The pluggable optics for data center market size was valued at US$ 5.23 billion in 2023 and is expected to reach US$ 12.35 billion by 2031. The pluggable optics for data center market is estimated to record a CAGR of 11.3% from 2023 to 2031.
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 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.
An increase in investment by IT companies and the growing adoption of advanced technologies in data centers are contributing significantly to the pluggable optics for data center market growth in France. For instance, in May 2024, Microsoft Corp announced an investment of US$ 4.31 billion (€4 billion) to enhance its next-generation cloud and AI infrastructure in France, which is likely to bring up to 25,000 of the most advanced GPUs to the country by the end of 2025.
This investment also supports Microsoft to extend its data center footprint across current facilities in Paris and Marseille, as well as invest in the development of a new data center campus in the Grand Est Region, Mulhouse Alsace Agglomération. Thus, the development of new data centers creates a prominent demand for pluggable optics managing high-bandwidth connections.
The pluggable optics for data center market analysis is carried out by identifying and evaluating key players in the market across different regions. Coherent Corp, Nokia Corp, Cisco Systems Inc, 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, are among the key pluggable optics for data center market players profiled in this market study. The pluggable optics for data center market forecast can help stakeholders in this marketplace plan their growth strategies. Several other pluggable optics for data center market players were also analyzed for a holistic view of the market and its ecosystem.
The overall pluggable optics for data center market size has been derived using both primary and secondary sources. To begin the pluggable optics for data center market research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the pluggable optics for data center market. The process also serves the purpose of obtaining an overview and market forecast of the pluggable optics for data center market growth with respect to all market segments.
Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights about the topic. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers - along with external consultants such as valuation experts, research analysts, and key opinion leaders - specializing in the pluggable optics for data center market.
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 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.
An increase in investment by IT companies and the growing adoption of advanced technologies in data centers are contributing significantly to the pluggable optics for data center market growth in France. For instance, in May 2024, Microsoft Corp announced an investment of US$ 4.31 billion (€4 billion) to enhance its next-generation cloud and AI infrastructure in France, which is likely to bring up to 25,000 of the most advanced GPUs to the country by the end of 2025.
This investment also supports Microsoft to extend its data center footprint across current facilities in Paris and Marseille, as well as invest in the development of a new data center campus in the Grand Est Region, Mulhouse Alsace Agglomération. Thus, the development of new data centers creates a prominent demand for pluggable optics managing high-bandwidth connections.
The pluggable optics for data center market analysis is carried out by identifying and evaluating key players in the market across different regions. Coherent Corp, Nokia Corp, Cisco Systems Inc, 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, are among the key pluggable optics for data center market players profiled in this market study. The pluggable optics for data center market forecast can help stakeholders in this marketplace plan their growth strategies. Several other pluggable optics for data center market players were also analyzed for a holistic view of the market and its ecosystem.
The overall pluggable optics for data center market size has been derived using both primary and secondary sources. To begin the pluggable optics for data center market research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the pluggable optics for data center market. The process also serves the purpose of obtaining an overview and market forecast of the pluggable optics for data center market growth with respect to all market segments.
Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights about the topic. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers - along with external consultants such as valuation experts, research analysts, and key opinion leaders - specializing in the pluggable optics for data center market.
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- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the pluggable optics for data center market
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations such as specific country and segmental insight highlights crucial progressive industry trends in the pluggable optics for data center market, thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution
Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. Pluggable Optics for Data Center Market Landscape
5. Pluggable Optics for Data Center Market - Key Market Dynamics
6. Pluggable Optics for Data Center Market - Global Market Analysis
7. Pluggable Optics for Data Center Market Analysis - by Component
8. Pluggable Optics for Data Center Market Analysis - by Data Rate
9. Pluggable Optics for Data Center Market - Geographical Analysis
10. Competitive Landscape
11. Industry Landscape
12. Company Profiles
13. Appendix
List of Tables
List of Figures
Companies Mentioned
The List of companies - Pluggable Optics for data center Market include:- Coherent Corp
- Nokia Corp
- Cisco Systems Inc
- Infinera Corp
- Telefonaktiebolaget LM Ericsson
- Ciena Corp
- Intel Corp
- Lumentum Holdings Inc.
- Juniper Networks Inc
- Marvell Technology Inc
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 171 |
| Published | October 2024 |
| Forecast Period | 2023 - 2031 |
| Estimated Market Value ( USD | $ 5.23 Billion |
| Forecasted Market Value ( USD | $ 12.35 Billion |
| Compound Annual Growth Rate | 11.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
