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Data Center Interconnect Market - Sales Revenue, Competitive Landscape and Forecast 2023

Market Overview

The global data center interconnect market is anticipated to surpass a valuation of USD 6.5 billion, attaining a CAGR of 11% during the forecast period (2017-2023), Market Research Future (MRFR) unveils in a detailed report.
The global data center interconnect is majorly driven by big data, cloud computing, and compelling economics of virtualization. The soaring demand for data backup and disaster recovery are propelling the market growth to a great extent. Datacenter interconnects assists in the reduction of high-power consumption and high bandwidth requirements across data centers, which are likely to contribute to the market growth across the globe.
To address high volumes of data traffic, the number of data centers in metros has been growing at a rapid pace. This has led to the increasing need for low latency and high-quality data transfer, resulting in increased use of 5G networks. machine-to-machine data transfer is also expected to gain huge traction in the coming years. With the introduction of multi-cloud environments and hybrid cloud solutions, addressing the demand for bandwidth has become a major concern for the enterprises. To adhere to such challenges, vendors are offering data center interconnect solutions, which offer smooth connectivity between data centers. Thus, the surging number of metro data centers is likely to trigger the demand for data center interconnect solutions across the globe.
On the contrary, high initial investments are considered to vitiate the market growth in the foreseeable future. Moreover, the distance between data centers helps to reduce efficiency, which is expected to restrict its growth across the globe.
Segmental Analysis
By type, the data center interconnect market is segmented into service, hardware, and software. Of these, the services segment is predicted to gain prominence. The segment is further classified into managed service and professional service, which aids in maximizing the network performance and uptime, reduces capital and operational costs and minimizes operational risk. Such benefits are likely to propel the market in the service segment.
By application, the data center interconnect market is segmented into real-time disaster recovery and business continuity, workload & data storage mobility, and shared data and resources/server high-availability clusters.
By end users, the data center interconnect market is segmented into enterprise, CNPs/ICPs, CSPs, government, and others. Of these, the enterprise segment is predicted to command the major share. The segment includes utility and power, banking and finance, media and entertainment, healthcare, retail and e-commerce, and others. Data application and application for dynamic workload scheduling, specifically for cloud-based applications, is predicted to augment the market’s growth in the enterprise segment.
Regional Frontiers
Geographically, Data Center Interconnect Market spans across Europe, Asia Pacific, North America, and Rest of the World (RoW).
Considering the global scenario, Asia Pacific is likely to command the highest CAGR due to the presence of nations like Japan, India, and China. The rapid adoption of the internet and cloud infrastructure are likely to impact the regional market positively. Surging adoption of latest technologies and soaring R&D activities, concerning rising demand for data center is estimated to fuel the data center interconnect market in the APAC. The recent growth witnessed in R&D in the field of technology, coupled with the surging demand for data center in order to practice cost-effective data management, will positively reflect on the growth of the regional market.
North America is anticipated to exhibit a healthy growth rate, mainly due to the existence of the latest technologies and surging investments in the region. Huge availability of next-generation technologies, coupled with the growing investments from market players, are promoting the market growth. Utilization of data centers across business verticals is influencing the market growth to a large extent. The growth is majorly driven by the U.S., where data centers manage the high volume of data generated.
Industry Updates
July 2019: Right after AT&T joined hands with Microsoft and IBM for cloud service connectivity, Verizon declared a software-defined interconnect, which can assist the carrier's customers to connect Equinix colocation data centers.
Competitive Dashboard
The key players operating in the global data center interconnect market include Ciena Corporation (US), Huawei Technologies Co., Ltd. (China), Nokia Corporation (Finland), ADVA Optical Networking SE (Germany), Cisco Systems, Inc. (the US), Juniper Networks, Inc. (the US), Fujitsu Ltd. (Japan), Extreme Networks, Inc. (the US), and Infinera Corporation (US).
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