USD 8.47 Billion
Report ID:
SQMIG45H2076 |
Region:
Global |
Published Date: December, 2024
Pages:
175
|Tables:
91
|Figures:
70
Global Data Center Interconnect Market size was valued at USD 8.47 Billion in 2022 and is poised to grow from USD 9.53 Billion in 2023 to USD 24.64 Billion by 2031, growing at a CAGR of 12.6% in the forecast period (2024-2031).
A key constituent of modern data centers' architecture, the data center interconnect industry, supports high-speed, high-capacity communication across geographically dispersed facilities. Data-intensive applications such as cloud services, big data analytics, disaster recovery, and business data mobility require DCI technology. The leading DCI solutions that facilitate flexible and scalable data transfer across data centers include SDN and optical transport systems. The demand for DCI solutions is on the rise as more and more businesses, content providers, and telecom carriers are increasingly using multi-cloud and hybrid environments. The rate of innovation in the industry has been quite fast, and the leading companies now offer high-end DCI services that can cater to increasing demand for dependable, secure, and low-latency data connections. Due to an explosion of data, the growth in edge computing, and effective interconnection requirements, DCI today is a critical part of global digital transformation projects. Higher reliability in interconnection is because of the massive growth brought about by data traffic thanks to the Internet of Things and 5G, and streaming services. Continuity of business operations and disaster recovery, aided by redundancy of data and risk management, the replication of data across locations, are factors pushing demand for DCI. SDN and NFV have also made DCI solutions more scalable and effective, thus catching the interest of many industries. Moreover, DCI solutions are needed to handle high-speed large-scale data flow as hyperscale data centers, like those of IT giants, grow their networks.
Global Market Size
USD 8.47 Billion
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
12.6% CAGR
To get more reports on the above market click here to Buy The Report
The global data center interconnect market is segmented into type, application, end use, and region. By type, the market is classified into hardware, software, and services. Depending on the application, it is categorized into disaster recovery & business continuity, shared data & resources, and workload & data mobility. According to end use, the market is divided into communications service providers (CSPs), internet content providers & carrier-neutral providers (ICPs/CNPs), government/research & education, and others. Regionally, the market is studied across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
Analysis by Type
Based on the 2024 data center interconnect market forecast, the highest share was held by the hardware category, with more than 56%. 5G networks and edge computing are propelling the requirement for data center interconnect equipment to manage massive amounts of data that are not centralized. 5G enables extremely fast data rates and low-latency connections, most suitable for real-time applications in the consumer, healthcare, and automotive sectors. Edge computing reduces latency and bandwidth issues by processing data near to its source. For smooth integration of dispersed edge sites with central data centers though, reliable data center interconnect hardware is required. These are the switches, high-speed routers, and optical transceivers that form the backbone of current network infrastructure because they promise reliable, fast data transfer required for 5G and edge applications. Edge computing and 5G together fuel the growth of the hardware segment.
However, growing demands for network automation are projected to drive the steady rise of the software segment in the data center infrastructure, or data center interconnect market over the forecast period. Data center interconnect software becomes a crucial aspect as businesses look toward optimizing their data center operations, thus reducing human error. This program enables centralized control, routine job automation, and simplified management across networked data centers. Data center interconnect software ensures consistency in complicated situations by increasing efficiency and lowering operating expenses. This is very important to companies dealing with large amounts of data and are trying to keep their network architecture robust and efficient. Data center interconnect software will be essential in driving operational excellence and agility as businesses grow.
Analysis By Application
In 2024, the market was dominated by the disaster recovery & business continuity category. Since most organizations rely on cloud and hybrid infrastructures, it has now become important that there should be reliable disaster recovery of all the different data centers. Data center interconnect solutions make effective data redundancy and real-time backup possible as they provide seamless communication between on-premises systems and cloud settings. This integration supports business continuity by providing constant data availability and reduced data loss in case of an outage. Organizations may enhance disaster recovery procedures and capabilities due to the strong interconnection offered by DCI across diverse infrastructures.
As per the data center interconnect market analysis, the market share for the shared data & resources category is expected to rise gradually. As multi-cloud strategies grow among companies, they increase demand for data center interconnect solutions as this type of connection streamlines smooth interaction across many cloud providers and on-premises data centers, thus further sharing of resources between multiple setups enhance the flexibility and scalability for business operations. Using data center interconnect optimizes the business IT infrastructure and resources without suffering from vendor lock-in and with the possibility of choosing the best services available from multiple cloud providers.
To get detailed analysis on other segments, Request For Free Sample Report
During the year 2024, the data center interconnect industry is dominated by North America as the region represented more than 38 percent of the markets. The superiority emanates due to presence of several leading company’s telecommunication business in this region in addition to prominent vendors coming from an industry lineup with aggressive plan that comes at installing current and advanced technologies, aiming operational performance in efficiency. Highly developed ICT infrastructure in addition supports this development in the market by means of considerable data center clusters of the size of New York, Los Angeles, Chicago, and Washington, DC. This calls for an advanced solution for DCI with sustainability support because those cities have importance as centering hubs for data storage and movement.
The Asia-Pacific market is growing at a compound annual growth rate (CAGR) of 13.7% between 2024 and 2031. With businesses adopting cloud computing, big data analytics, and IoT technologies at an accelerating pace, the region is witnessing a rapid digital transformation. This change is driving the demand for efficient DCI solutions that ensure seamless data flow and communication between geographically dispersed systems. DCI solutions become inevitable for ensuring reliable, quick communications that enable companies to maximize their digitization, productivity, and performance to maintain operational efficiency. The requirement of rapid and safe data transfer will be critical while meeting the increasing needs of the region with more evolved digital capabilities.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Drivers
Digital Transformation
Requirements for Network Scalability
Restraints
Data Security Issues
Operational Challenges
Request Free Customization of this report to help us to meet your business objectives.
The companies that drive competitiveness in the industry include Cisco Systems, Juniper Networks, Huawei Technologies, Arista Networks, and Mellanox Technologies. Such companies provide high-performance interconnect solutions through different Ethernet and optical technologies to ensure scalable, secure, and effective connectivity in the data center. In response to industrial and market demands, large companies of the economy focused on continuous innovation, strategic alliances, and diversification of their products.
Top Player’s Company Profile
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the strong expansion in the data center interconnect market is driven by increasing data traffic, growing popularity of cloud computing, and growing needs for smooth, fast communication across dispersed data centers. Increasing companies' need for effective, scalable, and secure DCI solutions continues to grow. Although there are still challenges such as high startup costs, integration complexities, and data security threats, these are mitigated by new technology and a strong focus on automation and software-defined networking. The market is well-positioned to further grow, with major growth areas such as cloud services, IoT, and AI-driven solutions, due to key players who are innovating to meet changing demands.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 8.47 Billion |
Market size value in 2031 | USD 24.64 Billion |
Growth Rate | 12.6% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
|
Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
|
Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Data Center Interconnect Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Interconnect Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Interconnect Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Interconnect Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Report ID: SQMIG45H2076
sales@skyquestt.com
USA +1 351-333-4748