Middle East & Africa Pluggable Optics for Data Center Market Report by Scope, Segmentation, Dynamics, and Competitive Analysis

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.

Executive Summary and Middle East & Africa Pluggable Optics for Data Center Market Analysis:

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.

Middle East & Africa Pluggable Optics for Data Center Market Segmentation Analysis:

Key segments that contributed to the derivation of the Middle East & Africa pluggable optics for data center market analysis are component and data rate.

Based on component, the Middle East & Africa pluggable optics for data center market is segmented into switches, routers, and servers. The switches held the largest share of the market in 2023.

By data rate, the Middle East & Africa 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 the largest share of the market in 2023.

Middle East & Africa Pluggable Optics for Data Center Market Outlook

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.

Middle East & Africa Pluggable Optics for Data Center Market Country Insights

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.

Middle East & Africa Pluggable Optics for Data Center Market 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.

Middle East & Africa Pluggable Optics for Data Center Market Research Methodology:

The following methodology has been followed for the collection and analysis of data presented in this report.

Secondary Research

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:

Company websites, annual reports, financial statements, broker analyses, and investor presentations. Industry trade journals and other relevant publications. Government documents, statistical databases, and market reports. News articles, press releases, and webcasts specific to companies operating in the market. 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.

Primary Research

The publisher 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:

Validate and refine findings from secondary research. Enhance the expertise and market understanding of the analysis team. Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects. Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

Reasons to Buy

• Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the Middle East & Africa 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 highlight crucial progressive industry trends in Middle East & Africa 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 Middle East & Africa market trends and outlook coupled with the factors driving the pluggable optics for data center market, as well as those hindering it.
• Enhance the decision-making process by understanding the strategies that underpin security interest with respect to client products, segmentation, pricing, and distribution.