Global Direct Attach Cables (DAC) Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 12.67 Billion |
| Market Size (2030) | USD 59.17 Billion |
| CAGR (2025 - 2030) | 36.10% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Global Direct Attach Cables (DAC) Market Analysis
The Global Direct Attach Cables Market size is estimated at USD 12.67 billion in 2025, and is expected to reach USD 59.17 billion by 2030, at a CAGR of 36.1% during the forecast period (2025-2030).
The Direct Attach Cables (DAC) Market is currently experiencing robust growth and is expected to grow owing to the rising product adoption for data storage and rising demand for reliable and high-speed data transmission solutions.
- The surge in data creation across industries is fueling a need for swift and dependable data transmission solutions. Manufacturers are responding by heavily investing in AOCs and DAC cables, tailored for high-bandwidth and high-density applications. Notably, these cables boast lower power consumption, enhancing both their energy efficiency and cost-effectiveness in data transmission.
- The market is poised for growth, primarily driven by the increasing embrace of active optical cables in consumer electronics, especially in 4K TVs and digital signage. This trend is expected to continue over the forecast period. The heightened demand for HDMI AOCs is a direct result of their advantages as they offer wider bandwidth, speeds of up to 18Gb/s, and enhanced security. These benefits cater directly to the growing consumer demand for better image quality and performance.
- Data center operators favor direct attach cable assemblies for data storage due to their cost and energy efficiency. In data centers and high-performance computing (HPC) facilities, Active Optical Cables (AOCs) take the lead as the go-to transmission medium, guaranteeing both flexibility and stability in data transmission. Pluggable DAC products excel even in challenging environments, like high-temperature data centers, and are tailored to meet the ultra-fast speed demands of the hyper-scale industry.
- Bandwidth-intensive applications, like online gaming and video streaming, are fueling market revenue growth. The surge in Fifth Generation (5G) technology adoption further propels this growth, driven by the need for high-speed connectivity to handle the vast data volumes 5G generates. Direct attach cables are gaining traction, especially with the growing emphasis on energy efficiency and environmental sustainability. Compared to traditional copper cables, direct connect cables offer lower energy consumption and reduced carbon emissions, making them increasingly popular across sectors like healthcare, education, and government.
- High setup costs for optical cable networks, alongside expensive raw materials like plastic and silica, are restraining the market. Additionally, manufacturers' ongoing R&D endeavors to develop advanced AOCs, transceivers, and other data center devices are further slowing market growth.
Global Direct Attach Cables (DAC) Market Trends
Expansion of 5G networks and IoT applications to drive the Market
- The Direct Attach Cables (DAC) market is experiencing significant growth, fueled by the expansion of 5G and IoT applications. As 5G technology rolls out and IoT devices proliferate, the demand for high-speed, low-latency, and cost-effective connectivity solutions is increasing. Direct Attach Cables, which provide direct, high-speed connections between devices and network equipment, are essential in meeting these demands.
- The expansion of 5G networks significantly increases data traffic due to higher speeds and greater device connectivity. For instance, in May 2024 -Abu Dhabi e& UAE announced the world's fastest recorded speed of 30.5Gbps on its live 5G network, marking a significant milestone in its evolution towards 5G-Advanced. To manage the vast amounts of data generated, there is a need for robust and high-speed data transmission solutions. DACs offer high performance and reliability, making them ideal for connecting servers, switches, and other data center equipment.
- Both 5G and IoT applications require ultra-low latency to function effectively, especially in use cases like autonomous vehicles, smart cities, and industrial automation. DACs provide low-latency connections, essential for real-time data processing and communication in these applications. Their ability to transmit data at high speeds with minimal delay supports the performance requirements of 5G and IoT systems. DAC cables are very popular due to their low cost, almost no power consumption and latency delay making them a perfect fit for 5G and IoT applications.
