At 11.5% CAGR, North America Pluggable Optics for Data Center Market is Projected to be Worth US$ 4,996.31 Million by 2031, Says Business Market Insights

According to Business Market Insights' research, the North America pluggable optics for data center market was valued at US$ 2,095.42 in 2023 and is expected to reach US$ 4,996.31 million by 2031, registering a CAGR of 11.5% from 2023 to 2031. Manufacturers focus on product development and growing number of data centers are among the critical factors attributed to the North America pluggable optics for data center market expansion.

Pluggable optics enable data center operators to easily upgrade or replace transceivers without having to completely rebuild the cable system. The rising demand for pluggable optics in data centers encourages manufacturers to develop new innovative products that are capable of meeting the dynamic requirements of customers. For instance, in March 2024, Infinera Corporation launched a new line of ICE-D to improve intra-data center connectivity. ICE-D, a new line of high-speed intra-data center optics based on monolithic indium phosphide (InP) and photonic integrated circuit (PIC) technology. ICE-D optics are designed to significantly reduce cost and power per bit while offering intra-data center connectivity at speeds of 1.6 terabits per second (Tb/s) or more. This technology allows data center operators to keep up with the ever-increasing demand for bandwidth while being cost-effective. This new ICE-D intra-data center optics are designed to be integrated into a wide range of intra- and campus data center optical solutions. These solutions include digital signal processor (DSP)-based retimed optics, linear-drive pluggable optics (LPO), and co-packaged optics (CPO) for both serial and parallel fiber applications. Below mentioned are a few developments in pluggable optics for data centers:

• In March 2024, Lumentum Holdings Inc. introduced the latest additions to its comprehensive suite of photonic products at the 2024 Optical Fiber Communication Conference (OFC) in San Diego, California. The featured products included 400/800ZR+ pluggable modules.
• In December 2023, Coherent Corp introduced its 800G ZR/ZR+ transceiver in ultracompact QSFP-DD and OSFP form factors for optical communications networks. The 800G ZR/ZR+ transceivers from Coherent are the world’s first digital coherent optics (DCO) that can plug directly into QSFP-DD and OSFP transceiver slots on IP routers. Leveraging their high output power of 0 dBm, these transceivers can connect routers directly to access metro and regional DWDM transport networks without additional intermediary interfaces, eliminating an entire layer of optical equipment and thereby significantly reducing both capital and operational expenditures.
• In March 2023, Infinera Corporation launched a new portfolio of coherent optical subsystems and coherent pluggable optical engines. These products are designed to help network operators reduce their carbon footprint and meet the ever-increasing demand for bandwidth while being cost-effective. The new solutions include a line of high-performance transmit-receive optical sub-assemblies (TROSAs), innovative programmable digital signal processors (DSPs), and a line of high-performance, intelligent pluggable optical transceivers.

Data centers are increasingly using and demanding pluggable optics for swiftly adjusting to changing bandwidth demands without having to replace complete switches or routers, which makes them an ideal choice for dynamic situations. Moreover, pluggable optics support data center operators in high-speed transmission, optimize power, promote high-speed transmission, and simplify network architecture. Thus, the increasing preference for cost-effective solutions and manufacturers' focus on product development activities contribute significantly to the growth of pluggable optics for data center market.

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

Based on component, the North America pluggable optics for data center market is segmented into switches, routers, and servers. The switches segment held 52.2% share of the North America pluggable optics for data center market in 2023, amassing US$ 1,094.48 million. It is projected to garner US$ 2,685.56 million by 2031 to expand at 11.9% CAGR during 2023–2031.

By data rate, the North America 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 46.3% share of the North America pluggable optics for data center market in 2023, amassing US$ 970.07 million. It is projected to garner US$ 2,348.14 million by 2031 to expand at 11.7% CAGR during 2023–2031.

Based on country, the North America pluggable optics for data center market is segmented into the US, Canada, and Mexico. The US held 93.0% share of North America pluggable optics for data center market in 2023, amassing US$ 1,947.69 million. It is projected to garner US$ 4,725.95 million by 2031 to expand at 11.7% CAGR during 2023–2031.

Key players operating in the North America 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, and Broadcom Inc, among others.

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