Data Center Interconnect Market 2018-2028 By Size, Share, Trends, Growth, Forecast

Report Description

Global Data Center Interconnect Market is expected to grow at a robust pace in the forecast period 2024-2028 owing to expansion towards the cloud across the globe and is one of the key reasons driving the development of server farm interconnect market. Organizations use data center interconnects to support applications like business continuity and disaster recovery, and cloud infrastructure is in high demand for its flexibility and agility. The market is further influenced by the rising demand for data centers that are more cost-effective and efficient, the expansion of cloud computing, and the recent rise in the consumption of OTT services as a result of the nationwide lockdown.

Data Center Interconnect (DCI) is a technology using high-speed packet-optical connectivity which connects two or more data centers together over short, medium, or long distances by the help of high-speed packet-optical connectivity. Through DCI, routers and servers are connected to each other or maybe to multi-tenant data centers, providing the users with the right cloud applications and services. DCI has connectivity solutions for multiple layers of the network. It is built form an optical layer, with packet-optical technology, or the packet layer, with switches and routers. Apart from being managed by an operator, any user can build a solution for themselves.

Due to their high compliance with the industry's leading certification programs, the data center facilities are more secure and certified. DCI links enable stronger traffic encryption, making information sharing safer. Additionally, DCI permits businesses to implement QoS and other necessary policies to guarantee high-quality performance. DCI productively upholds various association types, which furnishes associations with adaptability in choosing how to designate responsibilities.

By 2025, the amount of data generated each day will reach 180 ZB, according to Huawei. It's possible that the proportion of unstructured data—such as raw voice, video, and image data—will continue to rise, reaching over 95% in the not-too-distant future. In order to meet the requirements of rapid service development, data communication network (DCN) and data center interconnect (DCI) solutions are increasingly concerned with rapidly increasing DCN and DCI bandwidth to guarantee zero packet loss, low latency, and high throughput of lossless networks. A 10 Tbit/s Wavelength Division Multiplexing (WDM) interconnection network has replaced the DCI network that connects data centers. Additionally, data center service providers are making investments to enhance their cloud and colocation capabilities. The interconnected data center market is primarily becoming a global investment hotspot thanks to end-user businesses like telecom and financial institutions choosing to construct their own data centers. Due to data center expansion and distribution, enhanced fiber utilization, low-cost pluggable modules, and the public sector, OTT, ISP, and other industries are developing DCI network use cases.

Rising migration to cloud-based solutions is driving the growth of Global Data Center Interconnect Market

As the architecture of web-based applications was not complicated, it meant that multiple applications were able to host on shared server without any compromise on the performance. Though, as the number of users kept increasing along with the complexity of apps, shared hosting became less effective. Moreover, users began to experience issues when businesses migrated their apps to dedicated VPS hosting. This meant that business owners were left with no option but to purchase an entire dedicated server. One of the main challenges was the migration of application to the new VPS server. But the enormous cost of the server was later realized by the firms. This led to server's resource being left idle for quite some time. Additionally, the decision for dedicated server proved to be a wrong one as companies were paying for the entire server irrespective of resource utilization, forcing the firms to use cloud-based solutions. Setting up of applications while enabling users to access their browsers rather than downloading them on their devices is made easier by migrating to cloud. The above factors are expected to drive the growth of Global Data Center Interconnect Market during the forecast period.

Rise in need for disaster recovery and business continuity is thriving the growth of Global Data Center Interconnect Market

Disaster recovery has been a concern for data center users globally. IT infrastructure facilities are prone of being affected by earthquakes, security breaches, fires, and other natural & man-made disasters. Companies must have effective disaster recovery plans in place to avoid any significant losses in the event of a disaster which can cause millions of billions of dollars. As data center interconnection facilities are away from user’s locations, they are less vulnerable to natural disasters. Remote control of these facilities enhances their disaster recovery capabilities.

