Northbrook, IL 60062 -- (SBWIRE) -- 09/12/2022 -- The data center interconnect market is projected to grow from USD 8.6 billion in 2021 to reach USD 17.0 billion by 2026; it is expected to grow at a CAGR of 14.5% from 2021 to 2026.
The rising migration to cloud-based solutions, growing borderless nature of global economy coupled with surging consumption of OTT services due to nationwide lockdown imposed on account of COVID-19 is expected to fuel the growth of the data center interconnect market.
Key Market Players
Major vendors in the data center interconnect market include Ciena Corporation (US), Nokia Corporation (Finland), Huawei Technologies (China), Juniper Networks, Inc. (US), Infinera Corporation (US), ADVA Optical Networking SE (Germany), Cisco Systems (US), Extreme Networks, Inc. (US), Fujitsu Ltd (Japan), Colt Technology Services Group Limited (UK), Eqiunix (US). Apart from these, ZTE Corporation (China), Megaport (Australia), Brocade Communication Systems Inc. (US), Evoque Data Center Solutions (US), CoreSite Realty Corporation (US), Digital Realty Trust, Inc (US), Fiber Mountain (US), Flexential (US) and Cyxtera Technologies (US) are among a few emerging companies in the data center interconnect market.
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Market for carrier-neutral providers/internet content providers expected to grow at a considerable CAGR during the forecast period
The DCI market for carrier-neutral providers/internet content providers is expected to witness significant growth rate during the forecast period. The carrier-neutral//internet content providers operate most of the data centers and host thousands of servers. These data centers require terabits of optical transport capacity over metro, regional, and long-haul distances, which can be achieved by linking and transporting traffic between data centers using DCI. This requirement is expected to lead to a growing demand for DCI solutions by CNPs and ICPs during the forecast period.
Market for optical DCI product type segment expected to grow at a faster rate, than that of packet-switching networking during the forecast period
The market for the optical DCI product type is expected to grow at a higher CAGR during the forecast period owing to the increasing demand for as optical DCI products provide benefits including more capacity and lower power consumption for high-performance DCI. These products help meet the bandwidth needs of the most demanding cloud applications and data services, thus leading to their high demand. Optical DCI transmission technologies are generally able to provide higher data rates over longer transmission distances than electrical transmission systems, leading to increased scalability and reduced power consumption. Hence, recent high-capacity data centers are increasingly relying on optical point-to-point interconnection links.
Data Center Interconnect market for services segment to exhibit the fastest growth during the forecast period
The demand for services is expected to grow owing to the benefits such as achieving critical targets and developing skillset for improving their internal planning and control process to remotely manage customer's IT infrastructure/systems of end users. The market for managed services is expected to grow at a high rate during the forecast period owing to their benefits, such as remote management of customers' IT infrastructure and systems of end users, typically on a proactive basis and under a subscription model.
Data Center Interconnect Market in APAC estimated to grow at the fastest rate during the forecast period
The market in APAC is expected to grow at the highest CAGR during the forecast period. The APAC DCI market holds huge growth opportunities due to the presence of various developing countries in the region, such as China, Japan, South Korea, and others, which are witnessing increasing adoption of DCI networks due to increasing investments and new developments with context to DCI offerings.