- The DAC market stands poised for significant growth, driven by the rising global embrace of 5G and IoT technologies. Ericsson's forecast predicts a remarkable surge in North America's 5G subscriptions, reaching an estimated 406 million by 2028. Further, the GSMA Mobile Economy 2024 report highlights that 5G technology has already been deployed in over 100 nations worldwide. By January 2024, 261 operators across 101 countries had initiated commercial 5G mobile services, with numerous additional rollouts underway.
- The rising adoption of over-the-top (OTT) streaming and online gaming, coupled with the increasing prevalence of 5G and artificial intelligence in emerging economies like India, is fueling the demand for data centers, extending beyond major urban hubs. While traditionally concentrated in metropolitan areas, data centers are now witnessing a notable shift towards tier-2 and tier-3 cities, driven by the advent of 5G and the escalating need for edge computing. This trend is poised to not only bolster the growth of data centers but also have a ripple effect on the Direct Attach Cables Market, as the 5G network continues its expansion.
North America to Hold a Major Share
- North America's Direct Attach Cables (DAC) market emerges as a key player globally, driven by its advanced data center infrastructure, swift embrace of cloud computing, and surging need for high-speed data transfers.
- North America, led by the United States, boasts a significant concentration of data centers. This surge is propelled by the escalating need for cloud services, big data analytics, and IoT applications. Consequently, the demand for high-speed, low-latency interconnect solutions has surged, underscoring the pivotal role of DACs in modern data center infrastructures. Notably, as of March 2024, the United States stands at the forefront globally, with a reported count of 5,381 data centers, as per Cloudscene's data. Following the U.S., Germany claims 521 centers, with the United Kingdom closely behind at 514.
- The North American enterprise sector's rapid adoption of cloud computing services has increased the demand for efficient, scalable networking solutions. Within cloud data centers, Direct Attach Cables (DACs) have emerged as the favored choice, lauded for their cost-effectiveness and superior performance, propelling market expansion.
- For instance, in April 2024, when Cloud Software Group Inc. and Microsoft Corp. unveiled plans for an extensive eight-year strategic partnership. This collaboration aims to bolster the market reach of the Citri virtual application and desktop platform, while also facilitating the joint development of cutting-edge cloud and AI solutions, underpinned by a unified product roadmap. As a testament to their commitment, Cloud Software Group pledged a substantial USD 1.65 billion investment in Microsoft's cloud infrastructure and its innovative AI capabilities.
- The growing 5G industry in United States will also drive the studied market in the region. Direct Attach Cables (DAC) facilitate the interconnection of key components within 5G base stations, linking remote radio units (RRUs) with baseband units (BBUs). These DACs play a pivotal role in establishing high-speed connections between switches and routers within the 5G network infrastructure. In a significant move, in June 2024, Future Technologies Venture, LLC disclosed investments exceeding USD 30 million in Private 5G initiatives in collaboration with the U.S. Department of Defense (DoD) over the preceding year. The DoD's focus on Private 5G networks underscores its commitment to bolstering security and control, vital for managing sensitive communications and enabling cutting-edge applications like real-time data analytics and autonomous systems.
Global Direct Attach Cables (DAC) Industry Overview
The Direct Attach Cables (DAC) Market is fragmented in nature. Some major players in the market studied are JPC Connectivity, ACT, NVIDIA Corporation, Volex Plc. etc. Players in the market are adopting strategies such as partnerships, agreements, innovations, and acquisitions to enhance their service offerings and gain sustainable competitive advantage.
- April 2024 - Amphenol has developed the OSFP-XD connector, showcasing a 3-meter cable that utilizes 32-gauge wire in a passive direct attach cable assembly. This innovation is tailored for PCIe 5/6 applications, supporting 16 lanes of 100 G for 1.6 Tb Ethernet. Additionally, Amphenol is eyeing a future upgrade to 200 G per lane.