Data Center Interconnect enables businesses to store important data in a remote location, making interconnection facilities an important tool to a popular backup and recovery option. As a result, business continuity can be guaranteed by having a DCI solution that is long-lasting and safe. Thus, it is expected that the above factors would drive the Global Data Center Interconnect Market during the forecast period.

High initial investment required in setting up data centers and Capacity limitations is expected to hinder the growth of Global Data Center Interconnect Market

When planning to set up a data center, there are a few things to take into consideration. Engineering permits and approvals, power systems, generators with enclosures, generator conduit and cabling, data center lighting, lighting protection, HVAC, fire suppression, and other aspects fall under this category. These expenses can quickly add up to capital investments.

Additionally, data is stored and delivered in data centers as required by applications. Datasets frequently enter or exit a data center with sizes ranging from hundreds of gigabits to terabits. Data center operators face significant capacity planning and network engineering difficulties as a result of skyrocketing video, social media, and distributed application traffic. Analytics, machine learning, and Internet of Things (IoT) workloads are presenting significant capacity constraints.

Thus, the above factors are expected to cause hindrance to the growth of Global Data Center Interconnect Market.

Latest developments fueling the growth of Global Data Center Interconnect Market

· In June 2022, Equinix Inc. announced making an initial investment of more than USD86 million to construct its third International Business Exchange (IBX) data center in Mumbai and give it the name MB3. The acquisition of a land parcel with a total area of nearly 4 acres was a part of this initial investment. The retail data center sub-market known as Mumbai's Commercial district (Chandivali area) is where MB3 IBX would be strategically situated. It would be 1.5 kilometers away from Equinix's MB1 IBX data center and adjacent to Equinix's MB2 IBX data center. The first phase of MB3 is expected to open in the second quarter of 2024. Initially, it would have a capacity of more than 1,375 cabinets, but when fully built out, it would have a capacity of over 4,150 cabinets.

· In 2021, NTT Ltd., provider of technology services announced the launch of its Global Data Center Interconnect (GDCI), which would help in delivering private and secure connections between NTT’s global data centers and other cloud service providers by using a single physical port supporting multiple virtual network services. The company's GDCI will be built on software-defined network technology. NTT's Serangoon Data Center will start its journey from Singapore, Financial Data Centers 1 and 2 in Hong Kong, Bangkok Data Centers 1 and 2 in Bangkok and will be connected in other parts of the world later on. Clients would get the options to choose form Cloud Service Providers (CSPs), Software as a Service Providers (SaaS), Internet Exchanges Providers (IXs) and Interconnect Providers in a secure and efficient way.

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Market Segmentation

The Global Data Center Interconnect Market is segmented based on type, application, end user and region. Based on type, the market is bifurcated into products, software and services. Based on application, the market is bifurcated into real-time disaster recovery & business continuity, workload & data mobility and shared data & resources. Based on end user, the market is bifurcated into communication service providers, internet content providers, government and enterprises. Based on region, the market is further bifurcated into North America, Asia-Pacific, Europe, South America, Middle East & Africa.

Market players

The main market players in the Global Data Center Interconnect Market are Ciena Corp., Cisco Systems Inc., Juniper Networks Inc., Fujitsu Ltd., Microsemi Corp., Pluribus Networks Inc., Huawei Technologies Co. Ltd., ADVA Optical Networking SE, Infinera Corp., ZTE Corporation.

