Data Center Interconnect Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Products, Software, and Services), By Application (Real-time Disaster Recovery & Business Continuity, Workload & Data Mobility, and Shared Data & Resources), By End User (Communication Service Providers, Internet Content Providers, Government and Enterprises), By Region 2018-2028
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: ICT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationData Center Interconnect Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Products, Software, and Services), By Application (Real-time Disaster Recovery & Business Continuity, Workload & Data Mobility, and Shared Data & Resources), By End User (Communication Service Providers, Internet Content Providers, Government and Enterprises), By Region 2018-2028
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
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
Market Segmentation
Market players
| 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 |
| 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. |
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| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
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