(MENAFN- GlobeNewsWire - Nasdaq) Growing demand for high-speed optical communication solutions is driven by data center expansion, IoT proliferation, and rising data traffic in North America, particularly in the US. Key market opportunities lie in the adoption of 800G optics and supporting data transfer needs in cloud-heavy regions like Northern Virginia and Silicon Valley.Dublin, Sept. 29, 2025 (GLOBE NEWSWIRE) -- The "North America Pluggable Optics for Data Center Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis" has been added to ResearchAndMarkets's offering.
The North American market for pluggable optics in data centers is poised for significant growth, projected to reach approximately $4.99 billion by 2031, up from $2.09 billion in 2023. This expansion reflects a compound annual growth rate (CAGR) of 11.5% from 2023 to 2031.
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Executive Summary
The demand for pluggable optics in North America is escalating, driven by burgeoning data-intensive applications and cloud computing. The increase in data centers across the region necessitates reliable, high-speed optical communication solutions. Pluggable optics are crucial for efficient data transfer, meeting the expanding bandwidth requirements of contemporary applications. The proliferation of smartphones, IoT devices, and streaming services has intensified data flow, prompting businesses to seek seamless, high-quality data transport solutions. Pluggable optics offer the necessary capacity and scalability, integral to data center infrastructure.
According to the CBRE North America Data Center Trend Analysis, the preeminent wholesale data center markets in North America are situated in the United States, including Northern Virginia, Dallas/Fort Worth, Silicon Valley, Chicago, Phoenix, the New York Tri-State Area, and Atlanta. Market growth is primarily driven by the demand from data center operators, spurring innovation and development of advanced high-performance pluggable optics. Surveys indicate that North American operators are more aggressively adopting pluggable optics than counterparts elsewhere, with 2025-2026 marked for significant 800G coherent pluggable optic deployment.
Market Segmentation Analysis
The market is segmented by components and data rates. Components include switches, routers, and servers, with switches leading in market share in 2023. By data rate, segments are 100-400GB/S, 400-800GB/S, and 800GB/S and above, with the 400-800GB/S category leading in 2023.
Market Outlook
The rising adoption of IoT, the burgeoning need for data storage, and increased digitalization propel data center demand. These centers offer efficient storage solutions, ensuring rapid, secure access to vast data. Advantages such as centralized management, scalability, and enhanced security boost investments in data centers to thrive in a data-centric landscape. In 2023, North America accounted for 62% of global data center transactions, led by the US with $15 billion in investments through April 2024.
Several notable investments highlight this trajectory: NTT DATA's February 2024 announcement of investment in its Chicago data center to meet growing cloud service demand; Microsoft's $3.3 billion AI data center investment in alignment with President Biden's "Investing in America" agenda; and Amazon's $7.8 billion planned investment by 2030 for Ohio data center expansion focusing on renewable energy. Prime Data Centers plans to expand with a new campus in Phoenix for hyperscale service providers and enterprises.
The development and operation of these data centers require advanced technologies, with fiber optics facilitating high-speed, efficient data transfer. Pluggable optics are pivotal for network connectivity, translating high-speed electrical signals to optical and back. As data centers proliferate in North America, so does the demand for pluggable optics.
Country Insights
The US leads the North American market in 2023, home to around 2,700 data centers. Northern Virginia hosts over 300 cloud and hyperscale data center providers, including Amazon Web Services and Microsoft Azure, driving substantial investments. Silicon Valley's data center market remains robust, supported by tech giants and startups, sustaining the region's tech ecosystem.
Company Profiles
Key players in the North American pluggable optics market are Coherent Corp, Nokia Corp, Cisco Systems, Infinera Corp, Ericsson, Ciena Corp, Intel Corp, Lumentum Holdings Inc, Juniper Networks Inc, Marvell Technology Inc, and Broadcom Inc. These companies execute strategies like expansions, product innovations, and mergers to strengthen market presence and deliver innovative solutions.
Reasons to Buy
Expedite entry-level research by identifying growth, size, leading players, and segments in the North America pluggable optics market. Identify key business priorities to realign strategies effectively. Gain insights into transformative industry trends to develop enduring strategies. Leverage growth opportunities in developed and emerging markets for business expansion. Analyze North America's market trends, drivers, and inhibitors comprehensively. Enhance decision-making by comprehending strategies that influence security interests concerning client products, segmentation, pricing, and distribution.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 153 |
| Forecast Period | 2023-2031 |
| Estimated Market Value in 2023 | 2095.42 Million |
| Forecasted Market Value by 2031 | 4996.31 Million |
| Compound Annual Growth Rate | 11.5% |
| Regions Covered | North America |
Key Topics Covered
1. Introduction
1.1 Report Guidance
1.2 Market Segmentation
2. Executive Summary
2.1 Key Insights
2.2 Market Attractiveness
3. Research Methodology
3.1 Secondary Research
3.2 Primary Research
4. North America Pluggable Optics for Data Center Market Landscape
4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.4 List of Vendors in the Value Chain
5. North America Pluggable Optics for Data Center Market - Key Market Dynamics
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Trends
6. Pluggable Optics for Data Center Market - North America Analysis
7. North America Pluggable Optics for Data Center Market Analysis - by Component
7.1 Switches
7.2 Routers
7.3 Servers
8. North America Pluggable Optics for Data Center Market Analysis - by Data Rate and Above
9. North America Pluggable Optics for Data Center Market - Country Analysis
9.1 North America
10. Competitive Landscape
10.1 Heat Map Analysis
10.2 Company Positioning Analysis
11. Industry Landscape
11.1 Overview
11.2 Market Initiative
11.3 Product Development
11.4 Mergers & Acquisitions
12. Company Profiles
12.1 Coherent Corp.
12.2 Nokia Corp.
12.3 Cisco Systems Inc.
12.4 Infinera Corp.
12.5 Telefonaktiebolaget LM Ericsson
12.6 Ciena Corp.
12.7 Intel Corp.
12.8 Lumentum Holdings Inc.
12.9 Juniper Networks Inc.
12.10 Marvell Technology Inc.
12.11 Yangtze Optical Fibre and Cable Joint Stock Ltd.
12.12 Broadcom Inc.
13. Appendix
13.1 About the Publisher
13.2 Word Index
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North American Pluggable Optics for Data Center Market
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