Direct Attach Copper Cable Global Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application

Direct Attach Copper Cable Market Summary

Introduction

Direct Attach Copper (DAC) Cables are high-speed, cost-effective interconnect solutions used in data centers for connecting servers, switches, routers, high-performance computing (HPC) systems, storage devices, and other applications requiring low-latency and high-bandwidth connectivity. The DAC cable industry is characterized by its focus on high-speed data transmission, low power consumption, and sustainable manufacturing practices. Key trends include the development of high-speed DAC cables for 400G and 800G networks, the adoption of eco-friendly materials to comply with environmental regulations, and significant capacity expansions to meet the growing demand for data center connectivity. The market is driven by the rapid rise of cloud computing, AI workloads, 5G networks, and the expansion of data centers worldwide. Innovations such as low-power DAC cables, high-density designs, and recyclable materials are transforming the industry, ensuring that DAC cables meet the rigorous demands of high-performance data centers while aligning with global sustainability goals.

DAC cables are critical for enabling efficient and cost-effective connectivity in data centers, where high-speed data transmission and low latency are essential for supporting cloud computing, AI, and IoT applications. The industry is witnessing advancements in high-speed DAC cables designed for 400G and 800G networks, which require enhanced signal integrity and low power consumption. The adoption of eco-friendly materials, such as recyclable copper and low-emission plastics, aligns with global environmental standards like RoHS and REACH. The rise of AI and HPC applications is driving demand for DAC cables that offer high bandwidth and reliability in compact form factors. The expansion of data centers to support cloud computing and 5G infrastructure is further boosting the need for cost-effective and high-performance DAC cables. The industry’s focus on sustainability is driving the development of energy-efficient manufacturing processes and recyclable materials, ensuring alignment with global environmental goals while maintaining performance and scalability.

The DAC cable market is also influenced by the growing trend of hyperscale data centers, which require scalable and cost-effective interconnect solutions to support massive data processing and storage requirements. For example, in HPC applications, DAC cables enable high-speed connections between servers and GPUs, ensuring low latency and high throughput. In networking applications, DAC cables provide reliable connections for switches and routers, supporting the demands of 5G and cloud infrastructure. The industry’s emphasis on high-speed connectivity is driving the development of DAC cables with enhanced signal integrity and reduced crosstalk, enabling high-performance data transmission. Additionally, advancements in manufacturing automation and precision assembly are improving the scalability and cost-effectiveness of DAC cable production, enabling manufacturers to meet the growing global demand for data center connectivity. The market is also seeing increased collaboration between DAC cable manufacturers and data center operators to develop customized solutions tailored to specific applications, further driving innovation and market growth.

Market Size and Growth Forecast

The global Direct Attach Copper Cable market was valued at USD 4.5–7.3 billion in 2024, with an estimated CAGR of 6.5%–8.5% from 2025 to 2030. This growth is driven by the increasing demand for cloud computing, AI, and 5G applications, coupled with advancements in high-speed and sustainable DAC cable technologies.

Regional Analysis

North America is projected to grow at a CAGR of 6.3%–8.3%, with the United States leading due to its extensive data center and HPC industries. The U.S. drives demand for DAC cables in cloud computing, AI systems, and 5G infrastructure, supported by investments in hyperscale data centers. Trends include the adoption of high-speed DAC cables for 400G and 800G networks, the use of eco-friendly materials to comply with EPA regulations, and the development of low-power designs for energy-efficient data centers.

Europe is expected to achieve a CAGR of 6.1%–8.1%, with Germany and the United Kingdom as key markets. Germany’s data center industry drives demand for DAC cables in cloud computing and HPC applications, while the UK focuses on networking applications for 5G infrastructure. Trends include the development of sustainable DAC cables to comply with EU environmental regulations, such as RoHS, and the expansion of production capacities to meet demand.

Asia Pacific is anticipated to record the highest growth at 6.8%–8.8%, driven by China, Japan, and South Korea. China dominates DAC cable production, with companies like Luxshare and Zhejiang Zhaolong leading in scalable manufacturing. Japan focuses on DAC cables for HPC and networking applications, while South Korea drives demand for 5G and data center connectivity. Trends include the adoption of high-speed DAC cables, the use of eco-friendly materials, and the expansion of production facilities.

Rest of the World, particularly India and Singapore, is expected to grow at 6.0%–8.0%. India leverages DAC cables for data centers and smart city projects, while Singapore focuses on cloud computing and IoT applications. Trends include the use of cost-effective DAC cables and sustainable manufacturing practices.

Application Analysis

Servers, switches, routers, high-performance computing, storage, and other applications are estimated to grow at a CAGR of 6.5%–8.5%. Trends include the adoption of high-speed DAC cables for 400G and 800G networks, the use of low-power designs for energy efficiency, and the development of eco-friendly materials to meet regulatory standards.

Key Market Players

TE Connectivity, headquartered in Schaffhausen, Switzerland, is a leading manufacturer of DAC cables, specializing in high-speed interconnect solutions for data centers and HPC applications. The company focuses on scalable production to meet the growing demand for DAC cables in cloud computing and 5G infrastructure. TE Connectivity invests in R&D to develop high-speed and low-power DAC cables, incorporating eco-friendly materials to comply with environmental standards. Its advanced facilities ensure high product quality and scalability.

Amphenol, based in Wallingford, Connecticut, USA, specializes in DAC cables for data center and networking applications. The company focuses on high-speed designs with enhanced signal integrity. Amphenol invests in sustainable manufacturing practices, such as recyclable materials, to align with global standards.

Molex, headquartered in Lisle, Illinois, USA, is a prominent DAC cable manufacturer, focusing on HPC and 5G applications. The company emphasizes high-speed and low-power designs, ensuring reliability and performance.

Porter’s Five Forces Analysis

The threat of new entrants is moderate due to technical barriers and manufacturing costs.

The threat of substitutes is moderate, with optical cables competing in high-bandwidth applications.

Buyer power is moderate, limited by specialized DAC designs.

Supplier power is moderate due to material constraints.

Competitive rivalry is high, driven by innovations in high-speed and sustainable DAC cables.

Market Opportunities and Challenges

Opportunities

Cloud computing and AI drive demand for high-speed DAC cables.

5G networks create opportunities for data center connectivity.

Emerging markets offer growth potential for IoT and cloud applications.

Eco-friendly cables align with sustainability goals.

High-bandwidth DAC cables enhance performance in data centers.

Challenges

High production costs limit scalability.

Regulatory compliance increases costs.

Supply chain disruptions impact material availability.

Competition from optical cables challenges market share.

R&D investment is required for high-speed designs.

Growth Trend Analysis

The DAC cable market is growing steadily, driven by demand for high-speed connectivity. On September 19, 2024, UCL Swift acquired Accurate Connections, Inc., enhancing its copper cable capabilities for data centers. On February 12, 2025, TE Connectivity agreed to acquire Richards Manufacturing Co., expanding its connectivity portfolio. On February 27, 2025, Lisconn acquired Mcurich, advancing high-speed cable technology. On June 2, 2025, Nexans acquired Cables RCT, strengthening its copper cable portfolio. These developments align with a projected CAGR of 6.5%–8.5% through 2030.