Global Data Center Interconnect Market to register 12.1% CAGR through 2026

May 26, 2020

As per the report titled ‘Global Data Center Interconnect Market Size study, by Type (Product, Software, Services), Application (Real-Time Disaster Recovery and Business Continuity, Workload (VM) and Data (Storage) Mobility), End-Users (CSPs, CNPs/ICPs, Government, Enterprises) and Regional Forecasts 2020-2026’, available with Market Study Report LLC, global data center interconnect market share was worth USD 7.05 billion in 2019 and is projected to register  12.1% CAGR through 2026.

Data center interconnect (DCI) is a technology used to link two or more data centers, and ranges over short, medium, and long distances by utilizing high-speed packet optical connectivity. These are generally installed in an enterprise environment to aid businesses in achieving their IT and business objectives.

DCI is used by firms to connect their own data centers across their extended enterprise infrastructures to efficiently carry out large operations. Sharing resources between data centers is a cost-effective way to improve the efficiency of operations. Moreover, the advantage of these systems to allocate workloads and work together to produce better results while reducing the process time is boosting the demand for DCI solutions.  

Increasing number of data centers across the globe is the primary growth driver of global data center interconnect market. For instance, in February 2019, Google declared USD 13 billion investment in data centers in USA, which exceeds the previously made investment of USD 9 billion in the year 2018The organization giant plans to deploy new data centers in Nevada, Nebraska, Ohio, Oklahoma, Texas and other locations, and expand their existing data centers in Chicago, Seattle, and New York. Continuous expansion and increasing count of data centers from tech giants will continue to fuel the demand for DCI.

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Moreover, growing focus towards lowering high bandwidth and power consumption in data centers is accelerating the industry growth. Also, rising demand for disaster recovery and data backup services to enable business continuity is positively impacting the market growth. Furthermore, the shifts towards cloud-based services is expected to further boost the market size in the ensuing years. On the contrary, high initial investment and distances between data centers presents a challenge to the deployment of interconnection solutions which is projected to impede market growth in the approaching years.

As per the regional analysis, North America data center interconnect market will continue to display strong growth trends owing to surging demand for wireless & touch interactivity, and demographic analytics in the region. Moreover, the presence of major players in the region are supporting the business outlook in North America.

Meanwhile, Asia Pacific data center interconnect market is expected to show robust growth over the forecast timeline, primarily due to increasing adoption of optical interconnects in data centers, and in metro & long-haul networks. Increasing density of data centers catering to the Cloud is also contributing to the regional market growth. With respect to the Cloud scene, there are about 1137 data centers in the region, of which 244 are in Australia, 200 in Japan, 119 in India, and 99 in China.

Key players in global data center interconnect market are NOKIA Corporation, Ciena Corporation, Huawei Technologies Co. Ltd., Infinera Corporation, Juniper Network Inc., ADAVA Optical Networking SE, Extreme Network, Cisco Systems Inc., Colt Technology Services Group Ltd., and Fujitsu Ltd.

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