Attribute	Details
Base Year	2022
Historic Data	2018– 2022
Estimated Year	2023
Forecast Period	2024 – 2028
Quantitative Units	Revenue in USD Million and CAGR for 2018-2022 and 2023-2028
Report coverage	Revenue forecast, company share, growth factors, and trends
Segments Covered	Type Application End User Region
Regional scope	North America, Asia-Pacific, Europe, South America, Middle East & Africa
Country scope	United States, Canada, Mexico, China, India, Japan, South Korea, Australia, Germany, United Kingdom, France, Italy, Spain, Brazil, Argentina, Colombia, Saudi Arabia, South Africa, UAE
Key companies profiled	Ciena Corp., Cisco Systems Inc., Juniper Networks Inc., Fujitsu Ltd., Microsemi Corp., Pluribus Networks Inc., Huawei Technologies Co. Ltd., ADVA Optical Networking SE, Infinera Corp., ZTE Corporation.
Customization scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Report Scope:

In this report, Global Data Center Interconnect Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

o Data Center Interconnect Market, By Type:

o Products

o Software

o Services

o Data Center Interconnect Market, By Application:

o Real-time Disaster Recovery & Business Continuity

o Workload & Data Mobility

o Shared Data & Resources

o Data Center Interconnect Market, By End User:

o Communication Service Providers

o Internet Content Providers

o Government and Enterprises

o Data Center Interconnect Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Asia-Pacific

§ India

§ Japan

§ South Korea

§ Australia

§ China

o Europe

§ Germany

§ United Kingdom

§ France

§ Italy

§ Spain

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East

§ Saudi Arabia

§ South Africa

§ UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Data Center Interconnect Market.

Available Customizations:

Global Data Center Interconnect Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to ten).

The Global Data Center Interconnect Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Baseline Methodology

2.2. Key Industry Partners

2.3. Major Association and Secondary Sources

2.4. Forecasting Methodology

2.5. Data Triangulation & Validation

2.6. Assumptions and Limitations

3. Executive Summary

4. Voice of Customers

5. Global Data Center Interconnect Market

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Products, Software and Services)

5.2.2. By Application (Real-time Disaster Recovery & Business Continuity, Workload & Data Mobility and Shared Data & Resources)

5.2.3. By End User (Communication Service Providers, Internet Content Providers, Government and Enterprises)

5.2.4. By Region

5.3. By Company (2022)

5.4. Market Map

6. North America Data Center Interconnect Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Application

6.2.3. By End User

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Data Center Interconnect Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Application

6.3.1.2.3. By End User

6.3.2. Canada Data Center Interconnect Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Application

6.3.2.2.3. By End User

6.3.3. Mexico Data Center Interconnect Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Application

6.3.3.2.3. By End User

7. Asia-Pacific Data Center Interconnect Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Application

7.2.3. By End User

7.2.4. By Country

7.3. Asia-Pacific: Country Analysis

7.3.1. China Data Center Interconnect Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Application

7.3.1.2.3. By End User

7.3.2. India Data Center Interconnect Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Application

7.3.2.2.3. By End User

7.3.3. Japan Data Center Interconnect Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Application

7.3.3.2.3. By End User

7.3.4. South Korea Data Center Interconnect Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Application

7.3.4.2.3. By End User

7.3.5. Australia Data Center Interconnect Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Application

7.3.5.2.3. By End User

8. Europe Data Center Interconnect Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Application

8.2.3. By End User

8.2.4. By Country

8.3. Europe: Country Analysis

8.3.1. Germany Data Center Interconnect Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Application

8.3.1.2.3. By End User

8.3.2. United Kingdom Data Center Interconnect Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Application

8.3.2.2.3. By End User

8.3.3. France Data Center Interconnect Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Application

8.3.3.2.3. By End User

8.3.4. Spain Data Center Interconnect Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Application

8.3.4.2.3. By End User

8.3.5. Italy Data Center Interconnect Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Application

8.3.5.2.3. By End User

9. South America Data Center Interconnect Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Application

9.2.3. By End User

9.2.4. By Country

9.3. South America: Country Analysis

9.3.1. Brazil Data Center Interconnect Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Application

9.3.1.2.3. By End User

9.3.2. Argentina Data Center Interconnect Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Application

9.3.2.2.3. By End User

9.3.3. Colombia Data Center Interconnect Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Application

9.3.3.2.3. By End User

10. Middle East & Africa Data Center Interconnect Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Application

10.2.3. By End User

10.2.4. By Country

10.3. Middle East & Africa: Country Analysis

10.

