North America Pluggable Optics for Data Center Market Analysis, Size, and Share by 2031

The North America pluggable optics for data center market size was valued at US$ 2.09 billion in 2023 and is expected to reach US$ 4.99 billion by 2031. The market is estimated to record a CAGR of 11.5% from 2023 to 2031. The growing use of linear pluggable optics is likely to be a key trend in the market.

North America Pluggable Optics for Data Center Market Analysis

Rising adoption of the Internet of Things (IoT), increasing need for storage for massive amounts of data, and growing digitalization are boosting the demand for data centers. It is an excellent data storage solution that provides companies with fast and secure access to vast data. The benefits offered by data centers, such as centralized data management, scalability, and security, encourage businesses to adopt these solutions to achieve a data-driven business landscape. Thus, several companies are investing in the development of data centers in North America. According to Linklaters, North America has maintained its lead in data center transaction values, accounting for an impressive 62% of the global total in 2023 and 69% of investments through April 2024, totaling US$ 15 billion, with the US accounting for the largest share of the total. There is a growing focus on energy conservation and the use of energy-efficient devices. This helps businesses and government authorities achieve substantial energy cost savings. The exponential growth in data traffic majorly drives the progress in energy-saving technologies in the data center. According to a study conducted by Huawei Technologies in 2020, global data traffic will grow 14 times from 2020 to 2030, while ICT energy consumption will increase by 1.5 times. Therefore, the market players are paying more attention to sustainability.

North America Pluggable Optics for Data Center Market Overview

Pluggable optics are interchangeable transceiver modules that connect various network components, including switches, routers, and servers, in order to convert high-speed electrical signals into optical signals and vice versa. Pluggable optics are most commonly used in data center optics as they are flexible, scalable, and compatible with a broad range of networking devices and standards. One advantage of pluggable optics is that the user can tailor the transceiver inside the module to the data rate and other network architecture requirements, while other optical interconnects use light to transmit data within a compute architecture. The demand for pluggable optics is increasing in data centers, owing to their benefits, such as cost-effectiveness, broad compatibility, and ability to reduce power consumption. They are typically a high-speed and low-power solution and are compatible with various other devices.

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North America Pluggable Optics for Data Center Market: Strategic Insights

North America Pluggable Optics for Data Center Market

• Market Size 2023
  US$ 2.09 Billion
• Market Size 2031
  US$ 4.99 Billion

Market Dynamics

GROWTH DRIVERS

• Growing Number of Data Centers in North America
• Rising Need for High-Performance Computing

FUTURE TRENDS

• Linear Pluggable Optics

OPPORTUNITIES

• Demand for Energy Efficiency

Regional Overview

• North America

Market Segmentation

Component

• Switches
• Routers
• Servers

Data Rate

• 100 400 Gb/s
• 400 800 Gb/s
• 800 Gb/s
• Above

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North America Pluggable Optics for Data Center Market Drivers and Opportunities

Rising Need for High-Performance Computing to Favor Market

High-performance computing (HPC), or supercomputing, is a practice of combining computing power in a way that produces significantly more horsepower than traditional computers and servers. According to IBM, it is more than one million times faster than the fastest commodity desktop, laptop, or server systems. HPC is a method of processing massive amounts of data at extremely high speeds using multiple computers and storage devices. A high volume of calculations in a short amount of time is needed in today's business landscape for faster operations. Many HPC data centers are linked to large private and public companies that require a lot of computing power. The HPC power helps businesses solve problems that would otherwise be impossible to solve using traditional computing systems.

Demand for Energy Efficiency

There is a growing focus on energy conservation and the use of energy-efficient devices. This helps businesses and government authorities achieve substantial energy cost savings. The exponential growth in data traffic majorly drives the progress in energy-saving technologies in the data center. According to a study conducted by Huawei Technologies in 2020, global data traffic will grow 14 times from 2020 to 2030, while ICT energy consumption will increase by 1.5 times. Therefore, the market players are paying more attention to sustainability.

North America Report Segmentation Analysis

Key segments that contributed to the derivation of the North America analysis are component and data rate.

• In terms of component, the market is segmented into switches, routers, and servers. The switches segment dominated the market in 2023.
• Based on data rate, the market is segmented into 100–400 Gb/s, 400–800 Gb/s, and 800 Gb/s and above. The 400–800 Gb/s segment dominated the market in 2023.

North America Share Analysis by Geography

The geographic scope of the North America report is mainly divided into three countries: the US, Canada, and Mexico.

The US is home to ~2,700 data centers. The growth of mega data centers, which require high-speed and reliable connections between different components, is driving the demand for pluggable optics. These data centers need to scale their computing resources to meet the increasing data demands. Northern Virginia has the most data centers in the US. Over 300 Cloud and hyperscale data center providers, including Amazon Web Services, Microsoft Azure, and Google, have committed millions of square feet and hundreds of megawatts to the region, and they continue to expand. Northern Virginia is anticipated to have about 3,500 megawatts of data center inventory, which is more than triple that of any other US market.

North America Pluggable Optics for Data Center Market Report Scope

North America Pluggable Optics for Data Center Market News and Recent Developments

The North America pluggable optics for data center market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the North America pluggable optics for data center market are listed below:

• IP Infusion, the market leader in carrier-grade networking software systems, completed testing and certification of Ciena's WaveLogic 5 Nano (WL5n) interoperable 400ZR and 400G ZR+ pluggable transceivers with IP Infusion's OcNOS network operating system for white box hardware. Customers can now purchase Ciena's 400G ZR/ZR+ pluggables directly from IP Infusion and receive 24/7 support for the entire white box solution through a single point of contact. (Source: IP Infusion, Press Release, April 2024)

• Ciena reached an incredible milestone and surpassed 100,000 modems shipped of its industry-leading WaveLogic 5 Extreme (WL5e) programmable 800G technology, providing the foundations for metro, long-haul, and submarine networks that support ever-increasing bandwidth demands and are more energy efficient. (Source: Ciena, Press Release, November 2023)

North America Pluggable Optics for Data Center Market Report Coverage and Deliverables

The "North America Pluggable Optics for Data Center Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• North America pluggable optics for data center market size and forecast at regional and country levels for all the key market segments covered under the scope
• North America pluggable optics for data center market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• North America pluggable optics for data center market analysis covering key market trends, regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the North America Pluggable Optics for Data Center market
• Detailed company profiles