Middle East & Africa Pluggable Optics for Data Center Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis
No. of Pages: 156 | Report Code: BMIRE00031792 | Category: Electronics and Semiconductor
No. of Pages: 156 | Report Code: BMIRE00031792 | Category: Electronics and Semiconductor
The Middle East & Africa pluggable optics for data center market size is expected to reach US$ 396.56 million by 2031 from US$ 194.42 million in 2023. The market is estimated to record a CAGR of 9.3% from 2023 to 2031.
The pluggable optics for data center market in the Middle East & Africa is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The demand for data center pluggable optics is growing significantly in the Middle East & Africa due to the rising adoption of advanced technologies. The demand for cloud services, digital transformation, IoT, and AI technology is propelling growth of the data center industries in the Middle East & North Africa. The adoption of advanced technologies in data centers created the demand for pluggable optics among operators. Pluggable optics help operators quickly install new modules and facilitate faster implementation of network upgrades or expansions in dynamic network environments.
Increasing government initiatives to encourage the adoption of advanced technologies in data centers further benefit the market in MENA. According to Turner & Townsend data published in February 2024, the government bodies of the Middle East & Africa have taken significant initiatives to digitally transform data centers. Major initiatives such as New Kuwait 2035 and Digital Oman 2030 are positively contributing to the data center sector. Such strategic initiatives by the government to ensure high-speed transmission and meet growing demand in the region are creating conducive conditions for the pluggable optics for data center market growth.
Key segments that contributed to the derivation of the Middle East & Africa pluggable optics for data center market analysis are component and data rate.
Linear pluggable optics (LPO) are optical transceivers that do not include digital signal processor (DSP) chips. They rely on simpler signal modulation techniques and basic electronic components. This results in lower power consumption and production costs compared to DSP-based solutions. This simplicity also results in lower latency, making LPOs suitable for high-speed environments. LPO modules are increasingly being used in modern data centers, and they are becoming essential components of co-packaged optics (CPO) and near-package optics (NPO) solutions. These applications benefit from direct, short connections between ICs and LPO optical modules, which maximize the efficiency gains provided by LPO technology.
Lower power consumption, reduced bill of material (BOM) components, and minimal latency features of LPOs are expected to fuel their demand in the coming years. In addition, mega data centers widely adopt LPO, and it works great for latency-sensitive applications in AI and ML and enhances network performance. To cater to this market, the market players are launching solutions, which contributes to the market growth.
In March 2024, the Linear Pluggable Optics Multi-Source Agreement (LPO MSA) was formed by a group of networking, semiconductor, and optics companies to develop specifications for networking equipment and optical modules that will enable a broad ecosystem of interoperable LPO solutions. Accelink, Arista, AMD, Broadcom, Eoptolink, Hisense, Cisco, Innolight, MACOM, Intel, NVIDIA, and Semtech are the founding members of the LPO MSA. Such consortium to define LPO specifications drives the pluggable optics market.
Based on country, the Middle East & Africa pluggable optics for data center market comprises the UAE, Saudi Arabia, South Africa, and the Rest of Middle East & Africa. South Africa held the largest share in 2023.
Growing infrastructural development activities and the expansion of the data center propel the demand for pluggable optics in South Africa. In February 2024, Microsoft Corp announced its plan to build a data center campus in Kosmosdal (Centurion) to add Centurion (near Pretoria) to its existing sites in Johannesburg and Cape Town. The construction of a new data center supports Microsoft Corp to expand its cloud infrastructure in additional areas of South Africa to address rising demand from public and private organizations for cloud and AI services and solutions. Therefore, the demand for cloud and AI solutions to effectively manage data center operations surge the adoption of pluggable optics for managing power consumption.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 194.42 Million |
| Market Size by 2031 | US$ 396.56 Million |
| Global CAGR (2023 - 2031) | 9.3% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | Middle East and Africa
|
| Market leaders and key company profiles |
Some of the key players operating in the pluggable optics for data center market include 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. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.
The following methodology has been followed for the collection and analysis of data presented in this report:
The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:
Note: All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.
The Insight Partners’ conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis, and gain valuable insights. These research interviews are designed to:
Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:
The Middle East & Africa Pluggable Optics for Data Center Market is valued at US$ 194.42 Million in 2023, it is projected to reach US$ 396.56 Million by 2031.
As per our report Middle East & Africa Pluggable Optics for Data Center Market, the market size is valued at US$ 194.42 Million in 2023, projecting it to reach US$ 396.56 Million by 2031. This translates to a CAGR of approximately 9.3% during the forecast period.
The Middle East & Africa Pluggable Optics for Data Center Market report typically cover these key segments-
The historic period, base year, and forecast period can vary slightly depending on the specific market research report. However, for the Middle East & Africa Pluggable Optics for Data Center Market report:
The Middle East & Africa Pluggable Optics for Data Center Market is populated by several key players, each contributing to its growth and innovation. Some of the major players include:
The Middle East & Africa Pluggable Optics for Data Center Market report is valuable for diverse stakeholders, including:
Essentially, anyone involved in or considering involvement in the Middle East & Africa Pluggable Optics for Data Center Market value chain can benefit from the information contained in a comprehensive market report.
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