usage or DACs. Data centers are indeed experiencing rising data traffic, requiring reliable and high-performance connectivity solutions. With the speeds of data transmission continuing to rise, more and more interconnect solutions are required. To achieve the above-mentioned requirements, DACs, especially high bandwidth ones (such as 25G, 40G, 100G, and above) are critical. DACs are less expensive than optical transceivers and are therefore suitable for short-reach applications. Due to their lack of complexity and comparatively lower cost, they are suitable for data centers and enterprise networks that do not require the transmission of large distances. 

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Scope of the Direct Attach Cable Market

The study categorizes the direct attach cable market based on type, data rate, connector type, and end-user area at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

• Active DACs
• Passive DACs

By Data Rate Outlook (Sales, USD Million, 2019-2033)

• 10G DACs
• 25G DACs
• 40G DACs
• 100G DACs

By Connector Type Outlook (Sales, USD Million, 2019-2033)

• SFP+ (Small Form-factor Pluggable Plus)
• QSFP+ (Quad Small Form-factor Pluggable Plus)
• QSFP28 (Quad Small Form-factor Pluggable 28)

By End User Outlook (Sales, USD Million, 2019-2033)

• Data Centers
• Telecommunications
• Enterprise Networks
• Cloud Service Providers

By Region Outlook (Sales, USD Million, 2019-2033)

• North America 
  • US
  • Canada
  • Mexico
• Europe 
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific 
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

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DACs segment accounts for the largest market share by Type

Based on the type, In the Direct Attach Cable (DAC) Market, the market share of Passive DACs is more than that of Active DACs due to passive ones having cost-effectiveness and simplicity over the short-distance transmission of data. Passive DACs have no additional electronics or signal processing other than simple connectors, which makes them less expensive to deploy and simpler, mainly in data centers, where the connectivity of a short range (usually under 7 meters) between servers and switches is mainly prevalent. This cable is plug-and-play, thus reducing complexities and maintenance costs- very important for businesses looking to optimize their infrastructure expenses.

The primary attractions of passive DACs are their reduced latency and power consumption which make them handy in high-speed Ethernet and InfiniBand applications wherever power efficiency is a requirement. Further, they guarantee uniform performance up to 25Gbps or 40Gbps and even 100Gbps making them suitable for virtually all varieties of most data center and networking environments. Nevertheless, though Active DACs are necessary for long-distance reach and data rates, passive DACs have topped the selection list owing to their excellent balance of performance and cost.

North America accounted for the largest market share by Region.

Based on the region, North America is the largest shareholder in the Direct Attach Cable (DAC) Market for the robust data center infrastructure, high presence of cloud providers, and widespread usage of high-speed networking technologies. Among some of the key tech giants here are Amazon, Google, and Microsoft, with enormous data processing and storage requirements demanding highly efficient, low-latency interconnection. Passive DACs offer an ideal solution for high-speed data transmission with short reach in these data-intensive environments through cost-effectiveness.
Increasing the demand for high bandwidth across different sectors, including telecommunication, financial services, and healthcare, results in the need to upgrade and expand the network, and this is fulfilled by utilizing DACs. The adoption of next-generation technologies such as 5G, artificial intelligence, and the Internet of Things (IoT) even earlier increases the need for this market to provide reliable and efficient solutions for connectivity in North America. This technological advancement intertwined with highly data-intensive industries culminates North America as the leader in the DAC market.

Competitive Landscape: Direct Attach Cable Market

The direct attach cable market is a huge competitor and quite cutthroat in the sector. They make use of strategies like partnership, product launch, acquisition, agreement, and growth to enhance their positions in the market. Most divisions of businesses center on expanding their operations across the world and developing long-lasting partnerships.

Major players in the direct attach cable market are:

• TE Connectivity Ltd
• Arista Networks, Inc.
• Sumitomo Electric Industries, Ltd
• Cisco Systems, Inc.
• Shenzhen Gigalight Technology Co., Ltd
• Cleveland Cable Company
• FCI Electronics
• Hitachi, Ltd.
• Finisar Corporation
• Juniper Networks
• Emcore Corporation
• Methode Electronics
• Avago Technologies Ltd
• Molex, LLC
• Solid Optics
• Nexans
• ProLabs Ltd
• Panduit
• The Siemon Company
• 3M

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Recent Development 

• In April 2024, As the company continues to expand appliances, software, and as-a-service offerings for the data protection portfolio, Dell Technologies NYSE: DELL is well poised to help customers increase cyber resiliency in the face of ever-more common cyberattacks.
• In June 2024, Cisco is rearchitecting how we harness and protect AI and other modern workloads with industry-first, Cisco Hypershield. With this unprecedented innovation, Cisco is tipping the scales in favor of defenders, building on its recent announcements to accelerate AI infrastructure with Cisco’s ethernet switching, silicon and compute portfolio.
• In June 2024, the DAC market experienced supply chain disruptions due to global semiconductor shortages and geopolitical factors. These challenges have led to delays in product availability and increased prices for DAC components.