Optical Connections Magazine Industry Focus 2024/25

THE YEAR AHEAD

Despite opportunities, the public network market is facing challenges such as economic fluctuations, competition in high-penetration areas threatening profit margins, and slow infrastructure investment. Shortages of skilled professionals are leading to delays and costs, while legacy technologies hold sway in some regions. Moreover, convergence of mobile, fixed, and data transport networks requires seamless integration, presenting technological and regulatory obstacles. SOLID OUTLOOK In 2023, FTTH/B penetration reached new milestones, with the UAE leading globally at 99.3% coverage. Europe also witnessed significant growth, with EU27+UK FTTH/B coverage increasing from 55.1% in 2022 to 64.5% in 2023. Market valuation projections for FTTH indicate robust growth. Key drivers include government investments to bridge the digital divide, technological innovations, and demand for scalable, faster deployment solutions. While near-term investment may be slow, growth and modernisation should accelerate, shaping a more sustainable, inclusive digital infrastructure. Deploying energy-efficient, resilient fibre-backed solutions aligned with green goals can modernise networks and prepare for future demand. Innovations such as modular and scalable solutions can facilitate this transition. DATA CENTRES DCs are rapidly transforming to meet the increasing demands of AI, sustainability, and power density. Hyperscalers are making vast investments in AI infrastructure. Changes are driven by a need for greater computing power, enhanced sustainability, and innovative technologies such as edge computing. Increasing data volumes and complex processes necessitate architectural and infrastructural advancements, including higher-density, high-performance computing units, improved connectivity, and efficient heat management. There’s also an increasing demand for local computing power due to the need to keep latency minimal. These challenges can be addressed with solutions such as modular cabinets, advanced connectors, and real-time monitoring, while optimising performance and space utilisation. AI is reshaping DC infrastructure, demanding localised, high-performance computing to support data-intensive applications. Higher power densities require liquid and hybrid cooling. Edge data centres enable faster AI-driven data processing and closer integration with IoT devices but bring challenges related to site selection, security, and remote management. Energy demands are making sustainability a priority. Meeting governmental sustainability standards has become a key operational

focus. Projections from Goldman Sachs suggest that DC energy demand could account for up to 4% of global power consumption by 2030, further emphasising the need for energy-efficient infrastructure and innovative cooling solutions. Boosted AI server performance and the corresponding increase in power consumption – by as much as a factor of 10 - is leading to the integration of liquid cooling in data centres. MEETING EVOLVING DEMANDS WITH HIGH AVAILABILITY As data networks grow in complexity, cybersecurity remains critical. AI- driven monitoring solutions can help proactively detect and address threats. Integrated hardware and software, automated management systems, and ‘digital twins’ can optimise operations and enhance decision-making, and power-efficient technologies, such as liquid cooling, advanced grid structures, and compact optical switches support high-speed, scalable data transmission. These advancements support scalability, sustainability, and regulatory compliance, enabling DCs to meet evolving demands while maintaining high availability and minimising service disruptions. By embracing modular, scalable, and sustainable solutions, and advanced technologies, data centres can adapt and maintain resilience in an increasingly data-driven world. LOCAL AREA NETWORKS LAN solutions are rapidly transforming to meet demands for speed, reliability, and adaptability in office, enterprise, and industrial settings. Adoption of Power over Ethernet (PoE), Single Pair Ethernet (SPE), and intelligent monitoring are growing, enabling more efficient, scalable, and future-ready networks. Hybrid cabling, combining fibre and copper with power provision, is gaining traction due to its ability to support high-speed data and power transmission within a unified infrastructure.

expanding, facilitating edge computing and integration of IoT devices, sensors, and cameras in smart buildings. The global PoE market is expected to grow significantly, reaching US$8.9 billion by 2032. While RJ45 technology remains critical, SPE is increasingly supplementing it for applications requiring longer reach, such as smart buildings. Standardised integrated rack solutions are increasingly in demand along with solutions for facilitating smarter energy management solutions in industrial settings. Automated monitoring of LAN performance ensures reliability in complex environments. The smart building market is forecasted to grow significantly, necessitating infrastructure modernisation. Intelligent solutions, including modular racks and integrated monitoring systems, are proving vital for industrial environments. These solutions enhance reliability, energy efficiency, and security, supporting initiatives like Industry 4.0 and smart manufacturing. Renovations and retrofits of existing infrastructure are required to enable and fully leverage smart capabilities and integration with IoT and AI-powered systems is needed for real-time data and resource management.

LAN upgrades are critical for smart buildings, enabling seamless

communication among IoT devices and centralised systems. These developments align with EU climate targets and demand integration with AI-powered resource management tools. FTTX, DCS AND LAN IN 2025 AND BEYOND… Rapid developments in bandwidth, power, and length are shaping performance demands, but no single solution covers all challenges. Various specialised approaches are emerging, each targeting different needs. However, making sure everything you decide to use works together perfectly is essential. What’s more, the fully integrated combined solution needs to be future- proof and scalable. By embracing a system-wide approach, you can ensure superior support, performance, and adaptability for the future.

SIGNIFICANT GROWTH PROJECTIONS

The hybrid fibre market is projected to double in size by 2028, driven by increasing data and power needs. PoE is

Rob Shore Senior Vice President, Marketing, Infinera

Andreas Rüsseler CMO, Reichle & De-Massari AG.

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INDUSTRY FOCUS 2024/2025

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