- April 2024 - At the 2024 Optical Networking and Communication Conference and Exposition, Molex unveiled its pioneering External Laser Source Interconnect System (ELSIS), designed for co-packaged optic applications. The highlight was an 800G QSFP-DD direct attach cable (DAC) and an active electric cable (AEC) connected to a 25.6T switch, with QSFP-DD BiPass cables integrated into the system. The DAC featured a 2m 26AWG cable, while the AEC, utilizing two distinct retimer chips, boasted varying lengths: 3m of 32AWG and 5m of 28AWG. Impressively, the AEC showcased a Bit Error Rate (BER) of better than 1e-10.
Global Direct Attach Cables (DAC) Market Leaders
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ACT
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Volex plc.
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IOI Technology Corporation
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NVIDIA Corporation
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JPC Connectivity
- *Disclaimer: Major Players sorted in no particular order
Global Direct Attach Cables (DAC) Market News
- February 2024: Melco Audio, in its commitment to excel in storage and network audio, unveiled the C1-D20 SFP+ Direct Attach Cable. This innovative cable, bypassing typical network data transmission constraints, empowers Melco by allowing complete control over connectors, cables, and interface electronics. By treating the entire interface as a pivotal audio component, the C1-D20 achieves a level of performance unmatched by conventional connectivity solutions.
- March 2023: Amphenol Communications Solutions unveiled its latest high-speed cable solutions, tailored to align with PCIe, EDSFF, and OCP specifications, along with power shelf demands. In a strategic partnership with the PCI-SIG association, their PCIe Direct-Attached cable riser solution not only eliminates PCB trace and vias but also boasts support for speeds up to PCIe 5.0 32Gb/s. Furthermore, the EDSFF cable assemblies adhere to E1 and E3 specifications, OCP's cable assemblies are in line with OCP NIC 3.0 standards, and the power shelf variants are crafted to meet OCP Orv3 requirements.
Global Direct Attach Cables (DAC) Industry Segmentation
A Direct Attach Copper (DAC) cable is a twinax copper cable pre-fitted with transmission modules. This design allows it to directly link with ports (or line cards) on active equipment like switches, routers, servers, or data storage devices in a data network.
The Report Covers Global Direct Attach Cables (DAC) Market Companies and the Market is Segmented by Application (Data Center, Telecommunication, High-Performance Computing (HPC), Consumer Electronics, Industrial Applications, Others), by Region (North America (US, Canada), Europe (UK, Germany, France), Asia-Pacific (China, India, Japan), Latin America, Middle East and Africa).
The Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.
| By Application Area | Data Center | ||
| Telecommunication | |||
| High-Performance Computing (HPC) | |||
| Consumer Electronics | |||
| Industrial Applications | |||
| Others | |||
| By Region | North America | US | |
| Canada | |||
| Europe | UK | ||
| Germany | |||
| France | |||
| Asia Pacific*** | China | ||
| India | |||
| Japan | |||
| Latin America | |||
| Middle East and Africa | |||
Global Direct Attach Cables (DAC) Market Research FAQs
How big is the Global Direct Attach Cables Market?
The Global Direct Attach Cables Market size is expected to reach USD 12.67 billion in 2025 and grow at a CAGR of 36.10% to reach USD 59.17 billion by 2030.
What is the current Global Direct Attach Cables Market size?
In 2025, the Global Direct Attach Cables Market size is expected to reach USD 12.67 billion.
Who are the key players in Global Direct Attach Cables Market?
ACT, Volex plc., IOI Technology Corporation, NVIDIA Corporation and JPC Connectivity are the major companies operating in the Global Direct Attach Cables Market.
Which is the fastest growing region in Global Direct Attach Cables Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Global Direct Attach Cables Market?
In 2025, the North America accounts for the largest market share in Global Direct Attach Cables Market.
What years does this Global Direct Attach Cables Market cover, and what was the market size in 2024?
In 2024, the Global Direct Attach Cables Market size was estimated at USD 8.10 billion. The report covers the Global Direct Attach Cables Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Global Direct Attach Cables Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Global Direct Attach Cables (DAC) Industry Report
Statistics for the 2025 Global Direct Attach Cables (DAC) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Direct Attach Cables (DAC) analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