10.1.

10.2.

10.3.

10.3.1. Saudi Arabia Data Center Interconnect Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Application

10.3.1.2.3. By End User

10.3.2. South Africa Data Center Interconnect Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Application

10.3.2.2.3. By End User

10.3.3. UAE Data Center Interconnect Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Application

10.3.3.2.3. By End User

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

13. Company Profiles

10.

11.

12.

13.

13.1. Ciena Corp.

13.1.1. Business Overview

13.1.2. Key Revenue and Financials

13.1.3. Recent Developments

13.1.4. Key Personnel

13.1.5. Key Product/Services Offered

13.2. Cisco Systems Inc.

13.2.1. Business Overview

13.2.2. Key Revenue and Financials

13.2.3. Recent Developments

13.2.4. Key Personnel

13.2.5. Key Product/Services Offered

13.3. Juniper Networks Inc.

13.3.1. Business Overview

13.3.2. Key Revenue and Financials

13.3.3. Recent Developments

13.3.4. Key Personnel

13.3.5. Key Product/Services Offered

13.4. Fujitsu Ltd.

13.4.1. Business Overview

13.4.2. Key Revenue and Financials

13.4.3. Recent Developments

13.4.4. Key Personnel

13.4.5. Key Product/Services Offered

13.5. Microsemi Corp.

13.5.1. Business Overview

13.5.2. Key Revenue and Financials

13.5.3. Recent Developments

13.5.4. Key Personnel

13.5.5. Key Product/Services Offered

13.6. Pluribus Networks Inc.

13.6.1. Business Overview

13.6.2. Key Revenue and Financials

13.6.3. Recent Developments

13.6.4. Key Personnel

13.6.5. Key Product/Services Offered

13.7. Huawei Technologies Co. Ltd.

13.7.1. Business Overview

13.7.2. Key Revenue and Financials

13.7.3. Recent Developments

13.7.4. Key Personnel

13.7.5. Key Product/Services Offered

13.8. ADVA Optical Networking SE

13.8.1. Business Overview

13.8.2. Key Revenue and Financials

13.8.3. Recent Developments

13.8.4. Key Personnel

13.8.5. Key Product/Services Offered

13.9. Infinera Corp.

13.9.1. Business Overview

13.9.2. Key Revenue and Financials

13.9.3. Recent Developments

13.9.4. Key Personnel

13.9.5. Key Product/Services Offered

13.10. ZTE Corporation

13.10.1. Business Overview

13.10.2. Key Revenue and Financials

13.10.3. Recent Developments

13.10.4. Key Personnel

13.10.5. Key Product/Services Offered

14. Strategic Recommendations

15. About Us & Disclaimer

Figures and Tables

Frequently asked questions

How are Data Centers connected?

A coaxial or fiber optic cable connects modems in a data center to the internet. A coaxial cable connects wires that typically run in bulk through the data center and beneath the ground. Technically, every wire is connected in some way, but the exact location of that connection may vary.

What are the challenges in the Global Data Center Interconnect Market?

High initial investment required in setting up data centers and Capacity limitations are causing hindrance to the growth of Global Data Center Interconnect Market.

Who are the major market players in the Global Data Center Interconnect Market?

Major market players are Ciena Corp., Cisco Systems Inc., Juniper Networks Inc., Fujitsu Ltd., Microsemi Corp., Pluribus Networks Inc., Huawei Technologies Co. Ltd., ADVA Optical Networking SE, Infinera Corp., ZTE Corporation

Which region dominated the Global Data Center Interconnect Market in 2022?

Europe dominated the market in 2022. The European data center industry's investment in the interconnect market is being driven, in large part, by the rising number of data centers, rising investments in cloud technologies, and expanding end-user markets. The Personal Data Protection Initiative (Gaia-X) and other stringent regional laws boost the region's local data center construction and development even further.

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