At 12.2% CAGR, Asia Pacific Pluggable Optics for Data Center Market is Projected to be Worth US$ 4,351.44 Million by 2031, Says Business Market Insights

According to Business Market Insights' research, the Asia Pacific pluggable optics for data center market was valued at US$ 1,728.18 in 2023 and is expected to reach US$ 4,351.44 million by 2031, registering a CAGR of 12.2% from 2023 to 2031. Demand for pluggable optics in high-performance AI infrastructure and rising need for high-performance computing are among the critical factors attributed to the Asia Pacific pluggable optics for data center market expansion.

The usage of AI is quickly increasing, and data center and cloud service providers prioritize developing and deploying high-speed, high-bandwidth optical interconnects. The development of new-generation connectivity solutions results in reduced mW/Gbps and dollar/Gbps and increased power usage. Linear pluggable optics (LPO) links leverage the power of a unique Linear Drive architecture. This drives innovation in power, latency, and cost. LPO links can significantly reduce module power consumption, maintain performance, and lower cooling costs when compared to standard Digital Signal Processing (DSP)-based solutions. Moreover, LPO links greatly decrease the latency and allow faster data transmission times during AI model training and inference, which is crucial for improving AI performance.

Businesses across the globe are swapping from DSP-based solutions to LPO links, which significantly results in cost savings and lower power consumption. This also supports businesses to reduce capital investment and operational costs. Additionally, market players are collaborating and demonstrating their products to create awareness of pluggable optics in high-performance AI infrastructure. Below mentioned are a few examples:

• In March 2023, ALPHAWAVE SEMI announced its collaboration with InnoLight Technology, the leader in data center optics, to bring a low-power, low-latency linear pluggable optics (LPO) demonstration to OFC 2024. Alphawave Semi showcases the PCIe 6.0 subsystem (Controller + PHY) with InnoLight’s LPO OSFP optics capable of operating at 64 Gbps per lane. The product is essential for scaling AI workloads in next-generation data center infrastructure.
• In March 2024, Semtech Corporation announced the demonstration of 100Gbps/lane linear pluggable optical links for AI and ML Data Center Interconnects at OFC 2024. The product features Semtech’s PAM4 PMDs from its FiberEdge product line and its new DirectEdge brand, focused specifically on LPO applications.
• In October 2023, Jabil Inc announced it will take over the manufacture and sale of Intel’s current Silicon Photonics-based pluggable optical transceiver (“module”) product lines and the development of future generations of such modules. This deal better positions Jabil to cater to the needs of customers in the data center industry, including hyperscale, next-wave clouds, and AI cloud data centers.

Therefore, the demand for pluggable optics in high-performance AI infrastructure creates opportunities for the market during the forecast period.

On the contrary, rising network complexity hampers the growth of Asia Pacific pluggable optics for data center market.

Based on component, the Asia Pacific pluggable optics for data center market is segmented into switches, routers, and servers. The switches segment held 49.3% share of the Asia Pacific pluggable optics for data center market in 2023, amassing US$ 852.16 million. It is projected to garner US$ 2,198.79 million by 2031 to expand at 12.6% CAGR during 2023–2031.

By data rate, the Asia Pacific pluggable optics for data center market is segmented into 100-400GB/S, 400-800GB/S, and 800GB/S and Above. The 400-800GB/S segment held 42.4% share of the Asia Pacific pluggable optics for data center market in 2023, amassing US$ 732.61 million. It is projected to garner US$ 1,815.83 million by 2031 to expand at 12.0% CAGR during 2023–2031.

Based on country, the Asia Pacific pluggable optics for data center market is segmented into China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. China held 28.3% share of Asia Pacific pluggable optics for data center market in 2023, amassing US$ 488.53 million. It is projected to garner US$ 1,399.47 million by 2031 to expand at 14.1% CAGR during 2023–2031.

Key players operating in the Asia Pacific pluggable optics for data center market are Coherent Corp, Nokia Corp, Cisco Systems I, Infinera Corp, Telefonaktiebolaget LM Ericsson, Ciena Corp, Intel Corp, Lumentum Holdings Inc, Juniper Networks Inc, Marvell Technology Inc, Yangtze Optical Fibre and Cable Joint Stock Ltd, and Broadcom Inc, among others.

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